WEBVTT

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And so hopefully if you're running paid ads right now and you're trying to get leads and you're like, how does this work?

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These are the pieces.

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Welcome to the game where we talk about how to get more customers, how to make more

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Procurestorien, how to keep them longer and the many failures and lessons we have learned along the way.

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I hope you enjoy and subscribe.

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What's going on everyone? Happy Wednesday. Hope you guys are as excited as I am for the new setup that we have here.

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I can't even tell you how stoked I am. This has been a long time coming.

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Thank you guys for, you know, the support and

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Just the messages that I've been getting has been great.

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So what I want to talk about today is so many of the ideas that I can finally put on paper and make visual for everyone.

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Which is how to fix lead cost, right?

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And I think one of the things that I, you know, I struggled with this when I started out was,

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you know, I had like one play one way that I knew how to do and it was just like,

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okay, don't change anything because I don't know how any of this works.

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I just know that like when I run this to this, it does okay.

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But the thing is as soon as it breaks and I was like, crap, what am I supposed to do now, right?

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And so in thinking through this, it's, it really came down to understanding the aggregate parts.

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And so it's kind of like when, when I started, you know, in fitness, you had your own kind of way

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of doing things is that's what worked for you, right?

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You're always trying all these new diets and stuff and then finally when it works and you're like,

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this is the way, you know, it's keto or it's intermittent fasting or it's veganism or whatever, right?

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And so then when you get a first client, you're like, okay, do this and don't change anything.

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And the thing is this obviously some people need different things, but on top of that,

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when you don't understand all the aggregate, integral pieces of, you know, programming, et cetera,

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then when someone gets stuck, you don't know how to fix anything because you just know how

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this whole thing works together and that's all I know, right? And so once I figured this out

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within the marketing, all my anxiety around marketing and paid advertising, et cetera,

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just kind of went by the wayside because I just understood all of the aggregate,

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integral pieces so that I could fix it, all right? And so there's three pieces to figuring out

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where your costs per litus, all right? And I'm going to break down each of these things.

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And this is going to be a big kind of bigger picture overview and I literally just went through

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this. So I thought it would be valuable for you. So we just ran two campaigns. We ran,

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we ran two five day challenges back to back and we had different, different campaign cost and

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cost per group opt-in. And so I wanted to figure out what the issue was, all right? And so the way

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that paid ads work from from A to Z soup to nuts, right, is understanding that fundamentally what

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we're doing is we're buying eyeballs, all right? So in the beginning, you're going to buy this nice

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eyeball from Facebook or YouTube or Google, right? They're going to there's a little little

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people for you, right? You're going to buy these eyeballs and these eyeballs for most markets will

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cost around $25. There's obviously some niches that'll be more expensive, but for most, the cost

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pryball is $25. Now how many eyeballs does that cost? And the term for this is CPM, all right? And

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just so you don't get confused about this CP for most CP stuff is cost per, right? So you only

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got to remember what the last letter means. So M is just the Roman numeral for a thousand. So cost

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per a thousand. So cost for a thousand eyeballs is $25. Simple, right? Which means it's two and a

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half cents an eyeball. Great stuff, right? And so you buy a thousand eyeballs. So I'm going to put

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a thousand under here just to make this really simple here, all right? And then from there,

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you're going to have a certain percentage that taken action, right? That click, all right? And so

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we call that the CTR, right? Click through, right? That's what that stands for, CTR. Now we really

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look for unique click through because that's what we care about. It's not one guy clicking 100 times,

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but I want to know how many unique people click the ad. Now from a benchmark standpoint,

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normally you're going to have between, you know, 0.5% and 1% is kind of like average. If you get

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above 1%, you're doing well. If you get above 2%, you're just killing everyone, right? So let's just

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say we have 1%, all right? That's what our click through it is. So we've got a thousand eyeballs,

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1% click. And what that means is we're going to get 10 clicks, right? A thousand times 1% is 10 clicks,

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right? So hopefully this is starting to make sense.

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Most of the nation real quick, if you are a business owner that has a big old business and wants

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to get to a much bigger business, going to $50, $100,000 plus, we would love to talk to you.

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And if you like that and would like to hear more about it, go to acquisition.com and you can

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plan anywhere on the page and talk to one of our team and see if we can help you get there.

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Now what's my CPC? Remember CP? What's the C? Click. My cost per click. So my cost per click

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is going to be this 10 clicks from $25. So if I have $25, right? And I get 10 clicks,

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then it means that my cost per click is $2.50, right? It's just $25 divided by 10 cost per, right?

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Now it's still not my cost per lead. So what's the next thing that's going to happen? My 10 clicks,

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all right, are going to go to a landing page. And then I'm going to have a conversion

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percentage on this page, right? Not 100% of clicks obviously become leads. And so what's my

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conversion percentage? I'm going to use 20% because for a lot of people that's going to be a good

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starting point for many of you in terms of what a decent conversion percentage can be. In some

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niches you can make it better and it depends on your offer, et cetera. But let's just use 20%.

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And so what that means is that of my 10, 20% are opting in, which means I get two leads, all right?

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So the next question is, what's my cost per lead? So we did cost per click here,

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my cost per lead is going to be $25 just like before divided by two leads, which means my cost per

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lead is $12.50, right? And so the reason that it's so important, and I remember when I figured like

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when I understood this part, because this part I kind of understood, but not where the actual cost

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per came from, right? Is that if I'm looking at a campaign like my own, the last campaign I ran

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side by side, campaign A, I had more expensive eyeballs, but I had more clicks and I had a higher

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conversion, right? And so that might mean that what I had was a little bit spamier or more like

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direct response E. And because of that, the platform doesn't like those things as much as they

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charge me more for the eyeballs because it wasn't as engaging, right? But the audience thought it

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was really interesting so they clicked more and they thought the offer was better so they opted in

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more, right? We tried another one to decrease our CPM and be a little bit more friendly to the

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platform and we did drop our CPMs, but our click through rate and our conversion on the page

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actually went down and overall we ended up actually doubling our cost. And so looking at each of

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these pieces is how you can diagnose your campaigns and ultimately be able to fix it, right? And

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so for me, this was like a huge breakthrough in understanding that took, I mean, honestly probably

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took me two or three years to actually understand this. And so hopefully if you're running paid ads

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right now and you're trying to get leads and you're like, how does this work? These are the pieces,

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right? This is going to be how much the platform likes you and how many other people are marking

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into that same audience. That's where the cost is going to come from. For your click through rate,

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it's going to be how compelling your messaging is and how good the creative might be. And then the

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same thing here on your conversion is how good is the offer, how good is the headline, how compelling,

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how well designed is the page, how fast is it load, etc. So we can increase this conversion

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percentage. A lot of times people want to lower their lead costs and they just look here because

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they feel like it's the only thing they can understand. When a lot of times you're sometimes losing or

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winning the war based on the click through rate or what you're actually how your ads are being

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displayed. And so one of the first things I do when I'm looking at a campaign, if it's not acting

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right, is I'm looking at my CPMs. I'm like, well, how much is it costing for us to get this displayed?

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And if it's like 80, you know, 80 dollar plus CPMs, I'm like, okay, I don't think that's

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reason why I think we, something is missed in the creative. We really need to fix this. And so then

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I don't, I don't look at my funnel. I'm not worried about click through rates because I know that

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this is the big issue, right? If my click through rate is like 0.2, then I'm like, all right,

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our messaging's way off. I don't need to worry about this other stuff because this is where I need

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to focus. If I've got a, you know, a page that's converting it 5%, then I'm going to try and fix

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this because these two don't even matter if I'm at that percentage. So hopefully this makes sense

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like when you're, when you're walking through trying to fix campaigns and whatnot and understanding

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each of the integrates parts allows us, at least for me, to be able to not have anxiety around

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this stuff because then it just feels like, all right, they're just variables. They play together

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and I just need to fix the thing that's broken. And then as soon as it's fixed, it works, which is

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the point. So hopefully that was bad before we, I hope you think this is cool. Hopefully you like

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the new setup. I'm super, I'm like beyond stoked about it. I can finally, I can make these on my own

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now. I'm so, like, so excited. And so anyways, if you like the setup, shoot a comment, shoot,

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shoot review, tag somebody. And if you like more stuff like this, hopefully you do because it's

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going to be, then I can't wait to give you more stuff. So keeping awesome, lots of love,

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and I'll catch you guys soon. Bye!