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Hey, what's going on, everyone? Happy Thursday. I was light on content this week, so I figured, hey,

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it is Thursday. I am almost missing any concept for the entire weekend. So I was going through my

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notes of things that I had kind of jotted down that I wanted to go over. And this is the one that

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that spoke to me today. So I'm just calling this the future marketing in the current state 80, 20,

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or 90, 10th. What I wanted to just kind of address is just a single point that has been

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incredibly profitable for me in a lesson that I learned from someone else. Gary Vee is someone that I

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actually, I think, so people have very mixed feelings about him. I mean, that's what a good

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marketer does anyways, but I think he's incredibly smart. And I think he really understands what's

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going on. That's just my opinion. And he has said repeatedly many, many, many times in many videos

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that one of his greatest regrets as a marketer was not spending enough on Google ads

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when it was hot. For those of you who've been in the game longer, you've seen the, there are

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cycles that happen within marketing, right? And everything comes down to just where attention is,

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where eyeballs are. And the relative cost of those eyeballs, so the cost of those eyeballs relative

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to the amount of them that are actively viewing. So an example is you can go, you can buy

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television ads right now, but that ad platform has completely matured and now has gone far past

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maturity to the point where it's overpressed relative to other things that you could be spending

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money on. And you know, in my economics class back in the day, there's two types of profits,

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there's economic profits, and then there's accounting profits. So accounting profits is just where

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you are spending money on something or you have a business in an industry that is not growing,

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but you are able to make a profit off of it. It's not like you're just making a profit off of a

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business that it is existing, but it is not new or different or sexy. It isn't an established

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market. Economic profits is when you are getting a disproportionate amount of profits from dollars

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that you are spending. I'm trying not to make this confusing, but basically it's looking at the

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opportunity cost of the money that you're spending, meaning if you were given a hundred dollars to

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spend on anything, where would be the best place to put that hundred dollars rather than just a

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place that you would get a positive return. So accounting profits would be a positive return

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independent of opportunity cost and economic profits is where you're taking that same hundred

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dollars and putting it in the best vehicle to get the highest return for that hundred dollars.

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Now a lot of us don't know because we're not all knowing, you know, what thing or what vehicle is

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going to make us the most money for our hundred dollars. And I'm trying to bring this full

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circle with what Gary Vee was saying because what happens is entrepreneurs, we love new things,

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more so than anyone, we love new stuff, right? We love shiny objects, we love getting excited,

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and there's this rush that you feel when you figure out a new platform or a new whatever.

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There's this balancing act that you have to do between doing what is working right now

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and preparing yourself for the fact that it will change. And for those of you who are on here

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who are just listening, like right now, for example, if you don't know how to run Instagram ads

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and Facebook ads profitably, you're just you're missing the boat. You're like the 80%

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like 80% of that attention we're saying like there's what's working now and then what you need

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to prepare yourself for. A lot of times we've put a disproportionate amount of effort towards

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future proofing, meaning like people will spend 50% of their effort trying to find the next thing

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rather than doubling down on the thing that is working right now. And so it's this weird

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psychological trick that we plan ourselves where we're like oh this thing's working great let me

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find something else that's working like this rather than just saying cool let's spend more

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on the thing that's working, right? And so I put out a challenge in our legacy group which is

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double your ads spend for the month because if you look off of just our own metrics my gyms

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and then now having you know work with over you know 1000 gyms that we have in in lunch and legacy

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it's almost directly proportionate the amount of money that you will make in a month will be

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directly proportionate to the amount of money that you're spending on marketing provided you're

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putting it into a vehicle that works which would be in this instance Facebook and Instagram

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because they are now at this point where and this is taken from a private a friend of mine had a

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private dinner with Gary a couple weeks ago and like five person dinner small dinner and they

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were just asking him they're like you know what do you what do you think what platforms are coming up

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which would be looking at he said first of all we have four to six more years of golden years on

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Facebook so if you're in here and you're like man I'm too late I missed the vote you didn't miss

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the vote all right like people are still crushing it on Facebook we still crushing on Facebook we

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still crushed on Instagram and so the point is is like we have like the gold rushes here the iron

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is hot and you need to strike all right you need to take like the somebody posted in our group

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you should sell your house take the money and then this is this is a video from GaryVee but

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sell your house take the money and put it into Facebook ads because you'll make more money that way

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I mean that's obviously an extreme example but the the concept should still hold true

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which is we know how people are asking us questions what should I do with all this money that I'm

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making Anthony Ranchi made a video and here you know I think a couple weeks ago saying like the

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problems that he has now are different before he was having you know how do I fill my gym problems

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and now it's like what do I do with the money problems now have capacity issues like there's

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different problems that you're trading but most people are like okay well now I have 50 grand 100 grand

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200 grand you know my banking out what should I do around is he should still double down because

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right now like looking at an investment vehicle to try and get 10% a year and taking all the

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attention that it's going to take to go try and make 10% and that would be a phenomenal return

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on 200,000 years right which is 20 grand but like if you took 20 grand of your 200 so you just

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took 10% and then you just spent it on Facebook ads that you know you're going to get a five-to-one

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return on or a 10-to-one return on or some of you guys 20 to run return on right where should

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your attention be going right should your attention be going towards actively with actively pursuing

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something that's going to give you passive income right or should you be taking that attention

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and putting it towards the thing that's already making you money the whole point of like the

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investing game is there's only two things that you can do with your money you can either lend it

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to someone or you can buy stuff with it you can buy assets you can buy pieces of businesses or

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you can buy real estate whatever right but the point is that if you were a business owner you already

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have the thing that most people try and invest in and so you like

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there's no point in trying to be passive right now and build up this passive revenue stream when you

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have this thing this engine in front of you that is making you tons and tons of money you should

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be spending more money on that thing all right like people always ask us like what is what is

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our investment strategy okay my investment strategy is not to think about it and what I mean by that

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is like we just invest in indexes because I know that I don't have to think about it and I will not

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need the money for 40-50 years right and I have enough cash like that is not there that is

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liquid that I can spend heavily on the thing that is making as money and I spend as much money as

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I possibly can until the marketing is never my bottleneck and so for a lot of people watching this

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this is probably what I should have kind of this is that your marketing should not be your bottleneck

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this is the this is the punch home point if right now you're not breaking your machine

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your business because of the inflow then it means that you should be spending more on marketing

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okay so what that would mean is that I will keep spending provided I have a positive acquisition

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cost or negative acquisition cost meaning of making money in the acquisition of customers right

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I should keep spending there until I have too many leads to handle or my salesperson is

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true booked right or we're moving down the pipeline or I have capacity issues at my gym

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

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

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

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

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right at that point then I go back to the marketing and then I level it so that I can deal with

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that flow but then I want to increase the pipe right I want to increase the width of the pipe which

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for the people who work with us the first thing that you're going to do to increase the width of

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the pipe is do ALM which is automated lead now you don't have to have someone who's manually

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working all the lead so that you can crank and not worry about having to be like okay now I need

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one person full-time and another part-time person or now I need two full-time people or whatever it is

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right so boom that's the first thing that you're going to do so you crank and then all of a sudden

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the next bottleneck would be your lead nurture process which now you've automated boom so now

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that pipe is wide and the next piece of that is going to be your sales guy right and so for some

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of you guys it's you for some of you guys it's a sales person who's working for you and so until that

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person's calendar is completely booked keep printing and then again once that person's completely booked

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are you able to continue to fulfill and so right now if you're marketing if you're like man I wish

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I could get more people in the door most times you just need to spend more we're looking at like I'm

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getting questions from people saying like what do I do so I can get a 10% return when they have

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something right in front of them that gets them a 300% return in a month Warren Buffett said that

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diversification is a hedge against ignorance which I think is like one of the most profound

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investment statements meaning he didn't diversify his his funds because he knew what he was doing

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and so right now if you spend a thousand dollars or ten thousand dollars on Facebook ads

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you know what you were doing because you have this machine that you've built for right and so

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you can go all in on something because it's not risky because you know the game right and that's

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part of the reason that for us with our money I know that if I'm going to learn another game like I

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know how long it took us to learn the gym game and now how long it's taken us to learn the game

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that we're in now I know how long it takes and so for me to say okay cool I'm gonna go start

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buying a real estate and buy you know a twenty million dollar building that's a whole

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another game I'm not gonna learn that in six months it's gonna take me three years just like it

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takes you to learn any game to think that I'm going to like with ego right with pride go in there

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and be like I'm so smart I'm gonna figure this out like against other dudes who have been doing it

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for 20 years who who literally are going to actively try and get our chips right our dollars

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because it's a deal and in real estate a lot of times it's a zero sum game meaning there's a

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winner and a loser period right and so anyways all that to say some people right now you probably

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need to just double down on the thing that is already working not to distract yourself with the

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new shiny objects we will go waste our money testing those things for you guys so that we can

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give it to you um already tested and working out of the box you don't have to worry about dropping

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50 grand of me like whoops right we get to do that I get to do that that's that's our fun stuff

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right before you like put all the money in the thing that you already know is working don't worry

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about your investment stuff take the money that you have put it in the machine that you know is

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getting five to one right so anyways um I hope that makes sense for everybody um your marketing

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should be should not be your bottleneck and you should spend until the point that it is not that

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way and if you are watching this and you're like man I'd love to have five or one or ten to one

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returns and already know and know all the metrics of my business then you should probably hop on

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to gym lunch so we can show you how we do it but anyways um hope you guys having an awesome

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Thursday that was a note that hopefully someone here is listening to um and you know what am I

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supposed to address this so people ask how do you scale at spend so there are a lot of different

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schools of thought around how to scale at spend one is you start with your budget and then you

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scale every 24 to 48 hours by 10 to 20 percent that was one school of thought I personally don't do

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that um but that is one school of thought that is pushed out by lots of super guru Facebook people

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right the second is doing a duplication strategy so let's say you spend you've got five ads that

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are 20 bucks a day each right you can duplicate the ones that are winners let's say three of the

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five are real winners and you duplicate those ones and now you're at 160 a day and then you duplicate

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one of those once again night or 180 a day right that is another way of scaling your ad spend um that

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is how I scaled all the ads then when I was doing my gyms now the third way of scaling your ad

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spend is actually what I do with our business right to watch like what I'm trying to scale to

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a lot of your winners and this is what we do now so I can't say that I've tested this with gyms

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but I'm saying this is our process so what I do is I spend usually like three times what I want

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my daily ad budget to be and I start there and then I prune back to get to the acquisition cost

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that I want and so let's say that I wanted to spend a thousand dollars a day I spent a lot more

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than that but I'm just saying let's say I wanted to spend a thousand dollars a day so I want to spend

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a thousand dollars a day I'll probably start with 30 ads and a hundred dollars a day and then

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within 48 hours I'll be able to easily cut out ten of them right now I'm at two thousand a day

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and then I'll look again another 48 hours later and I'll be like okay these ones are definitely winners

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these ones are maybe maybe I'll cut another five out now I'm at 1500 a day and then at that point

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what happens a lot of times is sometimes I go a little bit higher than what my budget wasn't

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originally or what I was hoping to have but but I'm still ridiculously profitable in my acquisition

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so I sort of like trick myself into spending more than I was intending to

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and then make more money than I originally was going to so I hope that makes sense that's

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to answer a question that I got on our legacy page that is how I scale at spend the other the

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second way of doing duplication obviously works really well too we've done that over and over

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and over again but the starting super highway is a good way to kind of break your own

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break your own spending beliefs and I would definitely recommend splitting that between a couple

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different pad accounts I had this weird belief that Facebook thinks like once you once you show

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that you can spend money with them that like they start spending it more like aggressively but not

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a good way like they'll just send you more junk traffic and sometimes the conversion on your page

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will go down that's just my experience so I split it up but the reality is that anyone who claims

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that they know what's going on on Facebook is just either either they're lying or they're lying to

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themselves it's just because like no one knows what's going on on Facebook I have friends who are

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very high up in the Facebook world and they're like we don't even like we don't even find out about

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rollouts like they don't even tell their own employees about the changes that are happening inside

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of Facebook like they usually find out because clients call them and say hey this thing changed

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what's going on and then they have to actively figure out with people like no one knows it's a big

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black box anyone who claims otherwise is just is just trying to sell you a dream all right you just

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test and you look at what happened and you figure it out which is what I recommend you do for

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everything in your life which is don't trust anyone just trust the data because at least the data

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is reliable and you can make your own darn inferences off of it cool so don't less so recap don't let

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your marketing be your bottleneck so spend until isn't if you to skill your ad spending you can

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use any of the strategies I just outlined the starting high and splitting in between that accounts is

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what we do but it is up to you what you want to do and I would not be worried about how you're going

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to spend all of your time and attention trying to figure out how to go from 7% passive return to 10

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or 12% passive return when you have this machine in front of you that you will regret five years

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from now not spending tons of money into a known beast that you know the return on that you can

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control so all these other investment vehicles real estate stock market whatever being a note holder

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on something those are all things that you can control this is a machine you can control so like

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spend it where you can control all right anyways have an awesome Thursday cook that was valuable for

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you um drop a like or a comment to another gem owner who probably needs to hear this

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you