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The last three companies I found and sold grew so fast it felt illegal.

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Use Allen got to 1.2 million dollars per month at the end of the first year.

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Prestige Labs got to 1.5 million dollars per month by the end of the first year.

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And Jim Launch got to over 2 million dollars per month by the end of the first year.

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And I'm going to show you the strongest growth levers I used to get these results so that you can too.

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Let's start with the first one which is nobody knows you exist.

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So here's what most people think when they think about their given marketplace.

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So let's say you're a local dry clean.

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All right, you see that you're advertising on Facebook.

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And so you see you have the whole pie and so you're happy.

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So that's just you.

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Then you have you plus one other person, then all of a sudden you've got half of the pie.

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Then it's you plus three other people in the marketplace.

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And now you feel sad.

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But the reality is the marketplace is significantly bigger than you ever give a credit for.

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There are so many humans on earth.

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And so this is what it looks like in reality.

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You're actually only advertising on one of four different methods and the way that you're doing it is only on one slice of the medium.

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And then within that you have your tiny little quarter that you are taking up.

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And so the marketplace says so many different ways they can communicate using each of the methods of communication.

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So for example, if I'm talking about content, I'm like, oh, there's somebody else in my marketplace who's marketing on Instagram.

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Okay, cool.

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So there's that.

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But isn't there also other platforms you can do it on?

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And don't you think that maybe there's enough people in your marketplace to satisfy your business?

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Probably the amount of times that I would have a gym owner, for example, who'd come to me and say, hey,

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there's this other guy in the marketplace who's now running Facebook ads.

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I'm like, you only need 200 people in your gym to be incredibly profitable.

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And right now, last time I checked, you've got a 1 million people in your city.

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And so you just have to get 200 of them.

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And so if there's 10 others or 100 other gyms that are advertising your area, even on the same platform,

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you still just need to get 0.0002% of that audience to just come to you.

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And so you think that as these people enter, you're losing market share.

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But the reality is you're this tiny little spec and most people don't even know you exist.

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Now, the reason that I talk about advertising more so much is that advertising is a boom.

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And if you're like, what's a boom?

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It's actually a term that I started using internally for our business, which is a business order of magnitude change.

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Fundamentally, if you think about a business, there are many things that you can optimize.

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You can increase your clothes right by 10%.

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You can raise your conversion rate on your, on your opt-in page by 10%.

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You can increase your email follow.

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All of those things are optimizations.

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And so the problem is with optimizations, you can only go to 100%.

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They're capped.

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But with advertising, you can, in a very real way,

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100x the amount of people who find out about your business.

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And one of the keys that small business owners get stuck in is they get in this little optimization mouse trap.

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Where they're like, I need to move this.

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Oh, I was at 10.1 to 1.

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And I need to be at 10.2 to 1.

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It's like, dude, just get 100 times the leads and your business will grow.

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And if you're under $1 million in revenue,

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I can virtually guarantee that basically everyone on earth doesn't know you exist.

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And so the first four hours of every day should be dedicated to solving that problem and going from obscurity to being aware.

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And so we do that by doing the core four more,

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which is you have to do more outreach, colder warm.

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You have to make more content where you got to run ads.

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But the thing is is you don't need to do all of them.

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You pick one, you go all in, and that's what you spend your first four hours every single day on.

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So the next growth principle is instead of trying to beat your competition, shrink your competition.

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What you want to do is overwhelm the marketplace so that you drown them out.

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You want to be so loud that no one else can hear them.

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You shrink them into a relevance by comparison.

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There's two ways that you can become the tallest building, right?

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You can knock everyone else down or you grow so that they become smaller in comparison to you.

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And so everyone sees their little building and thinks, oh no, I should knock all my competitors down, right?

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When in reality, all you need to do is build the biggest absolute building there.

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And the thing is is that you're going to block out the sun and your shadow will be so big that no one can even see these people.

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And let me tell you a story about this.

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When I launched my last book, $100 million leads,

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I spent a tremendous amount of time and effort across.

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I think at the time we had seven-ish million subscribers or, you know, audience size across all platforms.

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I emailed a bunch. I made a ton of content. We spent money on ads.

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We did outreach. We had affiliates going.

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We had all these different channels going to get as many people as possible to the launch.

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And when I walk around Las Vegas because I live here,

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I will usually get stopped about three-ish times when I do about a 60-minute walk.

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Mind you, I walk in a crowded area so it's not like I'm just walking in the neighborhood because then that would just be weird.

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Anyways, and of course you should be recognized by our neighbors.

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But I'll get stopped by three people.

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And every time for the month leading up to the launch,

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I would be like, hey, you go to the book launch.

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19 times out of 20.

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The people would look at me and be like, what's the book launch?

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And I was like, how do you not know about this, right?

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But it was this wonderful reminder that most people,

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when you get tired of your advertising,

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most people don't even know your first name.

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If you have deluded yourself into thinking that you should only have to say something once

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and somehow everyone in the entire world has heard you say that thing,

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you are kidding yourself.

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You need to become a master of variety in terms of how you can reset the same thing in different ways.

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Taking the natural extreme, there's this fallacy that most small business owners think

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and myself included for years I thought this was that repetition in and of itself is somehow bad.

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So let me explain.

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There's probably people on the internet.

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I personally follow a bunch of philosophy accounts.

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Most of the philosophers are dead.

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And yet, I still love to see the quotes they have because they remind me

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of the things that I want to follow, the way that I want to live.

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And it's not like, oh, another Senate could quote, does this guy never give up?

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It's like he's dead.

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He hasn't come up with a new quote in 2000 years.

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And yet I still like seeing the quotes even though I know I've seen them before.

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And oftentimes you serve that role for your audience more than anything else.

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We think that it's like, oh, I've said this one thing.

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Therefore, they have all changed other behavior immediately and they never need to learn that again.

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But the biggest lesson that I've learned is that people need to be more reminded than they need to be taught.

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And in the off chance that you've received hate or you have a competitor who's talking crap, and it happens,

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this counts double.

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So instead of trying to beat them or prove them wrong, you only have two options.

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Option one is you grow so big that no one can even hear them.

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The alternative is that you kill them with kindness, which is that you do not beat them by proving that you are right.

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You beat them by proving that you are kind.

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And then by comparison, they will look bad.

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The only thing I can tell you about having dealt with plenty of it in my day is that on the occasion that I do choose to respond to hate,

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I try to respond with kindness.

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And so someone can just absolutely tear me one and just say like, this guy sucks.

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He's terrible at whatever, right?

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I will then usually say, hey, you're right.

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I'm a super flawed person.

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That being said, it seems like you've developed like a big audience here and they seem to like you.

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And so congrats on your success, right?

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When someone sees that, it's very hard for everyone to be like, man, that guy sucks.

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It's just like now, if I were to try and like list out all the points,

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all I do is invite more back and forth, which I don't want to do.

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And it's a waste of my time.

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And so instead you start all hate responses with you are right because it's all they want to hear.

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And there's really nothing else to say after that.

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M&M has responded to hate in two ways publicly that I absolutely love.

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So the first is that when Will Ferrell confronted him about some things that Afrojacket said to him,

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he said, hey, Afrojack's been talking trash.

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Do you have anything to say about it?

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And M&M just said, who?

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And he said, and then Will Ferrell repeated the statement.

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And then he just looked at him and he was like, who?

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And he was like, okay, yep, that's what I thought.

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And so the first is, I'm so big, I can't hear him.

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The secondary is that you kill them with kindness, right?

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So either grow so big that no one can see them or hear them or you meet them where they're at on a different game,

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which is you play on kindness and grace.

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And so in eight mile, M&M tries to claim all of the flaws that he has

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so that no one else can say anything.

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And so I get hit on a lot, not like that, for talking about working a lot.

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People are like, that's not healthy.

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And of course, I try to put disclaimers in every video and do whatever you want.

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I get hit on for like, oh, I think he's trying to make money.

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Duh, I try to say it all the time.

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But people assume that I am trying to hide this from my own.

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It's of course I'm trying to make money.

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I'm in business, that's the whole point I do this.

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And that way, if I always start with, I'm here to make money,

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when I do something nice, then people are like, oh, well that was nice of him.

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Rather than me claiming that I have to be this super kind, whatever person,

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then when I try and make money, people are like, ah, shake their finger at me.

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Like, it's not good.

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I try and learn from Eminem and just take all of the negatives that I can think

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that somebody would possibly say, and then just claim them with my own,

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because yes, we are all flawed and none of us are perfect.

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And so for some reason, we are bothered when someone else points out our imperfections,

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that we would readily state ourselves, we know we have deficiencies.

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If I had one thing that I wanted my life to represent, it's, do what you want.

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But don't complain about what you've got.

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So if you're not willing to do the things to get what you want,

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don't complain that you don't have them.

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You know, in this particular incident, it's like, could I have tried to say,

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hey, you know, we make your annual revenue every other day.

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I could say that.

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I could say that our goals are not the same.

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One billion is not the same as a million, right?

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It would be the same as you making $200 a month that eliminates,

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and versus somebody who's doing $20,000 a month to give a proportional comparison.

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So of course, the effort that I have is outsized.

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And so what's interesting is that oftentimes hate if you boil it down,

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comes down to, I do not prefer the way this person does things.

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I have a different preference.

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And it's like, great, right?

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Like, I make money one way.

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He makes money another way.

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And therefore, he is wrong.

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It's like, oh, you just do the way you want, which is awesome because you do your way.

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And they do it their way.

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And the people who are attracted to that will do that.

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And the people who are attracted to you will do yours and great.

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I mean, of course, there's engagement bidding and things like that because,

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you know, people want to get views and all that.

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And I respect it.

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I get it.

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But big picture, I think you can't take it.

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You can't take it personally because whenever I,

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I phone that little trap, I think to myself,

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I'm a relatively developed monkey that is sitting on a little blue marble

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in a solar system that's in one of a billion galaxies.

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And I'm worried about some screen that has words on it on a made up language

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that we had in the last 1500 years of how we communicate face noise to each other.

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And when I think about that, I think, you know, this would be pretty silly for me to, like, ruin a day over.

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So the third big growth lever, and this one's massive, is clear, not clever.

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Alright, so what do I mean by that?

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Well, when I looked at the highest converting ads that I had run,

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and I do this pretty regularly, I look for different components.

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Sometimes I'm like, what's the hook?

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Sometimes I'm like, what's the color scheme?

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What's the visuals that are being displayed in the first however many seconds?

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In this one particular past, I just looked at the grade level of the language that was being spoken.

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And the reason I looked at that, it was, I think, was, you know, one or two elections cycles ago.

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I had heard this research study that had stated that the president who spoke in the lowest grade language

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was the one that won the election over and over again.

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And when I heard that, I see presidential elections fundamentally as massive brand campaigns.

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I see that as they were able to communicate a message to a higher percentage of the population

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because they lowered the barrier to entry of comprehension, meaning more people got what they said.

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And so when I hear that, I thought, man, I like to use all these big, fancy college words

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and no one knows what I'm saying.

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And so all I do is feed my ego, not my bank account.

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I made one of my big marking rules clear, not clever.

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And so you want to take whatever communication is, look at your landing pages, look at your ad copy,

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look at the words you're saying in your content and say, does a third grader understand this?

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And the point that some people try to make as a counter is like, oh, I don't want to talk down to my audience.

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No. When you speak in a more broken down manner, you help the experts understand it more easily

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and you help the beginners understand it for the first time.

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And so it's not that experts are all of a sudden saying, oh, no, I don't believe that because listen,

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we get tons of very big companies that come back to acquisition.com for investment.

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And the guys who run those companies, very intelligent.

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I try to make my videos in a way that people can't understand them because who do I prove when I use a big word

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and then all of a sudden three quarters of the audience can't understand it?

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And if the point of me making these videos is to make real business education accessible for everyone,

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part of it making it accessible is making it interesting, making it fun, and making it comprehensible,

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which is the fancy word for understandable.

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What you guys don't see behind the scenes is that I will typically self edit.

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And so I said distilled earlier in a sense that I said broken down for experts is because I said distilled

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and I was like, I have to use a different word, broken down.

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And then I said comprehensible and then I said fancy word for understandable.

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And so I try to constantly catch myself in this and it's also made me a significantly more effective leader.

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So if I'm trying to communicate with my team, I'm not trying to say big words.

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I don't want to impress them. I want to change what they do.

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It's a great litmus test to show whether you actually understand what you say you understand.

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Because if you can explain it to a third grader, and this is Richard Feynman who said this is famous physicist,

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is that if you can explain it with third grader, then you understand it.

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If you can't, you don't, and you need to understand it better so that you can break it down.

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And so the broader the audience, the broader the analogy, and the simpler the language.

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I'll give you an example.

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One element of this is the great language of the words you use.

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The second is what visuals or stories you use to depict them.

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If I'm talking to mechanics, I might use an analogy where I relate something they understand cars to something they might not understand to business.

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If I wanted to teach a specific concept.

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If I was talking to the same, I was trying to teach the same concept, but I was teaching it to realtors, then I would probably use a house analogy.

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If I was teaching to baseball people, I would probably use a baseball analogy.

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If you have a narrow down audience, you will increase comprehension by using analogies that they all understand.

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If you're talking to a broader audience, then you need to have a broader slice of the market.

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Probably a more human experience that all of them have.

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So if I'm talking to everyone, I might talk about food.

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I might talk about sleep.

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I might talk about driving.

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Because most people do that, assuming I'm not talking to children.

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You have to match the analogy to the history of learning from the people that you're trying to communicate to.

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And this is what takes your marketing and your advertising and puts it on steroids.

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And to put this to the test, this is something you can do right now.

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Look at whatever emails you send.

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Rotten through a reading grading level app.

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Keep working on it until it's below fifth grade minimum, third grade if you're awesome.

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And then send it.

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I did this to our email follow-ups and had a 50% increase in conversion.

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I didn't say change anything about what I said, but I saw that as I got 50% more people to understand.

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Because the goal here is to decrease the friction of comprehension.

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So if we think about the elements of value, speed, ease, time delay, these elements are all impacted by complexity.

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And so something complex takes longer to understand.

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And it takes more effort.

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And it's harder.

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And so instead what we want to do is say, OK, how do I make it easy and faster?

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OK, well, then I'll just speak in a way that everyone understands.

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The next massive growth lever is proof over promise.

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And so what this means is that in my earlier days, I would spend so much time on my promise.

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I wrote a whole book on promises, which is basically offers.

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And I would obsess about the offer.

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And the offer is super important.

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But the only thing that's more important is proof.

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All right, so let me give you two hypothetical examples.

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Let's say that you've got business one that's selling thing one, and business two that's selling thing two.

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Well, let's say they still compete for more or less the same audience.

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And business two says, we'll do x, we'll do y, we'll do z, we'll do w, and we'll guarantee x, y and z, right?

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And you look at their reviews, and they've got a five star rating, and they've got one review.

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The other company says, we'll do x, and they've got 11,382 five stars, and they've got a 4.7.

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Who do you buy from?

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This guy, obviously, but why?

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This guy has a better promise because you believe this guy.

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And so you want to have proof up to your eyeballs.

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Proof is your single highest priority as a business owner or marketer or advertiser or promoter for your business.

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It is the one thing that you prioritize.

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Before I enter any new space, launch a new product, the first thing that I do is try and get beta users.

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I get people to do, I work for free in exchange for testimonials, reviews, and feedback, and sometimes referrals if I'm lucky.

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But in the beginning, that is the highest, most valuable thing that you can do.

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People will say things like never work for free, and you only hear that from people who don't make that much money.

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If you make a lot of money, you will know that you spend so much time in the free phase because getting the product right is so important and is such high leverage.

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The proof process both makes you convicted because you get the opportunity of many feedback loops to make your product better so that you then can collect the positive feedback that you can then advertise to get more people like those customers.

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The most compelling way to advertise anything is show don't sell.

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If I just stand here and said nothing, and I just stated the facts and told the truth, and I said,

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I have 11,382 reviews, and our average review is 4.7, and I make pasta really good.

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And then, or, I have one review from my mama, and I make super-fragileistic expiolidoscious pasta guaranteed.

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Which one do you like better? Obviously, this one. You don't need to say much more, the proof is the pudding.

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So, the most important part of a message is the messenger themselves. They're inextricably linked from the thing that's being communicated.

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And this is what people seem to miss when they're making content, which is why I'm a big advocate of do epic stuff first, then talk about what you did.

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And if the stuff that you didn't do is epic, focus more on doing epic stuff, not on the talking about it.

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I started this channel with a commitment to a vendor saying, I'll make three to videos a week, and I was busy, and I was like, I'm just gonna hit a webcam, and I'm gonna talk to the camera.

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And that is how this channel started. The only reason, in my opinion, that people decided to listen was because I just so happened to have sold a company for just under $50 million.

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And so because of that, there was proof that I was able to deliver on the promise, whereas somebody else might have a totally beautiful studio and have all these things.

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But they just forgot the one most important thing, which is, why should I listen to you? Either it's gonna have to be proof that you generate it for yourself, or proof from other people saying that you help them achieve that thing.

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So the next big thing is the hook. Now, you're like, okay, I've heard about hooks before, not the way that I'm gonna talk about it.

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So the hook is greater than everything. Now, you're like, wait a second, I thought proof was greater than everything. Well, the proof is gonna be containing the thing, but no one's gonna see the proof unless you have a good hook.

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The one thing that I think has consistently been reinforced, and it's just like a greater and greater percentage of my time is allocated towards this one part of my advertising that grows my company the most, is I search for the best hooks.

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And then I don't convince myself that I'm more creative than I think I am, and I just keep using the ones that work.

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So think about it like this. These are the only four things that you can do to advertise any business. You can warm out, reach out, reach out, want to want to people you know, cold out, reach, reaching, want to want to people you don't know.

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You can run paid ads, which is going one to many to people you don't know, or you can post content, which is one to many to people you do know.

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And in each of these four situations, you can double, triple, five X, the amount of people who open and respond, who click and watch your ad, who watch your content all the way to the end.

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And if you do something like that, and you do increase the click through it by go from 1% to 5%, or 2% to 10%, which absolutely can happen.

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When you do that, you in a very real way can, 2X, 3X, 4X, 5X your business, with just that one thing.

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Remember I talked about earlier that advertising is a boom, it's an order of magnitude change? Well, what other one thing, can you just tweak that then opens up the flow to the entire business based on how good the first five seconds are?

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Or the first one second? In thinking about hooks, I think about both the visual hook as in what's happening, what that people can see.

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And then there's the auditory or verbal hook, which is what are the actual words that are being communicated.

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Right now we reviewed our top YouTube videos of all time, and I made a video about six months ago saying what we found, which is our hook formula is proof, promise, plan.

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And this is a force multiplier on any kind of advertising you do.

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And so when I think about all the different things, all the effort that goes into advertising a business, if I can just do one thing, and the crazy part about hooks is they're the shortest part.

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They're the shortest part of the whole darn thing.

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This is where David Oglevey says, if you have written your headline, you've spent 80 cents of your advertising dollar.

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The more advanced the advertiser is that I meet, whether it's a content creator, somebody who's on outbound, somebody who makes paid ads, the more obsessive they are on the first frame, the first impression that someone gets

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because they know one, it increases the likelihood that the person is going to watch the rest of it and then potentially buy.

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And then two, it changes their entire perception of what follows.

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We actually looked at this for speakers at an event, which was if we changed the intro, the one to two minute intro that we had for a 60 minute talk, the person's net promoter score.

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So what people rated them in terms of how good they were changed massively, even though the actual presentation was the same.

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So simply how we framed the presenter, the person that even got up on stage yet, changed how everything they did afterwards was perceived.

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If there's two minutes that could influence the score that you get, the customer satisfaction, the amount of prospects, the one thing to focus on is nail the hook.

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Let me show you the force multiplication of this.

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We just started reviewing short-form content on the content team and just doing a more regular activity of seeing what are the things that make content do well.

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And there was a video that we were like, we think this thing is good.

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All we did is we took the same video that got like 40,000 views and then we just chopped out the first three seconds that was kind of like getting into the into the video before the actual real hook was delivered.

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And by sniffing those three seconds and then just starting where the hook really was, it went from a 40,000 view video to a 780,000 view video.

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So you're talking about a 19X improvement.

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So I'm talking about one percent, two percent, talking 19X.

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That is why obsessing over the hook is so important.

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So the next big growth lever that gave us the super fast growth was more.

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So I talk about more better new in the leads book as one of the three strategies that you can use to grow any business.

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So I talk about more better and new as the three primary strategies of growth.

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You either do more of what's already working, you do what you're doing to make it work better or you do something entirely new.

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Now most entrepreneurs love doing new stuff and that's why it's called shiny object syndrome and it's a cancer and you should get that looked at.

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The very boring answer is the mundane more.

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You have to master more.

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And it's going, instead of zero to one, which is what most people love doing, oh my god, I finally got it to work.

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But actually doing one to end, which is how do I do is this thing as many times as humanly possible with wanting to kill myself.

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Here's the actual math explanation of this.

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Is that more is typically the highest risk adjusted return strategy.

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And so what that means is if you can do something and you already know it works, the likelihood that the next thing you do works is much smaller.

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And so this is why once you have a control, meaning you have a specific landing page or ad or copy or email that you know converts.

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Whenever you deviate from a high converting advertisement, the likelihood that the variant is going to beat it is typically low.

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And so you have to try a bunch of variations because all you're doing is messing something, messing something up that actually already works.

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And so let me give you an example.

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If you had one sales guy and he's closing at 30%.

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Well, you could try and obsess to get him to 35% or 40%.

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And that would be material.

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You know, you get a 25% lift overall, 30% to 40% to 25% improvement.

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But you know what would be even cooler?

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Just hired three more guys.

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And then you have a 4x or a 300% improvement.

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It's like I could get a 25% improvement or I could get a 300% improvement.

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And me trying to change up the sales script also has a significant shot of me taking it from 30 down to 20.

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Because it's a change.

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And so here's the thing.

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Is that when you change anything, you guarantee you incur the cost of change.

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But you do not guarantee that you get the benefit of change.

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And so in each of the core four methods, you do more outreach, which is colder warm.

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You go from 100 reach out today to 200 reach out today.

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Pay to ads.

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You go from 100 dollars a day to 200 dollars a day.

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You go from posting content.

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You go from posting once a day to twice a day.

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Those are how you do more.

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Again, when I talk to the most experienced advertisers that I know, the most experienced business people that I know,

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the most common thing we talk about is we kind of laugh in the back room of like,

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if people just don't know how much more they can do, that's the real.

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Is that when I have conversations with small businesses, they're like,

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hey, I don't think I can do any more ads.

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I'm already running a thousand dollars a day.

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I'm like, I mean, dude, there's businesses that run like 2 million a day.

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You usually have so much more runway than you think you do.

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Sometimes you just need someone ahead of you to be like, dude, you can like 10x this and nothing's going to change.

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But they think because of whatever mental limitation they have or like,

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you've never spent that much money on an ad before.

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You've never made that amount.

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Is it going to hurt my account?

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No, they want you to make good content.

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Is it going to hurt my ads?

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No, they want you to spend money.

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Is it going to hurt my outreach?

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You're going to people who've never met you before.

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So why would they know that you've sent it to another 100 people?

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Right?

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Is that there's these perceived fears.

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But most of the times, it's just between your ears.

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Yeah, I'll tell you guys a quick story about this.

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So when I had my first, I would say real business,

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which is my first location in my first gym.

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I had a mentor and he was a really good local marketer.

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He had a strategy for his standing salons where he would bring in

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I mean, thousands of customers every single quarter.

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And what he did was he would put out flyers.

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He just put flyers on cars and then had like a free VIP gift card

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and people would come in redeeming me, flip them in the memberships.

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And so I figured, okay, I'll just run the same play.

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I did the flyers and I put 300 flyers out

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and I waited by the phone and be like, oh my God,

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I'm going to get 300 people in here.

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It's going to be sick.

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What happened?

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Well, my phone only rang once from the flyers.

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And when I picked up the phone, I was like, hey,

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did you put the flyer on my car?

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And I was like, yeah, I did.

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What time do I need it?

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But he cut me off and he was like, you damaged my Mercedes.

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And I was like, oh, click.

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And I didn't know what to do.

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As soon as I, and thankfully, he never called me back

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because I definitely had to never have the money

421
00:27:29.500 --> 00:27:30.500
to fix any Mercedes at that time.

422
00:27:30.500 --> 00:27:33.500
I called my mentor back up a week or two later

423
00:27:33.500 --> 00:27:35.500
once he was clear that no one else was going to call.

424
00:27:35.500 --> 00:27:37.500
I said, he said, hey, how the flyers work out?

425
00:27:37.500 --> 00:27:39.500
And I was like, well, they didn't work out at all.

426
00:27:39.500 --> 00:27:42.500
Actually, I was like, taking some attitude with him.

427
00:27:42.500 --> 00:27:44.500
He was like, oh, what was your test size?

428
00:27:44.500 --> 00:27:45.500
And he didn't take the bet.

429
00:27:45.500 --> 00:27:46.500
He was like, oh, what was your test size?

430
00:27:46.500 --> 00:27:48.500
I said, what do you mean?

431
00:27:48.500 --> 00:27:50.500
He was like, well, like, would you test with

432
00:27:50.500 --> 00:27:52.500
before you did the real campaign?

433
00:27:52.500 --> 00:27:53.500
And I was like, oh, why?

434
00:27:53.500 --> 00:27:55.500
I mean, I put 300 out.

435
00:27:55.500 --> 00:27:57.500
And he was like, 300.

436
00:27:57.500 --> 00:28:00.500
He's like, you can't know anything with 300.

437
00:28:00.500 --> 00:28:01.500
And I was like, what do you mean?

438
00:28:01.500 --> 00:28:03.500
He's like, I test with 5,000.

439
00:28:03.500 --> 00:28:08.500
And then we put out 5,000 a day for 30 days.

440
00:28:08.500 --> 00:28:13.500
I was looking at his results from 150,000 flyers

441
00:28:13.500 --> 00:28:17.500
over 30 days and comparing them to my results

442
00:28:17.500 --> 00:28:21.500
of 300 in a day.

443
00:28:21.500 --> 00:28:25.500
And once I saw that juxtaposition, I was like, got it.

444
00:28:25.500 --> 00:28:27.500
I will never make this mistake again.

445
00:28:27.500 --> 00:28:31.500
It was very embarrassing for me because I was on the right path.

446
00:28:31.500 --> 00:28:32.500
I just didn't do enough.

447
00:28:32.500 --> 00:28:35.500
And so one of the big metal lessons of this is that

448
00:28:35.500 --> 00:28:41.500
what presents as volatility is typically a symptom of low volume.

449
00:28:41.500 --> 00:28:43.500
So if you're like, man, I only get like, you know,

450
00:28:43.500 --> 00:28:45.500
a sale every week or every other week.

451
00:28:45.500 --> 00:28:46.500
It's kind of like, you know, it's, you know,

452
00:28:46.500 --> 00:28:49.500
most days I don't get a sale and then every once in a while I get one.

453
00:28:49.500 --> 00:28:53.500
It only appears volatile because you're doing so little per day.

454
00:28:53.500 --> 00:28:57.500
But if I looked at your year and saw that you closed about,

455
00:28:57.500 --> 00:29:00.500
let's say, 12 customers in that year, you closed one a month, for example,

456
00:29:00.500 --> 00:29:03.500
every every three or four weeks you get a customer.

457
00:29:03.500 --> 00:29:07.500
Well, all I would do is look at your entire advertising activity for the year

458
00:29:07.500 --> 00:29:10.500
and say, okay, if we wanted to get 12 customers a day,

459
00:29:10.500 --> 00:29:15.500
we would have to do 365 times more advertising than we currently do.

460
00:29:15.500 --> 00:29:18.500
And if we did that on a daily basis, we would get 12 customers a day.

461
00:29:18.500 --> 00:29:21.500
And so you just take your total calendar horizontally.

462
00:29:21.500 --> 00:29:23.500
And then you flip it vertically for a day.

463
00:29:23.500 --> 00:29:25.500
And that is how much volume is required.

464
00:29:25.500 --> 00:29:27.500
And so most people just think that it's like, oh, they're,

465
00:29:27.500 --> 00:29:30.500
they can't be doing more than like twice as much as me.

466
00:29:30.500 --> 00:29:33.500
But in my experience, the people who are crushing it literally

467
00:29:33.500 --> 00:29:35.500
are doing a thousand times more than you.

468
00:29:35.500 --> 00:29:37.500
And that's the part that like, until you sometimes you hear it

469
00:29:37.500 --> 00:29:39.500
or you have someone ahead of you say it,

470
00:29:39.500 --> 00:29:40.500
it doesn't become real for you.

471
00:29:40.500 --> 00:29:43.500
And it's why I make these videos is to try and like push as much,

472
00:29:43.500 --> 00:29:45.500
you know, out of my brain and history

473
00:29:45.500 --> 00:29:48.500
so that you can just get the story without the scar.

474
00:29:48.500 --> 00:29:50.500
And that's the whole point.

475
00:29:50.500 --> 00:29:52.500
So once you're like, okay, I have something that's working.

476
00:29:52.500 --> 00:29:54.500
I should just do way more of that.

477
00:29:54.500 --> 00:29:55.500
Awesome.

478
00:29:55.500 --> 00:29:57.500
Well, the next thing, the next power lever here,

479
00:29:57.500 --> 00:29:58.500
is word of mouth.

480
00:29:58.500 --> 00:30:00.500
And it's not the way that you think.

481
00:30:00.500 --> 00:30:03.500
So word of mouth, people are familiar with referrals,

482
00:30:03.500 --> 00:30:05.500
you know, customers tell other customers,

483
00:30:05.500 --> 00:30:08.500
which are other prospects that your stuff is good.

484
00:30:08.500 --> 00:30:11.500
What a lot of people don't understand is that negative word of mouth

485
00:30:11.500 --> 00:30:15.500
is significantly stronger and faster than positive.

486
00:30:15.500 --> 00:30:18.500
Disney did this big study where they found that it takes

487
00:30:18.500 --> 00:30:21.500
37 tragic moments to make up for one magic moment.

488
00:30:21.500 --> 00:30:24.500
Versus, there's basically like a 5x versus 37x on,

489
00:30:24.500 --> 00:30:26.500
if someone has a good experience, they tell five people,

490
00:30:26.500 --> 00:30:28.500
if someone has a bad experience, they tell like everybody,

491
00:30:28.500 --> 00:30:32.500
a new business owner often will get customers pretty cheaply.

492
00:30:32.500 --> 00:30:35.500
And then all of a sudden costs start going up.

493
00:30:35.500 --> 00:30:37.500
And part of the reason that costs go up faster,

494
00:30:37.500 --> 00:30:39.500
because you can actually put math to this,

495
00:30:39.500 --> 00:30:41.500
which is understanding the difference between CPM,

496
00:30:41.500 --> 00:30:42.500
which is cost per impression.

497
00:30:42.500 --> 00:30:44.500
And if it's like, why is it M, it's M,

498
00:30:44.500 --> 00:30:47.500
which is French for 1000, so it costs for 1000 impressions,

499
00:30:47.500 --> 00:30:50.500
versus CPL, which is cost per lead.

500
00:30:50.500 --> 00:30:51.500
All right.

501
00:30:51.500 --> 00:30:55.500
And so if your CPMs more or less stay the same,

502
00:30:55.500 --> 00:30:59.500
but your cost per lead has 2x, or 3x, or 4x,

503
00:30:59.500 --> 00:31:02.500
well, if it's not costing you more to reach those people,

504
00:31:02.500 --> 00:31:05.500
then it means that fewer of them are responding.

505
00:31:05.500 --> 00:31:08.500
And if that's the case, and you're just going to still relatively

506
00:31:08.500 --> 00:31:12.500
warm markets, the issue is that instead of having positive

507
00:31:12.500 --> 00:31:16.500
word of mouth working for you, which should be actively lowering

508
00:31:16.500 --> 00:31:19.500
the amount of cost that it takes to get a new customer,

509
00:31:19.500 --> 00:31:22.500
you have word of mouth working against you.

510
00:31:22.500 --> 00:31:25.500
And so people who would otherwise purchase from you

511
00:31:25.500 --> 00:31:28.500
heard something negative and then choose not to.

512
00:31:28.500 --> 00:31:31.500
And so now all of a sudden you have to reach 3x the amount of people,

513
00:31:31.500 --> 00:31:34.500
because 2 out of the 3 people who would have gone and bought your thing,

514
00:31:34.500 --> 00:31:36.500
heard it was bad.

515
00:31:36.500 --> 00:31:39.500
And then now you only have one person who's just heard nothing.

516
00:31:39.500 --> 00:31:42.500
Over time, the percentage of the audience that's neutral

517
00:31:42.500 --> 00:31:45.500
or hasn't heard of you gets smaller and smaller and smaller.

518
00:31:45.500 --> 00:31:48.500
And so it's way harder to grow off a word of mouth that's positive,

519
00:31:48.500 --> 00:31:51.500
but it's really easy to get crushed on negative word of mouth.

520
00:31:51.500 --> 00:31:54.500
And for whatever reason, no business owner ever claims

521
00:31:54.500 --> 00:31:56.500
that they have negative word of mouth.

522
00:31:56.500 --> 00:31:59.500
But I can tell you, half of you are below average.

523
00:31:59.500 --> 00:32:00.500
That's a fact.

524
00:32:00.500 --> 00:32:06.500
And this is why I emphasize the proof over promise earlier on so much,

525
00:32:06.500 --> 00:32:08.500
because if I'm going to get negative word of mouth,

526
00:32:08.500 --> 00:32:10.500
which I know I am if I'm starting out,

527
00:32:10.500 --> 00:32:13.500
I want to keep that as concentrated and quiet as possible.

528
00:32:13.500 --> 00:32:14.500
I don't want anybody to know.

529
00:32:14.500 --> 00:32:16.500
And so of course I'm not going to charge the money,

530
00:32:16.500 --> 00:32:19.500
because the last thing I want to do is also have their money when they're upset.

531
00:32:19.500 --> 00:32:21.500
So it's like, hey, I'm making this trade.

532
00:32:21.500 --> 00:32:22.500
You're going to get stuff.

533
00:32:22.500 --> 00:32:23.500
It's probably not going to be that good.

534
00:32:23.500 --> 00:32:25.500
My only ask is you give me feedback.

535
00:32:25.500 --> 00:32:27.500
Tell me how I can make this right.

536
00:32:27.500 --> 00:32:28.500
Tell me how I can make it better.

537
00:32:29.500 --> 00:32:31.500
And when you ask those types of questions, you get the types of answers

538
00:32:31.500 --> 00:32:33.500
that can also really create more value for the customer.

539
00:32:33.500 --> 00:32:36.500
And then once you get positive feedback, positive feedback, positive feedback,

540
00:32:36.500 --> 00:32:38.500
now you have something that people actually want,

541
00:32:38.500 --> 00:32:40.500
then you can need to introduce strangers to it.

542
00:32:40.500 --> 00:32:42.500
And of course you're going to roll into the next issue,

543
00:32:42.500 --> 00:32:44.500
which is, okay, how do I keep that consistent?

544
00:32:44.500 --> 00:32:46.500
Because now it's not me doing everything I've got a team,

545
00:32:46.500 --> 00:32:47.500
and we'll get into that.

546
00:32:47.500 --> 00:32:51.500
So the next big growth lever is steel from yourself.

547
00:32:51.500 --> 00:32:53.500
And so everyone's like, hey, is this steel from his competitors?

548
00:32:53.500 --> 00:32:54.500
No.

549
00:32:54.500 --> 00:32:55.500
So think about it like this.

550
00:32:55.500 --> 00:32:57.500
All of your competitors are copying your stuff

551
00:32:57.500 --> 00:32:59.500
and taking what's working.

552
00:32:59.500 --> 00:33:02.500
When you find something that's works, keep doing it.

553
00:33:02.500 --> 00:33:06.500
Deviation from a works is more likely not to work.

554
00:33:06.500 --> 00:33:07.500
Think about it like this.

555
00:33:07.500 --> 00:33:10.500
If you demolish a building, so let's say we build a building

556
00:33:10.500 --> 00:33:12.500
and it takes us two years to build a building.

557
00:33:12.500 --> 00:33:14.500
Demolishing it might take five minutes.

558
00:33:14.500 --> 00:33:15.500
Just put a bomb, boom.

559
00:33:15.500 --> 00:33:19.500
Because the place of the bricks and the steel in that building,

560
00:33:19.500 --> 00:33:22.500
every other potentiality that those bricks could go to

561
00:33:23.500 --> 00:33:25.500
create not a building.

562
00:33:25.500 --> 00:33:28.500
But there's only one placement of that brick and steel

563
00:33:28.500 --> 00:33:29.500
that creates a building.

564
00:33:29.500 --> 00:33:32.500
And so you have unlimited options for destruction

565
00:33:32.500 --> 00:33:34.500
and only one for solution.

566
00:33:34.500 --> 00:33:36.500
And so when you do find something that works,

567
00:33:36.500 --> 00:33:38.500
the likelihood that when you change it and you move the brick

568
00:33:38.500 --> 00:33:41.500
and you move the scaffolding that you destroy the building

569
00:33:41.500 --> 00:33:42.500
is very high.

570
00:33:42.500 --> 00:33:44.500
Something can literally go anywhere except for the right place.

571
00:33:44.500 --> 00:33:47.500
And so you can have more options and all of them be wrong.

572
00:33:47.500 --> 00:33:50.500
So one of our portfolio companies, which is very large,

573
00:33:50.500 --> 00:33:52.500
hired a new advertising director.

574
00:33:52.500 --> 00:33:55.500
And that advertising director had came in with lots of new ideas.

575
00:33:55.500 --> 00:33:58.500
And so the founder, because he wanted to teach an important

576
00:33:58.500 --> 00:34:00.500
lesson to the advertising director, said, sure,

577
00:34:00.500 --> 00:34:01.500
let's do all of your ideas.

578
00:34:01.500 --> 00:34:03.500
And so he sat there, he said the scripts,

579
00:34:03.500 --> 00:34:06.500
he recorded all these ads, he took multiple days to do it.

580
00:34:06.500 --> 00:34:10.500
And what ended up happening is that they ran all the ads

581
00:34:10.500 --> 00:34:11.500
and they didn't work.

582
00:34:11.500 --> 00:34:14.500
And so he said, hey, crazy idea.

583
00:34:14.500 --> 00:34:17.500
What if we use the same hook that's been working for three years?

584
00:34:18.500 --> 00:34:20.500
And they used the same hook and the ads worked.

585
00:34:20.500 --> 00:34:22.500
Think about it like this.

586
00:34:22.500 --> 00:34:25.500
Nike, on its second year after just do it,

587
00:34:25.500 --> 00:34:27.500
wasn't like, hey, just do it's kind of old.

588
00:34:27.500 --> 00:34:28.500
Let's switch it up.

589
00:34:28.500 --> 00:34:31.500
It's like, when you find a message that converts,

590
00:34:31.500 --> 00:34:33.500
you keep hammering the message.

591
00:34:33.500 --> 00:34:37.500
When you find the ad hooks and you find the processes

592
00:34:37.500 --> 00:34:41.500
that work well for you, most times you'd be better served

593
00:34:41.500 --> 00:34:44.500
just continuing to reuse it because you will get board of it

594
00:34:44.500 --> 00:34:46.500
far before your customers ever do.

595
00:34:46.500 --> 00:34:49.500
So believe it or not, there's actually math to support this.

596
00:34:49.500 --> 00:34:52.500
So Sergey, Brynn and Larry Page, I can't remember which one of them,

597
00:34:52.500 --> 00:34:55.500
is like a brilliant mathematician and actually was able to prove

598
00:34:55.500 --> 00:34:57.500
this ratio out.

599
00:34:57.500 --> 00:34:59.500
So when you're stealing from yourself,

600
00:34:59.500 --> 00:35:02.500
you want 70% of all of your effort to going to basically

601
00:35:02.500 --> 00:35:04.500
carbon copying the thing that works.

602
00:35:04.500 --> 00:35:06.500
And this works across all functions.

603
00:35:06.500 --> 00:35:08.500
This works for a sales script, this works for product,

604
00:35:08.500 --> 00:35:12.500
this works for reinvestment activities like this rule works.

605
00:35:12.500 --> 00:35:14.500
The second is adjacent.

606
00:35:14.500 --> 00:35:17.500
So something that's just like one degree removed.

607
00:35:17.500 --> 00:35:20.500
So it's close to the core of what you normally do.

608
00:35:20.500 --> 00:35:23.500
So instead of saying, starting a school community is the fastest way

609
00:35:23.500 --> 00:35:24.500
to start an online business.

610
00:35:24.500 --> 00:35:26.500
I could say that would be a hook and it's a hook that worked.

611
00:35:26.500 --> 00:35:29.500
I could say one of the fastest ways to start an online business,

612
00:35:29.500 --> 00:35:30.500
the start a school community.

613
00:35:30.500 --> 00:35:32.500
That would be a variation of something that we knew

614
00:35:32.500 --> 00:35:34.500
that those words weren't, but it would be adjacent to it.

615
00:35:34.500 --> 00:35:36.500
Not the exact carbon copy, but similar.

616
00:35:36.500 --> 00:35:40.500
Now 10 is, that means that one out of 10 of the things

617
00:35:40.500 --> 00:35:41.500
that you're putting your effort towards.

618
00:35:41.500 --> 00:35:43.500
All right, it would be something that's brand spanking new.

619
00:35:43.500 --> 00:35:45.500
Completely, you know, out of left field.

620
00:35:45.500 --> 00:35:48.500
And when you look at your effort in your business,

621
00:35:48.500 --> 00:35:51.500
I can almost guarantee you that you have this flipped.

622
00:35:51.500 --> 00:35:54.500
And I only say this because I speak from experience.

623
00:35:54.500 --> 00:35:56.500
Is that this is what I would do.

624
00:35:56.500 --> 00:35:59.500
I would spend 70% of my time on new crazy things, new ideas,

625
00:35:59.500 --> 00:36:00.500
all the stuff that excited me.

626
00:36:00.500 --> 00:36:03.500
And then 20% I'd be like, oh yeah, I'll do something kind of different

627
00:36:03.500 --> 00:36:04.500
from what I was doing before.

628
00:36:04.500 --> 00:36:06.500
And then 10% I'll be like, fine, maybe.

629
00:36:06.500 --> 00:36:08.500
And this is a, this is a maybe.

630
00:36:08.500 --> 00:36:09.500
Most times I'm like, oh, I already used that.

631
00:36:09.500 --> 00:36:11.500
I used that hook once. I don't want to use it again.

632
00:36:11.500 --> 00:36:14.500
I don't want to use the same hook that worked before in another ad.

633
00:36:14.500 --> 00:36:15.500
It's silly.

634
00:36:15.500 --> 00:36:17.500
Also a different version of this from an advertising perspective

635
00:36:17.500 --> 00:36:19.500
of the 20% is you use the exact same hook

636
00:36:19.500 --> 00:36:20.500
but you have a different background.

637
00:36:20.500 --> 00:36:22.500
So it's just like a different variation.

638
00:36:22.500 --> 00:36:23.500
So it's like, I could worry different shirt.

639
00:36:23.500 --> 00:36:24.500
I could have a different setting.

640
00:36:24.500 --> 00:36:26.500
And I could still deliver the same hook.

641
00:36:26.500 --> 00:36:29.500
And to me that would still be kind of a 20% variation.

642
00:36:29.500 --> 00:36:33.500
So once you're done stealing from yourself, then let's talk

643
00:36:33.500 --> 00:36:35.500
about emotional versus logical bias.

644
00:36:35.500 --> 00:36:38.500
This is a huge monstrous increase in business for me.

645
00:36:38.500 --> 00:36:40.500
Have you ever heard from the marketing world,

646
00:36:40.500 --> 00:36:42.500
there's logical and there's emotional buyers?

647
00:36:42.500 --> 00:36:44.500
I had heard it growing up and I kind of repeated it over and over again

648
00:36:44.500 --> 00:36:46.500
because I hadn't really thought about it.

649
00:36:46.500 --> 00:36:48.500
I don't actually think that's true.

650
00:36:48.500 --> 00:36:50.500
And so let me explain.

651
00:36:50.500 --> 00:36:53.500
I actually think that there's a continuum of buyers

652
00:36:53.500 --> 00:36:54.500
that people sit on.

653
00:36:54.500 --> 00:36:57.500
And you've got people who require more information

654
00:36:57.500 --> 00:36:59.500
so they're high info buyers.

655
00:36:59.500 --> 00:37:01.500
And then you've got people who require less information.

656
00:37:01.500 --> 00:37:02.500
There's two elements to this.

657
00:37:02.500 --> 00:37:04.500
One is their information requirement.

658
00:37:04.500 --> 00:37:07.500
And secondarily, how much info they have received.

659
00:37:08.500 --> 00:37:10.500
And so you could have a high information buyer

660
00:37:10.500 --> 00:37:13.500
that's further closer to this little, this dollar sign here

661
00:37:13.500 --> 00:37:16.500
that only needs a little bit more information in order to buy.

662
00:37:16.500 --> 00:37:19.500
And then you have some people that just generically buy lots of stuff.

663
00:37:19.500 --> 00:37:20.500
Everybody loves those people.

664
00:37:20.500 --> 00:37:21.500
Of course, but guess what?

665
00:37:21.500 --> 00:37:22.500
Everybody fights over those people.

666
00:37:22.500 --> 00:37:25.500
The thing is that the amount of low information buyers

667
00:37:25.500 --> 00:37:26.500
is like this.

668
00:37:26.500 --> 00:37:28.500
The amount of high information buyers

669
00:37:28.500 --> 00:37:32.500
is an order of magnitude or multiple orders of magnitude greater.

670
00:37:32.500 --> 00:37:35.500
Only crazy people buy immediately.

671
00:37:35.500 --> 00:37:38.500
It's very normal for people to want to have more information

672
00:37:38.500 --> 00:37:39.500
before making a decision.

673
00:37:39.500 --> 00:37:41.500
When we think about our advertising,

674
00:37:41.500 --> 00:37:44.500
the reason that the direct response community typically

675
00:37:44.500 --> 00:37:47.500
can't grow very large businesses most of the time

676
00:37:47.500 --> 00:37:50.500
is because they only advertise to these people

677
00:37:50.500 --> 00:37:53.500
and this pool of buyers is significantly smaller.

678
00:37:53.500 --> 00:37:56.500
But the reason building a brand, for example,

679
00:37:56.500 --> 00:38:00.500
and investing in an audience is because you're trying to move them down

680
00:38:00.500 --> 00:38:01.500
this line.

681
00:38:01.500 --> 00:38:04.500
Now, when I heard this in the earlier days of my career,

682
00:38:04.500 --> 00:38:05.500
I was like, I don't have time for that.

683
00:38:05.500 --> 00:38:06.500
I need to make money.

684
00:38:06.500 --> 00:38:07.500
I get it.

685
00:38:07.500 --> 00:38:08.500
Sure.

686
00:38:08.500 --> 00:38:10.500
In the beginning, you just advertise the six-inch pots.

687
00:38:10.500 --> 00:38:13.500
But when you want to scale, you have to educate

688
00:38:13.500 --> 00:38:15.500
a higher percentage of the audience

689
00:38:15.500 --> 00:38:18.500
because they will require more to buy.

690
00:38:18.500 --> 00:38:21.500
The way to move people through this

691
00:38:21.500 --> 00:38:24.500
is something that Eugene Swartz pioneered

692
00:38:24.500 --> 00:38:26.500
in his book Breakthrough Advertising.

693
00:38:26.500 --> 00:38:29.500
And he talks about the five levels of awareness.

694
00:38:29.500 --> 00:38:31.500
So he has unaware people,

695
00:38:31.500 --> 00:38:33.500
so people have just no idea about anything,

696
00:38:33.500 --> 00:38:36.500
the next is problem-aware,

697
00:38:36.500 --> 00:38:40.500
so they have some sort of pain.

698
00:38:40.500 --> 00:38:42.500
You have solution-aware,

699
00:38:42.500 --> 00:38:43.500
you have product-aware,

700
00:38:43.500 --> 00:38:44.500
and you have most-aware.

701
00:38:44.500 --> 00:38:46.500
So those are the five stages.

702
00:38:46.500 --> 00:38:49.500
Now, a customer will basically move in this direction,

703
00:38:49.500 --> 00:38:51.500
going from unaware to most-aware.

704
00:38:51.500 --> 00:38:54.500
If you want to go to broader and broader audiences

705
00:38:54.500 --> 00:38:57.500
to get their attention, the unaware audience

706
00:38:57.500 --> 00:39:00.500
you typically have to go off of broad curiosity.

707
00:39:01.500 --> 00:39:03.500
And so if you've ever seen those crazy ads

708
00:39:03.500 --> 00:39:06.500
that are weird articles like Arizona State,

709
00:39:06.500 --> 00:39:08.500
blah, blah, blah, has this new, blah.

710
00:39:08.500 --> 00:39:11.500
They're trying to go after a massive audience of people

711
00:39:11.500 --> 00:39:12.500
who have no idea what's going on.

712
00:39:12.500 --> 00:39:15.500
That new scientific breakthrough

713
00:39:15.500 --> 00:39:17.500
could lead you to buying a supplement.

714
00:39:17.500 --> 00:39:19.500
It could lead you to buying a weight loss thing.

715
00:39:19.500 --> 00:39:21.500
It could lead you to buying some sort of equipment.

716
00:39:21.500 --> 00:39:22.500
It could lead you to buying insurance.

717
00:39:22.500 --> 00:39:23.500
It could go in any direction.

718
00:39:23.500 --> 00:39:26.500
But it's the curiosity that gets them in problem-aware

719
00:39:26.500 --> 00:39:28.500
would be something to the extent of like,

720
00:39:28.500 --> 00:39:30.500
do you wake up to pee three times a night?

721
00:39:30.500 --> 00:39:32.500
Does it hurt when you bend over to tie your shoes?

722
00:39:32.500 --> 00:39:34.500
Do you get out of breath when you play with your kids?

723
00:39:34.500 --> 00:39:35.500
Those are going to be problem-aware.

724
00:39:35.500 --> 00:39:38.500
Now, they, again, that could lead you to a supplement.

725
00:39:38.500 --> 00:39:40.500
That could lead you to insurance.

726
00:39:40.500 --> 00:39:41.500
That could lead you to whatever.

727
00:39:41.500 --> 00:39:43.500
But it's a slightly more aware person.

728
00:39:43.500 --> 00:39:45.500
At least they're problem-aware.

729
00:39:45.500 --> 00:39:47.500
Solution-aware is that somebody knows

730
00:39:47.500 --> 00:39:50.500
of the potential things that they could buy

731
00:39:50.500 --> 00:39:52.500
and you're helping them select between them.

732
00:39:52.500 --> 00:39:54.500
Product-aware is at even a more micro-level.

733
00:39:54.500 --> 00:39:57.500
And most-aware is typically your existing customers.

734
00:39:57.500 --> 00:40:00.500
So here is where you just make offers, right?

735
00:40:00.500 --> 00:40:03.500
This is why the book offers is where I started,

736
00:40:03.500 --> 00:40:06.500
because the people who are here is the tiny audience here.

737
00:40:06.500 --> 00:40:08.500
And so you just make an offer to get them to buy.

738
00:40:08.500 --> 00:40:11.500
But that only works for this tiny audience.

739
00:40:11.500 --> 00:40:13.500
So you will make money quickly doing that,

740
00:40:13.500 --> 00:40:15.500
but you will also cap yourself quickly.

741
00:40:15.500 --> 00:40:17.500
In an effort to figure out, okay, well,

742
00:40:17.500 --> 00:40:20.500
how much should I allocate between these most-aware,

743
00:40:20.500 --> 00:40:22.500
less info people, and the maybe problem,

744
00:40:22.500 --> 00:40:24.500
unaware, high information people

745
00:40:24.500 --> 00:40:26.500
who require more education in order to make a purchasing

746
00:40:26.500 --> 00:40:27.500
decision.

747
00:40:27.500 --> 00:40:30.500
Well, I had one of the most enlightening conversations

748
00:40:30.500 --> 00:40:32.500
I've had in a really long time with Ben Francis,

749
00:40:32.500 --> 00:40:35.500
who's the CEO of Jim Shark, and then he introduced me to Chris Davis,

750
00:40:35.500 --> 00:40:38.500
who's the CMO of New Balance.

751
00:40:38.500 --> 00:40:41.500
And so we had an awesome conversation talking about

752
00:40:41.500 --> 00:40:44.500
what Chris had done at New Balance and helped them just skyrocket

753
00:40:44.500 --> 00:40:45.500
their sales.

754
00:40:45.500 --> 00:40:50.500
What they did is that when Heak took over 30% of their advertising

755
00:40:50.500 --> 00:40:52.500
budget was going to here.

756
00:40:52.500 --> 00:40:54.500
It was going to the broad awareness level,

757
00:40:54.500 --> 00:40:56.500
storytelling, emotional stuff.

758
00:40:56.500 --> 00:40:59.500
And then 70% was basically geared towards buying shoes,

759
00:40:59.500 --> 00:41:01.500
saying, hey, go buy these shoes.

760
00:41:01.500 --> 00:41:04.500
What he did when he took over was that he flipped them.

761
00:41:04.500 --> 00:41:07.500
That he ended up with 70% going to big,

762
00:41:07.500 --> 00:41:09.500
high-level pairings, endorsements,

763
00:41:09.500 --> 00:41:11.500
specific athletes that they wanted to recruit,

764
00:41:11.500 --> 00:41:13.500
that they felt represented their brand.

765
00:41:13.500 --> 00:41:17.500
And only 30% of their advertising budget went towards

766
00:41:17.500 --> 00:41:20.500
actually telling people that they had shoes and that they were for sale.

767
00:41:20.500 --> 00:41:22.500
After he made that flip, here's the crazy part.

768
00:41:22.500 --> 00:41:27.500
It took 18 months for them to see the return on that budget.

769
00:41:27.500 --> 00:41:30.500
And so if you're in a rush, this isn't going to work.

770
00:41:30.500 --> 00:41:33.500
But if you're in a rush, you're never going to get big anyways.

771
00:41:33.500 --> 00:41:37.500
Keeping this ratio made this concept tactical for me.

772
00:41:37.500 --> 00:41:39.500
And so when I think about my marketing effort,

773
00:41:39.500 --> 00:41:41.500
my marketing dollars, and most importantly,

774
00:41:41.500 --> 00:41:43.500
how I measure it, my marketing impressions,

775
00:41:43.500 --> 00:41:47.500
I want to make sure that 70% or more of the advertising

776
00:41:47.500 --> 00:41:50.500
impressions that someone's going to get are going to be around

777
00:41:50.500 --> 00:41:54.500
the pairings that I want of me giving something rather than asking.

778
00:41:54.500 --> 00:41:56.500
So when we look at this ratio,

779
00:41:56.500 --> 00:41:59.500
this is actually super well studied between 70 and 30% here.

780
00:41:59.500 --> 00:42:03.500
Because right now it's actually three and a half to one

781
00:42:03.500 --> 00:42:08.500
is the ratio that has been studied to basically not lose audience.

782
00:42:08.500 --> 00:42:11.500
And so if you look at television, for example,

783
00:42:11.500 --> 00:42:13.500
and they've already studied how many commercials can we gym into the show

784
00:42:13.500 --> 00:42:15.500
before people stop watching.

785
00:42:15.500 --> 00:42:19.500
And so they figured it out that it was every three and a half minutes

786
00:42:19.500 --> 00:42:22.500
of content they could basically put one minute of advertising in.

787
00:42:22.500 --> 00:42:25.500
If you look at your Facebook newsfeed, for every three posts you get

788
00:42:25.500 --> 00:42:28.500
when you scroll, you'll get one ad.

789
00:42:28.500 --> 00:42:31.500
And the platforms that grow the fastest have a larger percentage

790
00:42:31.500 --> 00:42:34.500
of this give and a smaller percentage of ask.

791
00:42:34.500 --> 00:42:37.500
TikTok for years had zero ads on the platform

792
00:42:37.500 --> 00:42:39.500
and just wanted to grow as virally as possible.

793
00:42:39.500 --> 00:42:42.500
And they acquired more users because they had to give first

794
00:42:42.500 --> 00:42:44.500
give all the time strategy.

795
00:42:44.500 --> 00:42:46.500
The fact that they settled on this ratio

796
00:42:46.500 --> 00:42:49.500
and it has been corroborated, fancy word for it,

797
00:42:49.500 --> 00:42:52.500
it's worked in multiple other places, made me think,

798
00:42:52.500 --> 00:42:54.500
wow, there's something to this.

799
00:42:54.500 --> 00:42:57.500
And so this makes this concept of how do I balance

800
00:42:57.500 --> 00:43:00.500
high information buyers, people that need more brand,

801
00:43:00.500 --> 00:43:04.500
people that need more education prior to purchase with me making money?

802
00:43:04.500 --> 00:43:08.500
Is that you basically start with that ratio, add patience and time,

803
00:43:08.500 --> 00:43:11.500
and then it becomes a snowball that compounds unto itself.

804
00:43:11.500 --> 00:43:14.500
And then you will get to a point in the future where you're still,

805
00:43:14.500 --> 00:43:18.500
you're doing so much more than you could ever possibly do

806
00:43:18.500 --> 00:43:21.500
if you only focused on the direct response on the less information,

807
00:43:21.500 --> 00:43:25.500
but you're actually still digging the well for what you're going to do next year.

808
00:43:25.500 --> 00:43:28.500
And so basically you can see when a founder stops running a business

809
00:43:28.500 --> 00:43:31.500
and then the corporate execs come in because what they do is they flip the ratio,

810
00:43:31.500 --> 00:43:34.500
they basically pull forward demand from the future.

811
00:43:34.500 --> 00:43:37.500
The founder dug the well and then they just suck all the water out of the well,

812
00:43:37.500 --> 00:43:39.500
but then they didn't dig the next well.

813
00:43:39.500 --> 00:43:41.500
And so you're always going to be ahead of demand.

814
00:43:41.500 --> 00:43:44.500
Be to be businesses and be to see businesses do this differently.

815
00:43:44.500 --> 00:43:47.500
And this was something that took me a really long time to figure out.

816
00:43:47.500 --> 00:43:50.500
And so be to see businesses, so like businesses to consumer,

817
00:43:50.500 --> 00:43:55.500
businesses will typically do these types of parings in terms of high information buyers

818
00:43:55.500 --> 00:44:00.500
by telling emotional stories, making associations, getting endorsements

819
00:44:00.500 --> 00:44:04.500
from athletes and influencers or organizations that represent the values

820
00:44:04.500 --> 00:44:07.500
that they think resonate positively with their ideal audience.

821
00:44:07.500 --> 00:44:11.500
Once they do that, they then can place the product next to those associations

822
00:44:11.500 --> 00:44:15.500
so that they can then pair them and then the person wants to buy the product as a consequence.

823
00:44:15.500 --> 00:44:17.500
That is what it looks like in a B2C business.

824
00:44:17.500 --> 00:44:19.500
But it took me a really long time to think through,

825
00:44:19.500 --> 00:44:22.500
well what does this look like for B2B business?

826
00:44:22.500 --> 00:44:26.500
And so I break this down into several tactical things.

827
00:44:26.500 --> 00:44:31.500
So number one is aspirational outcomes that you have achieved

828
00:44:31.500 --> 00:44:33.500
or the business has helped facilitate.

829
00:44:33.500 --> 00:44:37.500
Secondarily, people like this person, like your avatar,

830
00:44:37.500 --> 00:44:39.500
that you have helped facilitate, so just to be clear,

831
00:44:39.500 --> 00:44:41.500
stuff that you did, stuff that you help other people do.

832
00:44:41.500 --> 00:44:46.500
The third is stuff that you help them do, the prospect themselves,

833
00:44:46.500 --> 00:44:50.500
which you can only facilitate at least in my opinion in two major ways.

834
00:44:50.500 --> 00:44:52.500
One is that you give them free content and education,

835
00:44:52.500 --> 00:44:54.500
which is why I make this stuff.

836
00:44:54.500 --> 00:44:56.500
And the second is that you give them free products and services.

837
00:44:56.500 --> 00:44:58.500
So it's just why the books are free, they're on my site,

838
00:44:58.500 --> 00:45:01.500
you can read them, you consume them, there's a scaling roadmap there,

839
00:45:01.500 --> 00:45:04.500
personalized, all that stuff is free.

840
00:45:04.500 --> 00:45:09.500
Because fundamentally it's two degrees of separation if some person does it.

841
00:45:09.500 --> 00:45:11.500
Alex had a big exit, now he's a big portfolio.

842
00:45:11.500 --> 00:45:13.500
Cool, that's two degrees of separation.

843
00:45:13.500 --> 00:45:15.500
There's other companies in the portfolio or other businesses

844
00:45:15.500 --> 00:45:19.500
who look just like mine that he helped scale, one degree separation.

845
00:45:19.500 --> 00:45:23.500
I used his stuff and made more money, zero degrees of separation.

846
00:45:23.500 --> 00:45:27.500
And so we want to have, and this is always going to be stronger than anything else.

847
00:45:27.500 --> 00:45:29.500
But it'll take longer.

848
00:45:29.500 --> 00:45:33.500
So in understanding the difference between B2C and B2B, in terms of what do I do top of funnel here?

849
00:45:33.500 --> 00:45:35.500
How do I allocate my resources?

850
00:45:35.500 --> 00:45:39.500
It means that I'm spending time putting together the course in my spare time

851
00:45:39.500 --> 00:45:43.500
so that you guys can go consume it on how to make offers, how to get leads,

852
00:45:43.500 --> 00:45:45.500
how to scale comfort from zero to 100 million.

853
00:45:45.500 --> 00:45:49.500
That's time, that's effort, that's my team who's behind the camera right now.

854
00:45:49.500 --> 00:45:51.500
That's budget that goes towards that.

855
00:45:51.500 --> 00:45:53.500
Because I'm not looking for demand today.

856
00:45:53.500 --> 00:45:57.500
I'm looking for those of you who are going to scale your companies in five years at me up.

857
00:45:57.500 --> 00:46:01.500
Here's the thing, let's say acquisition.com with public tomorrow.

858
00:46:01.500 --> 00:46:03.500
And I got asked it for being rude, which I probably would.

859
00:46:03.500 --> 00:46:05.500
And then they put in a new CEO.

860
00:46:05.500 --> 00:46:07.500
And that new CEO says, I need to hit quarterly earnings.

861
00:46:07.500 --> 00:46:09.500
So what would he probably do?

862
00:46:09.500 --> 00:46:11.500
He probably switched to lots of direct response.

863
00:46:11.500 --> 00:46:15.500
And he probably cut down all the budget on the gives and the books.

864
00:46:15.500 --> 00:46:18.500
And all of a sudden he's like, well, there's no ROI in a book.

865
00:46:18.500 --> 00:46:19.500
Like, books don't make any money.

866
00:46:19.500 --> 00:46:21.500
It's like, yeah, not today.

867
00:46:21.500 --> 00:46:24.500
But they bring people into our world.

868
00:46:24.500 --> 00:46:28.500
And when they do have the next billion dollar company, they'll hit us up first.

869
00:46:28.500 --> 00:46:30.500
And that's the goal.

870
00:46:30.500 --> 00:46:32.500
But that guy will just say, well, you know what, scroll that.

871
00:46:32.500 --> 00:46:34.500
I'm going to recapture all this marketing spending effort.

872
00:46:34.500 --> 00:46:36.500
We're going to focus it all on these direct response ads.

873
00:46:36.500 --> 00:46:38.500
Tell people to buy, buy, buy.

874
00:46:38.500 --> 00:46:40.500
And you know what, for a quarter, it'll work.

875
00:46:40.500 --> 00:46:42.500
Maybe two quarters will work.

876
00:46:42.500 --> 00:46:44.500
But all of a sudden, it'll start slowly going down, slowly going down, slowly going down.

877
00:46:44.500 --> 00:46:45.500
Then what happens?

878
00:46:45.500 --> 00:46:48.500
They call the founder back up and they're like, hey, help, help us fix this.

879
00:46:48.500 --> 00:46:51.500
And then the founder is going to say, I can't do it in a quarter.

880
00:46:51.500 --> 00:46:54.500
It's going to take me a year, year and a half to basically right size the ship.

881
00:46:54.500 --> 00:46:56.500
Because you sucked all the wells dry.

882
00:46:56.500 --> 00:46:57.500
And I'm going to have to start digging again.

883
00:46:57.500 --> 00:46:59.500
So the next one is some of my marketing laws.

884
00:46:59.500 --> 00:47:01.500
So I'm going to give you a few of them.

885
00:47:01.500 --> 00:47:03.500
And I'll start with the first one that you, if you've heard my channel,

886
00:47:03.500 --> 00:47:04.500
then you should know this one.

887
00:47:04.500 --> 00:47:08.500
It should be ingrained in your brain, which is state the facts and tell the truth.

888
00:47:08.500 --> 00:47:15.500
And the reason this is so important to me is that it forces me as a advertiser business person

889
00:47:15.500 --> 00:47:18.500
to change reality.

890
00:47:19.500 --> 00:47:26.500
And so rather than try and exaggerate, it makes more sense to put all of the effort into doing epic stuff

891
00:47:26.500 --> 00:47:31.500
and then telling a truthful story rather than telling an epic story about something that was underwhelming.

892
00:47:31.500 --> 00:47:35.500
And I think the vast majority of marketers and marketing do the second thing.

893
00:47:35.500 --> 00:47:39.500
They have something normal and then they try and tell an exaggerated story of it

894
00:47:39.500 --> 00:47:43.500
rather than having something absolutely insane and just stating the facts and telling the truth.

895
00:47:43.500 --> 00:47:46.500
And I can tell you that the second this one, stating the facts and telling the truth,

896
00:47:46.500 --> 00:47:48.500
is the best long-term strategy.

897
00:47:48.500 --> 00:47:50.500
How do I actualize this?

898
00:47:50.500 --> 00:47:53.500
So number one is that we make the truth more compelling.

899
00:47:53.500 --> 00:47:54.500
We actually change reality.

900
00:47:54.500 --> 00:47:57.500
The second is that we show only what we can show.

901
00:47:57.500 --> 00:48:00.500
I remember I was talking to a martial arts guy and he's like,

902
00:48:00.500 --> 00:48:03.500
there's all these other martial arts studios in my area.

903
00:48:03.500 --> 00:48:04.500
How do I stand out?

904
00:48:04.500 --> 00:48:07.500
And I said, well, what's your specialty or whatever?

905
00:48:07.500 --> 00:48:09.500
And he said, I'm a double secret black belt of something.

906
00:48:09.500 --> 00:48:11.500
And I said, okay, well, how many doubles are your black belts?

907
00:48:11.500 --> 00:48:13.500
He's like, well, there's only six in the nation.

908
00:48:13.500 --> 00:48:15.500
And I was like, okay, well, do any of them live in your air?

909
00:48:15.500 --> 00:48:16.500
And he said, no.

910
00:48:16.500 --> 00:48:18.500
And I was like, well, why don't you say that, right?

911
00:48:18.500 --> 00:48:20.500
Why don't you say that?

912
00:48:20.500 --> 00:48:23.500
So every business, if you get narrow enough, has something that's unique about it.

913
00:48:23.500 --> 00:48:25.500
You might have the best parking.

914
00:48:25.500 --> 00:48:29.500
You might have the fastest introduction to getting somebody to sit down.

915
00:48:29.500 --> 00:48:33.500
You might have the most gyms, whatever it is, the most customers.

916
00:48:33.500 --> 00:48:35.500
The most customers add a certain price point.

917
00:48:35.500 --> 00:48:39.500
You just need to slice the data of the business to figure out what is unique about your business.

918
00:48:39.500 --> 00:48:44.500
And I remember this moment in Mad Men, which is an advertising show.

919
00:48:44.500 --> 00:48:45.500
It's like an old 50 show.

920
00:48:45.500 --> 00:48:47.500
Well, it's a new show about the 50s.

921
00:48:47.500 --> 00:48:52.500
And Don Draper, who's the lead character, who's an advertising guy, is pitching a client who's a cigarette company.

922
00:48:52.500 --> 00:48:55.500
And they're trying, they're like the third or fourth in the category.

923
00:48:55.500 --> 00:48:56.500
They're highly commoditized.

924
00:48:56.500 --> 00:48:58.500
They're competing on price and they're losing.

925
00:48:58.500 --> 00:49:02.500
So he asks them to explain how cigarettes are made.

926
00:49:02.500 --> 00:49:03.500
And they kind of roll their eyes.

927
00:49:03.500 --> 00:49:04.500
They're like, why is this important?

928
00:49:04.500 --> 00:49:06.500
He's like, okay, well, first we have the planets.

929
00:49:06.500 --> 00:49:08.500
And then we take, and he keeps going through it.

930
00:49:08.500 --> 00:49:10.500
And he's like, and then we let it sit out in the sun.

931
00:49:10.500 --> 00:49:12.500
And he's like, what do you mean?

932
00:49:12.500 --> 00:49:14.500
And he's like, you know, to dry out the leads.

933
00:49:14.500 --> 00:49:15.500
He's like, so you toast them.

934
00:49:15.500 --> 00:49:17.500
And he's like, yeah, we toast them.

935
00:49:17.500 --> 00:49:19.500
And he's like, it's toasted.

936
00:49:19.500 --> 00:49:22.500
And so that was a unique part.

937
00:49:22.500 --> 00:49:25.500
He just sliced down and got really narrow.

938
00:49:25.500 --> 00:49:29.500
About one particular part of the process and was able to pull that out and emphasize it.

939
00:49:29.500 --> 00:49:32.500
So that people were like, oh, this is different than other things.

940
00:49:32.500 --> 00:49:36.500
And the really important part about this is that maybe some of the other cigarette companies

941
00:49:36.500 --> 00:49:38.500
also toast it.

942
00:49:38.500 --> 00:49:40.500
But they don't say that they toast it.

943
00:49:40.500 --> 00:49:44.500
And so the perception is still that it's different, even if it is the same.

944
00:49:44.500 --> 00:49:47.500
The best version of this is finding something that's truly unique.

945
00:49:47.500 --> 00:49:50.500
The second best version is to just say something that's unique about something

946
00:49:50.500 --> 00:49:53.500
that everyone else already does, but that your customers don't know.

947
00:49:53.500 --> 00:49:57.500
The core layer to that is say what only you can say.

948
00:49:57.500 --> 00:50:01.500
So you show it only you can show, and you say what only you can say.

949
00:50:01.500 --> 00:50:04.500
So the showing part is going to be like, okay, with the toasting thing,

950
00:50:04.500 --> 00:50:06.500
how do we display that visually?

951
00:50:06.500 --> 00:50:08.500
With the super secret black path, then how do we display that?

952
00:50:08.500 --> 00:50:10.500
Now you could show the black path.

953
00:50:10.500 --> 00:50:12.500
You could show you shaking your hands, getting the certification.

954
00:50:12.500 --> 00:50:14.500
You could show you winning some tournament, right?

955
00:50:14.500 --> 00:50:18.500
If you're toasting, you could show the bed of all the tobacco that's getting toasted

956
00:50:18.500 --> 00:50:21.500
and the smells and the wafting through the air, whatever, right?

957
00:50:21.500 --> 00:50:23.500
And then you describe it in a way that only you can say.

958
00:50:23.500 --> 00:50:28.500
To do this, it's more important that you are the best than what you are the best of.

959
00:50:28.500 --> 00:50:32.500
I would rather be from a marketing perspective, not absolutely.

960
00:50:32.500 --> 00:50:35.500
I'd rather have the 10th biggest company in the world, right?

961
00:50:35.500 --> 00:50:38.500
Than the first biggest company in Indiana.

962
00:50:38.500 --> 00:50:42.500
But from an advertising perspective, it is more compelling to be the best.

963
00:50:42.500 --> 00:50:44.500
And I'll tell you a story that I haven't told.

964
00:50:44.500 --> 00:50:49.500
John Rockefeller, when he was early on in his oil empire,

965
00:50:49.500 --> 00:50:54.500
bid to buy the biggest oil refinery in Cincinnati.

966
00:50:54.500 --> 00:50:56.500
And he was the second biggest.

967
00:50:56.500 --> 00:50:59.500
He ended up overpaying for the business.

968
00:50:59.500 --> 00:51:04.500
And the business owner of the oil refinery laughed at him and kind of laughed his way to the bank.

969
00:51:04.500 --> 00:51:06.500
He's like, you could completely overpaid for this thing.

970
00:51:06.500 --> 00:51:11.500
And so then what John D. Rockefeller did after he bought the second, the first biggest.

971
00:51:11.500 --> 00:51:16.500
And he already had the second biggest is that he then was able to say he was the biggest.

972
00:51:16.500 --> 00:51:22.500
And then in the next 30 days, he'd over 20 M&A deals in the next 30 days

973
00:51:22.500 --> 00:51:26.500
to consolidate the entire rest of the market because he became the gorilla.

974
00:51:26.500 --> 00:51:31.500
He was willing to overpay for the asset to get the story.

975
00:51:31.500 --> 00:51:35.500
The difference in value between what he should have paid for those 20 deals

976
00:51:35.500 --> 00:51:39.500
and what he was able to pay by strong arming those smaller competitors

977
00:51:39.500 --> 00:51:43.500
because he was now the gorilla more than made up for what he minorly overpaid

978
00:51:43.500 --> 00:51:47.500
or maybe even majorly overpaid for the one company that he bought.

979
00:51:47.500 --> 00:51:50.500
And when he recants the story, when he tells the story again,

980
00:51:50.500 --> 00:51:55.500
he talks about how that competitor didn't see the bigger picture.

981
00:51:55.500 --> 00:51:59.500
I remember reading it in the letters that he wrote to his son and thinking to myself,

982
00:51:59.500 --> 00:52:01.500
that is powerful.

983
00:52:01.500 --> 00:52:04.500
He was willing to overpay for the story.

984
00:52:04.500 --> 00:52:08.500
He saw it as an investment in his brand, in his reputation.

985
00:52:08.500 --> 00:52:11.500
And so the guy who sold it just saw it as him overpaying for a product

986
00:52:11.500 --> 00:52:15.500
but he wasn't appropriately valuing how much true brand value

987
00:52:15.500 --> 00:52:17.500
that would give Rockefeller as a result.

988
00:52:17.500 --> 00:52:21.500
The next big growth lever is all about the list.

989
00:52:21.500 --> 00:52:23.500
So when I talk about the list,

990
00:52:23.500 --> 00:52:26.500
people immediately think that I'm talking about email list, direct mail list,

991
00:52:26.500 --> 00:52:27.500
and sometimes that's true.

992
00:52:27.500 --> 00:52:29.500
But I'll give you a hypothetical example.

993
00:52:29.500 --> 00:52:32.500
So let's say I am selling winter coats

994
00:52:32.500 --> 00:52:36.500
and I advertise an amazing offer on some killer coats

995
00:52:36.500 --> 00:52:40.500
that people love, they look amazing, and nothing comes back.

996
00:52:40.500 --> 00:52:42.500
Well, what could have happened?

997
00:52:42.500 --> 00:52:46.500
Well, if I showed my advertisement to people who live in South Florida,

998
00:52:46.500 --> 00:52:51.500
the likelihood that they buy my very expensive, really heavy and hot winter coats is very low,

999
00:52:51.500 --> 00:52:54.500
it has nothing to do with my offer, nothing to the ad creative,

1000
00:52:54.500 --> 00:52:57.500
nothing to do with my pricing, nothing to do with anything.

1001
00:52:57.500 --> 00:52:59.500
It's just the wrong people are seeing it.

1002
00:52:59.500 --> 00:53:03.500
Many smaller businesses think that marketing doesn't work

1003
00:53:03.500 --> 00:53:06.500
when in reality they were showing it to the wrong people.

1004
00:53:06.500 --> 00:53:09.500
And so the first thing that you have to get right in marketing

1005
00:53:09.500 --> 00:53:11.500
is targeting the correct audience.

1006
00:53:11.500 --> 00:53:14.500
This is different by method of advertising.

1007
00:53:14.500 --> 00:53:17.500
If we pull up our core four here, you want to reach out to people

1008
00:53:17.500 --> 00:53:21.500
that you know are suffering from the problem that you solve

1009
00:53:21.500 --> 00:53:24.500
or have a high likelihood of suffering from the problem that you solve.

1010
00:53:24.500 --> 00:53:27.500
And the narrower the problem, the smaller the list.

1011
00:53:27.500 --> 00:53:31.500
From a paid ads perspective, this is where the targeting by platform gets more important.

1012
00:53:31.500 --> 00:53:34.500
And this is why some ad platforms tend to be more profitable than others

1013
00:53:34.500 --> 00:53:38.500
because what makes an advertising platform successful is how well targeted it is.

1014
00:53:38.500 --> 00:53:41.500
In fact, Facebook was so good that they had to roll it back

1015
00:53:41.500 --> 00:53:44.500
because of privacy loss, but it was so effective at targeting.

1016
00:53:44.500 --> 00:53:46.500
People that people complained because it was so good it felt creepy.

1017
00:53:46.500 --> 00:53:49.500
Posting content, this is where the algorithm itself,

1018
00:53:49.500 --> 00:53:54.500
based on what you look like and how you talk and what you say,

1019
00:53:54.500 --> 00:53:58.500
will impact what the AI serves your content to.

1020
00:53:58.500 --> 00:54:00.500
The same works with paid ads.

1021
00:54:00.500 --> 00:54:04.500
And so if I want to get more women to buy a product,

1022
00:54:04.500 --> 00:54:07.500
guess who I'm not going to have in the ad?

1023
00:54:07.500 --> 00:54:11.500
Me, because this is not what attracts lots of ladies, right?

1024
00:54:11.500 --> 00:54:15.500
This is just usually a bunch of entrepreneurs who tend to have beards

1025
00:54:15.500 --> 00:54:17.500
and like fitness or whatever else, right?

1026
00:54:17.500 --> 00:54:20.500
But like my audience is like 89% male.

1027
00:54:20.500 --> 00:54:24.500
And sure for my 11% females, keep rock and I appreciate you.

1028
00:54:24.500 --> 00:54:26.500
But by and large, I have a male driven audience.

1029
00:54:26.500 --> 00:54:28.500
Now maybe it's because I talk about money,

1030
00:54:28.500 --> 00:54:30.500
but there's tons of female entrepreneurs who talk about money

1031
00:54:30.500 --> 00:54:32.500
and don't have predominantly male audiences.

1032
00:54:32.500 --> 00:54:34.500
And so it's just that my way of saying things

1033
00:54:34.500 --> 00:54:37.500
and or the algorithm just tends to display it to dudes.

1034
00:54:37.500 --> 00:54:40.500
One of the easiest ways to make sure that you're displaying your ads

1035
00:54:40.500 --> 00:54:43.500
to the right avatar is make sure that the person in the ad

1036
00:54:43.500 --> 00:54:44.500
looks like the avatar.

1037
00:54:44.500 --> 00:54:45.500
And I'll tell you a funny story.

1038
00:54:45.500 --> 00:54:49.500
So when I was running the gym launch 1.0 version,

1039
00:54:49.500 --> 00:54:52.500
which is where we used to fly out to gyms and do the turnarounds,

1040
00:54:52.500 --> 00:54:54.500
I found out that when I put the thank you page,

1041
00:54:54.500 --> 00:54:56.500
this is before automated schedulers even existed.

1042
00:54:56.500 --> 00:54:57.500
So it's kind of wild.

1043
00:54:57.500 --> 00:54:59.500
I remember when I had my first automated schedule

1044
00:54:59.500 --> 00:55:00.500
to put on the thank you page.

1045
00:55:00.500 --> 00:55:02.500
I thought I had like, I cured cancer.

1046
00:55:02.500 --> 00:55:03.500
I was like, this is the coolest thing.

1047
00:55:03.500 --> 00:55:05.500
Or people can automatically book.

1048
00:55:05.500 --> 00:55:07.500
Like, I don't have to call them and work the lead.

1049
00:55:07.500 --> 00:55:10.500
The thank you page that I set up was just like, hey, Texas number.

1050
00:55:10.500 --> 00:55:12.500
And then the second version of the thank you page was,

1051
00:55:12.500 --> 00:55:14.500
hey, my name's Alex, I'm going to be calling you.

1052
00:55:14.500 --> 00:55:16.500
So I put a picture of me and I said, I'm going to be calling you

1053
00:55:16.500 --> 00:55:17.500
from this number.

1054
00:55:17.500 --> 00:55:19.500
So I tried to put some visual to it.

1055
00:55:19.500 --> 00:55:21.500
Then when I put Layla's picture on the thank you page

1056
00:55:21.500 --> 00:55:24.500
and said, Layla is going to be the one contacting you.

1057
00:55:24.500 --> 00:55:25.500
What do you know?

1058
00:55:25.500 --> 00:55:27.500
Our response rates went through the roof.

1059
00:55:27.500 --> 00:55:29.500
People were immediately responsive.

1060
00:55:29.500 --> 00:55:30.500
They were showing up to appointments.

1061
00:55:30.500 --> 00:55:33.500
They were, oh, yeah, sure, I can make five o'clock.

1062
00:55:33.500 --> 00:55:35.500
For me, they're like, oh, no, I don't give a shit.

1063
00:55:35.500 --> 00:55:38.500
And so if you want to attract a certain avatar,

1064
00:55:38.500 --> 00:55:41.500
try to make sure that what is in your content,

1065
00:55:41.500 --> 00:55:44.500
how you talk matches the way they talk.

1066
00:55:44.500 --> 00:55:47.500
Because fundamentally, all marketing works

1067
00:55:47.500 --> 00:55:49.500
as long as you get the targeting right.

1068
00:55:49.500 --> 00:55:50.500
Think about this way.

1069
00:55:50.500 --> 00:55:53.500
If you walk into a room, this is how I like to visualize marketing

1070
00:55:53.500 --> 00:55:55.500
because people overcomplicate it.

1071
00:55:55.500 --> 00:55:57.500
If I walked into a room and I got on stage

1072
00:55:57.500 --> 00:55:59.500
and there's a thousand people in the room,

1073
00:55:59.500 --> 00:56:02.500
if those thousand people were my deal customers,

1074
00:56:02.500 --> 00:56:06.500
then even if I had just like a really mediocre offer

1075
00:56:06.500 --> 00:56:09.500
and something that they like kind of wanted,

1076
00:56:09.500 --> 00:56:11.500
I would get some response.

1077
00:56:11.500 --> 00:56:12.500
Now, it might not be efficient.

1078
00:56:12.500 --> 00:56:14.500
It might not get me the return I want.

1079
00:56:14.500 --> 00:56:16.500
So I might lose money, but I might,

1080
00:56:16.500 --> 00:56:18.500
I would probably make something, right?

1081
00:56:18.500 --> 00:56:19.500
I would get some clicks.

1082
00:56:19.500 --> 00:56:20.500
I would get some leads, right?

1083
00:56:20.500 --> 00:56:22.500
And so it would allow me to start the feedback loop

1084
00:56:22.500 --> 00:56:23.500
so I could improve.

1085
00:56:23.500 --> 00:56:25.500
But if nothing is coming through,

1086
00:56:25.500 --> 00:56:27.500
it's simply because the wrong people are seeing it.

1087
00:56:27.500 --> 00:56:29.500
And so one of the highest leverage ways

1088
00:56:29.500 --> 00:56:30.500
of getting more from advertising

1089
00:56:30.500 --> 00:56:33.500
is just making sure that the right people are seeing it.

1090
00:56:33.500 --> 00:56:35.500
Which is a perfect transition into the next one,

1091
00:56:35.500 --> 00:56:38.500
which is how do you know that you've mastered something?

1092
00:56:38.500 --> 00:56:42.500
Which is that masters have more ways to win.

1093
00:56:42.500 --> 00:56:43.500
Now, what does that actually mean?

1094
00:56:43.500 --> 00:56:46.500
They understand the many different ways

1095
00:56:46.500 --> 00:56:48.500
that you can measure progress.

1096
00:56:48.500 --> 00:56:52.500
So if you were to talk to an HR professional, okay?

1097
00:56:52.500 --> 00:56:54.500
You ask them, what do you do?

1098
00:56:54.500 --> 00:56:56.500
A lot of times they're going to give you a couple vague answers

1099
00:56:56.500 --> 00:56:59.500
like, you know, I'll pay roll and I'll make sure

1100
00:56:59.500 --> 00:57:01.500
that people get in their benefits and whatever.

1101
00:57:01.500 --> 00:57:03.500
But when you talk to someone who's a master at this,

1102
00:57:03.500 --> 00:57:05.500
and I remember the first time I had somebody

1103
00:57:05.500 --> 00:57:07.500
who completely improved my understanding of talent

1104
00:57:07.500 --> 00:57:10.500
and acquisition and recruiting in the interview,

1105
00:57:10.500 --> 00:57:13.500
the candidate said, oh, well, what's your time to fill?

1106
00:57:13.500 --> 00:57:14.500
And I was like, what do you mean?

1107
00:57:14.500 --> 00:57:16.500
She was like, well, the average time to fill a roll.

1108
00:57:16.500 --> 00:57:18.500
I was like, I don't know.

1109
00:57:18.500 --> 00:57:20.500
She was like, oh, well, what's your two-sided fit?

1110
00:57:20.500 --> 00:57:22.500
And I was like, I don't know what you mean.

1111
00:57:22.500 --> 00:57:25.500
She was like, okay, what's your cost to acquire talent?

1112
00:57:26.500 --> 00:57:28.500
I was like, I don't know.

1113
00:57:28.500 --> 00:57:30.500
She had all of these different metrics

1114
00:57:30.500 --> 00:57:33.500
that she was using to measure, which completely made sense to me.

1115
00:57:33.500 --> 00:57:34.500
Like, I have cost to acquire a customer.

1116
00:57:34.500 --> 00:57:35.500
I should have cost to acquire talent.

1117
00:57:35.500 --> 00:57:37.500
You know, what's my cash conversion cycle?

1118
00:57:37.500 --> 00:57:39.500
How quickly do I get my first sale?

1119
00:57:39.500 --> 00:57:40.500
How quickly do I fill a roll?

1120
00:57:40.500 --> 00:57:42.500
And then in terms of like customer satisfaction,

1121
00:57:42.500 --> 00:57:45.500
it's basically employee satisfaction of how likely

1122
00:57:45.500 --> 00:57:49.500
is it that the manager and the employee both say

1123
00:57:49.500 --> 00:57:51.500
at day 90 that this is a 10 out of 10 fit.

1124
00:57:51.500 --> 00:57:53.500
And so when I started looking at that, I was like,

1125
00:57:53.500 --> 00:57:57.500
oh, wow, there's a whole another level of understanding this

1126
00:57:57.500 --> 00:57:59.500
that I had no idea about.

1127
00:57:59.500 --> 00:58:03.500
Because masters have a higher quality and quantity of metrics

1128
00:58:03.500 --> 00:58:05.500
that they use to measure progress.

1129
00:58:05.500 --> 00:58:07.500
If I am trying to fix this function,

1130
00:58:07.500 --> 00:58:10.500
I have nothing to know how well I'm doing.

1131
00:58:10.500 --> 00:58:13.500
And so a beginner will try to advertise or will try to sell

1132
00:58:13.500 --> 00:58:15.500
and they will have binary outcomes.

1133
00:58:15.500 --> 00:58:17.500
They'll just say, I didn't sell or I did sell

1134
00:58:17.500 --> 00:58:19.500
or I got leads or I didn't get leads.

1135
00:58:19.500 --> 00:58:22.500
But there are so many nuanced steps between them.

1136
00:58:22.500 --> 00:58:25.500
When you have the milestones, the progress markers,

1137
00:58:25.500 --> 00:58:28.500
it allows you to fix things so you can keep moving the buck

1138
00:58:28.500 --> 00:58:30.500
along until you get the outcome.

1139
00:58:30.500 --> 00:58:31.500
And so I'll tell you a story about this.

1140
00:58:31.500 --> 00:58:34.500
When I was starting outbound way back in the day,

1141
00:58:34.500 --> 00:58:36.500
it was a new channel for us and I'd never done it.

1142
00:58:36.500 --> 00:58:40.500
And about 90 days or four months in,

1143
00:58:40.500 --> 00:58:43.500
my executive team kind of did like intervention.

1144
00:58:43.500 --> 00:58:44.500
So they came together.

1145
00:58:44.500 --> 00:58:46.500
I was like, I was getting like a drug we have, right?

1146
00:58:46.500 --> 00:58:48.500
They were like, we think this is a problem.

1147
00:58:48.500 --> 00:58:49.500
We think this is a shiny object.

1148
00:58:49.500 --> 00:58:52.500
We think you're distracted and we should double down what works.

1149
00:58:52.500 --> 00:58:55.500
And I was like, how dare you use my words against me, right?

1150
00:58:55.500 --> 00:58:57.500
And the thing is that strategically I knew we needed

1151
00:58:57.500 --> 00:59:00.500
to have a second acquisition channel for us to sell the business.

1152
00:59:00.500 --> 00:59:03.500
I was like, no, it's because they could only see

1153
00:59:03.500 --> 00:59:05.500
that we'd only done one sale in four months

1154
00:59:05.500 --> 00:59:07.500
and 100% of my time was going towards this.

1155
00:59:07.500 --> 00:59:10.500
But what they didn't see was all the progress that we were making.

1156
00:59:10.500 --> 00:59:12.500
And so I had hired degrees of mastery in this.

1157
00:59:12.500 --> 00:59:15.500
Now to be fair, it was just because I had learned it along the way.

1158
00:59:15.500 --> 00:59:17.500
But when it started, it was like, okay, well,

1159
00:59:17.500 --> 00:59:18.500
we have to get a list.

1160
00:59:18.500 --> 00:59:19.500
So where do we get the list?

1161
00:59:19.500 --> 00:59:20.500
So we looked at, you know, we bought a bunch of different lists.

1162
00:59:20.500 --> 00:59:21.500
A lot of the list didn't work.

1163
00:59:21.500 --> 00:59:22.500
One of them did.

1164
00:59:22.500 --> 00:59:23.500
We're like, okay, this is a good provider.

1165
00:59:23.500 --> 00:59:25.500
And then we start, you know, like, oh, we got to enrich the day.

1166
00:59:25.500 --> 00:59:26.500
So we start learning how to enrich the day.

1167
00:59:26.500 --> 00:59:27.500
Then we started calling them.

1168
00:59:27.500 --> 00:59:28.500
But then no one was picking up.

1169
00:59:28.500 --> 00:59:30.500
And then we had to learn how call wrapping works.

1170
00:59:30.500 --> 00:59:31.500
We get local numbers.

1171
00:59:31.500 --> 00:59:32.500
And then all of a sudden people start picking up

1172
00:59:32.500 --> 00:59:33.500
and then it started hanging up on us.

1173
00:59:33.500 --> 00:59:35.500
And then we had to fix the hook in the script.

1174
00:59:35.500 --> 00:59:36.500
And then we picked the hook in the script.

1175
00:59:36.500 --> 00:59:37.500
People would make it a minute.

1176
00:59:37.500 --> 00:59:38.500
But then they'd hang up on us.

1177
00:59:38.500 --> 00:59:39.500
And then we got, we fixed the hook.

1178
00:59:39.500 --> 00:59:40.500
And then we fixed the offer.

1179
00:59:40.500 --> 00:59:42.500
And then people would then go to the second call.

1180
00:59:42.500 --> 00:59:43.500
But then they weren't showing up for the second call.

1181
00:59:43.500 --> 00:59:47.500
And so it's like, we have to just keep moving the buck along the way.

1182
00:59:47.500 --> 00:59:50.500
But if you looked at it two months in, it's like, you know,

1183
00:59:50.500 --> 00:59:52.500
a heart surgery looks like murder to somebody from the outside

1184
00:59:52.500 --> 00:59:54.500
who doesn't understand the milestones.

1185
00:59:54.500 --> 00:59:57.500
As you master something, if you don't know why something's not working,

1186
00:59:57.500 --> 00:59:58.500
look closer.

1187
00:59:58.500 --> 01:00:01.500
Look for the smaller attributes that you can actually zoom in on and say,

1188
01:00:01.500 --> 01:00:04.500
okay, well, we'll get a sale eventually if we just keep moving

1189
01:00:04.500 --> 01:00:05.500
in this direction.

1190
01:00:05.500 --> 01:00:08.500
And so look for directional correctness rather than binary.

1191
01:00:08.500 --> 01:00:12.500
And so this is a perfect example of masters have more leading indicators

1192
01:00:12.500 --> 01:00:16.500
to success than beginners to beginners typically look at surely

1193
01:00:16.500 --> 01:00:17.500
the lagging indicator.

1194
01:00:17.500 --> 01:00:18.500
They just say, churn is up.

1195
01:00:18.500 --> 01:00:19.500
The sales are down.

1196
01:00:19.500 --> 01:00:20.500
Revenue is down.

1197
01:00:20.500 --> 01:00:21.500
Cash clicks are down.

1198
01:00:21.500 --> 01:00:22.500
Those are all lagging indicators.

1199
01:00:22.500 --> 01:00:24.500
You can't, if I looked at you and said, increase revenue.

1200
01:00:24.500 --> 01:00:25.500
You can't do anything.

1201
01:00:25.500 --> 01:00:27.500
If I said decrease churn, you can't do anything with that.

1202
01:00:27.500 --> 01:00:28.500
You would then have to do something else.

1203
01:00:28.500 --> 01:00:30.500
And then the result would be a decrease in churn.

1204
01:00:30.500 --> 01:00:31.500
The result would be more revenue.

1205
01:00:31.500 --> 01:00:33.500
The result would be more sales.

1206
01:00:33.500 --> 01:00:36.500
We have to identify what all those steps are that are high correlates

1207
01:00:36.500 --> 01:00:39.500
or increase the likelihood that that ultimate outcome occurs.