WEBVTT

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there's usually this massive gap between what people think is required to get the outcome versus

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what is and they're like what if I double it's like dude it's not even 10x a lot of times it's like

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50x the amount of volume. Welcome to the game where we talk about how to get more customers how to

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make more customer and how to keep them longer and the many failures and lessons we have learned

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along the way. I hope you enjoy and subscribe. I watched your video on training your calves because my

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calves and my traps weren't growing and I watched the video and I was like well this makes sense

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so I started doing it. I started like literally doing calves, 10 sets of calves every single day

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as well as shrugs and lo and behold it's only been like a week and a half and I can literally see

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them growing. I was like this dude was right. Yeah everyone works out like three sets a week and

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they're like what cows are growing I'm like no shit like you walk around all day long your calves

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can take a lot more than three sets like right right why saw another older video you did or

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or it wasn't a video as opposed and you were I think you said you did like 30 sets every workout

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full body every single day that was your that was your workout I was like holy crap that's a lot of

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set. I've been doing it for a decade I've been training that way for a decade I've been training

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for almost 20. Yeah that makes sense like a lot of times people and it's sort of like business

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because a lot of times people like well why don't I bigger why why am I not a bigger person why

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don't I have bigger muscles and it's like because this guy over here's doing 30 sets a day and you're

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doing three and then it's the same thing with this it's like why am I not making more money and

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you're doing one tenth of the work or one tenth of the effort that the people who are

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producing. You've been a tenth a lot of the times it's like a hundred like you know I mean like

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that's one of the things I tell the story all the time something it drives at home so hopefully

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the audience will appreciate it. So I was really early in business and I had my gym so I like you

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had like a brick and mortar that I kind of started out with this is my first gym and I was told to

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put flyers out right and I was like okay I'll put some flyers out so I put some flyers out from a guy

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who did was a really successful business owner and I ended up meeting up with him you know a few

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months later or something and he was like oh how did the how did those fires work out I was like

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not they didn't really you know we got like I got one call from guys that I dinged his car

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and he was assuming and that was it it's all I got on the flyers he's like well you know what was

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your test size and I was like what do you mean he was like like what was your test like what did you

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test before you did you know the main amount I was like I didn't do a test size he's like well how

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would you put out I was like 300 he's like 300 he's like I don't even test with less than with less

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than a thousand and I was like what he's like yeah and then when we start doing it we do 5,000 a day

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and I was like fuck and he was doing 5,000 so he was doing 150,000 flyers a month to drive

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business into his small business and I was here jerking off about 300 you know what I mean and so

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like he did 45 times I think the effort that I did to get the outcome and it's the same thing

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with like DMs and phone calls and it's like I know you had your rule of 100 and so over the last

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I literally got a message and said so over the last eight weeks I sent 100 DMs and I was like bro it's

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100 a day 100 a day you did 100 over eight weeks that's one 56th the amount of effort that is

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required so it's just like there's usually this massive gap between what people think is required

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to get the outcome versus what is and they're like what if I double it's like dude it's it's not

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even 10X a lot of times it's like 50X the amount of volume or same thing with phone calls like

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I make 10 phone calls a day I'm like bro our guys minimum code is 200 a day for the quality

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you know what I mean so people just don't get I'll give you a different story because this

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happens all the fucking time I had one of our portfolio companies we're scaling up the traffic and

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I was like bro you need to make more creative and you need to do it on a more consistent basis and

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he was like okay that's fine and I was like dude we make creative every I was like you need to start

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every 14 days you need to make to have a full creative day like create new ads all kind of stuff

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and so I got a end of day thing and he was like hey man the first creative day went awesome

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recorded four ads really excited I was like what the fuck do you do all day for I like dude we would

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do like 40 you know what I mean like minimum and when we were at like you know full swing because

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right now for us code calls on on the gym on side was is now like 75% of the business

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but when ads were the vast majority of the business we were running like 30 to 40 new ads every

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three days he was like what I was like yeah bro like I don't know it's like it's just there's

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just a massive different and he thought four was a lot and doing four every two weeks he thought

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was a lot and so I'm like what was he doing before you know I mean but like that's the thing is

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is like people I just have this massive discrepancy between what what is required and what they think

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will make them successful you think that's always been that way or it's being further perpetuated

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by society because you know when I I used to work for like direct TV and I remember we were

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expected to make 200 dials a day and if the phones went out or something like that there was a

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tech issue and we called up and we were like hey the phones are out our boss would be like well

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why aren't you already on the phone with the cable company getting it fixed why you calling me

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you know and the expectation was so much higher and nobody was sitting there saying well you know

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you got a pander to people's emotions and feeling you just did your job and I recall you know

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in today's world I've you know I've had a conversation with like a sales rep who wants to make

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all this money being the sales rep and I'm like how many dials did you do today and they're like

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oh I didn't and I'm like why do you do at least 30 by lunchtime and they're like 30 by lunchtime

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you know I that's just not enough hours in a day and I'm like dude not everyone's going to answer

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you can do 30 in the next hour what are you talking about like just the the fundamental lack of

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understanding and acceptance around that do you think that it's worse today because of like

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society and culture or do you think it's just always been that way no I mean I think there's a

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this like you know degradation over time but I think it's I think it's cyclical so I mean like

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there's lots of like macro stuff but I think it's like every 80 years or so there's like the big

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pendulum that swings and so it's like you know like hard times built hard people hard people build

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good times good times build soft people soft people build hard times right and so I think that

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we're in the hard people built you know we're soft times built soft people stage right now

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and I think that you know we will have another hard time and it will build more hard people

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I think it's very likely that we will be the like our generation will be the one that we'll have to

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step up in the next decade or so and become a harder generation which I think I think we'll rise to

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I mean I think people are amazing to Brazil when they have no choice like if we think about like

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human capacity versus like what is society we accept it like I think a lot about like really

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dark times I think a lot about like Auschwitz and slavery and things that were really horrific kind

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of human experiences and huge populations were able to go through it and those same people prior to

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well obviously slavery wouldn't work but like prior to that experience you might have people who

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were softer and then they go through things like that and it really fundamentally changes them

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and to the same degree if I were to think to myself like the difficulty of my life compared to a

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lifetime of slavery is different right it's a different level of difficulty and so I think like knowing

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that that is possible gives us a lot more potential for effort because this is like we're so

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untapped and the amount of effort that we put forth into the endeavors that we pursue

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awesome that makes a lot of sense so let me ask you this kind of feeding off that because it's

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one thing that I've noticed is there is effort there's lack of acceptance around how much effort but

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then I've seen a lot of people including myself we put effort into the wrong places you know like

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we started talking before we began recording and your companies you know you and your wife are doing

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a million a hundred million dollars a year and you're in a hallway right now with no art on the wall

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you I thought it was the camera angle but do the thing with your hands like like literally literally

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you can touch both sides of the wall you're in this this hallway and you're obviously beautiful

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condo in Vegas but like dude like you're you know most people they have this big office with

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this nice views and this over the top stuff and these and maybe they have like crazy lighting and

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they just go overboard but you're just like screw it I'm in this hallway and I'm just building this

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you know billion dollar play would you say that part of your success is the fact that you're

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basically just the ultimate minimalist like I mean everything that I see from you is ultimate

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minimal right it's like an iPhone videos for your YouTube it's your logo is just acquisition.com

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it's just and your website is just like like you know you just intentionally don't give a shit about

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any of the stuff that most entrepreneurs obsess over do you think that's part of your success

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rather than minimalism I would say it's form over function so it's not just because I think I think

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it can look similar but I think it's a shade different you didn't mean like for like this tank top

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this particular like white tank top that I wear like I bought 40 different brands and I tried

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different sizes on so that I could find the right white tank top for me and like I bought all the

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highest rated barefoot shoes on Amazon because I was trying to look because I realized I don't wear

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t-shirts there's something I was like I wonder if I can eliminate t-shirts from my life so I don't

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wear t-shirts either where I have a beater or I put like a flannel if it's cold or I put a Hawaiian

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if it's hot and that's it and so that's just like what I wear up top most of the time and then like

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with shoes I was like can I eliminate socks and so I tried all the barefoot shoes on and then I

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ended up realizing that I liked my crocs the best but now I'm just informed on it so I like got

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rid of all those and like I wear crocs just about everywhere I figured out I can work out on them

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so I was like great I don't have to have workout shoes anyways all that to say I think it's just

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like what's the function that's required and I think a lot of times people miss the force for

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the trees you know I mean like I think the YouTube video stuff works even though the

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quality is poor because you know the stuff is useful for people and then also for me from a

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form over function standpoint if it takes me more effort to do the other thing and I become less

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likely to do it as a result then the overall function goes down so it's like if I do one third

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the videos and they're prettier will I get the same output as three times the videos that are

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kind of quick and dirty and for me at this point I do that I must say that I wouldn't like if I

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can figure out a way to get the function down where it's like really effortless for me to do nicer

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ones I'll do nicer ones it's just that right now it's like my I don't make my money from being an

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influencer or whatever right well I mean the quality you got to look at the categorization of quality

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because from a content perspective your videos and the content you put out is better than like

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virtually everybody else like you know most people are like the four-hour work week and stupid

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and you're like literally giving actual hardcore advice that makes sense and that is stuff that

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most people charge for and it isn't even that good in that case would you say that the ability to

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focus solely or at least focus the most on the content is just any view of like fancy cameras

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and all that stuff is just a distraction from creating amazing content and ultimately that's what

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people care about think it comes second it's exactly that is like it comes like it's I think

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there's some benefit to it I just think it is less benefit than people give proportional to their

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focus so it's like let's say it's 80 20 you know 80% comes from the content 20% comes from the touch

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I think people put 80% on the touch and 20% on the content so it's like I think if you allocate

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the focus appropriately then you'll get the outsized outcomes and I think fundamentally like

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the people that move fastest in life are the ones who employ the most leverage and so a lot of

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employing leverage in business and whatever relationships is understanding where the points of

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leverage are and that means that being able to look at a lot of variables and identify which of

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these ones has the most influence over the outcome and then ruthlessly focusing on that one variable

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and and driving it and I think most people will focus on a lot of other variables that they don't

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see don't have a huge effect on output and the easiest litmus test for this and this is for

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anybody in the audience is if right now you're working you know most of your hours of the day for

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example it's not that you need to work more it's that fundamentally what you are working on

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is not effective like you might be doing stuff and you might be producing things like you might

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actually be getting things done it's just that the things that you're getting done are literally

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irrelevant that's how like you're I mean it's kind of like cutting grass with scissors like

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you can do it it just doesn't make it meaningful which is really disheartening for some people but

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it's also the truth hey most in Asian quick break just to let you know that we've been starting to

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post on LinkedIn and want to connect with you all right so send me a connection request and

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note letting me know that you listen to the show and I will accept it there's anyone you think

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that we should be connected with tag them in one of my relentless posts and I will give you all

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the love in the world all right so let's get back to the show so then let me just dig a little

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deeper there what are what would you say are two things that most entrepreneurs and especially

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you know online entrepreneurs do that they don't need to do and what's two things that they're not

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doing that they absolutely need to do I can answer the second one better than the first one

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because like my answer for the first two would be anything you're doing that's not these things

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like you know I mean like right like people do a zillion crazy things and so with regards to

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the things that people need to be doing more like if you boil everything like again what are the

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points of leverage like what are the things that actually grow business like like number one is

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you can get more customers number two is you can make them worth more it's literally it so

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everything flows down from that equation at the top and every time we have quarterly's with the

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you know the portfolio companies and things like that like I always write it on the board as a reminder

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to just be like guys we're either making this number go out or making this number go out what is

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all of these you know these quarterly objectives that we're doing how is it going to drive that

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versus how is it going to drive that right and so like the two most important things are

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getting more customers and making them worth more and so then it just depends on which of these

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things is the bottleneck within the business and in the beginning and this is where a lot of people

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fuck up is that like zero to one million one to three million ish in that range is you have to

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learn how to sell something to someone right it's one product one avatar one channel very simple

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process right which is really just finding product market fit which is what they call from the

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software world is do people want the thing you're selling that's it right and can you get them to

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give you money all it is but going from like three to 10 for example you can gas like you can gas

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marketing all you can just keep acquiring customers the thing is that like in order to keep doubling

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down on that you have to start you have to double your sales velocity every time you want to double

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the business so it's like I go from like 50 customers a month to 100 customers a month and I

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sell from 100 customers a month to 200 customers a month and I go from 200 to 400 and then it

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becomes really untenable at a certain point to keep selling more people and then that's where

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the business will plateau and so instead the better way of growing the big business is as soon

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as you have product market fit which is selling ship that people want and they're actually buying

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from which usually you're making one to three million ish right at that point you pause on acquisition

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and then you focus all of your effort on how do I retain these people how do I get them to never leave

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how do I extend the LTV per customer so that even if I sold the same amount my business continues

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to grow up right and so usually if you fix that properly during that period of time you can keep

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the same acquisition numbers and then expand the business from three to 10 million with a lot less

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effort think leverage and then then when you go and jam more marketing into the business then it

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just boom you're at 30 boom you're at 50 you know what I mean and it's just that most people just

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think oh I started marketing that made me some money so I'm going to market more to make me more

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money and it's it's not that I mean you will make what I would consider like you'll become rich

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doing that if you just want to market a lot but you will not become wealthy because you will not

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build assets that are valuable because people will not want to buy a thing that's purely built on

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just front end and not tons of like word of mouth and higher LTV metrics and then what happens is

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the media arbitrage that most people figure out in order to a part of the customers usually shuts

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down and then all of a sudden their margins can press and then it becomes untenable for them to

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acquire the amount of customers that they were and then overnight they disappear you know what I mean

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and that's what usually happens whereas if you have a stable base of customers that continue to pay

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because they like the thing that you're doing it gives you the gross profit margin to then whether

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those storms and then build other channels got it so then let me ask you this you probably have a lot

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of data on this next question already how many portfolio companies you have currently

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if you don't include the three that layl and I still have big chunks of that we sold majority of

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but we're still 25 to 40% owners in those companies we have eight so eight so eight companies so

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I would say that that's not one or two that's a that's a pretty fair amount to be leavened between

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all of them well okay so 11 so then let me ask you this when you start working with the portfolio

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company I imagine that if you've probably helped or coached or somehow interacted with a lot

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a lot more companies than that my question is you probably are seeing patterns right like as soon

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as you start working with a company you probably see the same mistakes over and over again or you

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start changing the same things over and over again and they repeat can you expand on what what are

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those repeated patterns or what's the first thing you usually change that you just consistently see

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I would say that there are there are different archetypes of entrepreneurs so just as a as a

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hair to that like as a shade of gray or nuance is that there are product driven entrepreneurs and

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there are promotion driven entrepreneurs and then you know the best ones can do both but most of

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them tend to have a leaning one way or the other right and so if we have a product driven entrepreneur

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usually we have to focus on acquisition stuff right and that's I would say that's probably the

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minority of the time I'd say that's maybe like 25% of the time the other 75% of the time it's

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usually promotion driven entrepreneurs at least the ones who come to me or maybe attracted to my

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stuff and to be fair my companies want acquisition dot com so like maybe the promotion guys are more

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attracted to this stuff that I talk about right and so with the promotion guys it's usually we have

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to fix back and stuff and so it really depends on what they're presenting with because like the way

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I see it it's like imagine you have a Mona Lisa painting that's the embodiment of like a 50 or

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a hundred million dollar business and then we've got whatever their current business looks like

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which is Mona Lisa that has like gunshot and bullet holes all over it it's like okay how do we

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look at this and then just systematically fill in the holes and so two different businesses might

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have like gunshot holes in different areas of the painting that they currently have that has potential

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to be a Mona Lisa but it's not there yet and so we just kind of fill in the holes based on that but

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big big picture most companies at that size they have really really shit data tracking so usually

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they don't have consolidated metrics and that's a big one because it affects everything that you're

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trying to improve like if you don't have all the metrics and tracking around like customer lifetime

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value and your acquisition metrics and click to close and it becomes really difficult to make decisions

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and so then you're just shooting from the hip which is just not that effective so getting the right

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data in place second one and this is probably pretty universal is that the talent at that stage is

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low so usually it's the genius of the thousand hands model you've got one guy who's kind of like

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really pushing and driving everything and then a lot of people just like help him out or her out

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right and so what's required at that point is that we need to have like the first like true

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mid-level leaders that's kind of like directors and managers that need to get put into place

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and sometimes those directors and managers can level up even beyond that to go from 10 to 30 and

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sometimes we have to replace them and it just depends on whether they're willing or able to grow

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and so it's a it's a data problem it's a people problem and then there's usually some sort of

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this is one that's not necessarily a problem but like what we're really good at is figuring out

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the best-based and monetized businesses and so it's like how can we reconfigure how we price,

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how can we reconfigure the thing that we're selling or create some sort of ascension or some sort

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of tidying continuity to increase the lifetime value per customer those are like the I would say

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the three bigger buckets that we look at is like we got to get the data right so that we can make

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the strategic decisions and then once we have the strategic decisions we need to do to build a

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beautiful Mona Lisa painting that we want to paint then who do we need on the bus who is either

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there and then who would need to get off the bus because I would say it's more than a third and

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less than half the time so in that range we also have to fire a bunch of key people or I would say

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like they're key roles in the business but they are actually sabotaging the business and so

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we've had two instances or three instances and not necessarily even fires a strong word but like

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we have to fundamentally move the org chart a lot right sometimes we have to let somebody go

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but sometimes it's like it has to be a major move like maybe the CEO was actually a really good

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CMO and he's not really a CEO right like he just he's a founder but like if you look at Shopify

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the founder I can't remember his name I know I feel like an idiot but anyways the founder

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he's a product guy and so he's not CEO of Shopify even though he's the founder he's just Chief Product Officer

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because that's what he loves doing and that's what he's really good at right and he found a CEO

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to run the business he recognizes his own deficiencies but a lot of times people's egos cannot take

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that and it's the things is always like what is the business require period and then like that's

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what it requires so whether it's you or something like that is what is required and then it's just

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having a conversation of like do you want to become that person or do you want to find that person

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so what do you mean by their ego gets in the way people have attachments to the title of CEO

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they're like I want to be CEO it's my company like well I mean it's a business that requires

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a CEO like you do not need to be that person like Warren Buffett's not CEO of any of his companies

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you know what I mean does that lead into playing to your strengths a lot because you know for me

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I've always thought if I was going to be a CEO anything it would be a CMO not not a CEO

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because the operational aspect of business is the part I like the least I mean it needs to be done

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but it's the part I like the least I like you know I grew up watching madmen and thinking that

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was the greatest show in the planet and just coming up with the best ad campaign was to me that's

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like art you know it's like painting but you're painting with products totally yeah so the best

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people see whatever they do is art so the best product guys talk about product like it's art the

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best operators talk about culture and meeting and onboarding and leading like it's art I'm so

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glad to hear you say that because I have always my entire career said that you know I grew up

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an artist right I was a poor musician played guitar and I never could get that to be successful

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and so when I started learning sales and marketing and building a business I didn't really view

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it as a business you know because I was that I was that like anti-corporate guitar player and I was

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like you know fuck these guys like but then I realized that that is it's just a different canvas

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it's a different stage and I always viewed building the business and ads and marketing and creating

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products as art not as you know I mean obviously it's a business but I viewed it as art and I've

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said that a lot so to hear you say that it just lets me know I'm on the right track with that thinking

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I think it has to be art I mean because it is sort of like you don't you don't need more money

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you don't I mean and so it has to be something that you would do like if you would play music all day

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long if you didn't need anything ever then it's just and this is a lot of people won't like what

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about to say but I'll say it anyways like to compete against the people if you're like I really

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want to make money but you don't really like business like I started in fitness and then I realized

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I had a deeper passion for business like I liked it more than I liked fitness and I I was obsessed

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with fitness for a long time but like when I like the day I started my gym was the day fitness

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became number two and then business became my first love and I'm still you know in my love affair

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you know with business my long-term relationship with business and it's because like the only way

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you're gonna beat everybody else is is too truly love it and if you don't I think it's very

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difficult to do that and I think it's just like maybe picking another metric or different

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bones and not on but I had I've one quick thing I was pulling it up while you were we were talking

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about the art thing earlier so like a lot of marketers we'll talk about how their products are

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amazing right like how many times have you heard people like oh no no our courses also our

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programs also are whatever right they say that but the thing is like and I've done this at like a

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couple of like workshops I've been invited to and I'm like all right who here knows what they're

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you know they're CPM their CTR they're you know they're their CPL like they're set percentage

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of the close rate their CPA their CAC like what who who knows all those numbers everyone's like

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oh yeah 100% I'm like cool I'm like what's your what's your TTV what's your CHS what's your NPS

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what's your activation points they're C or C and they're like what I'm like right so how can

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you set you a fucking good product and you don't even know what the fucking metrics are to track

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good product well I mean I think that just goes in the room right yeah wow I mean and that

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makes sense because you know if you think about it most entrepreneurs are full of shit and even if

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they're like no I mean look I'm just gonna look I'll just say this okay I've you know I've

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personally worked with and you've worked a lot I work with tons of entrepreneurs one of the

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biggest things is online coaches course creators even agencies and I've always given blunt

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direct advice and I can't tell you if I had to sum up my experience with most people and I was

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probably this way too when I came up so I'm not like judging but it's really like hey you are

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currently full of shit and you need to understand how to not be full of shit and now you can sort of

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really see the forest through the trees and see what needs to be done because you've you have

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this cloud over this lens your your your glasses are dirty you can't see the real world because

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you're stuck in this alternate reality that you've created and it's I like it I like how you

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just broke it down you're like listen do you you feel that you have a good product that is a

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feeling that's an emotion that's some shit you need to talk to your therapist about what are the

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metrics what is the data telling you is the data telling you it's good or do you just feel it's

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good because you just want to wake up and think life's great so I think that that's a great point

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because as an entrepreneur isn't it about that isn't it about the data and analyzing the situation

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and making decisions and not about just feeling a certain way you know wouldn't you say that that

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ultimately is that next level is detaching yourself from that and just looking at it as it is

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yeah and most people just don't know what ideal scene looks like and so that I mean the biggest

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threat that most people not I mean I would say the biggest threat to all entrepreneurs is that they

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are ignorant is that we are ignorant of what it takes to be successful at whatever the next level

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is for us and so like I this concept is one that has just like frightened me and like to my for

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my whole life which is I think I heard Myron say this on stage and it was like really impactful for

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me he said it was it was a close for him but I just think it's a it's a it's a great concept he said

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it's costing you a million dollars a year every year you don't know how to make a million dollars

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and to me that's the tax of ignorance so like everyone who's listening to this who's not

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making a billion dollars a year is getting taxed by life far more than the government is for just

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the ignorance that you have to not knowing how to do it and so that's always been the biggest

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tax I've tried to pay down as fast as possible which is like every person who makes more than me

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knows more than me in some way and I just have to try and figure out what am I ignorant of

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that they are not ignorant of and a lot of people will throw stones and be like well that guy

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doesn't have ethics or that guy doesn't have morals one of the big pieces is that there's always the

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compounding effective time right is that like you might be on the right path as long as you are

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making progress and that's a big one right as long as you're making you might be on the right path

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to a billion because like Warren Buffett at my age I think was worth 10 million in those days dollars

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I have to figure out what that is in today's dollars but like you know he was worth 10 million

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at my age and I'm like so maybe it is the right path I don't know you know what I mean but also the

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world's change do you think one of the big things is like it's just to just expand on that like

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people assume they need to like someone to learn from them and I've always I've never understood

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why someone has sets a requirement to personally like someone to gain value or knowledge for them

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oh yeah I wrote that down because it's a really good tweet

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you don't need to like someone to learn from them that's great

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well I'm glad I could contribute to your twitter somehow

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hey man I love that it's great it's a great statement but you know Navale said something that I

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thought was really impactful and it's like this is something that took me a very very very very very

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long time to understand so before I explain with that that quote is most small business owners

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suck and that is why they are small business owners because they are so bad at virtually all

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aspects of business that that's why they are small right like the thing that separates small

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business from big business is skill right and I you know market opportunity etc but like

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you can even get into like well picking an opportunity is a skill right and so we were like

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well that's easy he's selling B2B it's like well they want you sell B2B or whatever I mean I

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don't think it's that easy but you get to understand it right and so Navale said you only do sales

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are good at selling because you don't know how to market and you only market because you don't

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know how to build product and so I think there's a tremendous amount of truth to that which is like

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if you build the product good enough and it takes a tremendous amount of effort to build an

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exceptional product that grows on its own via word of mouth because of all acquisition channels only

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one of them is quadratic in nature right only one of them can multiply and compound on its own

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every other acquisition channel you get an affiliate it's a one to one relationship you get

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you know you dollar in dollar out same thing with you know ads it's like you put a dollar in you

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get a fixed amount out maybe it's 10 to 1 but it's fixed so I put another dollar in I get another

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$10 out but for something to be quadratic it's like I get I put 10 in I get 100 and then I get

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1000 and then I get 10,000 right and like in it and it multiplies and the only thing that does

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that is word of mouth right and one of the things that's really interesting about the the

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internet space specifically is a lot of people will start the business they'll shoot up because

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they'll figure out how to get ads to work or whatever whatever their acquisition channel is they'll

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figure out how to do that and then it'll shoot up in revenue right and this is particularly for

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paid ad people right and you know within six months or 12 months all of a sudden they're like man my

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my CPMs are out of control my cost of acquisitions way you know above KPI like you know

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Google's changed YouTube's change Facebook's change right they you know they throw that out there

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and the thing is is like it may have gone up by like 10% it may have gone up by 15% but your

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cost of acquisition is quadrupled and so the thing is is what is the invisible hand behind the scenes

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pulling the strings against you and it's the same people are like word of mouth doesn't

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exist it doesn't work anymore and that's courtship word of mouth a hundred percent completely

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exists it's social media for God's sake of course of course word of mouth works it's just working

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against you and so right now everyone has word of mouth that is about their business the question

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is is it neutral is it positive or is it negative and then actively destroying your business the

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way positive word of mouth can grow your business and so the guys who have positive word of mouth

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they see their cost of acquisition to continue to decline even if their cost per impression

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remains the same or even goes up slightly because they have that quadratic compounding that's

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happened behind the scene whereas the other guys are having that that compounding that's happening

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behind the scenes which is like oh I saw this ad from you know Johnny so and so I think it looks

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cool and then they they message your friend they're like oh dude heard that guy's a complete

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you know like his his product shit doesn't respond to you the team sucks he just has a bunch of

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VA's and the Philippines who are like your support and it's it's terrible and they're like oh wow

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and then that person the person who said the negative thing gets asked a question again about

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Johnny another situation tells people he prevented that sale no knows why he prevented that sale but

385
00:33:04.640 --> 00:33:09.360
that sale is prevented and then the guy tells it to gets another message like hey you're gonna do

386
00:33:09.360 --> 00:33:12.640
that Johnny thing and he's like oh no I actually heard from Frank that it's it's actually a really

387
00:33:12.640 --> 00:33:17.360
bad product and they're like okay and that's enough like it doesn't take a lot to get people to not

388
00:33:17.360 --> 00:33:22.720
buy yeah and so it's just like you have this machine that compounds and that the easiest way to prove

389
00:33:22.720 --> 00:33:26.960
it is like if your cost of acquisition has gone up three acts but the cost firm pressure has only

390
00:33:26.960 --> 00:33:32.720
gone up 30 percent you have another thing that's working against you which is like how is Juman

391
00:33:32.720 --> 00:33:38.320
still here six years later seven years later right and still growing right it's only there because

392
00:33:38.320 --> 00:33:44.800
it has at least neutral or positive word of mouth behind it otherwise it wouldn't exist we wouldn't

393
00:33:44.800 --> 00:33:53.360
be able to acquire cashiers