Here’s the Real Reason MoviePass is Failing So Spectacularly (Hint_ It’s Not what You Think)

MoviePass is failing in-part because it didn’t fully understand the business on which it tried to build its own empire. A slew of news interviews with theater operators points this fact out. They say the service just doesn’t understand how the cinema business works. But, perhaps more importantly, what’s caused things to go so badly in such a short time is it was always too good to be true.

In other words, the company overpromised. That’s really why the startup is quickly sputtering out-of-control. And, it’s what gets far too many fledgling companies in big time trouble. Eager to please and deliver jaw-dropping results, they promise the moon and hardly leave earth’s atmosphere.

Biggest Overpromising Pitfalls

Undoubtedly, critics say it’s time to face reality and close up shop. Irate subscribers and suing shareholders might disagree. (The former wants out, while the latter wants its investment money back.) But, it’s now apparent the movie-selling service just can’t operate as it has. And, for good reason. When you overpromise, you put undue pressure on yourself. Not to mention, you artificially raise expectations to unreachable heights.

How many times has a salesperson promised to increase your company’s exposure by 50%, double your client list, and quadruple your profit margin? In this age of instantaneous satisfaction (thanks, technology!), many entrepreneurs and corporate leaders are so eager to appease stakeholders and worried about the bottom line that they seize amorphous opportunities and are disappointed with the results. —Forbes.com

There’s more downsides to overpromising. You’re not only letting down one customer, you’re also sending a message that you just aren’t competent or capable of delivering. Then, there’s also the fact that you create resentment among your employees — toward you and each other.

3 Effective Ways to Avoid Overpromising

So, how do you avoid the trap of overpromising. After all, you want to sell your business as the solution. Here are a few helpful suggestions for how to avoid overpromising:

  • Learn your customer’s expectations first. Before you begin making promises about what you can do for someone, be sure to ask about their expectations. There’s no good reason to offer lofty solutions or goals when you don’t know what’s really needed.
  • Be completely open, honest, and transparent. As you’re talking with your customer (and with your own team), it’s very important to always be honest. One of the fastest ways to invite disaster is to keep secrets. It’s just counterproductive to hold back because it will eventually come back to bite you.
  • Keep all communications flowing between everyone involved. Communication either solves or prevents a whole lot of misunderstandings. It’s not enough to just be honest but also, to make yourself accessible. When everyone communicates, everyone is on the same page. And, that’s an invaluable element since it paves the way to success when all parties are on-board and totally in-the-know.

What other ways do you avoid overpromising? Or, what other advice would you give? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Website photo

How Sun Country Landscape Turned Red Ink Into a $7–8M Business

A 30-Year-Old Business Facing New Pressure Founded in 1991, Sun Country Landscape had spent three decades building a loyal commercial client base across Arizona. But after a change in ownership, the new owner faced a familiar small-business trap: strong reputation, thin margins. Rising labor costs, inconsistent client retention, and underperforming account managers were quietly eating into what should have been a profitable operation — and the numbers showed it. Overhead was outpacing revenue, and the company was operating at negative profitability despite steady top-line sales. Referral Leads to a Turnaround Plan In early 2021, the owner was referred to Waters Business Consulting Group by another commercial landscape client who had been through a similar transformation. The mandate was ambitious: turn Sun Country into a scalable, financially stable, and genuinely profitable company — not just a busy one. Getting there meant confronting some uncomfortable truths. Average monthly maintenance accounts were priced well under $1,000 per property, nowhere near enough to sustain healthy margins. Client and employee turnover were both high, and there was little accountability tying account managers to actual performance. Several key roles were underperforming, and nobody was tracking labor hours against budget closely enough to catch the leaks before they became a crisis. Rebuilding the Business From the Numbers Up WBCG started with the financial model — not marketing, not sales, the numbers. Together they built a pricing strategy that mapped a clear path to profitability, then layered in weekly labor-hour tracking against budgeted hours so cost overruns could be caught in real time instead of at year-end. Accountability systems tied compensation and expectations directly to labor efficiency, account retention, and enhancement sales, giving managers a reason to perform and a way to measure it. Where personnel weren’t delivering, WBCG helped the owner make the hard calls: replacing underperforming account managers with people who could execute. On the client side, the focus shifted to strengthening communication and property manager relationships to reduce the churn that had been quietly draining recurring revenue. And behind the scenes, the team worked to strengthen banking relationships, giving the business more financial flexibility and access to capital as it grew. From Negative Margins to a Multi-Million-Dollar Valuation The turnaround shows up clearly in the numbers. Revenue climbed from approximately $3.48 million in 2021 to $4.15 million in 2022, $5.06 million in 2023, and $6.44 million in 2024 — reaching $6.73 million in 2025, with $7.6 million projected for 2026. Gross profit margins improved from below 30% to a consistent 37–38%, and net operating income moved from below negative -2% to 12% or better. Just as significant: Sun Country eliminated its outstanding credit line balances and now maintains access to more than $200,000 in available credit. The company’s estimated valuation grew from under $1 million to somewhere in the $6–7 million range, with continued growth expected. And for the owner personally, the operational discipline translated into something harder to put a number on — reduced stress, more time flexibility, and real financial freedom and more fun! Is Your Growth Outpacing Your Profitability? Plenty of businesses generate strong revenue while quietly losing money on overhead, labor, and account churn. If that sounds familiar, a structured financial and operational reset — not just more sales — may be exactly what your business needs. Contact Waters Business Consulting Group to schedule a free consultation.

Read More »
Money illustration

What to Do with an Unwanted Inherited Business

Not everyone dreams of being an entrepreneur — but sometimes a business lands in your lap anyway, whether you asked for it or not. Maybe it’s a family company you never worked in, or a property you barely understand. Before you rush to sell or dive in headfirst, here are a few smart options worth considering.

Read More »
Store illustration

Here’s the Real Reason MoviePass is Failing So Spectacularly (Hint_ It’s Not what You Think)

MoviePass is failing in-part because it didn’t fully understand the business on which it tried to build its own empire. A slew of news interviews with theater operators points this fact out. They say the service just doesn’t understand how the cinema business works. But, perhaps more importantly, what’s caused things to go so badly in such a short time is it was always too good to be true. In other words, the company overpromised. That’s really why the startup is quickly sputtering out-of-control. And, it’s what gets far too many fledgling companies in big time trouble. Eager to please and deliver jaw-dropping results, they promise the moon and hardly leave earth’s atmosphere. Biggest Overpromising Pitfalls Undoubtedly, critics say it’s time to face reality and close up shop. Irate subscribers and suing shareholders might disagree. (The former wants out, while the latter wants its investment money back.) But, it’s now apparent the movie-selling service just can’t operate as it has. And, for good reason. When you overpromise, you put undue pressure on yourself. Not to mention, you artificially raise expectations to unreachable heights. How many times has a salesperson promised to increase your company’s exposure by 50%, double your client list, and quadruple your profit margin? In this age of instantaneous satisfaction (thanks, technology!), many entrepreneurs and corporate leaders are so eager to appease stakeholders and worried about the bottom line that they seize amorphous opportunities and are disappointed with the results. —Forbes.com There’s more downsides to overpromising. You’re not only letting down one customer, you’re also sending a message that you just aren’t competent or capable of delivering. Then, there’s also the fact that you create resentment among your employees — toward you and each other. 3 Effective Ways to Avoid Overpromising So, how do you avoid the trap of overpromising. After all, you want to sell your business as the solution. Here are a few helpful suggestions for how to avoid overpromising: Learn your customer’s expectations first. Before you begin making promises about what you can do for someone, be sure to ask about their expectations. There’s no good reason to offer lofty solutions or goals when you don’t know what’s really needed. Be completely open, honest, and transparent. As you’re talking with your customer (and with your own team), it’s very important to always be honest. One of the fastest ways to invite disaster is to keep secrets. It’s just counterproductive to hold back because it will eventually come back to bite you. Keep all communications flowing between everyone involved. Communication either solves or prevents a whole lot of misunderstandings. It’s not enough to just be honest but also, to make yourself accessible. When everyone communicates, everyone is on the same page. And, that’s an invaluable element since it paves the way to success when all parties are on-board and totally in-the-know. What other ways do you avoid overpromising? Or, what other advice would you give? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.