How Focusing on Whales (and Ignoring the Minnows) Built a $35M+ Business

There’s nothing easy about growing a business. However, to make matters worse, most entrepreneurs make the mistake of chasing too many customers and at too high a price point. Jonathan Goodman, an author, entrepreneur, and founder of multiple fitness and software businesses, took a vastly different approach. Using what he calls the “Whales and Minnows” philosophy, he grew his customer base to 200,000 across 120 countries and scaled his business to over $35 million.

But Jonathan’s story isn’t just about business. Throughout his life, he has practiced contrarian thinking, whether in wealth building, investing, or even in designing his lifestyle. Whether closing down successful ventures or betting big on Bitcoin, his journey proves the power of building a philosophy first before acting.

So, what exactly is the Whales and Minnows strategy, and how can you apply its lessons to your own life and business? Well, let’s find out.

The Whales and Minnows Philosophy

At its core, Jonathan’s philosophy is simple:

“Make it free or make it expensive. Show up fully or don’t show up at all.”

Today, startups can be easily launched thanks to smartphones, affordable websites, and social media. The biggest trap in modern entrepreneurship, he argues, though, is the abundance of “half measures.” At the same time, it has never been easier to do mediocre work. Often, entrepreneurs confuse activity with progress-and then wonder why they burn out.

By serving two very distinct groups of customers, Jonathan avoids this trap:

• Whales. High-value clients who will pay premium prices for coaching or programs. In addition to offering high profit margins, these clients also ensure a consistently high level of service and support.
• Minnows. Typically, entry-level customers read books, download free resources, and use low-cost software. While they do not require ongoing support, Jonathan’s ecosystem still benefits them.

Some minnows eventually grow into whales. Some never do. Since Jonathan has set clear expectations for each group, he is fine with either outcome.

Drawing the Line on Service

As a result of Jonathan’s discipline in defining where he draws the line on service, his approach is highly effective.

$15–$20 for a book? Because readers don’t expect personal support, it’s infinitely scalable.

A low-cost membership site? In theory, it sounds great, but in reality, it involves constant customer service needs, churn management, and creating an endless amount of content. For example, Jonathan launched three membership sites, one of which generated over seven figures in revenue. Simply put, the effort-to-reward ratio wasn’t worth it.

The expectation of service on the part of books is zero, he explains. But membership sites require too much energy, so he would rather save it for whales.

By being clear about his priorities, he can focus his energies and time on what matters most.

Coaching as a Cash Machine

Coaching is one of Jonathan’s highest-margin businesses, while many entrepreneurs dismiss it as unscalable. With his premium coaching programs operating at roughly 65% profitability, he produces reliable cash flow to fund his other businesses.

The secret? Jonathan isn’t the one who manages clients. He admits that he excels at starting things, but struggles with managing them in the long run. Instead, he creates businesses, installs strong operators, and then steps back.

Even without his direct involvement, the programs thrive because his coaches and managers are motivated to retain clients.

The Power of Incentives

One theme Jonathan returns to often is the power of properly structured incentives.

In his view, one highly motivated employee, properly incentivized, is worth 50 to 100 average employees.

To accomplish this, Jonathan is willing to be generous:

• Depending on the business, 50% of the profits are shared with the operators and staff.
• Sales teams earn primarily on commission.
• In addition to signing clients, coaches are rewarded for keeping them in the long term.

With this model, everyone’s success is closely aligned with the company’s health. Payroll isn’t a fixed burden. Instead, it rises naturally with revenue.

Software for the Minnows

QuickCoach is a textbook example of Jonathan’s minnows strategy. Rather than chasing enterprise clients or feature-bloated platforms, he built software for underserved personal trainers.

QuickCoach is designed to be simple: no unnecessary integrations, no endless complexity. Essentially, it’s the Casio watch of coaching software — it’s affordable, reliable, and scalable, with minimal support requirements.

With this strategy, Jonathan not only expands his reach but also develops brand trust across his entire ecosystem.

From Real Estate to Rethinking Wealth

In addition to his commercial acumen, Jonathan also possesses a keen sense of personal wealth. Like many entrepreneurs, he began in real estate. Throughout Canada, he and his wife Alison bought, renovated, and rented properties. It worked for some, but not for others. Despite owning 13 properties outside of Toronto, he was disappointed with the returns.

In response, he reevaluated his strategy. Rather than pursuing more deals, he and Alison questioned the following:

• What’s enough?
• How do we strike a balance between lifestyle and security?
• Where should we place our bets to sleep well at night?

Their answer? A four-bucket framework of wealth:

1. Stocks
2. Real estate
3. Bitcoin
4. Personal brand reputation

As a result of diversification and risk management, each bucket played a specific role. However, one bucket, Bitcoin, would change everything.

Why Goodman Bet on Bitcoin

Bitcoin first caught Jonathan’s attention when he studied money in general. Whether it’s seashells, paper bills, or digital coins, money is essentially a story we all believe in.

He realized that Bitcoin was just another story. However, it had something extraordinary: millions of believers worldwide. As adoption increased, the odds of it failing decreased.

Moreover, he recognized that it was the ultimate asymmetric bet:

• He would lose a manageable amount of money if it failed.
• The upside would be life-changing if it were to succeed.

Making the Bet

Between late 2019 and 2020, Jonathan began investing 15% of his holding company’s funds in Bitcoin. He didn’t try to time the market. Instead, he built discipline into the process, sometimes investing $100,000 in one shot, other times buying $8,000 to $9,000 every Friday.

In total, he invested about $150,000, purchasing coins for between $30,000 and $66,000 each. Then came the crash, which brought it down to $16,000.

It stung. Despite this, Jonathan didn’t panic-sell. Having built his philosophy first, he had the conviction to hold on to it.

Why It Worked

Jonathan’s success with Bitcoin reflects his business philosophy:

• Clarity of purpose. It was clear why he was making the purchase.
• Asymmetry. His bet was structured so that the upside was greater than the downside.
• Patience. By trusting his long-term plan, he remained calm.

Bitcoin was not a hype to him. It was part of a long-term plan to eliminate money stress.

Conclusion

As Jonathan’s journey demonstrates, success in both investing and business depends on a clear philosophy, disciplined execution, and the courage to avoid half measures.

In serving whales with premium coaching or minnows with scalable software, Jonathan’s actions were consistent with his beliefs. Clearly, he knows who he serves, what he stands for, and where he is willing to bet.

Ultimately, that’s why his “Whales and Minnows” strategy has scaled to over $35 million—and why his story can inspire entrepreneurs everywhere.

Key Takeaways

• Make it free or make it expensive. Don’t fall into the trap of middle-ground products that are overpriced.
• Define service expectations. Books scale because buyers expect zero support; memberships fail when expectations outstrip the model.
• Leverage coaching profitably. When paired with the right operators, high-ticket coaching can be a money machine.
• Align incentives. Your business will thrive with motivated teams driven by profit sharing and performance-based rewards.
• Build simple tools for minnows. By providing low-maintenance products to underserved markets, a massive reach can be achieved.
• Think in buckets of wealth. Resilience comes from diversifying assets, including stocks, real estate, Bitcoin, and reputation.
• Bet asymmetrically. Similar to Jonathan’s Bitcoin play, structure bets so you can profit from the upside while surviving the downside.

Featured Image Credit: Karolina Grabowska; Pexels: Thank you!