WEBVTT

1
00:00:00.000 --> 00:00:04.640
Welcome to the game podcast. This is a special edition 100 million dollar leads

2
00:00:04.640 --> 00:00:09.440
audiobook version. The chapter run paid ads part one and run paid ads part two.

3
00:00:09.440 --> 00:00:14.480
This is about making ads which is part one and monetizing ads efficiently which

4
00:00:14.480 --> 00:00:19.480
is part two. I've run a lot of ads in my day. I would say it's the primary

5
00:00:19.480 --> 00:00:23.360
channel that I've made the most money from in my life. It's what I feel is I

6
00:00:23.360 --> 00:00:25.920
most native to despite the fact that most of my personal branding

7
00:00:25.920 --> 00:00:28.720
reputation has come from organic content. This is the thing that's made me the

8
00:00:28.720 --> 00:00:32.080
most money. And to this day it's probably the thing that makes most of my

9
00:00:32.080 --> 00:00:36.600
portfolio companies money. And so I outline the breakdown of how to structure

10
00:00:36.600 --> 00:00:41.720
ads, how I write copy, how I do call outs, how I get attention, how I how I

11
00:00:41.720 --> 00:00:45.640
contrast the message with the background of the ads. All the little nuances

12
00:00:45.640 --> 00:00:49.800
that it just takes hundreds hundreds of dollars hundreds of thousands of

13
00:00:49.800 --> 00:00:53.880
dollars millions of dollars of mistakes to learn. And this way you can get

14
00:00:53.880 --> 00:00:55.640
the lesson without the scar. I hope you enjoy.

15
00:00:58.320 --> 00:01:02.640
Run paid ads part one, making an ad, how to publicly advertise to strangers.

16
00:01:03.000 --> 00:01:06.520
Advertising is the only casino where with enough skill you become the house.

17
00:01:07.640 --> 00:01:11.320
July 2013. Let's try some Facebook ads for the gym. I spouted.

18
00:01:11.840 --> 00:01:14.560
Sam's eyebrow went up. They don't work. I already tried.

19
00:01:15.280 --> 00:01:18.080
Now this was the brief time between quitting my quote real job and starting my

20
00:01:18.080 --> 00:01:21.920
first gym. I wanted some experience. So I cold emailed more than 40 gym owners

21
00:01:21.960 --> 00:01:24.920
for a chance to shout at them. Sam was the only one who responded to my

22
00:01:24.920 --> 00:01:28.640
pleas for mentorship. He let me work at his gym with him for a minimum wage.

23
00:01:28.840 --> 00:01:32.680
I'm forever grateful for that opportunity. I promise I really think the work.

24
00:01:32.760 --> 00:01:35.960
I said, let me give it a shot with the stuff I learned from that workshop

25
00:01:35.960 --> 00:01:39.560
last weekend. I'll do everything that workshop took most of my puny savings.

26
00:01:40.560 --> 00:01:44.040
Sam lean back in his chair, crossing his arms. I'll tell you what, I'll give

27
00:01:44.040 --> 00:01:46.720
you a thousand bucks to play with. If you lose it, then you have to shut up

28
00:01:46.720 --> 00:01:50.520
about this Facebook stuff. If you make more, I'll split the profit with you.

29
00:01:51.240 --> 00:01:54.720
Deal. I work with a freelancer to get everything set up.

30
00:01:54.720 --> 00:01:58.200
We went back and forth until it was perfect. A few days later, I marched into

31
00:01:58.200 --> 00:02:02.840
Sam's office to show him what I'd made. It's ready. I said, he spun his laptop

32
00:02:02.840 --> 00:02:07.560
to face me. Alright, Hermosey, show me what you got. I placed the ugliest ad you've

33
00:02:07.560 --> 00:02:13.640
ever seen. Picture this in all caps. I'm looking for five Chino Hills

34
00:02:13.640 --> 00:02:17.400
residents to take place in a free six week challenge. You must let us use your

35
00:02:17.400 --> 00:02:20.920
perform after pictures in our marketing in exchange for the program. Click

36
00:02:20.920 --> 00:02:27.800
the link to sign up. Link. Again, no images, no videos, no frills, just words,

37
00:02:27.800 --> 00:02:34.640
all caps. The ad went live. We got leads within hours. I called them all and

38
00:02:34.640 --> 00:02:38.040
booked appointments as fast as I could. I also texted them about an hour before

39
00:02:38.040 --> 00:02:41.240
to remind them of our appointment. And as soon as they walked in, I started

40
00:02:41.240 --> 00:02:45.360
yapping about our six week challenge. I had zero sales skills. My conviction

41
00:02:45.360 --> 00:02:50.880
made up for my lack of skill. They bought. I sold 19 people at $299 each. We

42
00:02:50.880 --> 00:02:56.000
made just under $5,700 from the $1,000 investment. True to his word, Sam cut me

43
00:02:56.000 --> 00:03:01.520
a check and handed it over. He made it out for $2,500 more than my share. Sam,

44
00:03:01.520 --> 00:03:06.800
this is, he cut me off. Nice work, Hermosey. Do it again. The six week challenge

45
00:03:06.800 --> 00:03:11.120
became the biggest promotion in the gym industry for seven years. It drove

46
00:03:11.120 --> 00:03:15.600
at least one and a half billion dollars in revenue more by now. I taught it to

47
00:03:15.600 --> 00:03:20.080
over 4,500 gyms. And I bet more than 10,000 gyms used variations of the

48
00:03:20.080 --> 00:03:23.840
promotion without licensing it. Maybe you saw ads for it in your local market.

49
00:03:23.840 --> 00:03:28.480
And yes, if you're curious, it got more sophisticated as time went on.

50
00:03:28.480 --> 00:03:33.920
How paid ads work? Paid ads are a way to advertise one to many to cold audiences,

51
00:03:33.920 --> 00:03:38.000
aka people who don't know you. Paid ads work by paying another person or

52
00:03:38.000 --> 00:03:42.000
business to put your offer in front of their audience. Think of it like renting eyeballs

53
00:03:42.000 --> 00:03:45.680
or earwalls. And because you don't need to spend time building an audience, paid ads are

54
00:03:45.680 --> 00:03:50.000
the fastest way to get the most people to see your stuff. You trade money for reach,

55
00:03:50.000 --> 00:03:54.880
a considerable advantage when you know what you're doing. Ads are riskier, but when done right,

56
00:03:54.880 --> 00:03:58.960
they can get you more leads than any other method. With warm and cold outreach, we have to do

57
00:03:58.960 --> 00:04:04.080
more stuff to reach more people. To reach more people with free content, we depend on the platform

58
00:04:04.240 --> 00:04:09.360
or audience sharing it if they feel like it. Paid ads are different. The reach is guaranteed,

59
00:04:09.360 --> 00:04:14.560
but getting your money back isn't. So it's a game of efficiency rather than reach. Let me explain.

60
00:04:14.560 --> 00:04:18.880
In principle, if you paid enough money, you could get every person in the world to see your ad.

61
00:04:18.880 --> 00:04:23.920
And if every person in the world saw your ad, someone would buy, even if only by accident, ha.

62
00:04:24.560 --> 00:04:29.280
So the question isn't, do ads work? It's how well can you make them work? In other words,

63
00:04:29.280 --> 00:04:34.160
it's a push and pull between how much you spend and how much they buy. And like cold outreach,

64
00:04:34.160 --> 00:04:39.200
paid ads go to colder, lower trust audiences. So even with good offers, a smaller percentage of

65
00:04:39.200 --> 00:04:44.560
people will respond. And like cold outreach, paid ads get over this hurdle by putting your offer

66
00:04:44.560 --> 00:04:48.720
in front of more people. And if an ad isn't profitable, most of the time, it's because the right

67
00:04:48.720 --> 00:04:54.080
people never saw it. So to make an ad profitable, the right people have to see it. This keeps our ads

68
00:04:55.040 --> 00:04:58.960
efficient. This chapter reveals how I create more efficient paid ads by finding needles in the

69
00:04:58.960 --> 00:05:04.240
haystack. I start with the entire world as my audience, the haystack, the narrow down to get a

70
00:05:04.240 --> 00:05:09.040
higher percentage of engaged leads, the needle. First, I pick a platform that contains my ideal

71
00:05:09.040 --> 00:05:13.840
audience. Second, I use whatever targeting methods that exist within that platform to find them.

72
00:05:13.840 --> 00:05:18.720
Third, I craft my ad in a way that repels anyone else. Finally, I tell whoever's left standing

73
00:05:18.800 --> 00:05:23.600
to take the next step. People overcomplicated, but that's it. That's all we're doing.

74
00:05:23.600 --> 00:05:27.600
Naring down who sees our ad so we have the highest chance of getting the right type of people to

75
00:05:27.600 --> 00:05:32.960
respond. Once we advertise profitably in a small puddle of an audience, we expand to a pond,

76
00:05:32.960 --> 00:05:38.240
then a lake, then an ocean. And as the audience gets bigger, it does have more of the wrong people,

77
00:05:38.240 --> 00:05:43.040
but it has more of the right ones too. So ads decrease in efficiency, but at that point,

78
00:05:43.040 --> 00:05:47.280
you can afford it. In other words, the ratio between what you spend and how much they buy goes

79
00:05:47.360 --> 00:05:53.040
down, but the total amount of money you make goes up. So instead of spending $1,000 to make $10,000

80
00:05:53.040 --> 00:06:00.480
with $9,000 in profit, you spend $100,000 to make $300,000 with $200,000 in profit. Your ratio goes

81
00:06:00.480 --> 00:06:05.520
down, but you make more money. So the risk is higher because you spend more, but so is the reward.

82
00:06:05.520 --> 00:06:09.600
This means we want to make the audience as big as possible while still turning a profit.

83
00:06:09.600 --> 00:06:13.040
Paid ads give us four new problems to solve. Let's break them down together.

84
00:06:13.680 --> 00:06:18.560
Number one, knowing where to advertise. Number two, getting the right audience to see it.

85
00:06:18.560 --> 00:06:23.760
Number three, making the best ad for them to see. Number four, getting permission to contact them.

86
00:06:23.760 --> 00:06:28.240
Step one, but where do I advertise? Find a platform where these four things are true.

87
00:06:28.800 --> 00:06:32.880
Platforms distribute content to an audience. If you're not familiar with any available platforms,

88
00:06:32.880 --> 00:06:37.200
I invite you to come join me on Planet Earth. If you've ever consumed content, which you have,

89
00:06:37.200 --> 00:06:40.800
you've directly or indirectly used a platform and been a member of its audience.

90
00:06:40.880 --> 00:06:45.040
And wherever there's an audience, you can usually advertise. So if you want to become a great entrepreneur,

91
00:06:45.040 --> 00:06:48.960
you have to learn about them. Here's what I look for in a platform I want to advertise on.

92
00:06:48.960 --> 00:06:53.040
One, I've used it and gotten value from it as a consumer. So I have some idea how it works.

93
00:06:53.680 --> 00:06:56.400
Two, I can target people on the platform interested in myself.

94
00:06:57.280 --> 00:07:01.200
Three, I know how to format ads specific to the platform, which I'll dive into in step three.

95
00:07:02.080 --> 00:07:05.760
Four, I have the minimum amount of money to spend to place an ad.

96
00:07:05.760 --> 00:07:08.960
And yes, platforms change all the time, but these principles stay the same.

97
00:07:09.520 --> 00:07:14.960
Pro tip, place ads where competitors place ads to start platforms often have different ad types.

98
00:07:14.960 --> 00:07:18.320
For example, on LinkedIn, you can send messages or you can run newsfeed ads.

99
00:07:18.320 --> 00:07:20.720
On Instagram, you can run ads to the newsfeeders stories.

100
00:07:20.720 --> 00:07:23.360
On YouTube, you can run ads on the sidebar midstream or pre-roll.

101
00:07:23.360 --> 00:07:27.120
So how do you know where to start? Look at the ad placement of other people in your space

102
00:07:27.120 --> 00:07:30.960
and start there if they can make it work so can you replicate before you iterate.

103
00:07:32.080 --> 00:07:36.000
Action step, start with one platform that meets the four requirements and start watching,

104
00:07:36.000 --> 00:07:39.360
listening or reading ads on the platform as a first step to learning how to make one.

105
00:07:39.360 --> 00:07:42.160
Step two, but how do I get the right people to see it?

106
00:07:42.800 --> 00:07:46.720
Target them. So if we start with the entire world, which we kind of do,

107
00:07:46.720 --> 00:07:48.400
we need to be a bit more specific.

108
00:07:48.400 --> 00:07:51.360
For example, if you choose a platform that has 100 million users,

109
00:07:51.360 --> 00:07:54.240
you've already cut out 99% of the world right off the bat.

110
00:07:54.800 --> 00:07:57.200
And if everyone who buys from you speaks English,

111
00:07:57.200 --> 00:08:00.080
you'd also want to exclude the audits within the platform who don't.

112
00:08:00.080 --> 00:08:05.200
If that's half the platform's users, you're already down to 99.5% of the world excluded.

113
00:08:05.200 --> 00:08:09.360
Specific is good. The right message to the wrong audience will fall in deaf ears.

114
00:08:09.360 --> 00:08:10.960
It doesn't matter how good your ads are.

115
00:08:10.960 --> 00:08:15.040
If you're marketing people in Florida about a local business in Iowa, it's probably not going to work.

116
00:08:15.040 --> 00:08:17.360
Do you only have one goal when targeting?

117
00:08:17.360 --> 00:08:20.080
Get the highest number of people you think will buy your stuff to see your ad.

118
00:08:21.040 --> 00:08:23.840
We did our first round of targeting by selecting our platform.

119
00:08:23.840 --> 00:08:26.000
We do the second round within the platform itself.

120
00:08:26.560 --> 00:08:29.120
Modern advertising platforms have two ways to target.

121
00:08:29.120 --> 00:08:30.960
You can use them separately or combine them.

122
00:08:31.920 --> 00:08:34.720
Number one, target a look like audience.

123
00:08:34.720 --> 00:08:37.440
Modern platforms can show your ad to an audience that is similar to

124
00:08:37.440 --> 00:08:39.600
and much bigger than a list you provide.

125
00:08:39.600 --> 00:08:41.600
Advertises call this a look like audience.

126
00:08:42.240 --> 00:08:45.040
Modern platforms will make a look like audience for you

127
00:08:45.040 --> 00:08:47.200
so long as you upload their minimum list size.

128
00:08:47.200 --> 00:08:49.440
The bigger the list and the higher quality of the contacts,

129
00:08:49.440 --> 00:08:51.440
the more responsive the look like audience will be.

130
00:08:51.920 --> 00:08:54.240
Start with your list of current and previous customers.

131
00:08:54.240 --> 00:08:57.840
If your customer list is big enough to meet the platform minimum, use it.

132
00:08:57.840 --> 00:09:00.640
If it's not big enough, add your warm reach out list to it.

133
00:09:00.640 --> 00:09:03.840
If it's still not big enough, add your cold reach out to hit the minimum.

134
00:09:03.840 --> 00:09:05.600
This is exactly what I do.

135
00:09:05.600 --> 00:09:07.520
Forcing the list size to the right size,

136
00:09:07.520 --> 00:09:09.680
sometimes make the look like audience too broad.

137
00:09:09.680 --> 00:09:11.760
And that's okay because you can.

138
00:09:11.760 --> 00:09:14.400
Number two, target with factors of your choosing.

139
00:09:15.040 --> 00:09:19.440
Targeting options include age, income, gender, interest, time, location, etc.

140
00:09:19.440 --> 00:09:24.240
For example, if you know no one over 45 or below 25 has ever bought your thing,

141
00:09:24.240 --> 00:09:26.160
then exclude anyone outside that range.

142
00:09:26.160 --> 00:09:30.160
If you sell car parts, then show your ad during car shows and on car channels.

143
00:09:30.640 --> 00:09:34.080
If only people with pets buy your thing, then include pets as an interest.

144
00:09:34.080 --> 00:09:37.840
Basic filters on top of platform generated look like audiences are a simple way

145
00:09:37.840 --> 00:09:40.000
to get more of the right people to see your ads.

146
00:09:40.000 --> 00:09:42.080
And result, more efficient ads.

147
00:09:43.040 --> 00:09:44.960
Pro tip, local targeting.

148
00:09:44.960 --> 00:09:48.240
Since local markets are tiny in comparison to national markets,

149
00:09:48.240 --> 00:09:50.240
you won't want to add many more filters.

150
00:09:50.240 --> 00:09:52.880
Be it specific, it's possible, but no further.

151
00:09:52.880 --> 00:09:56.240
The local market on its own is already 0.1% of a nation.

152
00:09:56.800 --> 00:09:58.320
So you're already pretty narrow.

153
00:09:58.320 --> 00:10:01.040
The more filters you use, the more specific the list.

154
00:10:01.040 --> 00:10:03.200
The more specific the list, the more efficient your ads,

155
00:10:03.200 --> 00:10:05.360
but the faster you'll quote burn through it.

156
00:10:05.360 --> 00:10:09.680
However, this specificity sets you up to get more wins early on.

157
00:10:09.680 --> 00:10:12.720
Wins from smaller specific audiences now give you the money

158
00:10:12.720 --> 00:10:15.520
to advertise a larger and broader audiences later.

159
00:10:15.520 --> 00:10:16.560
This is how you scale.

160
00:10:17.360 --> 00:10:18.080
Action steps.

161
00:10:18.640 --> 00:10:21.360
Bring all your lead lists together into one place.

162
00:10:21.360 --> 00:10:23.760
Separate them by past and previous customers,

163
00:10:23.760 --> 00:10:25.520
warm outreach and cold outreach.

164
00:10:25.600 --> 00:10:27.120
Eventually, you'll have a list of people

165
00:10:27.120 --> 00:10:28.400
that engage with your paid ads

166
00:10:28.400 --> 00:10:31.040
by giving you contact information but didn't buy.

167
00:10:31.040 --> 00:10:32.560
That'll come in handy.

168
00:10:32.560 --> 00:10:34.160
Then, if the platform allows,

169
00:10:34.160 --> 00:10:35.840
use these lists in order of quality

170
00:10:35.840 --> 00:10:37.440
to create your look-like audience.

171
00:10:37.440 --> 00:10:39.760
Then, if the platform also allows,

172
00:10:39.760 --> 00:10:41.760
add filters on top of your look-like audience

173
00:10:41.760 --> 00:10:43.600
to target an even higher percentage of people

174
00:10:43.600 --> 00:10:45.200
to engage with your ad.

175
00:10:45.200 --> 00:10:47.520
If you're incapable of making a look-like audience,

176
00:10:47.520 --> 00:10:50.000
then simply start by targeting interests.

177
00:10:50.000 --> 00:10:52.640
Step three, but what should my ad say?

178
00:10:53.440 --> 00:10:55.760
Call out plus value plus call to action.

179
00:10:57.040 --> 00:11:00.000
To this day, I don't change the channel when I see an ad.

180
00:11:00.000 --> 00:11:02.000
I rarely mute or skip ads.

181
00:11:02.000 --> 00:11:03.840
In fact, I have no premium subscriptions

182
00:11:03.840 --> 00:11:06.160
that remove ads on any media platform either.

183
00:11:06.160 --> 00:11:08.800
May and reason, I want to consume the ads.

184
00:11:08.800 --> 00:11:11.440
I want to see how businesses do three things.

185
00:11:11.440 --> 00:11:13.840
One, how they call out their ideal customers.

186
00:11:13.840 --> 00:11:16.000
Two, how they present the value elements.

187
00:11:16.640 --> 00:11:19.280
Three, how they give their audience a call to action.

188
00:11:19.280 --> 00:11:20.560
When I look at ads this way,

189
00:11:20.560 --> 00:11:22.800
it turns what was once and everyday nuisance

190
00:11:22.800 --> 00:11:25.440
adds into a continuous learning experience.

191
00:11:25.440 --> 00:11:28.720
Consuming ads on purpose with the core elements in mind

192
00:11:28.720 --> 00:11:30.160
make me a better advertiser,

193
00:11:30.160 --> 00:11:31.520
and it'll make you a better one too.

194
00:11:32.160 --> 00:11:34.400
Let's use the three chunks to make an ad.

195
00:11:34.400 --> 00:11:36.080
Number one, call outs.

196
00:11:36.080 --> 00:11:38.080
I need to get them to notice my ad.

197
00:11:38.080 --> 00:11:39.200
Two, value.

198
00:11:39.200 --> 00:11:41.520
I need to get them interested in what I have to offer.

199
00:11:41.520 --> 00:11:42.880
Three, call to action.

200
00:11:42.880 --> 00:11:44.400
I need to tell them what to do next.

201
00:11:44.400 --> 00:11:45.760
Number one, call out.

202
00:11:46.480 --> 00:11:50.160
People noticing your ad is the most important part of the ad.

203
00:11:50.160 --> 00:11:51.440
Buy a lot.

204
00:11:51.440 --> 00:11:55.600
The purpose of each second of the ad is to sell the next second of the ad.

205
00:11:55.600 --> 00:11:57.440
And the headline is the first sale.

206
00:11:57.440 --> 00:11:58.720
As David Ogleby says,

207
00:11:59.360 --> 00:12:00.800
After you've ridden your headline,

208
00:12:00.800 --> 00:12:02.880
you spent 80 cents of your advertising dollar.

209
00:12:03.520 --> 00:12:05.440
Focus your effort front to back.

210
00:12:05.440 --> 00:12:06.880
As craziest this sounds,

211
00:12:06.880 --> 00:12:09.120
and all the pros are nodding their heads right now,

212
00:12:09.120 --> 00:12:11.680
my advertising became 20 times more efficient

213
00:12:11.680 --> 00:12:14.560
when I focused the majority of my effort on the first five seconds.

214
00:12:15.280 --> 00:12:18.240
We need the audience's eyes and ears just long enough

215
00:12:18.320 --> 00:12:20.320
for them to realize this is for me.

216
00:12:20.320 --> 00:12:21.520
I'll keep paying attention.

217
00:12:21.520 --> 00:12:25.040
This first impression is the part of the ad I test the most.

218
00:12:25.040 --> 00:12:27.600
Imagine you're at a cocktail party in a big ballroom.

219
00:12:27.600 --> 00:12:29.280
Lots of people talking in groups.

220
00:12:29.280 --> 00:12:31.040
Loud music playing in the background.

221
00:12:31.040 --> 00:12:32.080
In all that noise,

222
00:12:32.080 --> 00:12:34.640
a single sound pierces through it all and you turn around.

223
00:12:34.640 --> 00:12:35.920
Want to know the sound?

224
00:12:35.920 --> 00:12:36.800
Your name.

225
00:12:36.800 --> 00:12:37.680
You hear it.

226
00:12:37.680 --> 00:12:39.040
An instantly look for the source.

227
00:12:39.920 --> 00:12:42.160
Scientists call it the cocktail party effect.

228
00:12:42.160 --> 00:12:43.280
In simple terms,

229
00:12:43.280 --> 00:12:45.040
even when there's lots of stuff going on,

230
00:12:45.040 --> 00:12:47.520
a single thing can still catch and hold our attention.

231
00:12:47.520 --> 00:12:50.400
So our goal with callouts is to harness the cocktail party effect

232
00:12:50.400 --> 00:12:52.160
and cut through all the noise.

233
00:12:52.160 --> 00:12:53.040
After all,

234
00:12:53.040 --> 00:12:55.520
if they never notice your ad, nothing else matters.

235
00:12:56.560 --> 00:13:00.000
A callout is whatever you have to do to get the attention of your audience.

236
00:13:00.000 --> 00:13:03.120
Callouts go from hyper-specific to get one person's attention

237
00:13:03.120 --> 00:13:05.600
to not at all specific to get everyone's attention.

238
00:13:05.600 --> 00:13:06.320
Let me explain.

239
00:13:06.880 --> 00:13:09.520
If someone drops a tray of dishes, everyone looks.

240
00:13:10.080 --> 00:13:11.520
If a child yells mom,

241
00:13:11.520 --> 00:13:12.720
then moms look.

242
00:13:12.720 --> 00:13:14.960
If someone says your name, only you look.

243
00:13:15.600 --> 00:13:18.000
But again, they all get attention.

244
00:13:18.000 --> 00:13:20.880
And I try to make my callouts specific enough to get the right people

245
00:13:20.880 --> 00:13:22.640
and brought enough to get as many of them as I can.

246
00:13:23.360 --> 00:13:25.840
So pay close attention to how advertisers use callouts,

247
00:13:25.840 --> 00:13:27.440
especially the ones targeting your audience.

248
00:13:28.320 --> 00:13:30.480
Here's what I look for with verbal callouts,

249
00:13:30.480 --> 00:13:32.160
using words to get attention.

250
00:13:33.120 --> 00:13:34.560
One, labels.

251
00:13:34.560 --> 00:13:37.200
A word or set of words putting people into a group.

252
00:13:37.760 --> 00:13:41.600
These include features, traits, titles, places, and other descriptors.

253
00:13:41.680 --> 00:13:42.720
Example.

254
00:13:42.720 --> 00:13:46.320
Clark County moms, gym owners, remote workers.

255
00:13:46.320 --> 00:13:48.880
I'm looking for XYZ, etc.

256
00:13:48.880 --> 00:13:53.520
To be most effective, your ideal customers need to identify with this label.

257
00:13:53.520 --> 00:13:57.440
A, people automatically identify with their local area.

258
00:13:57.440 --> 00:14:00.720
So with local ads, the more local, the better.

259
00:14:00.720 --> 00:14:06.720
A local ad with local area plus type of person callout is still one of my favorite

260
00:14:06.720 --> 00:14:08.800
all-time ways to get someone's attention.

261
00:14:08.800 --> 00:14:12.880
It worked 200 years ago, it works today, and it'll work tomorrow.

262
00:14:12.880 --> 00:14:16.560
So think Americans is not a specific as Texans,

263
00:14:16.560 --> 00:14:21.280
is not a specific as Dallas residents, is not a specific as Irving residents.

264
00:14:21.280 --> 00:14:24.560
If you live in Irving, you'll immediately think this ad could affect you.

265
00:14:24.560 --> 00:14:26.240
So it catches your attention.

266
00:14:27.520 --> 00:14:28.640
Two, yes, questions.

267
00:14:29.520 --> 00:14:31.680
Questions where people answer, yes, that's me.

268
00:14:31.680 --> 00:14:33.360
They qualify themselves for the offer.

269
00:14:33.360 --> 00:14:34.240
Example.

270
00:14:34.240 --> 00:14:36.160
Do you wake up to pee more than once a night?

271
00:14:36.160 --> 00:14:37.920
Do you have trouble tying your shoes?

272
00:14:38.000 --> 00:14:40.320
Do you have a home worth over $400,000?

273
00:14:40.320 --> 00:14:41.840
Three, if then statements.

274
00:14:42.480 --> 00:14:45.840
If they meet your conditions, then you help them make a decision.

275
00:14:45.840 --> 00:14:49.920
If you run over $100,000 a month in ads, we can save you 20% or more.

276
00:14:49.920 --> 00:14:53.920
If you were born between 1978 and 1986 in Muskegee, Oklahoma,

277
00:14:53.920 --> 00:14:56.080
you make qualify for a class action lawsuit.

278
00:14:56.080 --> 00:14:58.640
If you want XYZ, then pay attention.

279
00:14:58.640 --> 00:15:00.720
Four, ridiculous results.

280
00:15:00.720 --> 00:15:04.080
Bizarre, rare, or out of the ordinary stuff someone would want.

281
00:15:04.160 --> 00:15:08.320
Massage studio, books out, two years advanced, clients furious.

282
00:15:08.320 --> 00:15:11.200
This woman lost 50 pounds eating pizza and fired her trainer.

283
00:15:11.840 --> 00:15:15.600
The government is handing out $1,000 checks to anyone who can answer these three questions,

284
00:15:15.600 --> 00:15:16.240
etc.

285
00:15:16.240 --> 00:15:18.160
Collets don't have to be just words.

286
00:15:18.160 --> 00:15:20.640
They can also be noises or visuals in the environment.

287
00:15:21.120 --> 00:15:22.560
Let's go back to the cocktail party.

288
00:15:23.120 --> 00:15:26.160
Sure, a drop tray of dishes would get everyone's attention.

289
00:15:26.160 --> 00:15:30.000
But so would the clink, clink, clink of a knife against a champagne flute.

290
00:15:30.000 --> 00:15:32.720
They both get everyone's attention for different reasons.

291
00:15:32.800 --> 00:15:36.720
One signals an embarrassing disaster, and the other signals important news.

292
00:15:37.600 --> 00:15:41.040
But in either case, everyone still wants to know what happens next.

293
00:15:41.040 --> 00:15:45.440
So if the platform allows, good advertisers use verbal and nonverbal callouts together.

294
00:15:46.240 --> 00:15:48.880
Here's what I look for with nonverbal callouts.

295
00:15:48.880 --> 00:15:52.000
Using the setting and spokesperson to get attention.

296
00:15:52.000 --> 00:15:53.360
One, contrast.

297
00:15:53.360 --> 00:15:57.760
Any stuff that sticks out in the first few seconds, the colors, the sounds, the movements, etc.

298
00:15:57.760 --> 00:15:59.280
Note what catches your attention.

299
00:15:59.280 --> 00:16:03.520
Example, a bright shirt always gets more attention than a black or dull shirt.

300
00:16:03.520 --> 00:16:06.400
Attractive people almost always get more attention than plain looking people.

301
00:16:07.040 --> 00:16:09.920
Moving stuff always gets more attention than still stuff.

302
00:16:10.880 --> 00:16:12.160
Two, likeness.

303
00:16:12.880 --> 00:16:15.120
Think visually showing labels.

304
00:16:15.120 --> 00:16:18.560
Features, traits, titles, places, and other descriptors that people identify with.

305
00:16:18.560 --> 00:16:23.120
People want to work with people who look, talk, and act, and waste familiar to them.

306
00:16:23.120 --> 00:16:26.960
And you may not look, talk, or act, and waste familiar to them.

307
00:16:26.960 --> 00:16:30.720
So if you serve a broad customer base, use more ethnicities, ages,

308
00:16:30.720 --> 00:16:33.120
genders, personalities, etc. in your ads.

309
00:16:33.120 --> 00:16:37.120
If you serve a narrow customer base, example, medical devices for seniors,

310
00:16:37.120 --> 00:16:38.400
then use people who look like them.

311
00:16:38.960 --> 00:16:39.680
Quack like a duck.

312
00:16:40.480 --> 00:16:45.040
If you want to attract ducks, look like a duck, walk like a duck, and quack like a duck.

313
00:16:45.040 --> 00:16:48.320
If you want to attract plumbers, then dress like a plumber, talk like a plumber,

314
00:16:48.320 --> 00:16:50.160
and be in a plumbing environment.

315
00:16:50.160 --> 00:16:54.720
Even with the same message, your ad will do far better if you look the part or find people who do.

316
00:16:55.040 --> 00:16:58.480
If you see an ad for doctors, notice the spokesperson.

317
00:16:59.040 --> 00:17:01.120
What age are they? Gender, ethnicity.

318
00:17:02.000 --> 00:17:03.280
Are they wearing a lab coat?

319
00:17:03.280 --> 00:17:04.560
A stethoscope?

320
00:17:04.560 --> 00:17:06.240
Are they in a medical facility?

321
00:17:06.240 --> 00:17:09.360
All these things get a specific type of person interested in health-related

322
00:17:09.360 --> 00:17:12.160
products and services to pay more attention than they would otherwise.

323
00:17:13.440 --> 00:17:16.240
Maskots also work well because they don't age.

324
00:17:16.240 --> 00:17:19.200
Never ask for more money, and never take days off.

325
00:17:19.200 --> 00:17:20.880
Think Mickey Mouse for Disney.

326
00:17:20.960 --> 00:17:22.240
The guy co-gecko.

327
00:17:22.240 --> 00:17:23.760
Tony the tiger for Kellogg's.

328
00:17:23.760 --> 00:17:25.520
The Michelin man, etc.

329
00:17:25.520 --> 00:17:28.560
A mascot is a great way to create an enduring spokesperson for your business.

330
00:17:29.360 --> 00:17:30.240
Advanced.

331
00:17:30.240 --> 00:17:34.480
Whichever likeness you choose, if it's not you, the business becomes less dependent on you

332
00:17:34.480 --> 00:17:35.520
and therefore more sellable.

333
00:17:36.080 --> 00:17:38.320
You may also just be an ugly son of a gun.

334
00:17:38.320 --> 00:17:40.720
Plus, pretty people convert better anyways.

335
00:17:40.720 --> 00:17:44.480
Good news is, it doesn't cost much to get a pretty person to stay stuff to a camera.

336
00:17:44.480 --> 00:17:45.760
Three, the scene.

337
00:17:46.400 --> 00:17:49.680
Think showing the yes questions and if-then statements.

338
00:17:50.240 --> 00:17:51.200
Example.

339
00:17:51.200 --> 00:17:52.000
In Add With.

340
00:17:52.800 --> 00:17:54.960
A, a person tossing and turning in a bed

341
00:17:54.960 --> 00:17:56.960
calls out to people with slip troubles.

342
00:17:56.960 --> 00:18:00.720
B, a pair next to an hourglass can call out to people with a pear-shaped body.

343
00:18:00.720 --> 00:18:05.520
C, a room full of stuff stacked to the ceiling calls out to people with too much junk.

344
00:18:06.080 --> 00:18:09.600
D, a rock hitting a window calls out to people with broken windows.

345
00:18:09.600 --> 00:18:11.040
E, a local landmark.

346
00:18:11.040 --> 00:18:13.360
Locals think, hey, I know that place and pay attention.

347
00:18:14.160 --> 00:18:17.200
Now, this isn't an exhaustive list, far from it.

348
00:18:17.200 --> 00:18:19.200
I show you these to pull back the curtain.

349
00:18:19.200 --> 00:18:22.320
This way, you can see the infinite ways advertisers cut through the noise,

350
00:18:22.320 --> 00:18:23.120
so you can too.

351
00:18:23.840 --> 00:18:24.560
Pro tip.

352
00:18:24.560 --> 00:18:25.280
Infinite ads.

353
00:18:25.840 --> 00:18:28.880
Here's one of the highest ROI tips I can give you about making ads.

354
00:18:28.880 --> 00:18:31.600
Record 10 or so new ads every week.

355
00:18:31.600 --> 00:18:35.920
But 30 or more first sentences or questions to begin the ad.

356
00:18:35.920 --> 00:18:37.520
Think five second clips.

357
00:18:37.520 --> 00:18:40.560
These are the call outs people consume before deciding to watch more.

358
00:18:40.560 --> 00:18:42.720
With 30 call outs and 10 main ads,

359
00:18:42.720 --> 00:18:45.360
you can make 300 variations in a matter of hours.

360
00:18:45.360 --> 00:18:47.760
Once you know the best call out, you apply to all the ads.

361
00:18:48.560 --> 00:18:49.600
Action step.

362
00:18:49.600 --> 00:18:52.080
I'm always impressed with the clever and innovative ways

363
00:18:52.080 --> 00:18:53.920
advertisers call out their prospects.

364
00:18:53.920 --> 00:18:55.760
So instead of muting or hitting skip ad,

365
00:18:55.760 --> 00:18:56.960
look for the call outs.

366
00:18:56.960 --> 00:18:58.480
Become a student of the game.

367
00:18:58.480 --> 00:18:59.840
My goal is that for the rest of your life,

368
00:18:59.840 --> 00:19:02.400
when you see an ad, you turn up the volume.

369
00:19:02.400 --> 00:19:04.240
Now, once they've noticed our ad,

370
00:19:04.240 --> 00:19:06.080
it takes us to the second chunk of the ad.

371
00:19:06.080 --> 00:19:07.840
We need to get them interested.

372
00:19:07.840 --> 00:19:09.280
Two, get them interested.

373
00:19:10.000 --> 00:19:12.560
If people think an offer or league magnet has big benefits

374
00:19:12.560 --> 00:19:14.400
and tiny costs, they value it.

375
00:19:14.400 --> 00:19:17.040
They'll exchange money or contact information to get it.

376
00:19:17.040 --> 00:19:18.640
But if the cost outweighs the benefits,

377
00:19:18.640 --> 00:19:20.720
they don't value it and they won't.

378
00:19:20.720 --> 00:19:23.280
So the best to add to make the benefits look as big as possible

379
00:19:23.280 --> 00:19:25.600
and the cost look as small as possible.

380
00:19:25.600 --> 00:19:27.280
This makes an offer or league magnet

381
00:19:27.280 --> 00:19:28.400
as valuable as it can be

382
00:19:28.400 --> 00:19:30.240
and gets the most engaged leads because of it.

383
00:19:30.240 --> 00:19:31.440
A good advertisement.

384
00:19:31.440 --> 00:19:32.320
Paid or not,

385
00:19:32.320 --> 00:19:34.720
uses clear and simple ways to answer the question,

386
00:19:34.720 --> 00:19:36.560
why should I be interested in your thing?

387
00:19:36.560 --> 00:19:39.600
It tells people why they should want your lead magnet or offer.

388
00:19:39.600 --> 00:19:41.440
Now, there are a million ways to do this,

389
00:19:41.440 --> 00:19:44.960
but I'll share with you my what, who, when framework?

390
00:19:45.040 --> 00:19:47.440
This mental framework hinges on knowing the value equation

391
00:19:47.440 --> 00:19:48.640
forwards and backwards.

392
00:19:48.640 --> 00:19:50.400
So all you have to do is know eight things

393
00:19:50.400 --> 00:19:51.920
about your own product or service.

394
00:19:51.920 --> 00:19:54.160
How fulfills each value element for your prospect

395
00:19:54.160 --> 00:19:56.080
and how it helps them avoid their hidden costs.

396
00:19:56.080 --> 00:19:56.640
Remember those?

397
00:19:57.360 --> 00:19:59.520
Think of them like carrots versus sticks.

398
00:19:59.520 --> 00:20:01.280
How your offer delivers more good stuff

399
00:20:01.280 --> 00:20:02.640
and less bad stuff.

400
00:20:02.640 --> 00:20:04.400
Then think of the perspectives of the people

401
00:20:04.400 --> 00:20:06.240
who would experience them, the who.

402
00:20:06.240 --> 00:20:08.320
And then finally, what time period?

403
00:20:08.320 --> 00:20:11.040
When they'd have these experiences positive or negative?

404
00:20:11.040 --> 00:20:12.240
The what who when framework?

405
00:20:13.200 --> 00:20:15.200
In the words of David Obelby,

406
00:20:15.200 --> 00:20:16.400
the customer isn't a moron.

407
00:20:16.400 --> 00:20:17.200
She's your wife.

408
00:20:17.200 --> 00:20:18.800
So you know what that means?

409
00:20:18.800 --> 00:20:19.440
Write to her.

410
00:20:19.440 --> 00:20:22.640
Adds cause the prospect to think questions to themselves.

411
00:20:22.640 --> 00:20:24.320
And a good ad answers the questions

412
00:20:24.320 --> 00:20:25.840
at the precise time they think them.

413
00:20:25.840 --> 00:20:28.720
So if you can answer what they're thinking with your ad,

414
00:20:28.720 --> 00:20:30.800
using the words they use, you've won.

415
00:20:30.800 --> 00:20:32.640
So let's start with the what?

416
00:20:32.640 --> 00:20:34.240
Eight key elements.

417
00:20:34.240 --> 00:20:36.240
Number one, dream outcome.

418
00:20:36.240 --> 00:20:39.040
A good ad will show and tell the maximum benefit

419
00:20:39.040 --> 00:20:41.360
the prospect can achieve using the thing you sell.

420
00:20:41.520 --> 00:20:43.600
It should align with the ideal prospect stream outcome

421
00:20:43.600 --> 00:20:45.280
for that sort of product or service.

422
00:20:45.280 --> 00:20:46.560
These are the results they experience

423
00:20:46.560 --> 00:20:47.440
after buying the thing.

424
00:20:48.240 --> 00:20:50.320
The opposite of that is a nightmare.

425
00:20:50.320 --> 00:20:52.640
A good ad will also show them the worst possible

426
00:20:52.640 --> 00:20:54.080
hassles, pain, etc.

427
00:20:54.080 --> 00:20:55.600
of going without your solution.

428
00:20:55.600 --> 00:20:57.840
In short, the bad stuff they'll experience

429
00:20:57.840 --> 00:20:58.800
if they don't buy.

430
00:20:59.600 --> 00:21:02.080
Two, perceive like lit of achievement.

431
00:21:02.720 --> 00:21:05.280
Because of past failures, we assume that even when we buy,

432
00:21:05.280 --> 00:21:07.120
there's a risk that we don't get what we want.

433
00:21:07.680 --> 00:21:11.120
Lower perceived risk by minimizing or explaining away past failures

434
00:21:11.520 --> 00:21:13.440
emphasizing the success of people like them,

435
00:21:14.000 --> 00:21:16.560
giving assurances by authority, guarantees,

436
00:21:16.560 --> 00:21:19.120
and how what you have to offer will at least give them

437
00:21:19.120 --> 00:21:21.280
a better chance of success than what they currently do.

438
00:21:22.000 --> 00:21:22.720
The opposite.

439
00:21:23.520 --> 00:21:24.400
Risk.

440
00:21:24.400 --> 00:21:27.440
A good ad will also show them how risky it is not to act.

441
00:21:28.240 --> 00:21:30.960
What will their life be like if they carried on as they always have?

442
00:21:31.600 --> 00:21:33.520
Show how they will repeat their past failures

443
00:21:33.520 --> 00:21:35.680
and how their problems will become bigger and worse.

444
00:21:36.400 --> 00:21:37.920
Three, time to like.

445
00:21:38.480 --> 00:21:41.520
A good ad will show them how slow their current trajectory is

446
00:21:41.520 --> 00:21:44.240
or that they'll never get what they want at their current rate.

447
00:21:44.800 --> 00:21:46.320
The opposite of that is speed.

448
00:21:46.960 --> 00:21:50.640
To get things we want, we know we have to spend time getting them.

449
00:21:50.640 --> 00:21:54.720
A good ad will show and tell how much faster they will get the thing they want.

450
00:21:55.280 --> 00:21:57.120
Four, effort and sacrifice.

451
00:21:58.080 --> 00:22:01.920
A good ad will also show them the amount of work and skill they'll need

452
00:22:01.920 --> 00:22:03.520
to get the result without your solution.

453
00:22:04.080 --> 00:22:06.800
And how they'll be forced to keep giving things up they love

454
00:22:06.800 --> 00:22:08.480
and continue suffering from things they hate.

455
00:22:09.120 --> 00:22:12.480
Or worse, that they work hard and sacrifice a ton right now

456
00:22:12.480 --> 00:22:14.240
and have gotten nowhere.

457
00:22:14.240 --> 00:22:17.600
In other words, they waste more time and money doing what they currently do

458
00:22:17.600 --> 00:22:19.280
than if they just bought our darn solution.

459
00:22:20.480 --> 00:22:22.000
The opposite of that is ease.

460
00:22:22.560 --> 00:22:25.680
To get things we want, we have to change something.

461
00:22:25.680 --> 00:22:29.120
But then we assume that we have to do stuff we hate and give up stuff we love.

462
00:22:29.600 --> 00:22:32.640
And ease comes from a lack of needed work or skill.

463
00:22:33.120 --> 00:22:35.520
A good ad disproves that assumption.

464
00:22:35.600 --> 00:22:38.880
It tells and shows how you can avoid the stuff you hate doing,

465
00:22:38.880 --> 00:22:42.160
do more of the stuff you love doing without working hard

466
00:22:42.160 --> 00:22:45.520
or having lots of skill and still get the dream outcome.

467
00:22:48.240 --> 00:22:50.080
Those are the eight key elements.

468
00:22:50.960 --> 00:22:52.960
Now that we fully understand the what,

469
00:22:52.960 --> 00:22:54.560
how we deliver the four value elements

470
00:22:54.560 --> 00:22:56.560
and how we avoid their four opposites,

471
00:22:56.560 --> 00:22:58.960
we now go to the next W, the who?

472
00:23:00.320 --> 00:23:00.560
Who?

473
00:23:01.760 --> 00:23:03.840
Humans are primarily status driven.

474
00:23:03.840 --> 00:23:07.200
And the status of one human comes from how other humans treat them.

475
00:23:07.200 --> 00:23:10.160
So if your product or service changes how other people treat your customer,

476
00:23:10.160 --> 00:23:12.720
which it does in some way, it pays to show how.

477
00:23:13.360 --> 00:23:16.080
And talking about the value elements from someone else's perspective

478
00:23:16.080 --> 00:23:18.640
shows all the ways that will improve the status of your customer.

479
00:23:18.640 --> 00:23:20.640
So we want to outline two groups of people.

480
00:23:20.640 --> 00:23:23.760
The first group is the people gaining status, your customers.

481
00:23:23.760 --> 00:23:26.160
The second group is the people giving it to them.

482
00:23:26.160 --> 00:23:29.200
Spouses, kids, parents, extended family, colleagues,

483
00:23:29.200 --> 00:23:31.440
bosses, friends, rivals, competitors, etc.

484
00:23:32.240 --> 00:23:34.480
All of these perspectives gives us different opportunities

485
00:23:34.480 --> 00:23:36.960
to show how the prospect status may improve.

486
00:23:36.960 --> 00:23:39.600
And they give us a ton of bonus benefits.

487
00:23:39.600 --> 00:23:42.880
As in, if you lose weight, do your kids have a new role model?

488
00:23:42.880 --> 00:23:45.040
Does your spouse now decide to get healthy too?

489
00:23:45.040 --> 00:23:47.040
Are you more likely to get promoted at work?

490
00:23:47.040 --> 00:23:48.480
Science says yes.

491
00:23:48.480 --> 00:23:50.800
Does your frenemy no longer make those little jabs at dinner?

492
00:23:51.760 --> 00:23:52.960
Let's do business examples.

493
00:23:53.600 --> 00:23:55.280
If I said something was risk-free,

494
00:23:55.280 --> 00:23:58.720
I want to spell out how their spouse won't nag them about the purchase

495
00:23:58.720 --> 00:23:59.920
since there's no risk.

496
00:23:59.920 --> 00:24:01.920
I talk about how their kids would notice they weren't as stressed

497
00:24:01.920 --> 00:24:03.600
or distracted anymore about work.

498
00:24:03.600 --> 00:24:05.760
How their competitors notice their phones don't ring as much

499
00:24:05.760 --> 00:24:08.160
because all their customers are flowing to your new customer.

500
00:24:08.160 --> 00:24:10.560
How their business owner buddies say business must be good

501
00:24:10.560 --> 00:24:12.480
when they pull up in a new car at the golf range?

502
00:24:12.480 --> 00:24:13.520
You get the idea.

503
00:24:13.520 --> 00:24:16.160
These are all the added benefits to the prospect we'd miss out on

504
00:24:16.160 --> 00:24:18.240
if we only looked at it from their own perspective.

505
00:24:19.200 --> 00:24:23.680
And we can apply each new WHO perspective to each value driver.

506
00:24:23.680 --> 00:24:25.600
This is how you get so many different stories,

507
00:24:25.600 --> 00:24:28.720
examples, and angles, etc. to describe the benefits.

508
00:24:28.720 --> 00:24:30.320
More carrot and less stick.

509
00:24:31.280 --> 00:24:34.560
That leads to the third lens of the what-who-when framework.

510
00:24:34.560 --> 00:24:35.760
The when.

511
00:24:36.560 --> 00:24:40.480
People often only think of how their decisions affect the here and now.

512
00:24:40.480 --> 00:24:42.560
But if we want to be extra compelling and we do,

513
00:24:43.120 --> 00:24:46.000
we should also explain what their decisions led to in the past

514
00:24:46.000 --> 00:24:48.640
and what their decisions could lead to in the future.

515
00:24:48.640 --> 00:24:51.600
We do this by getting them to visualize through their own timeline

516
00:24:51.600 --> 00:24:52.720
past present future.

517
00:24:53.280 --> 00:24:56.400
This way, we help them see the consequences of their decision

518
00:24:56.400 --> 00:24:58.400
or in decision right now.

519
00:24:58.400 --> 00:25:02.160
Let's use the weight loss example from earlier from their perspective.

520
00:25:02.160 --> 00:25:04.960
We show them getting teased as a kid, past,

521
00:25:04.960 --> 00:25:08.000
struggling to button their favorite pair of jeans, present,

522
00:25:08.000 --> 00:25:11.040
when moving up yet another belt loop, future.

523
00:25:11.760 --> 00:25:13.840
What does that nightmare look like to their spouse,

524
00:25:13.840 --> 00:25:15.760
to their rivals, how embarrassing?

525
00:25:16.720 --> 00:25:20.560
Remember, we can also run the same timeline through someone else's perspective.

526
00:25:20.560 --> 00:25:22.560
Their kid asking why other kids made fun of them

527
00:25:22.560 --> 00:25:25.040
because they passed on bad food habits, past.

528
00:25:25.680 --> 00:25:28.080
Or how their kids complain now that other kids' dads

529
00:25:28.080 --> 00:25:30.160
participated practice when they don't, present.

530
00:25:30.800 --> 00:25:33.280
Or how their doctors said they might not be able to walk their daughter

531
00:25:33.280 --> 00:25:34.560
down the aisle at her wedding.

532
00:25:34.560 --> 00:25:35.440
Future.

533
00:25:35.440 --> 00:25:38.640
Note, this is all the bad stuff they want to avoid.

534
00:25:38.640 --> 00:25:42.320
Our next copy elements would contrast those with the good stuff that could happen,

535
00:25:42.320 --> 00:25:44.640
present and future if they buy our thing.

536
00:25:45.760 --> 00:25:49.440
We use both towards good stuff and away from bad stuff

537
00:25:49.440 --> 00:25:53.280
then combine it with past, present and future of the prospect's life

538
00:25:53.280 --> 00:25:55.280
to create powerful motivators in our copy.

539
00:25:56.000 --> 00:25:58.320
Putting the what, the who and the when together,

540
00:25:58.320 --> 00:26:00.880
we answer the why they should be interested.

541
00:26:00.880 --> 00:26:02.640
If I continued on with the weight loss example,

542
00:26:02.640 --> 00:26:05.040
I might talk about how their spouse,

543
00:26:05.040 --> 00:26:09.440
who will perceive how fast what they fit into that suit your wife loves

544
00:26:09.440 --> 00:26:12.640
that didn't fit but does now in the future when.

545
00:26:12.640 --> 00:26:16.320
Or how their kids, the who, month after month, the when,

546
00:26:16.320 --> 00:26:19.600
got more interested in eating healthy and tagging along during workouts,

547
00:26:19.600 --> 00:26:22.320
the what, or how they, the who,

548
00:26:22.400 --> 00:26:24.800
catch a look at themselves in a reflection in the mall a few months,

549
00:26:25.360 --> 00:26:28.800
the when, and realize stuff actually fits me in the store.

550
00:26:28.800 --> 00:26:30.320
The what, pro tip.

551
00:26:31.040 --> 00:26:34.320
Make your ads as specific as you can, but no specific error.

552
00:26:35.040 --> 00:26:37.920
The more specific your copy, the more efficient it can get,

553
00:26:37.920 --> 00:26:39.920
but also the longer it tends to get.

554
00:26:39.920 --> 00:26:42.800
And if it gets too long for the platform, it lowers efficiency.

555
00:26:42.800 --> 00:26:45.840
So make the ad in its entirety as specific as you can

556
00:26:45.840 --> 00:26:48.000
in the most efficient space you've got.

557
00:26:48.000 --> 00:26:50.320
If you've got audio and visuals at your disposal,

558
00:26:50.400 --> 00:26:54.160
then use contrast, likeness, and the scene itself to match your copy.

559
00:26:54.160 --> 00:26:56.640
It becomes more specific without getting any longer.

560
00:26:56.640 --> 00:26:59.040
And this makes your ad even more efficient and profitable.

561
00:26:59.600 --> 00:27:03.680
When we combine everything we can to get the prospects moving towards

562
00:27:03.680 --> 00:27:07.200
the four value drivers while also getting them away from their opposites,

563
00:27:07.200 --> 00:27:09.760
the many perspectives we can show them gaining status from.

564
00:27:10.240 --> 00:27:15.600
And the timelines for each, this adds up to why they should be interested.

565
00:27:15.600 --> 00:27:17.840
And now we have lots of ways to get them interested.

566
00:27:17.920 --> 00:27:20.560
And the more angles we cover, the more interested they'll become.

567
00:27:21.280 --> 00:27:25.040
Also, since you asked, the only difference between long ads and short ads

568
00:27:25.040 --> 00:27:28.320
is how many angles we have time to cover from the copywriting framework.

569
00:27:28.320 --> 00:27:30.960
Longer ads use more, shorter ads use fewer,

570
00:27:30.960 --> 00:27:34.160
so ad or takeaway based on the platform, but keep the callouts

571
00:27:34.160 --> 00:27:37.440
the first few seconds and the CTAs, what to do next, the same.

572
00:27:38.640 --> 00:27:39.120
Pro tip.

573
00:27:39.840 --> 00:27:41.120
Get unlimited inspiration.

574
00:27:41.760 --> 00:27:44.480
Many platforms have a database of ads passed in present.

575
00:27:44.560 --> 00:27:47.520
As of this moment, if you search platform ad library,

576
00:27:48.080 --> 00:27:51.360
in a search engine, in a few clicks, you will find them.

577
00:27:51.360 --> 00:27:53.840
If you see an ad that runs for a long time, a month or more,

578
00:27:53.840 --> 00:27:57.120
assume it's profitable, then take notes on the callouts they use,

579
00:27:57.120 --> 00:27:59.680
how they illustrate the value elements and their CTAs.

580
00:28:00.320 --> 00:28:02.560
Look for the words they use and how they demonstrate them.

581
00:28:03.120 --> 00:28:06.560
Break down 50 or so ads and you will have a massive head start to creating winners of your own.

582
00:28:07.840 --> 00:28:08.960
Action steps.

583
00:28:08.960 --> 00:28:12.400
Get as many advertising angles with your core offer as you can with the what,

584
00:28:12.400 --> 00:28:13.760
who, when, framework.

585
00:28:14.480 --> 00:28:17.840
What, know the eight key things about your own product or service,

586
00:28:17.840 --> 00:28:21.280
how fulfills each element of value and how it helps avoid their opposites.

587
00:28:21.280 --> 00:28:25.680
Who, show how the eight key things about your product or service can change your prospect status,

588
00:28:25.680 --> 00:28:29.200
then show how the people they know give status to the prospect when they buy your thing

589
00:28:29.200 --> 00:28:30.720
or take status away if they don't.

590
00:28:31.280 --> 00:28:35.920
When, get the prospects to see the consequences of buying and not buying through their past,

591
00:28:35.920 --> 00:28:40.160
present, and future, especially their changing status with the people they know.

592
00:28:40.160 --> 00:28:44.240
This way, we help them see the value of their decision or indecision at this very moment.

593
00:28:44.320 --> 00:28:47.280
Author note, you don't need to become a copywriting expert.

594
00:28:47.280 --> 00:28:48.480
I'm certainly not.

595
00:28:48.480 --> 00:28:51.680
And now I thought copy was the limit for most, I'd have spent more time on it.

596
00:28:51.680 --> 00:28:55.280
Sure, world class entrepreneurs have world class copywriting skills,

597
00:28:55.280 --> 00:28:58.960
but world class copywriters don't necessarily have entrepreneurial skills.

598
00:28:58.960 --> 00:29:00.480
Don't sacrifice one for the other.

599
00:29:00.480 --> 00:29:04.080
If you explain your offer clearly using the what, who, when, framework.

600
00:29:04.080 --> 00:29:07.120
You'll have enough skill to remove copywriting as the limit on your growth.

601
00:29:07.120 --> 00:29:08.480
And that's all you have to do.

602
00:29:08.480 --> 00:29:09.920
Get good enough to grow.

603
00:29:09.920 --> 00:29:13.280
After all, if you call out the right people and have an amazing offer,

604
00:29:13.280 --> 00:29:15.200
you barely need any copy to begin with.

605
00:29:15.200 --> 00:29:16.800
You just got to explain your offer.

606
00:29:16.800 --> 00:29:18.560
Get good enough to make your ads profitable.

607
00:29:18.560 --> 00:29:20.160
Then scale and see what breaks next.

608
00:29:20.960 --> 00:29:24.000
I also include a few more ad tips and tricks that have served me well in the lessons

609
00:29:24.000 --> 00:29:25.200
at the end of this chapter.

610
00:29:25.200 --> 00:29:26.560
But even if you never use them,

611
00:29:26.560 --> 00:29:30.000
there's only one more thing you'll need to turn these interest folks into engaged leads.

612
00:29:30.800 --> 00:29:32.720
Three, the CTA.

613
00:29:32.720 --> 00:29:33.760
Tell them what to do next.

614
00:29:34.480 --> 00:29:38.320
If your ad got them interested, then your audience will have huge motivation for tiny time.

615
00:29:38.800 --> 00:29:39.760
Take advantage.

616
00:29:39.760 --> 00:29:42.000
Tell them exactly what to do next.

617
00:29:42.000 --> 00:29:43.920
Spell it out.

618
00:29:43.920 --> 00:29:47.520
Click this button, call this number, reply with yes, go to this website, scan this QR code,

619
00:29:47.520 --> 00:29:48.320
wink.

620
00:29:48.320 --> 00:29:50.160
So many ads still don't do this.

621
00:29:50.160 --> 00:29:52.960
Your audience can only know what to do if you tell them.

622
00:29:53.520 --> 00:29:55.360
Make CTAs quick and easy.

623
00:29:55.360 --> 00:29:57.840
Easy phone numbers, obvious buttons, simple websites.

624
00:29:57.840 --> 00:30:01.520
For example, a common CTA is to direct the audience to a website.

625
00:30:01.520 --> 00:30:04.000
So make your website address short and memorable.

626
00:30:04.000 --> 00:30:06.640
Instead of Alex's private equity firm.com,

627
00:30:06.640 --> 00:30:12.320
forward slash free book and courses 2782 use acquisition.com forward slash training.

628
00:30:12.320 --> 00:30:17.360
Note, this comes from a guy who spent $370,000 on a single word domain acquisition.com.

629
00:30:17.360 --> 00:30:20.480
So I may overvalue easy domains, but I don't think I do.

630
00:30:20.480 --> 00:30:22.160
I think everyone else just undervalues them.

631
00:30:22.160 --> 00:30:23.360
Just my two cents.

632
00:30:23.360 --> 00:30:26.320
Assume the audience has no idea who you are, what you do, how it works,

633
00:30:26.320 --> 00:30:28.800
they're in a rush, and they have a third grade education.

634
00:30:28.800 --> 00:30:31.120
Beyond these basics, which most still forget,

635
00:30:31.120 --> 00:30:34.960
you can also use all the tactics like urgency, scarcity, and bonuses from step seven

636
00:30:34.960 --> 00:30:37.920
from the engage your leads chapter to make even stronger CTAs.

637
00:30:38.480 --> 00:30:41.840
They apply here and everywhere else you tell your audience to do something.

638
00:30:41.840 --> 00:30:43.840
So we can now pick a platform to advertise on,

639
00:30:43.840 --> 00:30:47.760
target who we show our ads to, make the ads they see, and tell them what to do next.

640
00:30:47.760 --> 00:30:50.400
All we have to do now is get their contact information.

641
00:30:51.200 --> 00:30:53.040
Step four, get permission to contact them.

642
00:30:53.920 --> 00:30:57.120
After they take action, get their contact information.

643
00:30:57.120 --> 00:31:00.080
My favorite way to get contact information is a simple landing page.

644
00:31:00.080 --> 00:31:01.200
Don't overthink it.

645
00:31:01.200 --> 00:31:03.680
The simpler your landing page, the easier it is to test.

646
00:31:03.680 --> 00:31:05.200
Focus on the words and the image.

647
00:31:05.200 --> 00:31:06.800
Here are my three favorite templates.

648
00:31:06.800 --> 00:31:08.000
Pick one and start testing.

649
00:31:08.880 --> 00:31:10.720
I will describe the three layouts to you.

650
00:31:10.720 --> 00:31:15.680
Layout one is headline, subheadline, and then an opt-in thing where they can put their email in.

651
00:31:15.680 --> 00:31:19.200
Layout two is headline, subheadline, and then an image,

652
00:31:19.200 --> 00:31:21.760
and then opt-in where they can put their contact information.

653
00:31:21.760 --> 00:31:24.640
And then layout three is headline, subheadline, image,

654
00:31:24.640 --> 00:31:28.800
where they put their contact information, a submit button, and then a few bullets

655
00:31:28.800 --> 00:31:32.000
that give them more benefits that are below the fold as they would have to scroll

656
00:31:32.080 --> 00:31:33.040
in order to see it.

657
00:31:33.040 --> 00:31:34.080
To further sell them.

658
00:31:34.080 --> 00:31:36.160
Those are the three layouts I use the most.

659
00:31:36.160 --> 00:31:38.000
And make your landing pages match your ads.

660
00:31:38.000 --> 00:31:40.400
People click an ad because you promise them some benefit.

661
00:31:40.400 --> 00:31:43.360
So, carry that same look and language over to your landing page.

662
00:31:43.360 --> 00:31:46.000
Make sure what you promised in your ad is what you deliver.

663
00:31:46.000 --> 00:31:49.600
This sounds simple, but a lot of people forget and waste money until they remember it.

664
00:31:49.600 --> 00:31:52.640
You don't want to end up with some Frankenstein experience where everything looks different.

665
00:31:52.640 --> 00:31:54.960
You want to continue this experience from click to close.

666
00:31:56.320 --> 00:31:57.840
Get more people through more steps.

667
00:31:58.720 --> 00:32:00.720
In Robert Killedini's seminal work influence,

668
00:32:00.720 --> 00:32:03.440
he shows that people like to think of themselves as consistent.

669
00:32:03.440 --> 00:32:06.480
So, if you remind them of the action they just took, the CTA,

670
00:32:06.480 --> 00:32:09.040
and show them how taking the next action aligns with it,

671
00:32:09.040 --> 00:32:12.800
you'll get even more people to take the second action, aka contact info.

672
00:32:12.800 --> 00:32:17.920
For example, now that you just did A, you need to do B to get the most of A,

673
00:32:17.920 --> 00:32:20.880
or doing A makes you a doing A kind of person,

674
00:32:20.880 --> 00:32:23.120
doing A kind of people do B.

675
00:32:23.120 --> 00:32:24.880
To be clear, we aren't selling anything.

676
00:32:24.880 --> 00:32:26.960
We're asking if they're interested in the stuff we sell,

677
00:32:26.960 --> 00:32:29.520
and if they're interested, they'll give us a way to tell them more about it.

678
00:32:29.520 --> 00:32:31.920
And when they do, they become engaged leads.

679
00:32:31.920 --> 00:32:33.440
Woo, action step.

680
00:32:34.080 --> 00:32:35.520
Build your first landing page.

681
00:32:35.520 --> 00:32:38.240
I wasted four years feeling too scared to make a landing page,

682
00:32:38.240 --> 00:32:40.720
and when I finally tried, I finished before lunch.

683
00:32:40.720 --> 00:32:43.920
Nowadays, there are tons of drag and drop tools to build websites in minutes.

684
00:32:43.920 --> 00:32:44.880
And if you're still worried about it,

685
00:32:44.880 --> 00:32:48.720
freelancers will build a site probably using the same drag and drop tools on the cheap,

686
00:32:48.720 --> 00:32:49.520
so just get it done.

687
00:32:50.720 --> 00:32:52.480
Now you have engaged leads from paid ads.

688
00:32:52.480 --> 00:32:53.440
Hooray, we did it.

689
00:32:54.560 --> 00:32:56.080
Run paid ads part one conclusion.

690
00:32:56.640 --> 00:32:59.280
What has to happen for advertising to work?

691
00:32:59.280 --> 00:33:01.440
Well, we have to show our ad to the right people.

692
00:33:01.440 --> 00:33:04.080
So we pick the right platform and target people within that platform

693
00:33:04.080 --> 00:33:05.920
that have the highest percentage of our audience.

694
00:33:05.920 --> 00:33:08.640
Once we do that, we have to get them to notice our ad.

695
00:33:08.640 --> 00:33:11.440
Once they notice it, they have to consume it to get a reason

696
00:33:11.440 --> 00:33:13.360
to take action now rather than later.

697
00:33:13.360 --> 00:33:15.200
We do that using the value equation,

698
00:33:15.200 --> 00:33:17.200
and demonstrated the past, present, and future

699
00:33:17.200 --> 00:33:19.200
from their perspective and the perspective of the people they know.

700
00:33:19.840 --> 00:33:21.600
And once they have a reason to take action,

701
00:33:21.600 --> 00:33:24.080
they have to have a way to give us permission to contact them.

702
00:33:24.080 --> 00:33:26.160
That action turns them into an engaged lead.

703
00:33:26.160 --> 00:33:27.680
And since those things got to happen,

704
00:33:27.680 --> 00:33:30.800
they slowly but surely became the three core elements of every ad I create.

705
00:33:31.360 --> 00:33:32.960
Callouts for them to notice it,

706
00:33:32.960 --> 00:33:35.280
value elements to give them a reason to do something,

707
00:33:35.280 --> 00:33:36.960
call us to action to give them a way to do it.

708
00:33:37.680 --> 00:33:39.520
Now, only one question remains.

709
00:33:39.520 --> 00:33:40.720
How efficient are we?

710
00:33:40.720 --> 00:33:42.000
So let's talk about money stuff.

711
00:33:44.720 --> 00:33:47.200
Hey, I hope you're enjoying the book chapter that you're listening to right now

712
00:33:47.200 --> 00:33:48.480
of $100 million leads.

713
00:33:48.480 --> 00:33:51.200
I took a long time putting together for you.

714
00:33:51.360 --> 00:33:54.000
And so my only ask is that you just take a quick second

715
00:33:54.000 --> 00:33:56.800
and leave a review for the book on Amazon.

716
00:33:56.800 --> 00:33:58.960
It's the number one way that people find books.

717
00:33:59.920 --> 00:34:02.000
And this is a way of getting more people into our world.

718
00:34:02.000 --> 00:34:04.240
And so our mission acquisition.com is to make real business

719
00:34:05.200 --> 00:34:06.960
education accessible to everyone.

720
00:34:06.960 --> 00:34:08.160
And I need your help.

721
00:34:08.160 --> 00:34:09.280
And so if you could do that,

722
00:34:09.280 --> 00:34:11.360
just that one one small action

723
00:34:12.000 --> 00:34:15.040
and it has a trade for the two years that I took putting this book together for you,

724
00:34:15.040 --> 00:34:16.160
I would mean the world to me.

725
00:34:16.160 --> 00:34:16.960
So thank you.

726
00:34:19.200 --> 00:34:20.480
Run paid ads part two.

727
00:34:20.960 --> 00:34:21.600
Money stuff.

728
00:34:22.560 --> 00:34:25.040
I'm just trying to buy a dollar and sell it for two.

729
00:34:25.040 --> 00:34:26.560
Proposition Joe, the wire.

730
00:34:27.680 --> 00:34:30.560
We focus on efficiency with paid ads throughout this chapter and the last one

731
00:34:30.560 --> 00:34:33.040
because efficiency matters more than creativity.

732
00:34:33.040 --> 00:34:34.640
All advertising works.

733
00:34:34.640 --> 00:34:37.600
The only thing that differs between advertisements is how well they work.

734
00:34:37.600 --> 00:34:40.480
Maybe people get crazed about making paid ads because they have words like

735
00:34:40.480 --> 00:34:44.560
copy and creative and media then get hyper focused on getting all that stuff perfect

736
00:34:44.560 --> 00:34:45.280
as if you can.

737
00:34:46.080 --> 00:34:48.480
You can tweak all day and night until the cows come home.

738
00:34:48.560 --> 00:34:53.200
The reality is that paid ads any advertising really is all about the return on your investment.

739
00:34:53.200 --> 00:34:57.200
And with paid ads, it gets clear as day because you put x dollars in for people to see the ad

740
00:34:57.200 --> 00:34:59.280
and y dollars out if they buy your stuff.

741
00:34:59.280 --> 00:35:02.080
So if you want a 100 million dollar leads machine,

742
00:35:02.080 --> 00:35:04.240
you need to get it good enough to scale.

743
00:35:04.800 --> 00:35:05.360
Why?

744
00:35:05.360 --> 00:35:07.040
Because good enough is good enough.

745
00:35:07.040 --> 00:35:08.480
Since efficiency matters most,

746
00:35:08.480 --> 00:35:11.600
we want to be as efficient as possible so we can scale as much as possible.

747
00:35:11.600 --> 00:35:14.160
That way we get as many leads as our little hearts desire.

748
00:35:14.160 --> 00:35:16.800
That being said, there's enough nuance to scaling paid ads

749
00:35:16.800 --> 00:35:18.960
that it felt better to break it into its own chapter.

750
00:35:18.960 --> 00:35:22.000
This chapter answers four big questions about ads as I understand them.

751
00:35:22.000 --> 00:35:23.040
One, how much do I spend?

752
00:35:23.760 --> 00:35:25.120
The three phases of scaling ads.

753
00:35:25.840 --> 00:35:27.600
Two, how do I know how well I'm doing?

754
00:35:28.080 --> 00:35:29.360
Cost and benchmarks.

755
00:35:29.360 --> 00:35:31.600
Three, if my ads aren't profitable, how do I fix them?

756
00:35:31.600 --> 00:35:33.120
Climb finest acquisition.

757
00:35:33.120 --> 00:35:36.000
Four, what I wish I had known before I ran my first paid ad.

758
00:35:36.000 --> 00:35:36.880
Lessons.

759
00:35:36.880 --> 00:35:38.320
But how much do I spend on paid ads?

760
00:35:38.880 --> 00:35:40.400
The three phases of scaling paid ads.

761
00:35:40.960 --> 00:35:43.680
There are three stages to spending money on ads as I see it.

762
00:35:43.680 --> 00:35:45.120
Phase one, track money.

763
00:35:45.200 --> 00:35:46.480
Phase two, lose money.

764
00:35:46.480 --> 00:35:47.600
Phase three, print money.

765
00:35:48.160 --> 00:35:49.200
Let's break them down together.

766
00:35:49.760 --> 00:35:51.280
Phase one, track money.

767
00:35:51.280 --> 00:35:53.840
Before spending a dollar in ads, set everything up so you can

768
00:35:53.840 --> 00:35:54.960
accurately track your returns.

769
00:35:54.960 --> 00:35:57.120
If you don't track, you're going to get cleaned out.

770
00:35:57.120 --> 00:35:59.280
It would be like going to a casino and playing your favorite game

771
00:35:59.280 --> 00:36:01.920
for as long as you felt like, rather than for as long as you could afford it.

772
00:36:01.920 --> 00:36:03.120
But once you have tracking,

773
00:36:03.120 --> 00:36:04.960
you can do more of the stuff that makes you money

774
00:36:04.960 --> 00:36:06.640
and less of the stuff that doesn't.

775
00:36:06.640 --> 00:36:08.160
It rigs the game in your favor.

776
00:36:08.720 --> 00:36:09.760
So get a consultant,

777
00:36:09.760 --> 00:36:12.000
wash the tutorials and get it set up, end of story.

778
00:36:12.640 --> 00:36:15.360
Once you have the tracking, you can start losing money like a pro.

779
00:36:15.360 --> 00:36:15.680
Wake.

780
00:36:16.880 --> 00:36:18.640
Phase two, lose money.

781
00:36:18.640 --> 00:36:19.520
Half joking.

782
00:36:19.840 --> 00:36:22.080
I prefer to call it investing in a money-printing machine.

783
00:36:22.080 --> 00:36:24.160
After all, when running paid ads, you pay first.

784
00:36:24.160 --> 00:36:26.240
So your bank account has to go down before it comes up.

785
00:36:26.880 --> 00:36:28.800
I emphasize this because I'd rather prepare you.

786
00:36:28.800 --> 00:36:30.080
You're going to lose money.

787
00:36:30.080 --> 00:36:33.840
In fact, I've lost money more times than I've made money running paid ads.

788
00:36:33.840 --> 00:36:35.840
But every time I make money with paid ads,

789
00:36:35.840 --> 00:36:38.560
I make back everything I lost and then a bunch more.

790
00:36:38.560 --> 00:36:40.160
So the number of times I lose is high,

791
00:36:40.160 --> 00:36:42.800
but the amount I lose is low because I know when to shut it down.

792
00:36:42.800 --> 00:36:46.080
And my number of wins is low because the amount I win is very high

793
00:36:46.080 --> 00:36:47.680
because I know when to hit the gas.

794
00:36:47.680 --> 00:36:49.040
So think of it like this.

795
00:36:49.040 --> 00:36:51.360
Imagine I spend $100 on 10 ads,

796
00:36:51.360 --> 00:36:52.880
$1,000 in total.

797
00:36:52.880 --> 00:36:54.720
Nine of them lose all $100.

798
00:36:54.720 --> 00:36:58.080
Then one of them makes back $500 for the $100 I spent.

799
00:36:58.080 --> 00:37:00.000
I'm still down $500.

800
00:37:00.000 --> 00:37:02.800
Many people stop here because they see a $500 loss,

801
00:37:02.800 --> 00:37:03.360
but not us.

802
00:37:03.360 --> 00:37:04.400
We see a winner.

803
00:37:04.400 --> 00:37:06.480
So now we buckle up and 100x down.

804
00:37:06.480 --> 00:37:09.920
We spend $10,000 on the winning ad and make $50,000 back.

805
00:37:10.000 --> 00:37:12.320
Note, I still lost nine times,

806
00:37:12.320 --> 00:37:14.720
but the one time I won, I won big.

807
00:37:14.720 --> 00:37:18.640
And this is important because you might lose nine or 99 times in a row

808
00:37:18.640 --> 00:37:19.920
before you win big.

809
00:37:19.920 --> 00:37:22.320
But to win big, you have to see the winners

810
00:37:22.320 --> 00:37:25.280
and double triple quadruple 10x down on them.

811
00:37:25.280 --> 00:37:27.840
This is why paid advertising is a lot like Casino.

812
00:37:27.840 --> 00:37:29.920
You'll often lose in the beginning to learn the game,

813
00:37:29.920 --> 00:37:32.400
but with enough skill, you eventually become the house.

814
00:37:32.400 --> 00:37:34.800
That being said, during this lose money phase,

815
00:37:34.800 --> 00:37:36.080
you can still be smart about it.

816
00:37:36.080 --> 00:37:37.120
Here's how I do it.

817
00:37:37.120 --> 00:37:40.080
I budget two times the cash I collect from a customer in 30 days,

818
00:37:40.080 --> 00:37:42.800
not LTGP when testing new ads.

819
00:37:42.800 --> 00:37:45.680
I've wasted tons of money letting ads run too long

820
00:37:45.680 --> 00:37:47.040
before I realized they sucked.

821
00:37:47.040 --> 00:37:49.040
But on the flip side, I've lost even more money

822
00:37:49.040 --> 00:37:51.280
by giving up on ads before I gave them a chance.

823
00:37:51.280 --> 00:37:53.040
Eventually, I had a sweet spot

824
00:37:53.040 --> 00:37:54.640
by budgeting two times the cash I collect

825
00:37:54.640 --> 00:37:56.960
from a new customer in the first 30 days to test an ad.

826
00:37:56.960 --> 00:37:59.600
For example, if I know I make $100 in profit

827
00:37:59.600 --> 00:38:01.360
from a customer in the first 30 days,

828
00:38:01.360 --> 00:38:04.240
I'll let it add go up to $200 and spend before shutting it off

829
00:38:04.240 --> 00:38:05.680
as long as I'm getting leads.

830
00:38:05.760 --> 00:38:07.840
If I'm not getting any leads from the ad at all,

831
00:38:07.840 --> 00:38:10.080
before I spend one X in 30 days' cash,

832
00:38:10.080 --> 00:38:11.040
I shut it off.

833
00:38:11.040 --> 00:38:12.480
$100 in the example.

834
00:38:12.480 --> 00:38:14.720
It cost money to build an advertising machine.

835
00:38:14.720 --> 00:38:16.640
I worked with a business that took a year

836
00:38:16.640 --> 00:38:17.840
to get paid ads profitable.

837
00:38:17.840 --> 00:38:18.720
It was tough,

838
00:38:18.720 --> 00:38:20.880
but other businesses in their space ran profitable ads

839
00:38:20.880 --> 00:38:22.400
which meant we could too.

840
00:38:22.400 --> 00:38:23.520
Once they were profitable,

841
00:38:23.520 --> 00:38:24.960
they made their years worth

842
00:38:24.960 --> 00:38:27.280
of wasted money back the next month.

843
00:38:27.280 --> 00:38:29.360
It cost money to build an advertising machine,

844
00:38:29.360 --> 00:38:30.560
and that's normal.

845
00:38:30.560 --> 00:38:32.320
Just make sure you measure the returns

846
00:38:32.320 --> 00:38:33.680
over a long time horizon,

847
00:38:33.680 --> 00:38:34.640
not next week.

848
00:38:34.640 --> 00:38:35.920
Can you think of anything more valuable

849
00:38:35.920 --> 00:38:37.280
than a machine that prints money?

850
00:38:37.280 --> 00:38:40.000
It would be unreasonable for it to be cheap or easy.

851
00:38:40.000 --> 00:38:41.040
Once you start making more money

852
00:38:41.040 --> 00:38:42.000
than it cost you to make it,

853
00:38:42.000 --> 00:38:42.880
you're in phase three.

854
00:38:43.520 --> 00:38:44.960
Phase three, print money.

855
00:38:45.680 --> 00:38:47.280
If you're making back more than you spend,

856
00:38:47.280 --> 00:38:48.400
the answer is simple.

857
00:38:48.400 --> 00:38:49.840
Spend as much as you can.

858
00:38:49.840 --> 00:38:50.640
After all,

859
00:38:50.640 --> 00:38:51.600
if you had a magic machine

860
00:38:51.600 --> 00:38:53.440
that gave you $10 back for every $1 you put in,

861
00:38:53.440 --> 00:38:54.400
what would your budget be?

862
00:38:54.400 --> 00:38:55.680
Right, all the money.

863
00:38:55.680 --> 00:38:56.480
But realistically,

864
00:38:56.480 --> 00:38:57.680
you probably have some other constraint

865
00:38:57.680 --> 00:38:58.640
on your business that prevents you

866
00:38:58.640 --> 00:39:00.560
from unlimited customers coming in.

867
00:39:00.560 --> 00:39:02.320
So here's how I scale my budget.

868
00:39:02.320 --> 00:39:03.280
Instead of asking,

869
00:39:03.360 --> 00:39:05.280
how much money should I spend on an ad?

870
00:39:05.280 --> 00:39:06.080
I ask,

871
00:39:06.080 --> 00:39:07.680
how many customers do I want?

872
00:39:07.680 --> 00:39:09.760
Or how many customers can I handle?

873
00:39:09.760 --> 00:39:11.840
So once ads break even or better,

874
00:39:11.840 --> 00:39:13.840
I reverse my budget for my sales goal.

875
00:39:13.840 --> 00:39:16.080
If I can only handle 100 customers next month

876
00:39:16.080 --> 00:39:17.920
and customers cost me $100 to get,

877
00:39:17.920 --> 00:39:19.440
I need to spend $10,000 to get them.

878
00:39:19.440 --> 00:39:21.520
That's 100 customers times $100.

879
00:39:21.520 --> 00:39:23.760
But since ads get less efficient as they scale,

880
00:39:23.760 --> 00:39:25.760
I usually pad my budget by 20%.

881
00:39:25.760 --> 00:39:28.000
So that means $12,000 over 30 days

882
00:39:28.000 --> 00:39:30.320
or $400 per day in ad spend.

883
00:39:30.320 --> 00:39:32.960
I reverse my daily ad budget for my lead getting goal.

884
00:39:33.040 --> 00:39:34.400
Then I commit to it.

885
00:39:34.400 --> 00:39:35.680
If the number terrifies you,

886
00:39:35.680 --> 00:39:36.720
then you're doing it right.

887
00:39:36.720 --> 00:39:37.600
Trust the data.

888
00:39:37.600 --> 00:39:38.640
This is how you scale.

889
00:39:38.640 --> 00:39:40.080
And that's why most people never do.

890
00:39:41.520 --> 00:39:42.960
How well am I doing?

891
00:39:42.960 --> 00:39:44.000
Cost and returns.

892
00:39:44.000 --> 00:39:45.040
Efficiency benchmarks.

893
00:39:46.080 --> 00:39:48.080
Efficient paid ads make more money than they cost.

894
00:39:48.080 --> 00:39:50.000
If that sounds painfully obvious, good.

895
00:39:50.000 --> 00:39:51.520
You've already got most people beat.

896
00:39:51.520 --> 00:39:52.800
I measure paid ad efficiency

897
00:39:52.800 --> 00:39:54.800
by comparing the lifetime gross profit of a customer,

898
00:39:54.800 --> 00:39:55.840
LTP,

899
00:39:55.840 --> 00:39:57.280
with the cost you acquire customer,

900
00:39:57.280 --> 00:39:58.240
CAC.

901
00:39:58.240 --> 00:40:00.640
I express this ratio as LTP to CAC.

902
00:40:01.200 --> 00:40:04.400
I measure LTP instead of quote lifetime value or LTV.

903
00:40:05.440 --> 00:40:06.000
Here's why.

904
00:40:06.960 --> 00:40:08.640
Lifetime gross profit is all the money

905
00:40:08.640 --> 00:40:10.160
a customer ever spends on your stuff

906
00:40:10.160 --> 00:40:12.080
minus all the money it takes to deliver it.

907
00:40:12.080 --> 00:40:12.960
For example,

908
00:40:12.960 --> 00:40:15.120
if a customer buys something for $15

909
00:40:15.120 --> 00:40:16.560
and it costs $5 to deliver it,

910
00:40:16.560 --> 00:40:18.320
your gross profit is $10.

911
00:40:18.320 --> 00:40:21.200
So if that customer buys 10 things over their lifetime,

912
00:40:21.200 --> 00:40:23.760
then they bought a total of $150 and stuff.

913
00:40:23.760 --> 00:40:26.400
But it cost you a total of $50 to deliver that stuff.

914
00:40:26.400 --> 00:40:28.480
That makes the lifetime gross profit $100.

915
00:40:29.440 --> 00:40:31.120
Gross profit is important in general

916
00:40:31.120 --> 00:40:32.480
because it's the actual money you use

917
00:40:32.480 --> 00:40:33.680
to acquire customers pay rent,

918
00:40:33.680 --> 00:40:35.840
cover payroll and everything else to run your business.

919
00:40:35.840 --> 00:40:36.960
So if you've ever heard me say

920
00:40:36.960 --> 00:40:38.160
I'm getting three to one on this,

921
00:40:38.160 --> 00:40:40.560
I refer to my LTP to CAC ratio.

922
00:40:41.120 --> 00:40:43.520
I compare how much I made against how much I spent.

923
00:40:43.520 --> 00:40:46.480
So if the LTP is greater than CAC,

924
00:40:46.480 --> 00:40:47.920
you have profitable advertising.

925
00:40:47.920 --> 00:40:50.160
If it's lower than CAC, you're losing money.

926
00:40:51.200 --> 00:40:53.440
What's a good LTP to CAC ratio?

927
00:40:54.160 --> 00:40:56.240
Every business I invest in that struggles to scale

928
00:40:56.240 --> 00:40:57.680
has at least one thing in common.

929
00:40:57.760 --> 00:41:00.400
Their LTP to CAC ratio was less than three to one.

930
00:41:00.400 --> 00:41:01.920
As soon as they get it above three to one,

931
00:41:01.920 --> 00:41:04.480
either through decreasing CAC or increasing LTP,

932
00:41:04.480 --> 00:41:05.440
they take off.

933
00:41:05.440 --> 00:41:07.520
This is a pattern I personally observed, not a rule.

934
00:41:08.080 --> 00:41:10.880
You have two big levers to improving LTP to CAC.

935
00:41:11.520 --> 00:41:14.160
One, make CAC lower, get cheaper customers,

936
00:41:14.160 --> 00:41:15.520
we do this through more efficient ads

937
00:41:15.520 --> 00:41:16.720
following the steps we just outlined.

938
00:41:17.280 --> 00:41:19.680
Or two, make LTP bigger,

939
00:41:19.680 --> 00:41:21.280
increase how much you make per customer.

940
00:41:21.280 --> 00:41:23.360
We do this with a better business model.

941
00:41:23.360 --> 00:41:25.360
For maximum money, I prefer to do both.

942
00:41:25.920 --> 00:41:28.320
For example, if you made a billion dollars per customer,

943
00:41:28.320 --> 00:41:31.600
then you could spend $999 million to get a customer

944
00:41:31.600 --> 00:41:33.280
and still have a million dollars left over.

945
00:41:33.280 --> 00:41:35.600
You could spend pretty much whatever it takes to get a customer.

946
00:41:35.600 --> 00:41:38.160
No matter how crappy your ads, you'd still probably win.

947
00:41:38.160 --> 00:41:40.800
On the flip side, if you made one cent per customer,

948
00:41:40.800 --> 00:41:43.760
you'd have to get each customer for less than a penny to make it work.

949
00:41:43.760 --> 00:41:45.760
Even with the best ads, you'd fail.

950
00:41:45.760 --> 00:41:48.480
I bring this up because we speak to hundreds of entrepreneurs every month.

951
00:41:48.480 --> 00:41:50.240
They often think they have crappy ads,

952
00:41:50.240 --> 00:41:51.200
aka high-CAC.

953
00:41:51.200 --> 00:41:53.520
When in reality, they have crappy business model.

954
00:41:53.600 --> 00:41:55.440
AKA low LTP.

955
00:41:56.400 --> 00:41:58.000
Here's a finding that will probably surprise you

956
00:41:58.000 --> 00:41:59.520
as much as it surprised me.

957
00:41:59.520 --> 00:42:01.520
The cost to acquire customers between competitors

958
00:42:01.520 --> 00:42:03.920
in the same industry is much closer than you think.

959
00:42:03.920 --> 00:42:05.760
The difference between winners and the losers

960
00:42:05.760 --> 00:42:07.200
is how much they make off each customer.

961
00:42:07.840 --> 00:42:09.840
So how do you know if it's your ads or your business model

962
00:42:09.840 --> 00:42:10.880
that needs work?

963
00:42:10.880 --> 00:42:13.120
I use industry average CAC as my guide.

964
00:42:13.120 --> 00:42:15.760
Research your industry averages for the cost to acquire customers.

965
00:42:15.760 --> 00:42:18.400
If your CAC is below three extra industry average,

966
00:42:18.400 --> 00:42:19.440
that's good.

967
00:42:19.440 --> 00:42:21.040
Focus on your business model then.

968
00:42:21.040 --> 00:42:23.040
If your CAC is above three x the industry average,

969
00:42:23.120 --> 00:42:25.440
that's bad, then focus on your advertising.

970
00:42:26.480 --> 00:42:28.000
Things can only get so cheap.

971
00:42:28.000 --> 00:42:30.000
Eventually, you just got to make more money.

972
00:42:30.000 --> 00:42:31.120
Think about it like this.

973
00:42:31.120 --> 00:42:33.040
Lowering the cost of getting a customer by $100

974
00:42:33.040 --> 00:42:34.320
will eventually take more work

975
00:42:34.320 --> 00:42:36.080
than making an extra $100 from them.

976
00:42:36.080 --> 00:42:37.680
So once your cost is low enough,

977
00:42:37.680 --> 00:42:39.040
focus on your business model.

978
00:42:39.040 --> 00:42:40.320
Costs can only approach zero,

979
00:42:40.320 --> 00:42:42.480
but how much you make can go up to infinity.

980
00:42:42.480 --> 00:42:43.920
Increasing advertising efficiency

981
00:42:43.920 --> 00:42:45.760
beyond a certain point is like trying to save your way

982
00:42:45.760 --> 00:42:46.800
to a billion dollars.

983
00:42:46.800 --> 00:42:48.000
You feel like you're making progress,

984
00:42:48.000 --> 00:42:49.280
but you're never really going to get there.

985
00:42:49.280 --> 00:42:51.280
Never have casual problems again.

986
00:42:51.280 --> 00:42:52.400
Client finest acquisition.

987
00:42:53.120 --> 00:42:56.080
For many businesses, LTGP is bigger than CAC.

988
00:42:56.080 --> 00:42:58.560
Yay, but not after the first purchase.

989
00:42:58.560 --> 00:42:59.280
Boo.

990
00:42:59.280 --> 00:43:00.960
The profit from the customer's first purchase

991
00:43:00.960 --> 00:43:02.960
is often less than the cost to get them.

992
00:43:02.960 --> 00:43:05.520
It can take many months to collect the full LTGP.

993
00:43:05.520 --> 00:43:07.600
So you get your money later instead of now,

994
00:43:07.600 --> 00:43:10.080
this cash flow problem cripples your ability to scale ads

995
00:43:10.080 --> 00:43:11.280
and get more customers.

996
00:43:11.280 --> 00:43:12.480
Boo again.

997
00:43:12.480 --> 00:43:14.720
But if your customer spends more than it costs you

998
00:43:14.720 --> 00:43:17.200
to get and fill them in the first 30 days,

999
00:43:17.200 --> 00:43:19.200
then you have the funds to scale now and forever.

1000
00:43:19.200 --> 00:43:21.520
I call this client finest acquisition.

1001
00:43:21.520 --> 00:43:23.040
I pick 30 days because any business

1002
00:43:23.040 --> 00:43:24.560
can get interest free money for 30 days

1003
00:43:24.560 --> 00:43:25.600
in the form of a credit card.

1004
00:43:25.600 --> 00:43:27.280
And if we make more than the cost to get

1005
00:43:27.280 --> 00:43:29.040
and fulfill the customer in the first 30 days,

1006
00:43:29.040 --> 00:43:30.400
we square our balance.

1007
00:43:30.400 --> 00:43:32.560
Now, we have zero debt and a new customer

1008
00:43:32.560 --> 00:43:34.720
which we can keep profiting from forever.

1009
00:43:34.720 --> 00:43:36.240
Then we repeat the process.

1010
00:43:36.240 --> 00:43:37.920
Money is no longer a bottleneck.

1011
00:43:37.920 --> 00:43:39.760
This is the key to limousal scale.

1012
00:43:39.760 --> 00:43:41.920
Let's see client-financed acquisition in action.

1013
00:43:42.880 --> 00:43:44.640
Say we have a $15 per month membership

1014
00:43:44.640 --> 00:43:46.080
that costs us $5 to deliver.

1015
00:43:46.080 --> 00:43:48.720
That leaves us $10 gross profit left over.

1016
00:43:48.720 --> 00:43:49.680
$15 membership,

1017
00:43:49.680 --> 00:43:52.320
minus $5 cost equals $10 gross profit per month.

1018
00:43:52.960 --> 00:43:55.200
And let's say our average member stays for 10 months.

1019
00:43:55.200 --> 00:43:57.760
That makes our lifetime gross profit $100.

1020
00:43:57.760 --> 00:44:01.760
$10 gross profit per month times 10 months equals $100 LTGP.

1021
00:44:02.560 --> 00:44:04.560
If the cost to get a customer is $30,

1022
00:44:04.560 --> 00:44:06.320
so CAC equals $30,

1023
00:44:06.320 --> 00:44:09.760
then we have a 3.3 to 1 LTGP to CAC ratio.

1024
00:44:09.760 --> 00:44:14.640
That's $100 LTGP divided by $30 CAC equals $3.3.

1025
00:44:14.640 --> 00:44:16.080
And it's $3.3 to 1.

1026
00:44:16.880 --> 00:44:18.000
Our ads make money.

1027
00:44:18.080 --> 00:44:18.880
Hooray.

1028
00:44:18.880 --> 00:44:20.640
But wait, there's a problem.

1029
00:44:20.640 --> 00:44:23.520
You spend $30 in ads and only get $10 back.

1030
00:44:24.160 --> 00:44:26.320
$10 trickles in one month at a time

1031
00:44:26.320 --> 00:44:28.400
until you finally break even two months later.

1032
00:44:28.400 --> 00:44:29.200
That's tough.

1033
00:44:29.200 --> 00:44:30.080
Make no mistake.

1034
00:44:30.080 --> 00:44:31.840
You should 100% make that trade,

1035
00:44:31.840 --> 00:44:33.440
but now we have a cash flow problem.

1036
00:44:34.000 --> 00:44:35.440
Here's the way I fix it.

1037
00:44:35.440 --> 00:44:37.200
I immediately sell more stuff.

1038
00:44:37.200 --> 00:44:39.920
If I have for a $100 UPSEL with 100% margins

1039
00:44:39.920 --> 00:44:41.440
that 1 in 5 new customers take,

1040
00:44:41.440 --> 00:44:43.520
that adds $20 gross profit per customer.

1041
00:44:44.160 --> 00:44:46.080
$100 UPSEL divided by 5 customers

1042
00:44:46.080 --> 00:44:48.080
equals $20 average UPSEL per customer.

1043
00:44:48.720 --> 00:44:52.720
This takes us from $10 to $30 in the first 30 days.

1044
00:44:52.720 --> 00:44:54.000
Our break even window.

1045
00:44:54.000 --> 00:44:55.600
The first purchase is $10,

1046
00:44:55.600 --> 00:44:58.240
but now the average UPSEL adds $20.

1047
00:44:58.240 --> 00:45:03.360
So $10 plus $20 equals $30 gross profit per customer

1048
00:45:03.360 --> 00:45:05.040
in less than 30 days.

1049
00:45:05.040 --> 00:45:06.960
And since it costs $30 to acquire them,

1050
00:45:06.960 --> 00:45:08.000
we break even.

1051
00:45:08.000 --> 00:45:08.720
Great.

1052
00:45:08.720 --> 00:45:12.000
$30 CAC minus $30 cash collected within 30 days

1053
00:45:12.000 --> 00:45:13.600
equals free customers.

1054
00:45:13.600 --> 00:45:15.520
Every $10 a month that comes in there after

1055
00:45:15.520 --> 00:45:16.240
is gravy.

1056
00:45:16.960 --> 00:45:18.480
Now I can go get another customer

1057
00:45:18.480 --> 00:45:20.880
while I keep collecting that $10 profit per month

1058
00:45:20.880 --> 00:45:22.160
for the next nine months.

1059
00:45:22.160 --> 00:45:23.680
This is how you print money.

1060
00:45:23.680 --> 00:45:25.760
The things you can sell or upsell are unlimited.

1061
00:45:26.400 --> 00:45:28.160
If I cover the cost to get and fulfill a customer

1062
00:45:28.160 --> 00:45:28.880
in the first 30 days,

1063
00:45:28.880 --> 00:45:29.920
I can pay off my credit card,

1064
00:45:29.920 --> 00:45:31.040
then do it again.

1065
00:45:31.040 --> 00:45:32.560
It's how I've scaled every company I've started

1066
00:45:32.560 --> 00:45:33.840
for the past seven years,

1067
00:45:33.840 --> 00:45:35.120
past a million dollars per month

1068
00:45:35.120 --> 00:45:36.000
in the first 12 months,

1069
00:45:36.000 --> 00:45:37.520
without outside funding.

1070
00:45:37.520 --> 00:45:38.560
With efficiency out of the way,

1071
00:45:38.560 --> 00:45:40.400
creativity is your only limit.

1072
00:45:40.400 --> 00:45:41.520
Bottom line.

1073
00:45:41.520 --> 00:45:42.800
Figure out a way to get your customers

1074
00:45:42.800 --> 00:45:44.240
to pay you back in the first 30 days

1075
00:45:44.320 --> 00:45:45.440
so you can recycle your cash

1076
00:45:45.440 --> 00:45:46.560
to get more customers.

1077
00:45:46.560 --> 00:45:47.840
Personal lessons from paid ads.

1078
00:45:49.280 --> 00:45:50.240
Number one,

1079
00:45:50.240 --> 00:45:51.440
don't confuse sales problems

1080
00:45:51.440 --> 00:45:52.880
with the advertising problems.

1081
00:45:52.880 --> 00:45:53.920
The cost to get customers

1082
00:45:53.920 --> 00:45:55.440
doesn't only come from advertising.

1083
00:45:55.440 --> 00:45:56.560
It just mostly does.

1084
00:45:56.560 --> 00:45:57.360
For example,

1085
00:45:57.360 --> 00:45:58.400
a company I invested in

1086
00:45:58.400 --> 00:46:01.440
spent 12 weeks and $150,000 to run paid ads.

1087
00:46:01.440 --> 00:46:03.440
They were getting the right leads on the phone

1088
00:46:03.440 --> 00:46:04.480
but they weren't buying.

1089
00:46:04.480 --> 00:46:06.160
The owner said advertising wasn't work,

1090
00:46:06.160 --> 00:46:07.360
but the ads worked fine.

1091
00:46:07.360 --> 00:46:08.000
Great even.

1092
00:46:08.000 --> 00:46:09.280
Their sales sucked.

1093
00:46:09.280 --> 00:46:10.240
The owner threw up his hands

1094
00:46:10.240 --> 00:46:12.160
and gave up six inches from gold,

1095
00:46:12.160 --> 00:46:13.040
frustrating,

1096
00:46:13.040 --> 00:46:14.320
confusing and advertising problem

1097
00:46:14.320 --> 00:46:14.880
with the sales problem

1098
00:46:14.880 --> 00:46:16.240
cost them an estimated $30 million

1099
00:46:16.240 --> 00:46:17.360
to enterprise value.

1100
00:46:17.360 --> 00:46:19.120
If your engaged leads have the problem you solved

1101
00:46:19.120 --> 00:46:19.920
and the money to spend

1102
00:46:19.920 --> 00:46:20.640
and they're not buying,

1103
00:46:20.640 --> 00:46:21.840
then your ads work fine.

1104
00:46:21.840 --> 00:46:22.720
You have a sales problem.

1105
00:46:23.680 --> 00:46:25.040
Two,

1106
00:46:25.040 --> 00:46:27.440
your best free content can make the best paid ads.

1107
00:46:27.440 --> 00:46:29.120
Some of the best paid ads I've ever run

1108
00:46:29.120 --> 00:46:30.400
come from free content.

1109
00:46:30.400 --> 00:46:31.600
If you make a free content piece

1110
00:46:31.600 --> 00:46:33.520
that generates sales or performs very well,

1111
00:46:33.520 --> 00:46:34.480
nine times up to 10,

1112
00:46:34.480 --> 00:46:35.520
it'll make a great paid ad.

1113
00:46:37.040 --> 00:46:39.600
Note on user-generated content or UGC.

1114
00:46:40.560 --> 00:46:41.520
If you can get your customers

1115
00:46:41.520 --> 00:46:42.480
to create testimonials

1116
00:46:42.480 --> 00:46:44.160
or reviews using your product,

1117
00:46:44.160 --> 00:46:44.960
post them.

1118
00:46:44.960 --> 00:46:47.200
If they perform well as free content,

1119
00:46:47.200 --> 00:46:49.120
they'll often make killer ads too.

1120
00:46:49.120 --> 00:46:50.240
Having a system in place

1121
00:46:50.240 --> 00:46:52.080
to encourage these public posts from customers

1122
00:46:52.080 --> 00:46:53.040
is my favorite way

1123
00:46:53.040 --> 00:46:54.640
to get a steady stream of potential ads.

1124
00:46:54.640 --> 00:46:56.480
And the best part is it's no extra work.

1125
00:46:57.680 --> 00:46:58.560
Three,

1126
00:46:58.560 --> 00:46:59.920
if you say you suck at something,

1127
00:46:59.920 --> 00:47:01.600
you probably will suck at it.

1128
00:47:01.600 --> 00:47:04.480
Never say I'm not techy or I hate tech stuff.

1129
00:47:04.480 --> 00:47:06.320
It just keeps you poorer than you should be.

1130
00:47:06.320 --> 00:47:07.360
I said it for,

1131
00:47:07.360 --> 00:47:08.320
wait for it,

1132
00:47:08.320 --> 00:47:09.280
four years.

1133
00:47:09.280 --> 00:47:10.160
Then one day,

1134
00:47:10.160 --> 00:47:11.920
I snapped because I hated my website designer

1135
00:47:11.920 --> 00:47:13.200
more than I hated tech itself.

1136
00:47:13.200 --> 00:47:15.280
I was like, if this idiot can do it, so can I.

1137
00:47:15.280 --> 00:47:16.480
Four years of wasting time

1138
00:47:16.480 --> 00:47:17.680
and lost money reversed

1139
00:47:17.680 --> 00:47:19.120
with four hours of concentrated effort.

1140
00:47:20.400 --> 00:47:20.960
Your turn.

1141
00:47:21.840 --> 00:47:23.840
I can teach you how to place an ad in 20 minutes.

1142
00:47:23.840 --> 00:47:25.120
It'll cost you a hundred bucks.

1143
00:47:25.120 --> 00:47:26.720
Worth it, I hope so.

1144
00:47:26.720 --> 00:47:27.600
It's an important skill.

1145
00:47:27.600 --> 00:47:28.720
It won't make you money,

1146
00:47:28.720 --> 00:47:29.760
but you will learn a lesson

1147
00:47:29.760 --> 00:47:31.520
worth far more than a hundred bucks.

1148
00:47:31.520 --> 00:47:33.440
Running ads is easier than you think.

1149
00:47:33.440 --> 00:47:34.240
In fact,

1150
00:47:34.240 --> 00:47:35.520
platform spends zillions

1151
00:47:35.520 --> 00:47:36.800
to make it as easy as possible

1152
00:47:36.800 --> 00:47:38.320
so they can make more money.

1153
00:47:38.320 --> 00:47:39.280
Here's all you got to do.

1154
00:47:40.000 --> 00:47:45.200
Search how to place a insert the name of the platform ad.

1155
00:47:46.080 --> 00:47:48.480
Then place one for a hundred dollars.

1156
00:47:48.480 --> 00:47:49.760
Don't go all the way to the end,

1157
00:47:49.760 --> 00:47:50.720
then check it out.

1158
00:47:50.720 --> 00:47:52.320
Spend the gosh darn money.

1159
00:47:52.320 --> 00:47:53.360
Rip off the bandaid.

1160
00:47:53.360 --> 00:47:54.400
As soon as you do,

1161
00:47:54.400 --> 00:47:55.840
you're no longer an observer.

1162
00:47:55.840 --> 00:47:56.480
You're in the game.

1163
00:47:57.840 --> 00:47:59.200
Once you've put all these pieces together,

1164
00:47:59.200 --> 00:48:00.160
it's time to send it.

1165
00:48:00.160 --> 00:48:01.040
Spend money.

1166
00:48:01.040 --> 00:48:02.000
Start with an acceptable amount.

1167
00:48:02.000 --> 00:48:03.200
You're willing to lose each month.

1168
00:48:03.200 --> 00:48:04.000
Expect to lose it.

1169
00:48:04.000 --> 00:48:04.880
You won't be earning.

1170
00:48:04.880 --> 00:48:06.000
You'll be learning.

1171
00:48:06.000 --> 00:48:07.760
If you recall from an advertising checklist,

1172
00:48:07.760 --> 00:48:09.120
you'll need to pick each line

1173
00:48:09.120 --> 00:48:10.560
to fill out your action card.

1174
00:48:10.560 --> 00:48:11.600
This kicks off your journey

1175
00:48:11.600 --> 00:48:13.600
and paid ads to get even more engaged leads.

1176
00:48:13.600 --> 00:48:14.960
Here's a sample paid ads checklist.

1177
00:48:15.920 --> 00:48:17.040
Who yourself?

1178
00:48:17.040 --> 00:48:18.160
What your offer?

1179
00:48:18.160 --> 00:48:20.640
Where any platform audience you can buy access to?

1180
00:48:20.640 --> 00:48:23.120
To whom target the audience or look like audience?

1181
00:48:23.120 --> 00:48:24.720
When every day, seven days a week?

1182
00:48:24.720 --> 00:48:26.720
Why get engaged leads to sell?

1183
00:48:26.720 --> 00:48:27.760
How? Call out?

1184
00:48:27.760 --> 00:48:28.960
Plus three W's.

1185
00:48:28.960 --> 00:48:30.080
Plus CTA.

1186
00:48:30.080 --> 00:48:30.880
How much?

1187
00:48:30.880 --> 00:48:31.760
A learning budget?

1188
00:48:31.760 --> 00:48:33.200
Then reverse to your sales goal.

1189
00:48:33.200 --> 00:48:34.240
How many?

1190
00:48:34.240 --> 00:48:35.600
Thirty plus call outs?

1191
00:48:35.600 --> 00:48:36.320
Times.

1192
00:48:36.320 --> 00:48:37.360
Ten main ads.

1193
00:48:37.440 --> 00:48:38.160
How long?

1194
00:48:38.160 --> 00:48:39.040
As long as it takes.

1195
00:48:39.840 --> 00:48:41.200
Paydads part two conclusion.

1196
00:48:41.840 --> 00:48:43.360
Paydads are the fastest way to scale

1197
00:48:43.360 --> 00:48:44.480
how many leads you get.

1198
00:48:44.480 --> 00:48:45.920
We spent the line share of this chapter

1199
00:48:45.920 --> 00:48:46.960
talking about efficiency.

1200
00:48:46.960 --> 00:48:48.400
Because once you understand how it adds

1201
00:48:48.400 --> 00:48:49.200
really make money,

1202
00:48:49.200 --> 00:48:50.720
it becomes much easier to win.

1203
00:48:50.720 --> 00:48:52.400
I've been very successful with paid ads,

1204
00:48:52.400 --> 00:48:53.760
but it wasn't because I was the most creative

1205
00:48:53.760 --> 00:48:54.800
or had the best copy.

1206
00:48:54.800 --> 00:48:56.160
It's because I knew the numbers.

1207
00:48:56.160 --> 00:48:57.760
So follow the steps outlined.

1208
00:48:57.760 --> 00:49:00.240
I recommend doing paid ads last for two reasons.

1209
00:49:00.240 --> 00:49:02.720
First, the skills from the other three methods

1210
00:49:02.720 --> 00:49:03.760
transferred to this one.

1211
00:49:03.760 --> 00:49:05.920
And second, paid ads cost money.

1212
00:49:06.000 --> 00:49:07.200
Money you will have if you start with

1213
00:49:07.200 --> 00:49:08.640
the other three methods first.

1214
00:49:08.640 --> 00:49:10.160
So learn the skills and make the money

1215
00:49:10.160 --> 00:49:11.760
from the other three methods so that

1216
00:49:11.760 --> 00:49:13.600
you have the shortest learning curve on this one.

1217
00:49:13.600 --> 00:49:15.840
And once we have all that, we scale it.

1218
00:49:15.840 --> 00:49:17.840
We expect to lose money more times than we win.

1219
00:49:17.840 --> 00:49:19.840
And once we win, we scale the hell out of it.

1220
00:49:19.840 --> 00:49:20.720
And that's how we do it.

1221
00:49:21.440 --> 00:49:23.440
Paydads is the last of the core four ways

1222
00:49:23.440 --> 00:49:24.880
a single person can let other people know

1223
00:49:24.880 --> 00:49:25.920
about their stuff.

1224
00:49:25.920 --> 00:49:27.920
But before we transition to the second half of the book,

1225
00:49:27.920 --> 00:49:29.280
I want to show you how to put these strategies

1226
00:49:29.280 --> 00:49:29.760
on steroids.

1227
00:49:30.560 --> 00:49:31.040
Free gift.

1228
00:49:31.760 --> 00:49:32.720
Paydads fast track.

1229
00:49:33.440 --> 00:49:35.120
Running paid ads is the fast track.

1230
00:49:35.200 --> 00:49:36.240
It's high risk high reward.

1231
00:49:36.880 --> 00:49:39.040
I recorded a deeper breakdown of paid ads frameworks

1232
00:49:39.040 --> 00:49:41.120
that have served me across industries and price points.

1233
00:49:41.120 --> 00:49:43.360
You can find it here for free, as always,

1234
00:49:43.360 --> 00:49:45.920
acquisition.com for such training for such leads.

1235
00:49:45.920 --> 00:49:46.560
My gift to you.

1236
00:49:47.200 --> 00:49:48.640
Money you'll make in the future.

1237
00:49:51.360 --> 00:49:53.120
Hey, if you think you now know how to run ads

1238
00:49:53.120 --> 00:49:54.800
or at least you can take your first shot at it

1239
00:49:54.800 --> 00:49:56.080
and then demystify that for you,

1240
00:49:56.080 --> 00:49:58.480
then there's somebody else who also would feel that way too.

1241
00:49:58.480 --> 00:50:01.680
And if you can take the two seconds in exchange

1242
00:50:01.680 --> 00:50:04.320
for the two years that it's like me to write this chapter

1243
00:50:04.400 --> 00:50:06.240
and make it as clean as efficient as it was

1244
00:50:06.240 --> 00:50:07.600
and send it to somebody else,

1245
00:50:08.640 --> 00:50:11.120
that's the best way that you can give back to me

1246
00:50:11.120 --> 00:50:11.680
in this community.

1247
00:50:11.680 --> 00:50:13.600
So it would mean the world to me.

1248
00:50:13.600 --> 00:50:16.880
And next up on our adventure together

1249
00:50:16.880 --> 00:50:18.240
is the core four on steroids.

1250
00:50:18.240 --> 00:50:20.640
So this concludes the section of the core four.

1251
00:50:20.640 --> 00:50:23.200
So the only four ways that any one person can advertise,

1252
00:50:23.200 --> 00:50:25.440
meaning the only four ways that anyone person

1253
00:50:25.440 --> 00:50:27.280
to let another person know about their stuff.

1254
00:50:27.280 --> 00:50:30.720
And the next chapter talk about how I amplify those things.

1255
00:50:30.720 --> 00:50:31.680
You're not going to miss it.

1256
00:50:31.680 --> 00:50:33.840
It's definitely one of the most viable chapters.

1257
00:50:33.840 --> 00:50:35.040
And it's also how we scale companies.