From Failure to Fully Booked in 2-Weeks With Zero Marketing Budget – Miguel Hernandez

Grumo Media, Demo Video Miguel Hernandez

Starting and growing an online business doesn’t have to be hard…IF you’re using the right strategy.

Learn how Miguel Hernandez went from business failure to starting Grumo Media and attracting 40 high-profile clients (including Actor Ashton Kutcher) begging for him to produce their product demo videos in 2-weeks…with zero marketing budget.

Originally, I interviewed Miguel Hernandez to learn how to create persuasive videos that can double your websites response rate (Part 2 of his video coming soon) but we spent the first half of the interview discussion the strategy he used to grow his demo video production studio in just 2-weeks.

Today, Miguel is the go to demo video producer for dozens of Silicon Valley startups and celebrity clients like actor Ashton Kutcher.

Get the exact zero-budget strategy…

Tweet your thanks to Miguel for sharing this powerful strategy here


Being a self employed contractor, Miguel saw a gap in the marketplace for a time management and invoicing software that made invoicing easier for freelancers.

After a year grinding out code and spending his life savings he ran out of money. More shocking than the lack of funds in his bank account was the realization that he had no idea how to get customers to bring in the much needed cash to keep his online business alive.

“When you have zero dollars in the bank account, you have to reinvent yourself.” Confessed Miguel.

After some soul searching Miguel decided to try creating demo videos for websites. To his surprise, people began to ask him if he could do the same for them.

“You should try to validate the market as soon as possible with the least amount of investment. And you can do that today, easily.”

LESSON: ”Try to figure out if there’s people willing to pay for whatever you’re selling before spending a lot of time doing it. As opposed to spending all your time building this amazing thing and hopefully maybe someone wants it after a year.”


You may have a business idea in mind already. Learn from Miguel’s battle hardened experience and test your idea as fast and cheaply as possible before investing your time, money, hopes and dreams.


1. Create a landing page

2. Offer something of value in exchange for their email address – free report, instructions, software, e-book, etc…

3. Analyze the results.

HINT: If you can’t get people to give you their email address how are you going to convince them to give you their money when you eventually launch your product/service?

LESSON : ”Build it and they will come” is an expensive strategy of the doomed. Test the responsiveness (aka demand) of the market before you go into development.


Miguel used a simple business building strategy. He identified a company that didn’t have  a product demo video and offered it to them for free.

Why free?

Have you ever heard the dating expression, “You have to get a girlfriend to get a girlfriend?”

This adage derives from the idea that you’re not desperate and act way more confidently and are more attractive to women if you already have a girlfriend.

How does that relate to business? You need clients to get clients.

When prospective clients see that you have clients it’s a powerful signal that others in their  industry know, like and trust you…therefore you must be good. Nobody wants to work with someone who has no clients.

But here’s the key, if you’re going to invest 2 weeks of your time producing something like a demo video for a company, do it for someone who has a lot of exposure, a.k.a leverage.

Miguel made a list of 10 companies he wanted to work with. The first company Miguel pitched was Hipmunk because he liked the product and because Alexis Ohanian (@alexisohanian) is a big player in Silicon Valley who has a history of paying things forward.

His strategy worked. Hipmunk used the video, it was a huge hit and within 2 weeks Miguel had 40 companies banging on his door asking him to produce explainer videos for them.

LESSON = When you’re starting your business, it’s a smart strategy to take on free projects to build your portfolio. But if you’re going to do it, work with client’s how already have loads of exposure that you can leverage into paid clients.


Miguel lives by the philosophy, “You have to fail enough times to succeed.”

“For everything you do at least 10 times, you’re going to succeed at least once. If you don’t succeed, you’re either not trying hard enough or you need to go in a different direction.”

Miguel promised himself that he would do 10 free demo videos for clients and if none of them work he would do something else. Luckily, the first video paid off…big time.


Don’t avoid failure or rejection. Focus on getting rejection as fast as possible because it brings you 1 step closer to the money.

The 10% rule applies to dating, sports, sales, online marketing, etc…

If you’re an entrepreneur or in online marketing you need to live by the 10% rule.


A lot of entrepreneurs and marketers talk about the luck factor. In most cases, success comes from choosing the right strategy and hustling your ass off to implement that strategy. The more you hustle, the “luckier” you’ll appear to others.

Miguel chose a strategy that leveraged the popularity of other websites to gain massive exposure for his videos in order to grow his business.

If you’re trying to replicate Grumo’s business growth strategy Miguel recommends you choose companies that resonate with you and that you connect with. Because when you’re working for free you’ve got to be inspired.

His strategy worked.

[ Jason Bax : What do you think of Miguel's growth strategy? Do you have any other examples of companies using the same strategy to launch? Suggest any tweaks to the strategy? ]


  1. says

    Jason, I sooo love. that you posted this article, it is so timely for me. I was just conducting an overview class on Internet Marketing today where I was talking about similar strategies to success. I.E.: the value of doing your research and validation FIRST before launching an event, product or service of any kind. I find that far too many business owners and “newbie” marketers make the mistake of not putting that time in first only to find that they waste time HOPING things will work out – or discovering they don’t.

    If you don’t mind, I have sent this link to my students today so that they can see this video and wrap their heads around this concept a little more. I’ve also asked them to comment as well so that they can practice the art of engagement online – with other site owners.

    This all ties in with what Miguel said about “reciprocity” and “leverage”. If one can find relevant sites to engage with – and those sites engage back, link back or refer out – it all comes full circle for everyone – and everyone wins. :D

    We have to work together with others in this Online Marketing arena. It’s the only way we are going to get legitimate referrals and mentions as well as build our brand awareness / credibility.

    Miguel made another BRILLIANT move by approaching businesses that might help with that and offering his service for free. That might be in a future lesson of mine as well. But either way, I appreciate this one more than you know.

    Sincerely, Cijaye DePradine <- The RePurposing Coach

    • says

      Working together and with people who see the value in your work and spread the good word on your behalf…I’m glad to see you’re practicing Miguel’s advice and preaching it to your students. They’re lucky to have you, CJ.

      With Miguel’s lessons and your guidance those students of yours have scored…bigtime.


  2. says

    very worthwhile interview w/ the interesting conversation around the market validation process was very important, worth a re-listen.

    Perhaps you have heard of SteveBlank.Com the Stanford professor who wrote the book on How to Start a Start Up, an entrepreneurs guide to searching for a business model.

    Groumo says his discovery of a market is bang on what the startup book says, you need customer feedback on a minimum viable product ASAP, before you commit time and resources to untested ideas. it appears all his failures sharpened his process, to the point that just when he thought he had the notion to give up, he hit an idea out of the park

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