WEBVTT 1 00:00:00.000 --> 00:00:03.480 I've been marketing for 13 years. I built and sold nine companies. I sold my last 2 00:00:03.480 --> 00:00:06.880 company for $46.2 million to American Pacific Group. I've also written two 3 00:00:06.880 --> 00:00:10.440 books on marketing that have sold over a million copies. Here's 13 years of 4 00:00:10.440 --> 00:00:13.960 marketing advice that will make you more money. Piece of advice number one, start 5 00:00:13.960 --> 00:00:18.960 with low prices or even gasp free. The reason that I say that is because if you 6 00:00:18.960 --> 00:00:23.680 start there then you can go up. It's very difficult to come down and in the 7 00:00:23.680 --> 00:00:28.280 beginning you want to get flow through the system and so it's totally fine to 8 00:00:28.280 --> 00:00:30.920 start it free and then start bumping up from there and so I'll give you three 9 00:00:30.920 --> 00:00:34.320 quick examples and I'll show you how to do this tactically. So when I started my 10 00:00:34.320 --> 00:00:37.880 first ever business it was a online personal training business. This is 13 plus 11 00:00:37.880 --> 00:00:41.760 years ago and when I started I didn't know anything and I was so afraid to charge 12 00:00:41.760 --> 00:00:45.600 people money to begin with and so but I did want them to pay something because I 13 00:00:45.600 --> 00:00:48.440 wanted them to be invested because otherwise people don't follow through with 14 00:00:48.440 --> 00:00:52.840 their workouts or their nutrition plans etc and so I said hey just donate to the 15 00:00:52.840 --> 00:00:56.760 charity of your choice whatever charity you want to in exchange I will then 16 00:00:56.760 --> 00:01:00.840 train you for 12 weeks and so people would donate I think is 500 or a thousand 17 00:01:00.840 --> 00:01:04.560 dollars is their choice to a charity of their selection and by doing that I 18 00:01:04.560 --> 00:01:07.840 actually got my first 13 or so customers just by making posts and 19 00:01:07.840 --> 00:01:10.960 DMing people that I knew and it didn't feel weird because I was like hey I'm 20 00:01:10.960 --> 00:01:13.680 doing this kind of nonprofit thing I want to help you out if you want to lose 21 00:01:13.680 --> 00:01:16.320 weight and you can feel good about it and it's a write-off and so we were like oh 22 00:01:16.320 --> 00:01:19.680 this is pretty cool but the thing is is like that was the first time I ever did 23 00:01:19.680 --> 00:01:23.560 it and then from there I said huh would you guys be willing to pay me now after 24 00:01:23.560 --> 00:01:25.800 we finished this 12 weeks and a lot of them were like sure I was like yeah I'm 25 00:01:25.800 --> 00:01:29.560 the charity now so after I did a good job they were willing to do that and 26 00:01:29.560 --> 00:01:34.360 refer me customers the next business that I did this with was gym watch when I 27 00:01:34.360 --> 00:01:38.760 actually started flying out to other gyms so I used to do turnarounds and I 28 00:01:38.760 --> 00:01:41.920 did that for two plus years why'd fly out to a gym set up all the pricing do 29 00:01:41.920 --> 00:01:45.200 the marketing all this stuff and I did it all for free and I did it that way 30 00:01:45.200 --> 00:01:50.280 because I didn't know how I could sell those gym owners and what I the deal 31 00:01:50.280 --> 00:01:54.600 that I made was I only make money if I make sales and I'll front the cash for 32 00:01:54.640 --> 00:01:58.440 the marketing so like they took zero risk on and I would do everything including 33 00:01:58.440 --> 00:02:02.840 pay for my hotel my flights my my food my rental car everything and but 34 00:02:02.840 --> 00:02:06.640 being able to do that it allowed me to get way more yeses quickly test out the 35 00:02:06.640 --> 00:02:10.280 system in 30 plus markets that I had which then eventually led me to license 36 00:02:10.280 --> 00:02:13.640 in that system to 5,000 plus locations and that was the company that I that I sold 37 00:02:13.640 --> 00:02:18.280 to APG the third time that I did this was when I started my software company 38 00:02:18.280 --> 00:02:22.080 Allen and so when I started the company I was like I need to get some case 39 00:02:22.080 --> 00:02:24.640 studies I need some testimonials I need some I need some stories to show 40 00:02:24.640 --> 00:02:27.760 successes right and so I think a lot of people in the beginning think this is 41 00:02:27.760 --> 00:02:31.080 only a beginner thing but even if you're a big business owner when you start out 42 00:02:31.080 --> 00:02:35.040 a new product or new division starting with free customers just makes a lot of 43 00:02:35.040 --> 00:02:40.120 sense and it's for four reasons one is that free customers become customers 44 00:02:40.120 --> 00:02:43.560 become paying after the period as long as you do a good job so it makes money in 45 00:02:43.560 --> 00:02:46.600 one way the second way makes you money is that they'll also refer your 46 00:02:46.600 --> 00:02:49.520 customers because you do a great job they'll just send you other people that 47 00:02:49.520 --> 00:02:52.720 can be contingent on why you do it for free for them the third is that they'll 48 00:02:52.720 --> 00:02:56.120 leave you testimonials and reviews so those reviews and those testimonials also 49 00:02:56.120 --> 00:02:59.920 you advertise and you can get more customers from them and then finally whenever 50 00:02:59.920 --> 00:03:03.400 you do stuff for free I do it in exchange for feedback I say hey tell me what I 51 00:03:03.400 --> 00:03:06.520 could do to make this better and again it's not saying like tell me all the 52 00:03:06.520 --> 00:03:09.560 ways I suck it's just saying tell me how I can make this better tell me how I 53 00:03:09.560 --> 00:03:14.440 could make it worth it for you to want to stay and continue to pay and ideally the 54 00:03:14.440 --> 00:03:18.560 easy test of knowing whether this works is that they actually stay and pay 55 00:03:18.560 --> 00:03:24.600 afterwards and so it's the easiest way to get going on any new product and I 56 00:03:24.600 --> 00:03:28.640 think so many people start trying to sell stuff too soon without enough proof 57 00:03:28.640 --> 00:03:32.280 and in the beginning you suck that's why it's a new product or new division and 58 00:03:32.280 --> 00:03:36.560 so I'd rather not ruin my reputation same giving away for free give the reason is 59 00:03:36.560 --> 00:03:39.320 I'm brand new at this thing or I'm trying this new thing out and that way I'll 60 00:03:39.320 --> 00:03:42.840 get a little bit of grace and then that way I can make the thing better in an 61 00:03:42.840 --> 00:03:45.640 iterative process much faster with way more people because I'm giving away for 62 00:03:45.640 --> 00:03:50.520 free or at cost and then once I get those massive success stories that they 63 00:03:50.520 --> 00:03:53.520 feel like they owe me because I've done a great job then I can market those 64 00:03:53.520 --> 00:03:57.680 and go at full price so here's how you actually do this tactically going from 65 00:03:57.680 --> 00:04:00.800 starting a low prices to moving all the way to where you want to be which is 66 00:04:00.800 --> 00:04:05.380 high prices with big premiums right and so what I'd say is after you have your 67 00:04:05.380 --> 00:04:09.720 first test case study batch so call it 10 or 20 people depending on the size of 68 00:04:09.720 --> 00:04:14.520 your product or your services after that every five I just go up by 20% and so 69 00:04:14.520 --> 00:04:18.640 let's say okay I started at zero and I have a marketing agency I might say okay 70 00:04:18.640 --> 00:04:21.840 the first the next five I'm gonna do for a thousand bucks right and then from 71 00:04:21.840 --> 00:04:25.440 there I might say okay the next five I'm gonna do for twelve hundred bucks the 72 00:04:25.440 --> 00:04:28.120 next five I'm gonna do for fifteen hundred bucks and so you just keep going 73 00:04:28.120 --> 00:04:33.360 up by 20% until the conversion rate times the price goes down so that way you 74 00:04:33.360 --> 00:04:36.400 can just calculate the total amount of money made off of X number of sales 75 00:04:36.400 --> 00:04:40.040 calls and by doing that you'll be able to see okay here's the sweet spot where I 76 00:04:40.040 --> 00:04:43.480 sell the most amount of units at the highest potential price so my company Jim 77 00:04:43.480 --> 00:04:47.620 Launch that is sold for forty six million dollars that company you know at its 78 00:04:47.620 --> 00:04:50.760 peak before I was selling it we were taking home over a million dollars a month 79 00:04:50.760 --> 00:04:54.200 in personal income but that's what a lot of people think happened the whole time 80 00:04:54.200 --> 00:04:58.060 but it wasn't like that the actual very first business that I started in 81 00:04:58.060 --> 00:05:00.880 fitness I actually gave away my services for free actually did it as a 82 00:05:00.880 --> 00:05:04.840 nonprofit for charities so that I could get clients in the door and test out 83 00:05:04.840 --> 00:05:08.200 whether my stuff actually worked and that I could deliver services and when you're 84 00:05:08.200 --> 00:05:11.240 having the conversation with those first few people whether you're doing it 85 00:05:11.240 --> 00:05:14.720 for free or you're gonna do it for a big discount you say hey I plan on going to 86 00:05:14.720 --> 00:05:18.480 this price point but I'm willing to do it for free in exchange for X which is 87 00:05:18.480 --> 00:05:22.240 usually a feedback feedback for me and a public testimony if you're comfortable 88 00:05:22.240 --> 00:05:26.800 doing it and by having those two things then one you guarantee that you get the 89 00:05:26.800 --> 00:05:30.160 feedback which is the need most but you also can get the testimony that you can 90 00:05:30.160 --> 00:05:34.720 leverage and then finally you can also tack on a referral if you want to again 91 00:05:34.720 --> 00:05:37.840 I'd say the testimony in the referral should be contingent on you doing a good 92 00:05:37.840 --> 00:05:40.880 job and you say hey if I do a good job would you be willing to do these two 93 00:05:40.880 --> 00:05:44.720 things if they say yes then you're good to go the fourth one which is do they 94 00:05:44.720 --> 00:05:48.640 actually want to buy at full price later which will be the real test of how good 95 00:05:48.640 --> 00:05:51.880 you were and I think the bottom line here is that when you start out you're not 96 00:05:51.880 --> 00:05:55.440 that good and even if your ego is like kind of convincing you that you are good 97 00:05:55.440 --> 00:05:58.800 which I think is silly just even imagine two years from now that you're gonna be 98 00:05:58.800 --> 00:06:02.680 much better than you are now well that guy is probably way more experienced so 99 00:06:02.680 --> 00:06:06.880 give that guy a running start by starting free now and then building momentum 100 00:06:06.880 --> 00:06:09.800 into it and I have this saying that I repeat all the time in my team which is 101 00:06:09.800 --> 00:06:15.200 create flow monetize flow then add friction and so it's like you have to run 102 00:06:15.200 --> 00:06:18.280 water through the machine you have to get flow into the system to see where 103 00:06:18.280 --> 00:06:22.440 it's going to break so that you know what real actually looks like rather than 104 00:06:22.440 --> 00:06:26.480 just trying to get rich on Excel the second is the framework that I use for 105 00:06:26.480 --> 00:06:31.880 scaling advertising or scaling marketing and any niche more better new when 106 00:06:31.880 --> 00:06:35.800 you're starting out more is almost always the answer and so I remember when I 107 00:06:35.800 --> 00:06:41.400 was thinking about getting into content I I paid someone who had made you know 108 00:06:41.400 --> 00:06:44.920 a lot more content had much bigger brand and I said hey what should I be doing 109 00:06:44.920 --> 00:06:48.000 I like what should I do to make my content better and he's like dude he's like 110 00:06:48.000 --> 00:06:50.360 you don't make your content better I said he's like you're just not making 111 00:06:50.360 --> 00:06:53.720 anything and so what he did is he pulled up his profile on LinkedIn and he pulled 112 00:06:53.720 --> 00:06:57.080 up my profile LinkedIn he was like I posted five times a day you haven't even 113 00:06:57.080 --> 00:07:00.440 posted and then he pulled up Instagram and he pulled up my Instagram and he's 114 00:07:00.440 --> 00:07:05.120 like I posted two times a day you posted once a week I was like man he's like okay 115 00:07:05.360 --> 00:07:08.320 let's pull up YouTube and then my YouTube and he just went platform by 116 00:07:08.320 --> 00:07:13.040 platform and he showed that he was doing 3x 5x 10x the volume that I was and he's 117 00:07:13.040 --> 00:07:17.040 like dude you just got to do more and that was just like bear like I felt 118 00:07:17.040 --> 00:07:19.440 embarrassed because I just paid all this money to have someone just look at me 119 00:07:19.440 --> 00:07:22.480 and just say do more but hopefully I can save you the money and just tell you 120 00:07:22.480 --> 00:07:26.240 you probably need to do more and the interesting thing about this is that I 121 00:07:26.240 --> 00:07:30.720 later on had like at the point now when we had maybe this is maybe a year 122 00:07:30.800 --> 00:07:34.160 god five-ish million subscribers called all platforms I had a friend of mine 123 00:07:34.160 --> 00:07:38.160 who's a billionaire who wanted to start getting into personal branding and he said hey man can 124 00:07:38.160 --> 00:07:41.840 you check out my Instagram and see what's you know going on and why we're not 125 00:07:41.840 --> 00:07:45.520 growing as fast as I want to and so I said well before I look at it I was like how 126 00:07:45.520 --> 00:07:48.800 many posts a week you making across all platforms he's like oh got that now he's 127 00:07:48.800 --> 00:07:52.960 like I'm posting one today and I was like dude I was like we post 50 plus times a 128 00:07:52.960 --> 00:07:58.000 day and he was like got it he just was like you don't need to say anymore I 129 00:07:58.000 --> 00:08:03.200 understand because he had had enough experience in other realms to know that like oh all of the 130 00:08:03.200 --> 00:08:07.280 things in volume that that that work in sales that work in customer success that work in product 131 00:08:07.280 --> 00:08:12.400 in terms of durations the same concepts apply to advertising and marketing like you just need to do 132 00:08:12.400 --> 00:08:18.000 a lot in order to figure out what works so that you can do better later now what's interesting 133 00:08:18.000 --> 00:08:21.760 about this is that this also applies on the paid side so I remember there was a car tractor 134 00:08:21.760 --> 00:08:25.840 car tractor agency that approached me they were doing about two million bucks a year and he was 135 00:08:25.840 --> 00:08:30.960 like hey man I think I've saturated Facebook and I was like and this is when it was Facebook 136 00:08:30.960 --> 00:08:34.480 not matter and I was like what do you mean he's like I just think I've saturated the car 137 00:08:34.480 --> 00:08:40.640 tractor niche and I was like this is a ten billion dollar year industry and you feel like you're 138 00:08:40.640 --> 00:08:45.920 two million dollar per your agency has saturated Facebook I was like how many I was like do you 139 00:08:45.920 --> 00:08:49.760 know of any of the car tractor agencies that exist he's like yeah there's loads it's like you 140 00:08:49.760 --> 00:08:54.560 know there's hundreds of them I was like okay so explain to me why every sale that is keeping all 141 00:08:54.560 --> 00:09:00.480 of them in business is somehow not sales that you should be making he's like got it it's like 142 00:09:00.480 --> 00:09:04.880 right you're spending 40 grand a month when in aggregate all the agencies that are selling to 143 00:09:04.880 --> 00:09:10.320 carpractors are probably spending four million a month and so all of the spend that those businesses 144 00:09:10.320 --> 00:09:15.280 are able to make in your market is your opportunity is if you can outcompete them you can provide 145 00:09:15.280 --> 00:09:19.360 better service you can have longer LTV means you can spend more to acquire the cash when they can 146 00:09:19.360 --> 00:09:23.040 and then you can eventually price them out of the marketplace because fundamentally paid ads 147 00:09:23.040 --> 00:09:27.520 is actually an auction for attention and so people bid against each other for ad space and so if you 148 00:09:27.520 --> 00:09:31.920 can outbid your competition you can have an ethical monopoly by literally bidding more than everyone 149 00:09:31.920 --> 00:09:36.640 else while still making money and that's the crazy thing and that's what fundamentally what you 150 00:09:36.640 --> 00:09:39.840 want to build in terms of the mouse trap of your business is how can I make more money from every 151 00:09:39.840 --> 00:09:43.920 customer that anyone else does so that I can spend more than anyone else can to acquire them and so 152 00:09:43.920 --> 00:09:48.640 I had a I had a portfolio company CEO who's a good marketer you know come up to me and he was like 153 00:09:48.640 --> 00:09:53.840 hey man I think really need to scale our ads and I was like I agree and I was like well how many 154 00:09:53.840 --> 00:09:57.840 how many pieces of creative are you putting out you know per week and he's like oh um why just 155 00:09:57.840 --> 00:10:01.280 report once a month I was like okay fine then how many either you're making per session he was like 156 00:10:01.920 --> 00:10:07.280 we do about 15 so we do about 15 new ads per month and I just kind of looked at him I was like 157 00:10:07.280 --> 00:10:12.720 dude when I was trying to go from your size to five times your size I was making 35 a week 158 00:10:13.600 --> 00:10:18.480 and like nowadays we make way more than that in terms of content and in terms of the ads that we 159 00:10:18.480 --> 00:10:24.240 do like I make ads for school and then I inform the ads across our portfolio and so the big 160 00:10:24.240 --> 00:10:28.720 saying that I have that's like plastered on the wall that actually applies to sales and marketing 161 00:10:28.720 --> 00:10:34.960 is volume negates luck like if you don't want to rely on luck and rely on one of those 10 ads or 162 00:10:34.960 --> 00:10:40.400 five ads that you make to be amazing you just make more ads and I can't tell you the amount of times 163 00:10:40.400 --> 00:10:44.000 that it just reset the bar and that's what I'm hoping to do with this video is like the amount of 164 00:10:44.000 --> 00:10:48.000 volume that the people who are ahead of you are doing is is not two x to three x more it's 165 00:10:48.000 --> 00:10:55.760 oftentimes a hundred x more right even that the 35 times four I think 140 pieces the guy was making 166 00:10:55.760 --> 00:11:02.160 15 there's nine x the volume of what he was doing right and some of you guys are making five ads 167 00:11:02.160 --> 00:11:07.120 a month or one ad a month and thinking that that's somehow going to be sufficient to get to your goals 168 00:11:07.120 --> 00:11:11.680 and nowadays and I'll explain later in this help my whole ad creation process but just the big 169 00:11:11.680 --> 00:11:16.320 headline is that in the very beginning you just need to do a lot more than you think you do the 170 00:11:16.320 --> 00:11:21.840 second is once you've done more then at what point do you start shifting to better and the way 171 00:11:21.840 --> 00:11:27.600 that you can figure that out is when the return on effort for better exceeds one incremental unit of 172 00:11:27.600 --> 00:11:33.600 more meaning if I've got one sales guy if I add a second sales guy then I think I have a high 173 00:11:33.600 --> 00:11:38.240 degree of certainty that I can probably double my sales by doing that but when you have 10 sales 174 00:11:38.720 --> 00:11:43.120 adding one more sales guys the same level of effort as adding going from one to two going from 175 00:11:43.120 --> 00:11:48.400 10 to 11 but it's only a 10% increase and so if I can increase the overall throughput of my entire 176 00:11:48.400 --> 00:11:55.040 team by 20% or 25% by tweaking some sharp rate stuff or doing a headline split test or or changing 177 00:11:55.040 --> 00:12:01.520 CTAs on my ads then those are things that would make me more money per unit of effort and so in 178 00:12:01.520 --> 00:12:05.040 the beginning you usually just need to blow as much volume through there as possible that's the 179 00:12:05.040 --> 00:12:10.160 create flow monetize flow than add friction the the optimization steps really only matter when 180 00:12:10.160 --> 00:12:14.720 you have flow going through and so you do more first and then once you're big enough better 181 00:12:14.720 --> 00:12:19.280 becomes a better return on effort but once you then go through the better steps then you usually 182 00:12:19.280 --> 00:12:24.000 have to go back to okay how do we do 10 times more than we are now how do we go from 10 sales 183 00:12:24.000 --> 00:12:28.240 guys to 100 sales guys and that's the thinking that you have to go through in order start scaling 184 00:12:28.240 --> 00:12:34.000 in terms of orders of magnitude and when you have so much volume you're able to iterate so much 185 00:12:34.000 --> 00:12:39.920 faster like even us recently we started making more content on YouTube and we already noticed as a 186 00:12:39.920 --> 00:12:44.480 team we're like oh this is awesome we're learning so much faster again with like we're literally 187 00:12:44.480 --> 00:12:47.920 putting out four or five videos a week instead of one video week and so we're learning about 188 00:12:47.920 --> 00:12:52.080 headlines and thumbnails and there's less pressure per video because we're like cool learn that 189 00:12:52.080 --> 00:12:55.760 let's move on to the next one and so it allows you to just iterate so much faster without 190 00:12:55.760 --> 00:13:01.120 getting your ego and your emotions you know tied into it here's how I do it is I ask the question 191 00:13:01.920 --> 00:13:07.040 what would stop me from 10x in the business right now and if the answer is nothing then we 10x 192 00:13:07.040 --> 00:13:12.160 the business now most times there is something that would break like what would break first and so 193 00:13:12.160 --> 00:13:17.360 as soon as we identify what is the first thing that would break if we 2x 5x 10x we then isolate that 194 00:13:17.360 --> 00:13:23.040 thing put all of our focus towards fixing it and then we do the increase in volume and that is how 195 00:13:23.040 --> 00:13:27.680 we continue to deconstrain until we go to the next bottleneck and then deconstrain that and then 196 00:13:27.680 --> 00:13:31.040 grow into the next bottleneck because we have a fundamental belief that all businesses will continue 197 00:13:31.040 --> 00:13:34.640 to grow until their point of constraint and then they will grow no further so you identify the 198 00:13:34.640 --> 00:13:39.360 constraint relieve the constraint and allow it to grow again growth occurs as an after effect of 199 00:13:39.360 --> 00:13:44.480 the inputs you put into the system now once you've done as much as you can more and you've done it 200 00:13:44.480 --> 00:13:49.520 as well as you can better when you can't do any more any better you start and try and something new 201 00:13:49.520 --> 00:13:54.960 and the thing that the reason that I have new last is because the cost of change of doing something 202 00:13:54.960 --> 00:14:00.880 new is guaranteed but the return on something new is not and so I like to say that is a big warning 203 00:14:00.880 --> 00:14:05.440 for the fact that the vast majority of entrepreneurs want to spend 80% of their time on doing new stuff 204 00:14:05.440 --> 00:14:10.640 when really they should spend 90% of their time doing more and better of what is already working for 205 00:14:10.640 --> 00:14:14.960 them the only time you do new stuff is when nothing is working so when you're starting as an entrepreneur 206 00:14:14.960 --> 00:14:19.360 everything's new and you keep trying and keep trying until something works once it works you have to 207 00:14:19.360 --> 00:14:23.760 unlearn the whole experimentation idea and then you have to go great I need you as much as I 208 00:14:23.760 --> 00:14:27.760 possibly can and do it as well as I possibly can and so it's a different mindset that you have to 209 00:14:27.760 --> 00:14:33.120 get into but that's how you start scaling now what point do you start doing something new well if 210 00:14:33.120 --> 00:14:37.920 you've already said okay I can't I can't do more for a very clear reason that there's a big cost 211 00:14:37.920 --> 00:14:43.120 like sometimes there's a huge incremental cost past a certain barrier you're like okay I think we 212 00:14:43.120 --> 00:14:47.760 really are you know let's say you're a local a local gym all right if you're a local gym and 213 00:14:47.760 --> 00:14:53.360 you're spending call it $10,000 a month on ads you're reaching every single person in your radius 214 00:14:53.360 --> 00:14:58.160 multiple times a week and so that's on one platform and so you're like okay in order for me to 215 00:14:58.160 --> 00:15:02.960 scale this it's not really about doing more or even doing that better it's like I've saturated 216 00:15:02.960 --> 00:15:08.480 the crap out of the eyeballs here well that's when doing something new will yield a higher return 217 00:15:08.480 --> 00:15:12.160 you get a better return on effort and so that's where like okay maybe I'm going to start doing 218 00:15:12.160 --> 00:15:16.240 an outbound or I'll start doing the paid ads but just on another channel I'll start running 219 00:15:16.240 --> 00:15:19.760 YouTube ads I'll start running Google search ads I'll start running I'll start running 220 00:15:20.560 --> 00:15:25.280 display ads I'll start I'll start doing direct mail pieces I'll start radio ads like there's 221 00:15:25.280 --> 00:15:28.960 a number of things that you could do in terms of other channels but they would be new and so this is 222 00:15:28.960 --> 00:15:33.600 the thought process that I have when I approach that which is if you could double the sales of your 223 00:15:33.600 --> 00:15:38.960 company and it would take a year would you do it but you had to wait a year before they doubled 224 00:15:38.960 --> 00:15:44.800 most people would say yes if I said you had to invest call it half a year's profits in order to 225 00:15:44.800 --> 00:15:48.160 getting your business to double would you do it yes that probably be a really good return on 226 00:15:48.160 --> 00:15:51.280 return on investment if you put half a year's profits and you double the business you're getting 227 00:15:51.280 --> 00:15:56.880 a 200 percent return that's awesome right and so the thing is is that people start something new 228 00:15:56.880 --> 00:16:01.840 and they spend one month of ad spend and they say oh it didn't work I lost money wow like I'm 229 00:16:01.840 --> 00:16:05.840 going to stop but the reality is that it's going to take you three months six months sometimes 12 230 00:16:05.840 --> 00:16:13.280 months to get the that return to actually pay off and what I mark is progress not the dollar so 231 00:16:13.280 --> 00:16:17.360 it's like okay first are we getting clicks okay we're getting clicks okay are we getting 232 00:16:17.360 --> 00:16:20.880 opt-ins okay we're getting opt-ins are the opt-ins we're getting the right type of people that 233 00:16:20.880 --> 00:16:24.320 we're looking for okay yes or if they're not then we start tweaking the messaging we start 234 00:16:24.320 --> 00:16:27.600 tweaking the funnel until we get the right people okay now we have the right people who are 235 00:16:27.600 --> 00:16:31.360 opting in great now can we get them on the phone can we get them in person can we get them to show 236 00:16:31.360 --> 00:16:34.640 up to some sort of conversion event some sales event that we can then try and sell them something 237 00:16:34.640 --> 00:16:39.040 right and so you keep walking walking the dollar over the bridge until eventually it comes to the 238 00:16:39.040 --> 00:16:43.920 other side but that takes money and that takes time and that takes learning but it's a return 239 00:16:43.920 --> 00:16:51.440 on investment because if you do double your leaf flow in a year one it doubles the business 240 00:16:51.440 --> 00:16:55.600 two it more than doubles the value of the business because now you have two different ways to get 241 00:16:55.600 --> 00:16:59.520 customers and so it makes the business more stable because if one of them goes down then you still 242 00:16:59.520 --> 00:17:03.840 have the other one and so you have a more stable business that's also bigger market advice number three 243 00:17:03.840 --> 00:17:08.560 how to do better and so this is double clicking into the better concept because this is especially 244 00:17:08.560 --> 00:17:12.480 for the bigger business owner so if you're at a few million dollars a year to tens of millions 245 00:17:12.480 --> 00:17:16.240 dollars a year like this is really going to start paying massive dividends so number one is 246 00:17:16.880 --> 00:17:23.520 optimize front to back when it comes to marketing so that's the 80-20 so David Ogovi said famously 247 00:17:23.520 --> 00:17:28.080 after you've ridden your headline you spent 80 cents of your advertising dollar so he knew that 80 248 00:17:28.080 --> 00:17:32.720 percent of people aren't going to do anything past read the headline and so if you put 80 percent 249 00:17:32.720 --> 00:17:37.680 of his effort towards those first few words and the really experienced marketers who are watching 250 00:17:37.680 --> 00:17:43.120 this are like nodding their heads right now the first five seconds the headline the packaging in 251 00:17:43.120 --> 00:17:47.040 my history of the 13 years that I've been doing this has only increased I haven't even gotten to 252 00:17:47.040 --> 00:17:52.080 a sweet spot they just continue to become more and more important in my mind because it's the frame 253 00:17:52.080 --> 00:17:57.120 through which everyone contextualizes what they're about to consume so one it increases the likely 254 00:17:57.120 --> 00:18:01.680 they consume it two it introduces the frame that they consume the advertisement or the promotion 255 00:18:01.680 --> 00:18:07.920 through and like we now have such great data geez even across on the content side that like if 256 00:18:07.920 --> 00:18:12.640 we have two different thumbnails you can literally see the average view duration go up by two or 257 00:18:12.640 --> 00:18:18.560 three minutes sometimes simply by changing the thumb that people click before they watch the video 258 00:18:18.560 --> 00:18:24.000 it's wild and so how people the frame that people consume the content in has a massive impact 259 00:18:24.000 --> 00:18:29.280 on how effective it is now until this quick story to show you just how how important this is so 260 00:18:29.280 --> 00:18:36.240 front of mind Dean had this massive advertising campaign and he had written a new book and he went 261 00:18:36.240 --> 00:18:43.760 on Larry King live and so he wanted to use the Larry King interview to advertise the book and so 262 00:18:43.760 --> 00:18:49.680 he shot the whole interview and he basically wanted Larry King to introduce him in a cool way to 263 00:18:49.680 --> 00:18:53.040 make him you know sound cool of course you know like he would laugh if I was if I'm telling the 264 00:18:53.040 --> 00:19:00.800 story now and so he knew that the ad was killer and so he ran it but 250 grand and nothing came 265 00:19:00.800 --> 00:19:05.440 back and he was like what's going on like I know this I know this adds a killer like what's 266 00:19:05.440 --> 00:19:10.800 happening so he went back through his old history of ads and he looked at the top performance ads 267 00:19:10.800 --> 00:19:15.120 he'd ever done and as soon as he started watching me realize that he missed the hook that the hook 268 00:19:15.120 --> 00:19:22.640 was wrong and so he flew Larry King back out they he paid him again they set up a whole new set 269 00:19:22.640 --> 00:19:29.840 again just to re-record the first 30 seconds and so they re-recorded the first 30 seconds 270 00:19:29.840 --> 00:19:35.440 with the hour long interview and then re-ran the infomercial and did a hundred million in sales 271 00:19:36.400 --> 00:19:42.320 and so when I heard that story I was like this is why that the first five seconds the headline the 272 00:19:42.320 --> 00:19:47.280 hook is so important and that's what I spend now a disproportionate of my time on and people 273 00:19:47.280 --> 00:19:50.560 are listening to this and you guys are nodding along but you're not you're still not getting it 274 00:19:50.560 --> 00:19:53.920 because it's not real free and it took me forever to figure this out when we make ads and I'll 275 00:19:53.920 --> 00:20:01.520 get in my ad creation process later um you have like I I I do 10 times the effort on the first five 276 00:20:01.520 --> 00:20:09.680 seconds 10 times actually 10 times if I have an hour I would I would spend 55 minutes on the first 277 00:20:09.680 --> 00:20:14.560 five seconds and then five minutes on everything that's after that like that's the proportion of how 278 00:20:14.560 --> 00:20:18.640 much time I'm spending on just getting that first part right I'll give you a different content 279 00:20:18.640 --> 00:20:24.480 example of this so I was invited to this uh content creator thing um with all the you know top 280 00:20:24.480 --> 00:20:29.280 guys probably 10 guys there uh the lowest guy in the room was me and the next lowest guy was at 281 00:20:29.280 --> 00:20:33.120 like 10 million plus subscribers only on YouTube so they just had me there because for entertainment 282 00:20:33.120 --> 00:20:39.200 who knows um and and I remember one of the guys had about 15 million subscribers and he was pissed 283 00:20:39.200 --> 00:20:44.560 that this other content creator had basically copied his video and the copying video had done 284 00:20:44.560 --> 00:20:48.000 better than his like three times more he got like 30 million views and he's got like 10 million views 285 00:20:48.720 --> 00:20:54.480 and the main guy there who had several hundred million uh subscribers across all his channels 286 00:20:54.480 --> 00:21:00.880 was like let's pop it in let's let's roast it and so they press play on the video and five seconds 287 00:21:00.880 --> 00:21:04.720 and he stops the video he's like dude you didn't confirm the thumb he's like the headline and the first 288 00:21:04.720 --> 00:21:09.120 five seconds weren't confirmed and he's like I don't need to see anymore and he's walked out of the room 289 00:21:09.120 --> 00:21:14.320 and so this guy had spent weeks you know making this thing obsessing about every detail of it 290 00:21:14.320 --> 00:21:19.760 he had a 20 page plus brief on how he was making this video and he missed the first five seconds 291 00:21:19.760 --> 00:21:23.520 and that was the guy who had the multiple hundred million uh subscribers was like that's it and 292 00:21:23.520 --> 00:21:28.880 he just walked out and got lunch and so when I saw that I was like wow like it just reinforced 293 00:21:28.880 --> 00:21:33.200 how important this was and recently just at a micro level one of our portfolio companies is 294 00:21:33.200 --> 00:21:40.560 a figure plus business um we simply changed the headline on the landing page like we did nothing 295 00:21:40.560 --> 00:21:47.600 else we kept same ads just changed the headline we increased booking rate by 62% now here's 296 00:21:47.600 --> 00:21:52.320 what's crazy is the opt-in rate remained the same but simply because of the frame of the promise 297 00:21:52.320 --> 00:21:58.480 in the headline 62% more people chose to book calls for that business and so it just shows you 298 00:21:58.480 --> 00:22:04.560 that how you frame what people are then going to consume has a massive impact on how much value 299 00:22:04.560 --> 00:22:09.520 and how likely they are to take the next step so here's how you do it in terms of optimizing 80-20 300 00:22:09.520 --> 00:22:14.720 fronts of back so number one is assume that they have no idea who you are what you do how it works 301 00:22:14.720 --> 00:22:20.080 they're in a rush and they have a third grade education all right so clear beats clever 302 00:22:20.080 --> 00:22:24.400 deletion beats explanation and so what you want to do is you want to try and make it as short 303 00:22:24.400 --> 00:22:28.160 as seemingly possible and then once you have it as short as possible put into a third grade reading 304 00:22:28.160 --> 00:22:32.800 calculator look at the grade level and keep editing it down until it's third grade good thing is 305 00:22:32.800 --> 00:22:37.440 is you're not going to attract dumber people you're going to make accessible to everyone a smart 306 00:22:37.440 --> 00:22:42.080 person needs to use less brain power to ex to understand simple language and it makes it 307 00:22:42.080 --> 00:22:47.840 understand a bowl to everyone else and as a reminder 30% of people can barely read and so 308 00:22:47.840 --> 00:22:52.240 this is like relying on them to have the skill it's like you want to meet them where they're at 309 00:22:52.240 --> 00:22:56.240 and there are some very rich people who can barely read and so it has nothing to do with intelligence 310 00:22:56.240 --> 00:23:01.200 it says everything to do with how they're educated which has which may have no no connection with 311 00:23:01.200 --> 00:23:07.760 their purchasing power okay and tactically what I'll do is I probably I'd make about 50 hooks 312 00:23:07.760 --> 00:23:12.240 every time I start recording ads so I have 50 hooks that I've written down that I think are awesome 313 00:23:12.240 --> 00:23:17.200 and then I have three to five meet pieces of an advertisement and then I do one to three CTAs 314 00:23:17.200 --> 00:23:21.440 meaning call to actions at the end and so that means I have way more on the front end in terms of 315 00:23:21.440 --> 00:23:25.280 effort compared to the one the three to five and the one to three that I do on the back and that's 316 00:23:25.280 --> 00:23:28.800 because I know that that's where all of the effort needs to go because that's where all the returns are 317 00:23:28.800 --> 00:23:32.480 and here's the here's the difference and this is why I say from you optimize advertising 318 00:23:32.480 --> 00:23:36.960 specifically from front to back because it's very rare that you're going to be able to double 319 00:23:36.960 --> 00:23:42.160 or triple or quadruple the amount of throughput you get in a funnel by optimizing the back end 320 00:23:42.160 --> 00:23:48.000 if you have a you know a 30 you know call it a 50% show up rate okay if you get it to 75% that's 321 00:23:48.000 --> 00:23:52.320 massive but it's a 50% jump and that would be a massive increase in show rate if you did that 322 00:23:52.320 --> 00:23:58.160 but I can absolutely get CTRs from 1% to 4% by just optimizing the hell out of the front end 323 00:23:58.160 --> 00:24:03.280 and that's a 4x increase that's four times the throughput that goes through the entire funnel 324 00:24:03.280 --> 00:24:08.400 and so I put my effort there because you can achieve 100% 200% 300% increases on the front end 325 00:24:08.400 --> 00:24:11.760 whereas it's much more difficult on the back end now for sure you want to optimize this thing 326 00:24:11.760 --> 00:24:14.480 but if I'm going to allocate my effort I want to get the biggest bang for buck 327 00:24:15.280 --> 00:24:20.000 so when you're making your hooks I call to call out so reading page 136 from my book 328 00:24:21.360 --> 00:24:24.160 a call out is whatever you do to get the attention of your audience call out 329 00:24:24.400 --> 00:24:28.320 from hyper specific to get one person's attention to not at all specific to get everyone's attention 330 00:24:28.320 --> 00:24:34.800 so let me explain if someone drops a tray of dishes in a party everyone looks if a child yells mom 331 00:24:34.800 --> 00:24:40.400 then the moms look if someone says your name only you look but again they all get attention 332 00:24:40.400 --> 00:24:44.480 and so I try to make my call out as specific as possible to get the right people but broad enough 333 00:24:44.480 --> 00:24:48.720 to get as many of them as I can so pay close attention now advertisers use call outs especially the 334 00:24:48.720 --> 00:24:53.680 ones targeting your audience and so what I'll do is I'll look at all the ads from other competitors 335 00:24:53.680 --> 00:24:57.520 who are targeting that same audience as me and the ads that are running a very long time I know 336 00:24:57.520 --> 00:25:01.840 that that call out is working well and so I will write down all the call outs that I see 337 00:25:01.840 --> 00:25:05.600 and then I will write out the words that I know my customers go by and I'll either start with 338 00:25:05.600 --> 00:25:09.760 a problem that I think that they're struggling from or a question that I think that I know that 339 00:25:09.760 --> 00:25:16.880 they'll say yes to or I'll simply state moms in Nevada homeowners in Clark County right very 340 00:25:16.880 --> 00:25:20.880 clearly calling out this is for you and that's exactly what you want the person to say when they 341 00:25:20.880 --> 00:25:26.480 read the headline or hear the call out this is for me and the more specific you get oftentimes 342 00:25:26.480 --> 00:25:30.720 you'll be surprised you think that going as broad as you can is going to increase the number of 343 00:25:30.720 --> 00:25:35.120 opt-ins but when you get really specific about the type of customer you're really trying to attract 344 00:25:35.120 --> 00:25:39.280 you will often find that they're like oh I wouldn't have responded the broad thing but this one's 345 00:25:39.280 --> 00:25:45.120 just for me and you get more people in terms of qualified leads in the door by being more specific 346 00:25:45.120 --> 00:25:52.000 piece of advice number four LTV to CAC is the only thing that matters and if I had only one metric 347 00:25:52.000 --> 00:25:55.440 that I could find out about a business if I only had one that I could pick it would be the 348 00:25:55.440 --> 00:26:00.880 LTV to CAC ratio and let me tell you a quick story that will kind of drive the sum so a friend of mine 349 00:26:00.880 --> 00:26:05.680 owns a bow manufacturing business and they do you know 23 million bucks a year so relatively 350 00:26:05.680 --> 00:26:10.560 large business established and he was like hey we're trying to get into paydads now they had all 351 00:26:10.560 --> 00:26:14.160 these distribution relationship but they want to open up this new channel and he says hey you're the 352 00:26:14.160 --> 00:26:18.320 you know you're the marketing guy right so can you you know what what would you do here and so as 353 00:26:18.320 --> 00:26:22.640 I was explaining the the process that I the strategy that I wanted to outline for him he was like well 354 00:26:22.640 --> 00:26:26.400 what's the benchmark I should be looking at in terms of leads and I was like do the benchmark is 355 00:26:26.400 --> 00:26:30.720 irrelevant it everything just comes back from what's gross profit so it's like okay so what's the 356 00:26:30.720 --> 00:26:35.360 average gross profit on a bow I'm making this up say it's five hundred dollars okay so if we get 357 00:26:35.360 --> 00:26:40.480 leads for call it 20 bucks and we know that we can get one in five leads to buy a bow then it 358 00:26:40.480 --> 00:26:46.240 means it cost us our cac is a hundred dollars and our gross profit from selling each bow is 500 359 00:26:46.240 --> 00:26:50.720 so cost us one hundred dollars to make five hundred dollars your gross profit five to one awesome 360 00:26:50.720 --> 00:26:56.320 and so fundamentally is twenty dollars a good lead cost well yeah he's getting five to one if he 361 00:26:56.320 --> 00:27:01.040 was at ten dollars then he'd be getting ten to one and that's assuming the same ratios and so it 362 00:27:01.040 --> 00:27:04.960 just depends on what percentage of customers you convert and at what price what you're converting 363 00:27:05.680 --> 00:27:11.440 cac to ltv or cac to ltgp so I use ltgp to be more specific lifetime values just the amount 364 00:27:11.440 --> 00:27:16.240 of gross profit you make from a customer over the lifetime of them being a customer of your 365 00:27:16.240 --> 00:27:21.280 business cac is the cost to require customer which is the all in cost including sales marketing 366 00:27:21.280 --> 00:27:26.720 software everything to get someone to give you money and so the cac to tv ratio is simply how much 367 00:27:26.720 --> 00:27:31.680 money it costs you to make more money it's the foundational economic unit of any business 368 00:27:31.680 --> 00:27:35.440 and so making sure that you know how much money it costs you to make money that fundamentally 369 00:27:35.440 --> 00:27:39.440 feels like a very important metric in order to scale the business and over time as long as you don't 370 00:27:39.440 --> 00:27:45.280 have some big capital expenses in terms of scaling your business that fundamental return that you 371 00:27:45.280 --> 00:27:49.440 get will reflect the company growth of the business provided you don't have other constraints to 372 00:27:49.440 --> 00:27:55.920 growth so for example if I have meals that I sell for ten dollars and it cost me nine dollars to 373 00:27:55.920 --> 00:28:02.480 package and ship them and deliver them then I have one dollar of gross profit per meal and so if 374 00:28:02.480 --> 00:28:07.120 someone buys ten meals for me I'm not making a hundred dollars I'm making ten dollars in gross 375 00:28:07.120 --> 00:28:12.560 profit if the average person buys call it five weeks of meals then I would make fifty dollars 376 00:28:12.560 --> 00:28:16.480 in lifetime gross profit and so the only way that I would want to be able to acquire our customers 377 00:28:16.480 --> 00:28:20.800 is that the cost to car customer in this example I don't want to have probably at fifteen dollars 378 00:28:20.800 --> 00:28:24.160 or less because you can't do it at even because then there's no money left over to do everything 379 00:28:24.160 --> 00:28:28.160 else in the business and so the rule of thumb is that you would have at least three to one on 380 00:28:28.160 --> 00:28:33.280 LTV to CAC but again LTV is not lifetime revenue it's lifetime gross profit right and that's what 381 00:28:33.280 --> 00:28:36.240 people I think a lot of times mess up is they don't even know what their gross profit is and then 382 00:28:36.240 --> 00:28:41.520 they spend blindly so I'll tell you a fun one so if you've seen Starbucks advertised now a lot of 383 00:28:41.520 --> 00:28:46.000 them they just use their storefronts as they're advertising at this point but they make about 384 00:28:46.000 --> 00:28:53.120 fourteen thousand dollars in LTV per customer and so they could spend absurd amounts of money 385 00:28:53.120 --> 00:28:57.200 to get customers in the door like even if it costs them five hundred dollars they're still making 386 00:28:57.200 --> 00:29:01.680 twenty eight to one on the money they put in and that is why that company's been able to scale 387 00:29:01.680 --> 00:29:06.560 to the moon in terms of the number of locations and so I will say that the all the money that I've 388 00:29:06.560 --> 00:29:12.400 made in my life that has been the crazy money has come from crazy LTV to CAC ratios and so 389 00:29:12.400 --> 00:29:16.720 the smallest ratios that I've made crazy money on is thirty to one all the way up to a hundred 390 00:29:16.720 --> 00:29:22.000 to one to two hundred to one returns and some of the businesses I have and so those those windows 391 00:29:22.000 --> 00:29:27.120 don't stay forever and when you do have one of those you just want to dump as much money into that 392 00:29:27.120 --> 00:29:31.200 machine as you possibly can because a lot of wealth is made in very short punctuated periods 393 00:29:31.200 --> 00:29:35.760 and then sustained by long periods of maintenance where you're getting five to one eight to one 394 00:29:35.760 --> 00:29:40.080 ten to one those are fine numbers but most of the time when you're at ten to one as soon as you 395 00:29:40.080 --> 00:29:44.720 start scaling it it might drop to five to one and so I actually end up seeing the bigger the ratio 396 00:29:44.720 --> 00:29:50.080 is at the beginning the more indication it is that I can scale profitably because if I'm let's say 397 00:29:50.080 --> 00:29:54.160 spending you know a thousand dollars a day and I can get a hundred to one then I know that I'm 398 00:29:54.160 --> 00:29:58.880 probably going to get to a hundred thousand dollars a day and get five to one right and so that's 399 00:29:58.880 --> 00:30:03.520 the idea is like how can I how can I scale this up and I care about absolute return not relative 400 00:30:03.520 --> 00:30:08.320 return but the CAC to LTV ratio gives me an indication how much room I have to blow this thing out 401 00:30:08.320 --> 00:30:13.520 of the water the easiest way to calculate what your lifetime gross profit is just look at all the 402 00:30:13.520 --> 00:30:18.400 customers that you sold over the last year look at gross profit and if you don't know gross 403 00:30:18.400 --> 00:30:23.120 profit is it's just the cost of goods basically the price you charge minus the cost of goods sold 404 00:30:23.120 --> 00:30:27.360 which is whether it's if it's services then it's the labor that you used to provide the service 405 00:30:27.360 --> 00:30:31.440 if it's a widget then it's the cost of the widget and the shipping associated with it so the cost 406 00:30:31.440 --> 00:30:36.160 of goods sold minus the revenue and that leftover is the gross profit and so you say okay I had a 407 00:30:36.160 --> 00:30:40.720 hundred customers this year I made this total amount of gross profit this year you'd buy that 408 00:30:40.720 --> 00:30:44.880 amount of gross profit by the total of number of customers that'll give you a broad brushstroke 409 00:30:44.880 --> 00:30:48.960 of what you make per customer now that'll always underestimate it especially if you have a 410 00:30:48.960 --> 00:30:51.920 recurring revenue business because they're going to hopefully have some people who buy again 411 00:30:51.920 --> 00:30:57.040 and again over time but I would always rather be on the safer side and underestimate my lifetime 412 00:30:57.040 --> 00:31:01.520 gross profit or lifetime value rather than overestimate and potentially lose money if I want to then 413 00:31:01.520 --> 00:31:06.000 take that number and say okay well what am I willing to spend per customer then at most you 414 00:31:06.000 --> 00:31:10.000 want to have a third of that number but for me specifically I want to make sure that whatever 415 00:31:10.000 --> 00:31:16.000 I collect in the first 30 days I want to make sure that I collect that back from customers so if 416 00:31:16.000 --> 00:31:19.760 I'm set let's say I sell something for 10 bucks a month people stay for 10 months and there's 417 00:31:19.760 --> 00:31:24.800 a hundred percent gross margins to make this simple so I make a hundred bucks in gross profit I want 418 00:31:24.800 --> 00:31:31.120 to see if I can find a way to make ten dollars back or get my pack back in that first 30 days 419 00:31:31.120 --> 00:31:35.440 and so sometimes it means having a one-time upcharge up front so they can offset the cost of 420 00:31:35.440 --> 00:31:40.000 acquisition so then the remainder of the customer relationship can be profitable and if these concepts 421 00:31:40.000 --> 00:31:44.800 about scaling like LTV2CAC are interesting to you we just open up a new workshops division at 422 00:31:44.800 --> 00:31:48.880 acquisition.com for companies that were not invested in if you would like us and my team to help 423 00:31:48.880 --> 00:31:53.840 you personalize kind of applying this stuff to your business you can go to acquisition.com click 424 00:31:53.840 --> 00:31:57.280 the scale button and you can see if your business qualifies otherwise back to the video. 425 00:31:57.360 --> 00:32:02.640 Piece of advice number five my ad creation process so I've been running ads for 13 years and I'm 426 00:32:02.640 --> 00:32:06.240 saying when I say running ads I mean like I've been making ads or directly influencing ads that 427 00:32:06.240 --> 00:32:10.960 have been run across my portfolio or companies that I directly owned or founded for 13 straight 428 00:32:10.960 --> 00:32:17.920 years and so I have this process pretty nailed and I haven't really ever gotten too far away from 429 00:32:17.920 --> 00:32:22.800 it partially because I like it a lot and I've gotten just pretty good at it and so this is how 430 00:32:22.880 --> 00:32:27.920 I do it so number one is that at all times I'm collecting data what I mean by that is like if I 431 00:32:27.920 --> 00:32:32.880 see ads on Instagram I see ads on YouTube like I have no pre-mic accounts on any platform because 432 00:32:32.880 --> 00:32:37.440 I want to hear the ads I want to hear the hooks I want to hear what they're doing to draw attention 433 00:32:37.440 --> 00:32:41.120 and I like using that stuff because I'm also a business owner so the people who advertise to me 434 00:32:41.120 --> 00:32:45.360 are the people that are going to try and hook my attention and so I can still use that stuff 435 00:32:45.360 --> 00:32:49.760 to get to my avatar and so if you are your avatar the ads count double for you and so I 436 00:32:50.320 --> 00:32:54.960 screenshot I record the stuff that I find interesting and I add it into one folder then when I 437 00:32:54.960 --> 00:32:59.120 get to my ad creation process which I do once a week I then sit down first thing in the morning 438 00:32:59.120 --> 00:33:03.360 and I do these the same day I record so that's just a piece of advice that has worked well for me 439 00:33:03.360 --> 00:33:07.840 like cramming for the test I cram for my ad sessions because then everything's top of mind as I 440 00:33:07.840 --> 00:33:12.400 go into the day and so I pull up all my sweat files of all the things that I want like my inspiration 441 00:33:12.400 --> 00:33:17.120 from the second thing that I pull up is all my historical best performing ads so I look back one 442 00:33:17.120 --> 00:33:21.600 years two years three years sometimes at all my best ads and I drink those back in and I 443 00:33:21.600 --> 00:33:25.360 watch the first 10 seconds watch the first 30 seconds CC okay how's it capturing what was the 444 00:33:25.360 --> 00:33:31.440 angle what was the hook here and then I start the actual hook creation process now 40 of my 50 hooks 445 00:33:31.440 --> 00:33:36.560 that I'm going to write out are going to be stuff that is tried and true I'm not going to try 446 00:33:36.560 --> 00:33:40.560 and reinvent the wheel we've already spent zillions and zillions of dollars I know that these hooks 447 00:33:40.560 --> 00:33:45.680 these entrances work well now 20 percent the last 10 is where I get to use all my inspiration 448 00:33:45.680 --> 00:33:49.520 and other ideas to try and experiment on but most people flip this they try and do a little bit 449 00:33:49.520 --> 00:33:53.760 of the stuff that worked and they have lots of new ideas I'm telling you I've done this a long time 450 00:33:53.760 --> 00:33:58.000 it's way more efficient to just do more of what worked and then leave a little bit of experimentation 451 00:33:58.000 --> 00:34:02.000 so that if some of those things stop working over time you have this fresh batch that you've been 452 00:34:02.000 --> 00:34:07.120 trying out that then can become the control that you try and beat so citing back to the 80 20 453 00:34:07.120 --> 00:34:12.400 concept of you put 80 percent of your effort into the hooks and 80 percent of your effort goes into 454 00:34:12.400 --> 00:34:16.720 stuff that tried and true and 20 percent for the things that are new all right so I make about 50 455 00:34:16.720 --> 00:34:22.240 hooks so 80 percent of that is 40 hooks and 20 percent of that is 10 hooks so 40 out of my 50 hooks 456 00:34:22.240 --> 00:34:27.920 I do for things that I already know have worked in the past 10 hooks I say for my new creative ideas 457 00:34:27.920 --> 00:34:31.920 and so that's for the inspiration stuff that I see or anything that I come to that cram session 458 00:34:31.920 --> 00:34:36.480 that I want to get out from there I then have my three to five angles that I'm going to write 459 00:34:36.480 --> 00:34:40.320 that's going to be educational or some sort of value that I'm going to deliver or some sort of 460 00:34:40.320 --> 00:34:43.920 belief that I want to break or some sort of list or steps or stories that I want to tell as 461 00:34:43.920 --> 00:34:47.680 the core meat of the ad some sort of proof I want to demonstrate and then finally just a quick 462 00:34:47.680 --> 00:34:52.800 CTA in terms of call to action but the majority of my effort is all on the 50 or so hooks 463 00:34:52.800 --> 00:34:56.480 that I'm going to write 40 of which being recycled versions of things that already know work 464 00:34:56.480 --> 00:35:02.560 and 10 being net new and this sounds boring and it is boring but it's also what works and believe 465 00:35:02.560 --> 00:35:09.120 me I have tried to change this process a lot of times like this works let's say that you have 466 00:35:09.120 --> 00:35:13.200 your a mega winner and these happen and this is where you get this is the this is power law 467 00:35:13.200 --> 00:35:18.960 like that top 5% makes 95% your income like you we run all these ads to figure out which is the 468 00:35:18.960 --> 00:35:24.640 one ad that can sing and just crank and print money and so what I do is I I use something that I 469 00:35:24.640 --> 00:35:28.560 call the Claudisco process I've never had anyone else sell it so I'm owning that title all right 470 00:35:28.560 --> 00:35:32.160 and so the Claudisco process this is how you do it is that let's say you've got a winning ad so 471 00:35:32.160 --> 00:35:38.800 I had an ad at Jamont that actually the now president kale made when he was a customer of him in front 472 00:35:38.800 --> 00:35:43.920 of his gym the gym being full and his wife's next to him and he's like you know six months ago 473 00:35:43.920 --> 00:35:48.800 I was working full-time job in order to pay rent at this gym and my wife was pregnant and we had oh 474 00:35:48.800 --> 00:35:53.200 and I had a two month old and I had no idea how it's going to make ends meet and then here we are six 475 00:35:53.200 --> 00:35:58.240 months later the gym is full it's completely outsourced and I've already got an offer for $250,000 476 00:35:58.240 --> 00:36:02.480 on the gym if you've ever been worried like take the jump just follow the process it works right it's 477 00:36:02.480 --> 00:36:09.360 very simple ad but it murdered it absolutely crushed and so rather than say wow okay well that 478 00:36:09.360 --> 00:36:13.840 was nice let's try and do that let's try and get somebody else to see that we took that and we 479 00:36:13.840 --> 00:36:19.040 squeezed the living life out of it and so here's 10 things that I did to get more out of that ad so 480 00:36:19.040 --> 00:36:23.360 one is I changed the color of the backgrounds if I can do that right or backdrops it's the 481 00:36:23.360 --> 00:36:27.120 way that we can record that ad with a different background or a different background color like if 482 00:36:27.120 --> 00:36:30.640 you have a green screen second is there are the different props that we can introduce that ad 483 00:36:30.720 --> 00:36:34.960 all right so can we show stuff can we can we show visuals or can show physical props three can we 484 00:36:34.960 --> 00:36:39.520 just reenact it and say okay how can you just do it again just literally do the same ad different 485 00:36:39.520 --> 00:36:43.280 t-shirt if you want same exact thing just do it again and if you're the one making the ads you just 486 00:36:43.280 --> 00:36:48.400 do your best performing ad again you can for reorder it so we took the ad that was already the 487 00:36:48.400 --> 00:36:53.360 original winner and we just re re-changed the order up of the ad and it's still converted the 488 00:36:53.360 --> 00:36:58.080 next things we added visual filters so think black and white think sepia think high contrast low 489 00:36:58.080 --> 00:37:01.920 contrast these are all different things that made the ad look different than it was but it still 490 00:37:01.920 --> 00:37:06.560 delivered the same message the next one is visual effects right VFX like dude ads and when 491 00:37:06.560 --> 00:37:11.120 whizz bangs and things like that that you can add to again make it look different the next is 492 00:37:11.120 --> 00:37:15.440 changing fonts and captions so it's like if we had a font style that was one way we just changed 493 00:37:15.440 --> 00:37:19.200 the way the font style looks another is that you can change the pacing or the speed of the video 494 00:37:19.200 --> 00:37:24.160 itself you can actually do it at 1.2 or 1.5 and have it go through or slow down at portions you can 495 00:37:24.160 --> 00:37:29.520 add music to it there's another one right you can also use the same hook which is like we knew 496 00:37:29.520 --> 00:37:33.440 the hook from that first ad obviously crushed and then just say hey re-recorded again we'll use the 497 00:37:33.440 --> 00:37:37.120 same hook and use a different back right and so all of those are different ways that will take a 498 00:37:37.120 --> 00:37:42.640 winner and then 10x or 100x how much that winner gets us and I'm telling you if you if you take one 499 00:37:42.640 --> 00:37:47.040 thing from this video from advertising squeeze the living how to the winners so mark advice number 500 00:37:47.040 --> 00:37:50.960 six is that there is only four ways they can let other people know about your stuff and so think 501 00:37:50.960 --> 00:37:56.160 about this like a four box you've got one to one conversations and one to many which is broadcasts 502 00:37:56.160 --> 00:37:59.440 right there's the two styles of community either community to a group of people or one person 503 00:37:59.440 --> 00:38:03.840 individually and you're either talking to people who know who you are or you're talking to strangers 504 00:38:03.840 --> 00:38:07.840 and so if you cross that you've got four ways you've got one to one to people who know you one to 505 00:38:07.840 --> 00:38:12.800 one to one to strangers one to many to people who know you one to many to strangers and if you look 506 00:38:12.800 --> 00:38:17.040 at that in terms of what that is an advertising it means this is warm outreach cold outreach making 507 00:38:17.120 --> 00:38:20.880 content which is one to many two people you know and then running ads which is one to many 508 00:38:20.880 --> 00:38:25.200 to strangers and so there's the only four things that you can do to advertise to let people know 509 00:38:25.200 --> 00:38:30.400 about your stuff and basically if you're not spending your day doing one of those core four things 510 00:38:30.400 --> 00:38:34.640 you are not advertising you are not marketing your business and so sometimes it gets you have to 511 00:38:34.640 --> 00:38:38.160 get it to that simple when you look at how many hours per day am I spending letting people know 512 00:38:38.160 --> 00:38:43.680 about my stuff most people spend zero zero zero per day letting people know about their stuff and then 513 00:38:43.680 --> 00:38:47.360 for some reason they're curious as to why their business isn't growing well no one knows you 514 00:38:47.360 --> 00:38:54.160 exist I was at a conference I was at gym con recently and I asked the audience who here wants to 515 00:38:54.160 --> 00:38:58.080 grow their gym faster everybody raised their hand and I said okay and these are all small businesses 516 00:38:58.080 --> 00:39:02.400 so these are most of the guys here doing I would say $500,000 a year to $3 million a year so these 517 00:39:02.400 --> 00:39:07.200 aren't massive businesses they're normal you know one location three location five location owner 518 00:39:07.200 --> 00:39:12.880 operators of service based you know training businesses and I said okay who here is spending the 519 00:39:12.880 --> 00:39:18.480 first four hours of their day promoting their business either doing cold outreach making content 520 00:39:18.480 --> 00:39:25.120 or running ads who is spending the first four hours every day on that literally no one in the 521 00:39:25.120 --> 00:39:30.400 audience had their hand raised and I was like this is why you're small like this is it like it was 522 00:39:30.400 --> 00:39:34.800 mind-blowing to me that that was what it was and so if you're if you're making less than 523 00:39:34.800 --> 00:39:39.760 called a million maybe three million dollars a year like all of your effort the the first four 524 00:39:39.760 --> 00:39:43.680 hours of your day which if you have to wake up early awesome if you have to stay up late to do it 525 00:39:43.680 --> 00:39:47.920 awesome I don't care but you need four hours that you're dedicating because you gotta you gotta do 526 00:39:47.920 --> 00:39:51.760 the job of promoting and then you gotta run your business but if you're just running your business 527 00:39:51.760 --> 00:39:56.400 you're never gonna get ahead so if you wanted to grow you gotta force it to grow you have to force 528 00:39:56.400 --> 00:40:00.400 people to find out about your stuff and you do that through advertising I recommend this so 529 00:40:00.400 --> 00:40:06.000 violently because small businesses need to do more and in the beginning they just don't get 530 00:40:06.000 --> 00:40:10.800 enough leads so fundamentally like most businesses if you just had more leads you would make more money 531 00:40:10.800 --> 00:40:16.720 now realistically and I'll get to some of the some of the specifics on this is that in order to 532 00:40:16.720 --> 00:40:20.800 get more leads you need to be able to do so profitably which thing comes back down to the business 533 00:40:20.800 --> 00:40:25.040 and building the business back to front we advertise front to back we build the business back to 534 00:40:25.040 --> 00:40:30.320 front and I'll get a lot of details on that in a second but big picture you just need to get 535 00:40:30.320 --> 00:40:34.000 especially when you're starting out you're at 500 a million you know less than three million and 536 00:40:34.000 --> 00:40:37.600 those are big numbers so I don't say I don't mean that to demean it but I want you to build massive 537 00:40:37.600 --> 00:40:43.840 enterprises that make huge impact you have to get more flow through the system so that you can 538 00:40:43.840 --> 00:40:49.120 learn how to improve the product so that you can build a better back end and then you basically 539 00:40:49.120 --> 00:40:54.000 you promote and you stay at that level of promotion until you tweak this and nail it then you go 540 00:40:54.000 --> 00:40:58.560 back and scale it and so one of our sayings internally is nail it then scale it so nail the back end 541 00:40:58.560 --> 00:41:04.000 you do enough promotion to get flow in right then you monetize then you create fiction that's 542 00:41:04.000 --> 00:41:07.920 when you tweak the hell out of it and then you can go back and say hey it turns out we could spend 543 00:41:07.920 --> 00:41:12.960 five times more to get customers then you scale so I'll give you my quick back of napkin scaling 544 00:41:12.960 --> 00:41:19.600 framework for this so when you're at zero to six figures you sell one product to one avatar on one 545 00:41:19.600 --> 00:41:24.880 channel that's it no shiny object no multiple channels no trying to scale yourself out of it 546 00:41:24.880 --> 00:41:29.920 you're just selling one product to one avatar on one channel when you go from six to seven figures 547 00:41:29.920 --> 00:41:35.520 you scale you sell one product to one avatar on one channel consistently because in the beginning 548 00:41:35.520 --> 00:41:38.400 you're super volatile right you're not you're making a sale this week not next week then this 549 00:41:38.400 --> 00:41:42.080 week again or the next month whatever it's super volatile when you get to seven figures it's more 550 00:41:42.080 --> 00:41:47.040 consistent you just you get it to be reliable so when you go from seven figures to eight figures 551 00:41:47.040 --> 00:41:53.360 you go one avatar one channel two products that means you have an upsell you sell something else 552 00:41:54.080 --> 00:41:59.520 and then you do that consistently right that's what gets you to eight figures that's what gets you 553 00:41:59.520 --> 00:42:03.760 to ten million bucks a year and if you want to go to you know multiple eight figures then you start 554 00:42:03.760 --> 00:42:10.800 going two channels one avatar two products consistently and so over time this is how I've seen I've 555 00:42:10.800 --> 00:42:16.800 just seen this pattern now can you find somebody who disabases pattern sure AG1 has one product one 556 00:42:16.800 --> 00:42:22.480 avatar a zillion channels right so yes there are ways to break this rule but when I look at 557 00:42:22.480 --> 00:42:27.360 by and large the vast majority of businesses they follow this structure and they mess up along the 558 00:42:27.360 --> 00:42:32.080 way until they follow the next step and you'll notice that scaling up to eight figures and even 559 00:42:32.080 --> 00:42:36.000 sometimes a little beyond that you're still only focused on one avatar and I'm going to talk about 560 00:42:36.000 --> 00:42:39.920 this in a lot of depth in one of the later advice points because it's super important this may be 561 00:42:39.920 --> 00:42:44.080 one of the bigger unlocks you could have in the business market vice number seven state the facts 562 00:42:44.080 --> 00:42:48.160 and tell the truth this is probably one of the most repeated phrases besides volume negates luck 563 00:42:48.160 --> 00:42:52.960 that I have internally to my business and so I remember when I was at that same little meetup with 564 00:42:52.960 --> 00:42:58.320 the super creators and I was I was talking to the guy who had the most you know subscribers there 565 00:42:58.320 --> 00:43:02.400 and I was like yeah you know like we don't really like this whole clickbait title thing and he looked 566 00:43:02.400 --> 00:43:08.640 at me with disgust he was like you absolutely make clickbait titles he said you just back it up with 567 00:43:08.640 --> 00:43:13.920 truth he's like so it's crazy clickbait he's like but it also happens to be true and I remember when 568 00:43:13.920 --> 00:43:20.560 he said that to me and I was like shit that's that's real and it's funny because that was a 569 00:43:20.560 --> 00:43:25.200 concept that I have in terms of paid ads but I hadn't thought about it in terms of content and so 570 00:43:25.200 --> 00:43:28.880 it's so interesting how some of these principles just apply across across domains but like sometimes 571 00:43:28.880 --> 00:43:34.080 you have to relearn the same lessons I hate doing but I did it anyways and so the problem is that 572 00:43:34.080 --> 00:43:40.160 most businesses don't track results and it's because if you don't track you don't care now they 573 00:43:40.240 --> 00:43:43.200 don't track partially because if they it's kind of like ignorance like they know they don't 574 00:43:43.200 --> 00:43:46.720 deliver good results and so if they track it then they'll have facts and truth that they will 575 00:43:46.720 --> 00:43:50.400 be proven that they're delivering bad results but the first step is tracking it because once you 576 00:43:50.400 --> 00:43:55.040 start tracking it you can improve it and measurement as intervention is actually a scientifically 577 00:43:55.600 --> 00:44:00.640 proven method to lose weight to improve sales to improve anything you want you can literally 578 00:44:00.640 --> 00:44:05.920 simply tracking it not trying to do anything else but simply tracking your weight simply tracking 579 00:44:05.920 --> 00:44:10.560 your clothes rate simply tracking your ad performance will improve it because you're just putting 580 00:44:10.560 --> 00:44:15.520 attention on it and so if you don't track you don't care now once you do start tracking it you can 581 00:44:15.520 --> 00:44:20.000 start doing things to actually improve it beyond just measurement as intervention and so when you do 582 00:44:20.000 --> 00:44:26.480 that loan behold your stats get better and then you can state the facts and tell the truth and 583 00:44:26.480 --> 00:44:32.880 have that truth be wildly compelling and so real talk the part of the reason that Jamont to this 584 00:44:32.880 --> 00:44:38.800 day has still not been beaten or dethroned as the the largest company in that space is because we 585 00:44:38.800 --> 00:44:43.360 still have better stats and better results than anyone else does the average gym who goes through 12 586 00:44:43.360 --> 00:44:48.160 months of gym launch makes over a hundred plus thousand a year and added profit by using the 587 00:44:48.160 --> 00:44:54.160 systems we have that's just what it is and so like if someone if it makes sense for somebody to 588 00:44:54.160 --> 00:44:59.200 triple their money then they make that they make the purchase right it's it's I like to take a lot 589 00:44:59.200 --> 00:45:02.000 of emotion out of the sale like if this makes sense for you if this return makes sense for you 590 00:45:02.000 --> 00:45:05.200 than do it if it doesn't make sense then don't do it now the risk they take on is what about the 591 00:45:05.200 --> 00:45:10.800 bottom 20% and so the nice thing is that we track that so the bottom 20% average $40,000 in additional 592 00:45:10.800 --> 00:45:15.760 revenue so they basically broke even and so it's like that's the bottom and so like if if that's 593 00:45:15.760 --> 00:45:18.800 you then it's like yeah you worked and you basically broke even that kind of sucks now I'm not 594 00:45:18.800 --> 00:45:23.040 talking about the top 20% because this guy's had 500,000 plus per year but the thing is is that if you 595 00:45:23.040 --> 00:45:27.920 track the stats then you can promote the stats and you can do so truthfully they go from unsubstantiated 596 00:45:27.920 --> 00:45:32.720 claims to substantiated claims like one of the things that I'm most proud of in school school 597 00:45:32.720 --> 00:45:35.760 calm which is the platform for people who are trying to start their businesses this video is mostly 598 00:45:35.760 --> 00:45:40.800 for people who already own a business but if you're trying to start a business 30.44% of people 599 00:45:40.800 --> 00:45:44.000 who finish their first month make their first dollar online like I'm super proud of that and we 600 00:45:44.000 --> 00:45:48.800 just rolled out this massive new thing to basically make it even easier even faster to do it right now 601 00:45:48.800 --> 00:45:53.920 if 35% more people actually succeeding there so I think we're going to be at a little bit over 40% 602 00:45:54.720 --> 00:45:59.280 so I'm super stoked about that but like unless you measure like if you don't track you don't care 603 00:45:59.280 --> 00:46:04.560 here's the tactical steps collect data first so you implement a data step where you collect data 604 00:46:04.560 --> 00:46:09.600 for people day one day 30 day 60 day 90 at the end of the program or whatever your implementation is 605 00:46:10.240 --> 00:46:15.200 you track data throughout number two is you keep improving things until the data becomes compelling 606 00:46:15.200 --> 00:46:19.040 and number three is how do you actually present that data so there's four variables that matters 607 00:46:19.040 --> 00:46:23.840 when you're presenting the data number one is the percentage of people whether that's the median 608 00:46:23.840 --> 00:46:29.600 the average or the percentage overall of people that's number one who to achieve X outcome three in 609 00:46:29.600 --> 00:46:36.320 Y time or after X attempts and four under Z conditions and so it's like we get X percent of gyms 610 00:46:36.320 --> 00:46:42.320 so it was whatever is the average average gym so right average gym owner makes an extra $100,000 611 00:46:43.040 --> 00:46:49.600 per year in profit so that's the outcome after the first 12 months in gym loads or gym legacy which 612 00:46:49.600 --> 00:46:53.840 is the the program that we have a gym much right and so those are the conditions right and so it 613 00:46:53.840 --> 00:46:58.080 covers all four of those so when you're making these you want to you would hit all four of those 614 00:46:58.080 --> 00:47:03.520 things when you're explaining the data publicly and I will say that the fewer conditions you have 615 00:47:03.520 --> 00:47:10.800 the more compelling it is because for example if I said the average gym who spends $10,000 a month 616 00:47:10.800 --> 00:47:17.360 and has 10 employees and has two methods of acquisition and a large group training and a small 617 00:47:17.360 --> 00:47:22.640 group training achieves like by the time I even get that you're like whatever right and so you 618 00:47:22.640 --> 00:47:28.640 want to you want to strip away and really like I would rather have a fewer condition statement 619 00:47:28.640 --> 00:47:34.640 that has lower results me personally than a higher result one with more conditions market advice 620 00:47:34.640 --> 00:47:38.960 number eight say what only you can say show what only you can show and this is one of the other 621 00:47:38.960 --> 00:47:44.720 isms that I have internal to my business and so if you're the only triple black belt in Ohio 622 00:47:44.720 --> 00:47:51.040 for Muay Thai then say that you're the only triple back belt in Ohio for Muay Thai right this is 623 00:47:51.040 --> 00:47:55.280 talking about the things that you have done rather than telling people what to do it's how I versus 624 00:47:55.280 --> 00:48:02.560 how to and so my my concept for making amazing ads and making amazing content is two steps do 625 00:48:02.560 --> 00:48:09.360 epic stuff talk about what you did and so you can't out outcome people or you can out work them 626 00:48:09.360 --> 00:48:13.840 so it starts with the out working and then the out working creates the out out coming and the 627 00:48:13.840 --> 00:48:18.800 out coming is a much shorter headline but the out working them still works right I can start by 628 00:48:18.800 --> 00:48:23.840 saying hey I wrote these two books writing two books would be an out working thing like anyone 629 00:48:23.840 --> 00:48:27.520 could do it there's no outcome but hey I wrote these two books but then if the books are good 630 00:48:27.520 --> 00:48:30.960 then I get the outcome which is that we sold over a million copies there's still number one 631 00:48:30.960 --> 00:48:35.440 and number two and marketing to this day multiple years later and so the idea is that first you do 632 00:48:35.440 --> 00:48:40.080 the work and then you get the outcome but most people want to say epic stuff having done none of it 633 00:48:40.080 --> 00:48:44.640 and so you can get past the judgment of other people because you're not saying hey you have to do 634 00:48:44.640 --> 00:48:50.400 anything I'm saying this is what I did and so the idea is that everybody wants a return on their time 635 00:48:50.400 --> 00:48:55.520 all right and I remember hearing this first concept from Iraq who's a youtuber and he said dude I made 636 00:48:55.520 --> 00:49:01.840 this thing where I went on 100 dates in basically I did an entire season of the bachelor but I did it 637 00:49:01.840 --> 00:49:07.920 in 16 minutes he's like what a steal and he said that to me I was like man such an interesting concept 638 00:49:07.920 --> 00:49:11.760 like he just took something that was really long and made it really short and he crammed it in 639 00:49:11.760 --> 00:49:15.680 there so value per second was super high and I'll just give you this one is that it's not about 640 00:49:16.480 --> 00:49:21.840 seconds of value it's value per second that's what matters like everybody has access to infinite 641 00:49:21.840 --> 00:49:25.920 information so you just saying I'm going to give you more stuff is not helpful what you want to do 642 00:49:25.920 --> 00:49:30.880 is curate it and pack it and distill it and crystallize all the value and as tight a package is 643 00:49:30.880 --> 00:49:35.920 nearly possible so that they're value per second skyrockets and you can do that by saying hey I 644 00:49:35.920 --> 00:49:41.920 spent 10 hours editing you know you know I spent I spent 20 hours making a summary of this book 645 00:49:41.920 --> 00:49:46.160 and you can read the whole thing in 10 minutes that's why summary still always work right because 646 00:49:46.160 --> 00:49:50.560 people want to get a deal on their time thinking the same result for fraction of the time it's always 647 00:49:50.560 --> 00:49:54.240 a good deal by the way if you ever want to sell to rich people just promise the same result 648 00:49:54.240 --> 00:49:57.760 in half the time for twice the price and even if you think about this video overall it's like well 649 00:49:57.760 --> 00:50:02.720 I spent 13 years doing all this stuff and I'm trying to compress those lessons into whatever 650 00:50:02.720 --> 00:50:08.080 amount of time this video is certainly less than 13 years and so this is a great deal for the right 651 00:50:08.080 --> 00:50:12.560 person for the right business owner who's actually trying to scale so how do you actually do this 652 00:50:12.560 --> 00:50:17.920 so if I had a marketing agency showing what only I can show I want to demonstrate and so I 653 00:50:17.920 --> 00:50:21.040 wouldn't say hey I'm going to get you leads what I want to do is get on a sales call and I'm 654 00:50:21.040 --> 00:50:25.600 going to play with a live lead that I got for one of my companies one of my clients sounds like 655 00:50:25.600 --> 00:50:29.280 and I'd be like hey listen to this call it's a minute long do you think you could how could you 656 00:50:29.280 --> 00:50:34.080 take 50 of these a month wow some more compelling than saying I'll just get you 50 leads they're actually 657 00:50:34.080 --> 00:50:39.120 getting a a fractionalized version they're getting a taste of what it looks like to be in the future 658 00:50:39.120 --> 00:50:43.040 right they're experiencing the result vicariously through the other person and fundamentally 659 00:50:43.040 --> 00:50:46.240 that's what a good testimony does is they they put themselves in the shoes of the person who got 660 00:50:46.240 --> 00:50:51.520 the result and then they account they put a discount on that and say okay how how likely is that 661 00:50:51.520 --> 00:50:55.680 for me and that's what I'm willing to pay now if it were guaranteed then all money making 662 00:50:55.680 --> 00:50:58.960 opportunities would be worth it because hey if you spend a thousand dollars to make a hundred 663 00:50:58.960 --> 00:51:02.800 thousand dollars a year by buying this course then everyone would buy it if they knew for sure 664 00:51:02.800 --> 00:51:06.480 it would happen they'd be an amazing deal the problems that people apply a discount to it because 665 00:51:06.480 --> 00:51:10.560 of how unlikely it is for them and so we want to increase that likelihood by showing them rather 666 00:51:10.560 --> 00:51:15.120 than telling them right and so agency example that was that one the software example that I have 667 00:51:15.120 --> 00:51:20.880 is this is why demos are so effective right you want to see this hey you have a video clipping 668 00:51:20.880 --> 00:51:24.720 software great do you have a video on you cool send it to me we're on the phone great I'm 669 00:51:24.720 --> 00:51:28.320 going to pull this video up this is what we do to put the captions on and and shorten and find 670 00:51:28.320 --> 00:51:32.560 those moments click click click click click click okay so normally how long does that take you well it 671 00:51:32.560 --> 00:51:36.960 takes me this song well watch me do it click click wow would that make your life easier yes cool 672 00:51:36.960 --> 00:51:40.720 boom they go in right you're demonstrating in advance and I'll give you final one when I was at my 673 00:51:40.720 --> 00:51:45.360 gym in Huntington Beach my first location I ever had I remember this I had a door to door sales guy 674 00:51:45.360 --> 00:51:51.360 who came up all right and this guy was a clear sale a pro he was really good and he told me 675 00:51:51.360 --> 00:51:55.280 cleaning products he really did like is that it's probably the only door to door thing I've ever bought 676 00:51:55.280 --> 00:51:59.920 and it was just because it was such a good it was such a good sale and he had it down it's so tight 677 00:51:59.920 --> 00:52:04.800 I think he was in that like 13 minutes like it was stupid and so he just said hey I've got this 678 00:52:04.800 --> 00:52:08.880 stuff it'll take care of any stain that you've got on this floor and I had turf and so I had gum 679 00:52:08.880 --> 00:52:12.640 that had gotten in the turf it was really black and let go in there and so he just took that thing 680 00:52:12.640 --> 00:52:16.320 and he poured it on the gum and he just got his hands and he's he scrubbed and it actually came out 681 00:52:16.320 --> 00:52:20.800 and the gum was actually impossible to get out and I was like wow like he I didn't have to think 682 00:52:20.800 --> 00:52:24.800 will this work for me he just did it in front of me on a stain I actually had he's like cool looks 683 00:52:24.800 --> 00:52:28.560 like you got 20 other stains if this is worth it it's a hundred bucks for this stuff so I paid a 684 00:52:28.560 --> 00:52:32.560 hundred bucks for some cleaning supplies but it was totally worth it right and I ended up using 685 00:52:32.560 --> 00:52:36.320 that stuff for actually years because I had the you sold my fucking huge gallons of it right 686 00:52:37.120 --> 00:52:41.600 and so again it's whenever you can and don't say oh this doesn't work for my business try and 687 00:52:41.600 --> 00:52:47.760 imagine how can I make this work for my business show them what what they will experience and do it 688 00:52:47.760 --> 00:52:53.280 in a way that no one else can do it and so for example me I the reason I say like do you epic stuff 689 00:52:53.280 --> 00:52:58.240 and then talk about it is that you continue to live life every day and so things continue to happen 690 00:52:58.240 --> 00:53:02.400 and so you can use the things that happen that you're doing as the content that you're making 691 00:53:02.400 --> 00:53:05.920 and the content will always be shorter than the amount of time it took for the thing to happen 692 00:53:05.920 --> 00:53:09.680 and so we have a portfolio of companies and so I share case studies on this channel like hey 693 00:53:09.680 --> 00:53:14.400 here's how we added 40 sales guys here's how we you know increased you know we cut cut refunds by 694 00:53:14.400 --> 00:53:19.040 two thirds here's how we XYZ and it's because we're doing stuff and then we just talk about we did 695 00:53:19.040 --> 00:53:24.240 and so the key point step one is do stuff and then step two talk about it everyone else is stuck 696 00:53:24.240 --> 00:53:27.040 in the step where they don't want to they want to figure out what to talk about but it's because 697 00:53:27.040 --> 00:53:30.880 they haven't done anything if you do stuff you have more than enough to talk about marking truth 698 00:53:30.880 --> 00:53:35.360 number nine how and when to expand your market there's five ways now big picture the vast majority 699 00:53:35.360 --> 00:53:39.600 of people need to do way more with their current markets so just to give you context on this 700 00:53:39.600 --> 00:53:44.960 I had a guy who came out to a workshop and he said hey I I'm a coach you coach coaches right 701 00:53:44.960 --> 00:53:48.320 and I was like all right fine he said I'm spending you know I'm making two million bucks a year 702 00:53:48.320 --> 00:53:53.120 it's a really saturated space so I think should I go broader it's a general business and I was like 703 00:53:53.120 --> 00:53:57.280 dude how many coaches coaching coaches exist and he was like zillions and I was like dude I think 704 00:53:57.280 --> 00:54:01.040 you just need to get better because if you were the best coach of coaching coaches then you would be 705 00:54:01.040 --> 00:54:04.800 able to take all of the market share that all of those guys have and it would come to you right 706 00:54:04.800 --> 00:54:08.800 when it takes all if you're the best and so just to give you an example and this is the one I gave him 707 00:54:08.800 --> 00:54:14.320 I said Jim launch everyone is as a gym company but you don't know how niche it really is so one we 708 00:54:14.320 --> 00:54:18.640 didn't work with personal trainers number two we didn't work we do now but we didn't for the first 709 00:54:18.640 --> 00:54:23.680 four or five years work with big box facilities so large you know facilities where you pay you know 710 00:54:23.680 --> 00:54:29.440 $10 to 70 bucks a month to have access to the the pool the racquetball thing the cardio area the weights 711 00:54:29.440 --> 00:54:34.640 basketball whatever we we didn't work with them at all I call this facility leasing we didn't use those 712 00:54:34.960 --> 00:54:39.920 we didn't work with yoga we didn't work with spin we didn't work with Pilates we literally only 713 00:54:39.920 --> 00:54:45.440 worked with micro gyms that did before and after of weight loss and transformations they had to do 714 00:54:45.440 --> 00:54:52.240 fitness and weights or some combination of those that was it that's a niche of a niche of a niche 715 00:54:52.240 --> 00:54:57.600 and that business still cranks out 30 plus million dollars a year all right and so the idea here is 716 00:54:57.600 --> 00:55:04.080 that you want like the market if you are the best is still massive you just need to solve the 717 00:55:04.080 --> 00:55:09.920 thing that matters most which is being the best now if you have solved being the best there's five 718 00:55:09.920 --> 00:55:14.320 ways that you can expand and so I'll tell you what we did because gym launch has expanded I told you 719 00:55:14.320 --> 00:55:18.640 now we do do big box but there's five weeks you can expand one I think about like a pyramid so let's 720 00:55:18.640 --> 00:55:23.680 say you're in the middle you can go up market meaning you go to higher value customers so for us 721 00:55:23.680 --> 00:55:28.720 that would be health clubs the big boxes like I was talking about multi location owners or franchise 722 00:55:29.280 --> 00:55:33.120 those would be going up market more valuable but fewer of them like the pyramid on the other 723 00:55:33.120 --> 00:55:36.880 hand you can go down market I could go after personal trainers I didn't go after them we don't go 724 00:55:36.880 --> 00:55:40.560 after them but if I wanted to that would be a move that I could make I would have to sell a lot 725 00:55:40.560 --> 00:55:44.320 more volume at a lower price and build the infrastructure to support that kind of volume I could 726 00:55:44.320 --> 00:55:49.280 go adjacent which would be okay I've got gyms I'll do car fractures I'll do or I've got gyms and 727 00:55:49.280 --> 00:55:53.680 I can do weight loss clinics right or medspos or something like that so something that's adjacent 728 00:55:53.680 --> 00:55:58.160 that serves a similar avatar but a slightly different business model that would be adjacent and the 729 00:55:58.160 --> 00:56:02.240 fifth way you can do it is that you actually go narrower so that was the fourth way so the fourth 730 00:56:02.240 --> 00:56:08.000 way is you can go narrower which is say okay instead of all gyms or just micro gyms that service 731 00:56:08.000 --> 00:56:13.920 before and after as I say I only do you know ones that do weights or I only do ones that only do 732 00:56:13.920 --> 00:56:18.640 cardio right or I only do boot camps or I only do semi-private like I'd niche down even more 733 00:56:18.640 --> 00:56:22.320 the alternative is that you go broader and I say anyone that's in health and wellness 734 00:56:23.120 --> 00:56:26.480 and so those are the five ways that you can expand you can go up market you can go down market you 735 00:56:26.560 --> 00:56:30.320 go adjacent market you can go narrow you can go broad now despite me saying these five ways of 736 00:56:30.320 --> 00:56:33.520 expanding and everyone gets their juices you know their jollies off I think about how they're 737 00:56:33.520 --> 00:56:37.360 going to expand most time I'm going to start with that original story which is that you can make 738 00:56:37.920 --> 00:56:42.320 10 20 50 million dollars a year just serving one very specific avatar and the vast majority of 739 00:56:42.320 --> 00:56:46.960 businesses this is including portfolio companies that we purchased I would say I would say more than 740 00:56:46.960 --> 00:56:51.760 half the portfolio companies we've purchased we did this exercise and we made the avatar narrower 741 00:56:51.760 --> 00:56:56.720 we got more specific not broader I learned this process from Vista private equity so if you don't 742 00:56:56.720 --> 00:56:59.280 know they are there a hundred billion dollar plus private equity one of the most successful 743 00:56:59.280 --> 00:57:02.720 private equity of all time they focus on software companies and I talked to their head of pricing 744 00:57:02.720 --> 00:57:07.200 and packaging and he gave me this one line and it changed my life and he said you want to know how 745 00:57:07.200 --> 00:57:10.720 we get the crazy returns that we do and I was like yeah obviously I want to know what you guys do 746 00:57:10.720 --> 00:57:14.800 now obviously they do lots of things but the one thing that he pulled out he said we just know 747 00:57:14.800 --> 00:57:18.560 the company that we're buying customers better than they do and so we get we go into the data room 748 00:57:18.560 --> 00:57:21.360 so whenever you do an acquisition there's something called a data room you put all the data for your 749 00:57:21.360 --> 00:57:24.720 business in there so people can analyze it and make a decision about whether they want to invest 750 00:57:24.720 --> 00:57:30.320 and so we go into the data room and we analyze all their customers and we say okay we order them by 751 00:57:30.320 --> 00:57:35.360 who pays the most and who's worth the most and we say this is the 20% that does 80% of the revenue 752 00:57:35.360 --> 00:57:39.520 and what they do is they look at what channels those people come in on what offers what marketing 753 00:57:39.520 --> 00:57:46.240 those customers do and they basically stop doing the rest of the 80% and they expand that 20% to be 754 00:57:46.240 --> 00:57:50.720 100% of the business and so by doing that they can have the same size business but 5x the revenue 755 00:57:51.360 --> 00:57:56.480 and arguably even more on the profit and so just parallel the the pretto principle 8020 and they 756 00:57:56.480 --> 00:58:00.640 just apply it to the customers and so right now this is how you do it for you is you look at all the 757 00:58:00.640 --> 00:58:05.120 customers you have up to this point you look at the top 20% and you say okay what are these people 758 00:58:05.120 --> 00:58:08.720 all having common and so I like to think about this in terms of psychographics what do they think 759 00:58:08.720 --> 00:58:13.280 geographic what do they live demographics what do they look like and then I would say like actions 760 00:58:13.280 --> 00:58:16.880 like what have they done or what do they do to get this result and so when I look at each of those 761 00:58:16.880 --> 00:58:21.680 frames I try and eliminate as many variables as I can so I get to two or three variables that 762 00:58:21.680 --> 00:58:25.920 that clump all the best customers together and then I make that in my marketing and I tell my 763 00:58:25.920 --> 00:58:29.840 sales team we only sell these people going forward because I know that these people were worth 5 times 764 00:58:29.840 --> 00:58:34.800 more 10 times more and then guess what's able to happen we run ads for those people and then our 765 00:58:34.800 --> 00:58:39.360 LTV sky rocket so we can spend more to acquire customers and this is what allows you to scale by 766 00:58:39.360 --> 00:58:44.640 going narrower and so the problem is that most business owners can't say no to fast money and so 767 00:58:44.640 --> 00:58:51.120 they never get the big money and so I had two companies that came out for a workshop that we had 768 00:58:51.120 --> 00:58:56.160 and one they're both agencies is very simple example so one was a generalist agency they just did 769 00:58:56.160 --> 00:58:59.440 anybody who knocked on the door they would they would take their money the other one just did 770 00:58:59.440 --> 00:59:06.480 professional services that's legal financial insurance like those types of services and the the 771 00:59:06.480 --> 00:59:10.160 generalist guys I said okay you have this big list of customers I'm sure that there's a sub-segment 772 00:59:10.160 --> 00:59:12.960 of those customers that you do exceptionally well with they're like oh my god we crush a 773 00:59:12.960 --> 00:59:16.800 variety people and I was like okay cool so what percentage of your customers are those they're like 774 00:59:16.800 --> 00:59:21.280 8% I was like but are they more profitable about percentage and he's like oh by a mile they're 775 00:59:21.280 --> 00:59:25.840 by far the most profitable I was like okay so if you're entire business and they were really 776 00:59:25.840 --> 00:59:29.520 struggling in terms of infrastructure they're like super stressed out you could see it I was like 777 00:59:29.520 --> 00:59:32.800 if your whole business was just those do you think you'd like that business and you was like oh my 778 00:59:32.800 --> 00:59:36.240 god that'd be a breeze and I was like well then we can build that business and so that means 779 00:59:36.240 --> 00:59:39.920 that from here on out you only sell those people and over time the slight the percentage of the pie 780 00:59:39.920 --> 00:59:43.600 that's those customers is continue to increase until eventually you can cut the customers that are 781 00:59:43.600 --> 00:59:47.280 not your main thing and then in a year or two years you've completely transformed your business 782 00:59:47.280 --> 00:59:50.320 as something that's been productized you get really efficient you get even better at it because 783 00:59:50.320 --> 00:59:53.360 you only serve those customers you get better acquiring them get better servicing them you get 784 00:59:53.360 --> 00:59:56.720 higher margins and you actually like your life and so the same thing happened with the second 785 00:59:56.720 --> 01:00:00.080 agency where I said what are the customers you have they're like actually we're really good at 786 01:00:00.080 --> 01:00:04.400 specifically family law attorneys so like divorce attorneys and they had all these other things 787 01:00:04.400 --> 01:00:07.360 I was like but divorce attorneys are really good with them like yeah I was like then just sell 788 01:00:07.360 --> 01:00:11.760 divorce attorneys and because the thing is if you just sell divorce attorneys it's a multi-billion 789 01:00:11.760 --> 01:00:15.040 dollar pre-industry like there's no reason you can't do a hundred million dollars a year or two 790 01:00:15.040 --> 01:00:20.400 hundred million dollars a year just selling those people and the same with the IT so the idea is 791 01:00:20.400 --> 01:00:23.760 like people start taking on more avatars because they think that's what's necessary to grow but 792 01:00:24.720 --> 01:00:30.640 and I've said this before but better creates bigger bigger creates below and so if the goal is 793 01:00:30.640 --> 01:00:36.080 to get bigger you want to focus not on getting bigger but on getting better and then getting bigger 794 01:00:36.080 --> 01:00:43.280 occurs growth occurs as a result growth is not a goal growth is an outcome of inputs and so I'm telling 795 01:00:43.280 --> 01:00:47.760 you like it took me a very long time to understand this so I'm trying to get like every entrepreneur has 796 01:00:47.760 --> 01:00:50.880 this ego goal of like I want to hit this a month and I want that a month and I want that a month 797 01:00:50.880 --> 01:00:55.120 but the thing is just like you don't want to make the income the goal if you do it gets really hard 798 01:00:55.120 --> 01:00:58.960 to get out of that game because sometimes you take the wrong steps you artificially inflate revenue 799 01:00:58.960 --> 01:01:02.960 and then you increase costs to sustain that revenue but it was the wrong strategic move and but then 800 01:01:02.960 --> 01:01:07.440 you can't go backwards you stay in the cycle forever you don't want to do that you think okay how do I 801 01:01:07.440 --> 01:01:11.680 make the core thing that I do better because fundamentally if this were twice as good as it is now 802 01:01:11.680 --> 01:01:16.320 would I be bigger yes because your customers would demand it you get far more leverage by doing 803 01:01:16.320 --> 01:01:20.720 the same thing a hundred times than doing a hundred things one time and so the vast majority 804 01:01:20.720 --> 01:01:24.000 businesses especially when they're starting out are doing a hundred things one time rather than 805 01:01:24.000 --> 01:01:27.040 the same thing a hundred times and you get a hell of a lot better when you do something on the 806 01:01:27.040 --> 01:01:30.800 hundredth time and so that means that you drive up your operational efficiency you drive up your 807 01:01:30.800 --> 01:01:35.200 growth profit you get better at your acquisition because you're marketing messaging your sales scripting 808 01:01:35.200 --> 01:01:39.760 the results that you can promise all those things get better and now you're competing in a smaller 809 01:01:39.760 --> 01:01:43.040 pond so you can dominate everyone but when people think small pond they think that somehow that 810 01:01:43.040 --> 01:01:46.240 means that they're not going to make a lot of money like I said Jim much makes a lot of money and 811 01:01:46.240 --> 01:01:51.600 it's in a very very very narrow niche and so you just got to be more specific most times and break 812 01:01:51.600 --> 01:01:55.440 the limiting beliefs you have around the idea that like okay well I just need to go from you know 813 01:01:55.440 --> 01:02:00.080 I've saturated chiropractors right I've I've saturated this with two million dollars a year in 814 01:02:00.080 --> 01:02:04.560 revenue of course not right every single other business that exists that serves your customer the 815 01:02:04.560 --> 01:02:08.640 fact that they're allowed to be alive and breathe shows you how much opportunity you have if you were 816 01:02:08.640 --> 01:02:13.280 better than them number ten provide value now everybody talks about providing valuable what does 817 01:02:13.280 --> 01:02:16.800 that even mean all right so in in this book I talk about something called the value equation is 818 01:02:16.800 --> 01:02:20.560 probably the most cited chapter in this whole book but I break down what are the elements of value 819 01:02:20.560 --> 01:02:24.480 and so there are four number one is the dream outcome which is what does somebody actually want 820 01:02:24.480 --> 01:02:30.000 so if I were to offer like Daniel who's behind the camera right now I said hey you can get in 821 01:02:30.000 --> 01:02:34.720 shape or I can make you million dollars right making money for most men is more valuable than 822 01:02:34.800 --> 01:02:39.760 getting a better shape and so the relative opportunity or the relative outcome will dictate 823 01:02:40.320 --> 01:02:43.920 how much money you can charge that's why in general B2B offers a higher ticket now there are also 824 01:02:43.920 --> 01:02:48.240 fewer people who buy making money than people who buy consumer products so you have about one tenth 825 01:02:48.240 --> 01:02:52.480 so 9% of people are business owners so you have a much smaller market that being said does the 826 01:02:52.480 --> 01:02:56.960 the size of the market really matter based on the thing I just said probably not but again number 827 01:02:56.960 --> 01:03:00.800 one is dream outcome that's what differentiates now let's see if you've got two products that 828 01:03:00.880 --> 01:03:05.520 offer the same solution so let's say the weight loss example or the getting shape example if I 829 01:03:05.520 --> 01:03:10.320 have a PDF for that and I've got a liposuction both of them promise the same thing which is that 830 01:03:10.320 --> 01:03:13.440 you're going to get a better shape you're going to lose weight okay well then why is liposuction 831 01:03:13.440 --> 01:03:17.680 so much more expensive than a PDF that I could buy on the internet for 20 bucks they both promise 832 01:03:17.680 --> 01:03:21.280 the same outcome well there's three other variables so variable number one is the perceived 833 01:03:21.280 --> 01:03:24.720 likelihood of achievement or the risk associated with the purchase so risk would be the negative 834 01:03:24.720 --> 01:03:27.760 perceived likelihood of achievement is the positive and so we want to increase the perceived 835 01:03:27.760 --> 01:03:31.600 likelihood as much as possible so if we had that liposuction and we've got one surgeon who's 836 01:03:31.600 --> 01:03:34.960 his first day out of medical school and we've got another surgeon who's done 10,000 surgeries 837 01:03:34.960 --> 01:03:38.640 which these guys can price higher well obviously you'd want to take the 10,000 one even though it's 838 01:03:38.640 --> 01:03:42.400 the same procedure and the same outcome the perceived likelihood of you actually getting what you 839 01:03:42.400 --> 01:03:46.160 want the risk associated is lower and so you're willing to pay more for that guy because you have more 840 01:03:46.160 --> 01:03:52.880 experience the third variable of this is time delay the equal opposite of that is speed how quickly 841 01:03:52.880 --> 01:03:58.240 between when someone buys and when they get the promise that you outcome now if you do liposuction 842 01:03:58.240 --> 01:04:01.680 it's like great you make the purchase then you go to sleep and you wake up and you're thin very 843 01:04:01.680 --> 01:04:06.320 very condensed which is why it has a lot of value right whereas if you have to do all this eating 844 01:04:06.320 --> 01:04:10.160 and this exercising and not drinking and changing your diet and all this waking up early and being 845 01:04:10.160 --> 01:04:14.720 sore all this like there's a lot of there's a lot of there's a lot of delay there in terms of 846 01:04:14.720 --> 01:04:18.960 how much time and effort it's time specifically it's going to take to get the outcome you want 847 01:04:18.960 --> 01:04:24.640 so the faster it is the more valuable it is and then finally you have effort and sacrifice or 848 01:04:24.640 --> 01:04:29.040 equal opposite ease how easy can you make it and so if you're trying to think about this in simple 849 01:04:29.040 --> 01:04:33.760 terms it's how risk-free can I make it how easy can I make it how fast can I make it and is the 850 01:04:33.760 --> 01:04:37.840 thing that I'm promising the outcome that I'm promising something they actually want and so if you 851 01:04:37.840 --> 01:04:41.440 have all four of those you have something that people really want they have no risk of doing it 852 01:04:41.440 --> 01:04:46.080 it comes immediately and it's easy it's easy it's pushing a button you've got an incredibly 853 01:04:46.080 --> 01:04:50.320 valuable thing and so when people say add value what you want to think about is what is my 854 01:04:50.320 --> 01:04:55.200 customer what does my avatar want to accomplish or what do they want to avoid so you've got 855 01:04:55.760 --> 01:05:00.880 towards good stuff and away from bad stuff and say say okay I can help you avoid this bad stuff 856 01:05:00.880 --> 01:05:06.720 risk-free faster and easier than otherwise and the dream outcome the good stuff same thing again 857 01:05:06.720 --> 01:05:11.680 is how can I help you get that good stuff faster easier and risk-free and so every time you make 858 01:05:11.680 --> 01:05:15.440 content or every time you get PDF every time you make a lead magnet whatever it is or you make 859 01:05:15.440 --> 01:05:20.080 content the whole goal should be to be useful the whole goal should be to provide value and you do 860 01:05:20.080 --> 01:05:23.760 that by helping them achieve their goal which hopefully with this video helping you market better 861 01:05:23.760 --> 01:05:27.280 your business by making it risk-free so you don't have to make the mistakes I did get to your 862 01:05:27.280 --> 01:05:32.560 goal faster and get there easier so the easiest way to think okay got it well how do I find the 863 01:05:32.560 --> 01:05:36.080 problems that people are suffering from so that I can make it faster easier and risk-free for them 864 01:05:36.080 --> 01:05:40.960 great question so one is any comments that you get in in response to content that creates more 865 01:05:40.960 --> 01:05:44.320 content this is the endless content wheel it's like you make content people if questions about the 866 01:05:44.320 --> 01:05:47.040 content you make content about the questions they have questions about that question the good 867 01:05:47.040 --> 01:05:50.400 thing is that problems never end and people never stop complaining and so as long as people stop 868 01:05:50.400 --> 01:05:52.960 complaining people have problems you're always gonna have problems to solve which is one of the 869 01:05:52.960 --> 01:05:57.280 nice things about being entrepreneur you like humanity if you told us hundreds of years ago that we'd 870 01:05:57.280 --> 01:06:01.280 have the internet in our hands and we'd have air conditioning and Wi-Fi and all this stuff we'd be 871 01:06:01.280 --> 01:06:04.560 like oh my god all of our problems are solved but we have more problems now than we did before because 872 01:06:04.560 --> 01:06:08.240 we're more aware of the problems that we didn't know existed before and so whenever you solve a 873 01:06:08.240 --> 01:06:11.760 problem you create another one it's the problem solution cycle it never ends and so one is you 874 01:06:11.760 --> 01:06:14.560 can look at that the others you can look internal to your business which is what are the what are 875 01:06:14.560 --> 01:06:18.000 the things that people struggle with internal in terms of implementation for whatever the thing that 876 01:06:18.000 --> 01:06:21.600 you do is whether it's a product that you sell or a service that you sell there's some friction 877 01:06:21.600 --> 01:06:25.600 points along the way and you think okay what are the friction points and how can I make it easier 878 01:06:25.600 --> 01:06:29.760 number 11 is a fairly well known marketing saying giveaway the secrets sell the implementation 879 01:06:29.760 --> 01:06:33.520 the way that I think about this is make your free stuff better than their paid stuff and that's an 880 01:06:33.520 --> 01:06:38.560 easy ism to say but the real real is like you actually have to think if I give away something 881 01:06:38.560 --> 01:06:43.040 for free I have to be willing to charge for it and if you were willing to charge a hundred dollars 882 01:06:43.040 --> 01:06:46.960 or a thousand dollars or ten thousand dollars for the thing that you give away for free my god 883 01:06:46.960 --> 01:06:51.120 must that be valuable yes and what that does is it increases the likelihood of conversion increase 884 01:06:51.120 --> 01:06:54.960 the likelihood the person consumes the thing and then buys the next product because what a lead 885 01:06:54.960 --> 01:07:00.240 magnet is or what content is it's a complete solution to a very narrow problem and that's fundamentally 886 01:07:00.240 --> 01:07:03.920 how I think about this a lot of people are very afraid of giving away value but you shouldn't be 887 01:07:03.920 --> 01:07:07.920 give away all the secrets give away all the things that you do and then if someone wants help with 888 01:07:07.920 --> 01:07:13.200 implementation they can call you up and this allows you to provide value to the masses build your 889 01:07:13.200 --> 01:07:17.680 brand up and then they use results in advance as an approximation of the results they're going to 890 01:07:17.680 --> 01:07:22.640 get after they purchase right and so even when you're marketing in terms of making content I'd 891 01:07:22.640 --> 01:07:28.240 like to think of being okay with narrow because deep is where the dollars are all right so let me 892 01:07:28.240 --> 01:07:32.640 tell you let me tell you a couple stories about this so there was a lady who I just recently met 893 01:07:32.640 --> 01:07:40.560 who was doing just under a million dollars a year in profit profit from 5,800 followers on Instagram 894 01:07:40.560 --> 01:07:44.880 she had no other platforms she sourced a hundred percent from Instagram and this blew my mind I mean 895 01:07:44.880 --> 01:07:50.160 like I say this stuff but having having that level like it was such an extreme example of tiny 896 01:07:50.160 --> 01:07:55.600 audience big money it broke my beliefs even further than I already had them broken and when I looked 897 01:07:55.600 --> 01:08:00.160 at her page here's what's crazy it wasn't like she had crazy deep engagement either it was like 898 01:08:00.160 --> 01:08:06.240 the post you would get would get you know one five maybe ten comments on a great post and she would 899 01:08:06.240 --> 01:08:14.000 get you know ten likes twenty likes thirty likes if it was a crazy one but 100 percent of her content 900 01:08:14.000 --> 01:08:21.120 was about how registered dietitians can more accurately build insurance to make more money 901 01:08:21.120 --> 01:08:27.680 it was a niche of a niche it was literally like registered dietitians who build insurance and how to 902 01:08:27.680 --> 01:08:32.000 build insurance more effectively to make more power that was her offer and that's all she talks about 903 01:08:32.000 --> 01:08:37.040 her cheat sheets are on that and she talks about different insurance companies and how to build each 904 01:08:37.040 --> 01:08:41.680 of them the codes that you go the you plug in like like all this jargon I had no idea when I went to 905 01:08:41.680 --> 01:08:46.080 the page but for her avatar I'll bet you that of the five thousand eight hundred people that follow 906 01:08:46.480 --> 01:08:51.360 five thousand seven hundred of them were registered dietitians who were trying to find out 907 01:08:51.360 --> 01:08:56.480 what they needed to do to make more money by building insurance and so she was selling five to ten 908 01:08:57.200 --> 01:09:04.560 little cheat sheets a day like ninety-nine bucks plus two to three high ticket people per week 909 01:09:04.560 --> 01:09:10.080 into her thing into her association of registered dietitians that followed her process for billing 910 01:09:10.080 --> 01:09:14.400 and so I say this because I've also learned this personally we used to make some wider content 911 01:09:14.400 --> 01:09:18.080 for about six months we did this we did this experiment we got the data back it turned out we got 912 01:09:18.080 --> 01:09:21.680 lots of views but we didn't go lots of business owners and so we switched back to hardcore business 913 01:09:21.680 --> 01:09:25.760 stuff which I love anyway so I'm very happy about the experiment and because of that all of our 914 01:09:25.760 --> 01:09:30.240 stats are up so we have more opt-ins more people buying books more people you know going to workshops 915 01:09:30.240 --> 01:09:34.000 whatever it is more people applying the portfolio so we can invest in their companies all of those 916 01:09:34.000 --> 01:09:38.480 stats were up despite the fact that the general views per video went down and again I'm here for 917 01:09:38.480 --> 01:09:43.600 the money not for the fame and so I encourage you if you can break your attachment to the ego metrics 918 01:09:43.600 --> 01:09:47.920 like the likes and the views and things like that and just focus on the bottom line just get 919 01:09:47.920 --> 01:09:54.240 really specific on the avatar that you want to serve and make content only for them that's useful 920 01:09:54.240 --> 01:10:00.160 so I've got a buddy of mine who runs a multi-nine figure per year marketing company and he makes content 921 01:10:00.160 --> 01:10:05.040 online he has a personal brand and he was like oh dude my personal brand makes no money he's like 922 01:10:05.040 --> 01:10:11.040 but and he goes super in-depth tactical like stuff he's an SEO G and so all this stuff is like 923 01:10:11.120 --> 01:10:17.040 how to make SEO content block content things like that and his content gets like so few 924 01:10:17.600 --> 01:10:22.080 likes and engagement and he has like charts and graphs and all this data support all he does he's 925 01:10:22.080 --> 01:10:27.360 obviously really really good at this but the thing is he's his lead quality that comes from him he's 926 01:10:27.360 --> 01:10:33.120 like they're all Fortune 500 Fortune 100 CEOs executives that are like hey you obviously know 927 01:10:33.120 --> 01:10:38.160 this stuff can we just hire you and that's exactly who wants he wants he he makes it so complex he 928 01:10:38.160 --> 01:10:41.520 gives away everything and he says it he's like I give you could just follow on my stuff and do it 929 01:10:41.520 --> 01:10:45.760 most people are like man this is too much work and so they can I just hire you which is an 930 01:10:45.760 --> 01:10:52.480 exceptional way to get customers so here's how you do it in three easy steps one is you just give 931 01:10:52.480 --> 01:10:56.400 away your best stuff give it all away if you have a low ticket thing that sells to lots of people 932 01:10:56.400 --> 01:10:59.360 and you have a high ticket thing I would encourage you just give away the low ticket thing too you're 933 01:10:59.360 --> 01:11:02.640 probably not making those money on it anyways and those customers are probably paying the butt so 934 01:11:02.640 --> 01:11:05.440 just give it to him and you can even show hey I used to charge for this and give it to you for free 935 01:11:05.440 --> 01:11:09.760 because I love you all right and by doing that you make an exceptional thing and you put really 936 01:11:09.760 --> 01:11:16.240 heavy effort into follow up and cost to action within the within the content itself all right so 937 01:11:16.240 --> 01:11:20.160 within the thing that you're giving away you have CTAs and you follow up with your team to try and 938 01:11:20.160 --> 01:11:25.040 send them in the next thing if they're qualified and I'll give you a pro tip on this when you want 939 01:11:25.040 --> 01:11:30.400 to make the CTA make it about personalization not about more instead of saying hey if you want more 940 01:11:30.400 --> 01:11:35.200 stuff like this go here say hey if you want me to help apply this stuff to your business or apply 941 01:11:35.280 --> 01:11:40.000 this stuff to your body or this stuff to your life then let me know it's personalizing it because 942 01:11:40.000 --> 01:11:44.160 that is significantly more valuable than just more stuff and what's crazy is that a lot of people 943 01:11:44.160 --> 01:11:47.840 use the things they give away as an afterthought it's the last thing they think about but here's 944 01:11:47.840 --> 01:11:52.480 the crazy step is that 99% of people who consume your free thing will never buy from you which means 945 01:11:52.480 --> 01:11:56.880 that your reputation is getting made by the 99% of people not the 1% and so if you want to improve 946 01:11:56.880 --> 01:12:01.280 your reputation the marketplace make sure the stuff that you give away for free is awesome also 947 01:12:01.280 --> 01:12:04.720 make sure the stuff that you sell is awesome and if both those things sound like a four-letter word 948 01:12:04.720 --> 01:12:09.600 which is work welcome to business and so I talked earlier about going up market or getting narrower 949 01:12:09.600 --> 01:12:13.120 on the avatar that you want to serve a lot of people have down sales and I think over time I've 950 01:12:13.120 --> 01:12:18.800 gotten less and less into having down sales and more along lines of like if we have a lower avatar 951 01:12:18.800 --> 01:12:24.080 and we're down selling 10% of calls into this thing that's paid if 10% of people are buying something 952 01:12:24.080 --> 01:12:27.920 that's one 10th the price because it's a down sell then it's going to change my revenue by 1% 953 01:12:27.920 --> 01:12:31.680 I don't really care it's not even worth the headache I'd rather just give that away to hundreds of 954 01:12:31.680 --> 01:12:35.120 people for free because of the cost is free way more people will consume it and then get a higher 955 01:12:35.120 --> 01:12:40.720 percentage people to buy my next thing and I allow my marketing messaging to attract the higher 956 01:12:40.720 --> 01:12:44.720 quality customers so this allows me to go up market or narrower and give away all the other stuff so 957 01:12:44.720 --> 01:12:48.720 I can create my more qualified customers the amount of businesses that I know that one that we've 958 01:12:48.720 --> 01:12:53.680 invested in or do that we've helped simply make way more money by just giving away the thing that 959 01:12:53.680 --> 01:12:57.360 was their big headache that was a low ticket thing just so that they could focus on serving 960 01:12:57.360 --> 01:13:03.520 the best customers most times you'll make money going up market market advice number 12 all 961 01:13:03.520 --> 01:13:08.720 advertising works it's just a matter of efficiency I'm really I like I want to I want to drill 962 01:13:08.720 --> 01:13:11.760 this down people so it's the amount of time I say Facebook guys don't work for us Google ads don't 963 01:13:11.760 --> 01:13:14.800 work for us TikTok ads don't work for us direct mail doesn't work for us radio ads don't work for us 964 01:13:14.800 --> 01:13:19.600 content doesn't work for us outreach doesn't work for us fundamentally if you have a qualified 965 01:13:19.600 --> 01:13:24.800 person on the other side and you make an offer to them that solves a key problem for them if you 966 01:13:24.800 --> 01:13:29.920 can get them on the phone you can make money period so if you can rephrase the problem is I don't 967 01:13:29.920 --> 01:13:33.120 know how to make Facebook ads work for us I don't know how to make TikTok work for us I don't know 968 01:13:33.120 --> 01:13:36.240 how to make content work for us I don't know how to make outreach for us then that becomes a problem 969 01:13:36.240 --> 01:13:41.440 that you can solve now this is really important so I talked earlier about optimizing your advertising 970 01:13:41.440 --> 01:13:46.320 from front to back and that's true but when you optimize a business you optimize this from back 971 01:13:46.320 --> 01:13:53.120 to front and so the back the LTV how much you make per customer enables how much you can spend 972 01:13:53.120 --> 01:13:57.760 on the front end and so you optimize the throughput on the front end obviously because that's 973 01:13:57.760 --> 01:14:03.440 where you can get the highest returns but the engine that you can spend on that depends on how 974 01:14:03.440 --> 01:14:08.880 much you make per customer and so you can either be really really really exceptional at lowering 975 01:14:08.880 --> 01:14:14.560 cack or really really good at increasing LTV and if you do both you have huge arbitrage and that's 976 01:14:14.560 --> 01:14:18.640 where you make stupid money and so let's go through hypothetical let's say that you sold something 977 01:14:18.640 --> 01:14:23.360 that was a billion dollar thing okay if you had a billion dollars in gross profit that you'd make 978 01:14:23.360 --> 01:14:28.400 from one sale you could reach a lot of people on earth and just to give you context on this if I 979 01:14:28.400 --> 01:14:33.200 wanted to become a a-list celebrity I've back calculated what I believe it cost to become an a-list 980 01:14:33.200 --> 01:14:37.840 celebrity it was about 50 million dollars and the way that I calculated that was I thought what 981 01:14:37.840 --> 01:14:44.240 person went from complete obscuring so knowing who they were obscurity to omnipresence or some 982 01:14:44.240 --> 01:14:50.400 like that everybody knew and so the simplest example are people who were no name actors who become 983 01:14:50.400 --> 01:14:55.920 the star of a big Marvel hit and so what I did was I said okay how many of these have I seen 984 01:14:55.920 --> 01:15:00.000 what was the movie budget now you have to divide that by the other characters in the show or in the 985 01:15:00.000 --> 01:15:05.200 in the movie and between the big block busters where we had to you think about like the hunger games 986 01:15:05.200 --> 01:15:09.600 girl right I can't remember a name right now but that girl like the marketing budget for those 987 01:15:09.600 --> 01:15:14.400 types of films and you say okay with fifty million dollars she went from no knowing who she was 988 01:15:14.400 --> 01:15:19.120 to being famous and so for fifty million dollars you can reach so much of America and so I use 989 01:15:19.120 --> 01:15:22.080 this as a hypothetical because if you had something that you sold for a billion dollars you could 990 01:15:22.080 --> 01:15:27.120 spend that and still make twenty to one and so the idea is yes we optimize our advertising from 991 01:15:27.120 --> 01:15:33.040 front to back we put our effort on the front but in terms of where our our LTV comes from we work 992 01:15:33.040 --> 01:15:37.840 from back to front so that we can spend more on the front end a big problem in terms of efficiency 993 01:15:38.000 --> 01:15:42.640 is that oftentimes if you are if you do start running ads profitably for example you reach some 994 01:15:42.640 --> 01:15:45.840 sort of ceiling you're like hey we can't we can't get past a thousand dollars day hey we can't 995 01:15:45.840 --> 01:15:48.800 get past ten thousand dollars day we can't get past a hundred thousand dollars day whatever it is 996 01:15:48.800 --> 01:15:52.480 right usually it's because the ads that you have aren't good enough to reach the next level 997 01:15:52.480 --> 01:15:55.680 of awareness so Eugene Schwartz in breakthrough advertising talked about something called five levels 998 01:15:55.680 --> 01:16:00.320 of awareness and so they go from unaware somebody has no idea who you are what the problem is or 999 01:16:00.320 --> 01:16:04.240 anything just unaware the next level is problem aware that's where you see ads that are like having 1000 01:16:04.240 --> 01:16:08.480 trouble sleeping at night do you have back pain when you lean over like things like that they ask 1001 01:16:08.480 --> 01:16:12.880 open-end questions that make someone aware of the problem underneath of that is solution where 1002 01:16:12.880 --> 01:16:17.120 have you tried this before have you tried this before this is where someone knows the solutions 1003 01:16:17.120 --> 01:16:20.960 that potentially exist then you have product aware which is them advertise you advertising your 1004 01:16:20.960 --> 01:16:25.200 own product like okay have you tried like my product before and let me talk you about this and then 1005 01:16:25.200 --> 01:16:28.880 finally you have most aware which is usually passed in existing customers and so there's a five 1006 01:16:28.880 --> 01:16:34.320 levels of awareness and so most times smaller advertisers beginner advertisers get returns 1007 01:16:34.320 --> 01:16:37.920 marketing to most aware right if you email your list or you make a post or you send out message 1008 01:16:38.720 --> 01:16:42.080 an email right those are your most aware people so you can make sales from that for almost no 1009 01:16:42.080 --> 01:16:45.760 money one degree above that is like okay or other other people are in the market that's product 1010 01:16:45.760 --> 01:16:50.560 where they're looking they're looking for something to solve a specific problem right and they're 1011 01:16:50.560 --> 01:16:54.000 aware of the options that are out there and you market them so you have to be a little bit better 1012 01:16:54.000 --> 01:16:57.680 to market those people than to just your existing customers now if you go one level above that 1013 01:16:57.680 --> 01:17:00.960 right solution whereas that they know that there are people who are solving this problem they don't 1014 01:17:00.960 --> 01:17:05.040 know how they're solving the problem they know that there is a solution that exists and so you have 1015 01:17:05.040 --> 01:17:09.760 to have another order of magnitude improvement of your ads and the hooks to call out those people 1016 01:17:09.760 --> 01:17:14.640 and so most times the problem isn't that your market isn't big enough it's that your ads aren't 1017 01:17:14.640 --> 01:17:19.920 good enough and they're not specific enough to hit this next massive tranche of the audience and I 1018 01:17:19.920 --> 01:17:24.480 say this with our largest company in the portfolio is about a hundred million dollars a year and we 1019 01:17:24.480 --> 01:17:29.120 spend millions of dollars a month in advertising and we go to the most unaware people we go to 1020 01:17:29.120 --> 01:17:34.000 people who have no idea that you know this product or this problem exists we actually have to make 1021 01:17:34.000 --> 01:17:37.840 them aware of the problem and then we make them aware of the opportunity to solve it and then we 1022 01:17:37.840 --> 01:17:40.800 have to make them aware of the problem we have to take them through all the stages of awareness 1023 01:17:40.800 --> 01:17:45.680 in a very short period of time and that is comes from a very well crafted ad and so I have this saying 1024 01:17:45.680 --> 01:17:49.760 that I have internal which is that the size of the plane is directly correlated with the length of 1025 01:17:49.760 --> 01:17:53.680 the runway the bigger the plane the longer the runway and so if you want to sell very expensive 1026 01:17:53.680 --> 01:17:59.840 thing or you want to sell a very cold person so the price and the the coldness or how aware 1027 01:17:59.840 --> 01:18:03.920 the person is so the longest sale possible would be someone who's completely unaware for a very 1028 01:18:03.920 --> 01:18:08.800 expensive thing right the shortest sale possible would be someone who's very aware for a very cheap 1029 01:18:08.800 --> 01:18:12.400 thing and so the amount of runway the amount of selling the amount of advertising that you have to 1030 01:18:12.400 --> 01:18:16.560 do to get someone through these stages is directly proportional to those two things and if you're 1031 01:18:16.560 --> 01:18:21.200 having trouble scaling it usually means that this is mismatched you're trying to you're sending a 1032 01:18:21.200 --> 01:18:24.880 warm message to a cold audience or you're getting people on the phone who aren't prepared to spend 1033 01:18:25.680 --> 01:18:28.880 a huge amount of money they haven't been warmed up enough and so it's making sure that we're 1034 01:18:28.880 --> 01:18:33.680 hitting each of these boxes for the audience that we're starting to target and so as you go to a new 1035 01:18:33.680 --> 01:18:38.240 tranche of let's say you go from a solution where to problem aware so it's a it's a bigger area right 1036 01:18:38.240 --> 01:18:42.400 and so think about these concentric circles like a pizza like the area of the pizza you know like a 1037 01:18:42.400 --> 01:18:46.480 pizza that's this big if you take an inch off it's almost the same size as a as a two inch pizza in 1038 01:18:46.480 --> 01:18:50.800 the middle like the the diameter circumference whatever it is I've probably failed geometry the point 1039 01:18:50.800 --> 01:18:55.600 is is that it just gets bigger and exponentially bigger as you go out and so 1040 01:18:56.880 --> 01:19:00.480 this is a weird visual that I have for this but if you think about a watermelon slice 1041 01:19:01.600 --> 01:19:05.920 and at the tip there's lots of seeds and as you go down there's fewer seeds but you still have to pay 1042 01:19:05.920 --> 01:19:09.840 the same amount to reach all these eyeballs to find the few seeds versus in the beginning when you 1043 01:19:09.840 --> 01:19:15.520 have lots of seeds so your density of sales per thousand eyeballs goes down as you go to more unaware 1044 01:19:15.520 --> 01:19:19.600 people because you're gonna go to people who just simply don't care and never will care but you 1045 01:19:19.600 --> 01:19:24.000 have to and this is where the LTV matter so much and the optimization matter so much but you still 1046 01:19:24.000 --> 01:19:29.440 if you can be profitable in a larger trance that's 10 or 100 times as big that's when you start 1047 01:19:29.440 --> 01:19:34.000 really printing money right and so if you have call it 20 to 1 LTV to catch in the beginning when 1048 01:19:34.000 --> 01:19:37.200 you have lots of little seeds lots of density of potential buyers because it's really warm really 1049 01:19:37.200 --> 01:19:42.000 problem aware or really really solution or product aware right like really high end as you go down 1050 01:19:42.000 --> 01:19:47.680 you might drop to five to one in the middle you might drop to three to one at scale but you're at 1051 01:19:47.680 --> 01:19:52.560 a hundred times the spend and so in that case you're still making way more absolute return on the 1052 01:19:52.560 --> 01:19:57.920 investment another way to think about this is like a golf course and so if you could only put 1053 01:19:57.920 --> 01:20:01.760 then you're gonna only make six inch putts that's only the top little seeds of the watermelon 1054 01:20:01.760 --> 01:20:07.920 but think about how much more area if you learn how to drive and you learn how to hit a three iron 1055 01:20:07.920 --> 01:20:11.200 I'm not very good at golf you can obviously tell and then you hit learn how to hit a wedge there's 1056 01:20:11.200 --> 01:20:15.760 so many more shots that you can make if you have these other skills in your arsenal and so think 1057 01:20:15.760 --> 01:20:19.440 about each of the levels of awareness as another club that you have to learn how to hit 1058 01:20:19.440 --> 01:20:23.760 so that you can get more balls in the hole from any part of the course marketing advice number 13 1059 01:20:23.760 --> 01:20:27.600 we need to be reminded more than we need to be taught and I think this is one that's gonna break 1060 01:20:27.600 --> 01:20:30.800 a lot of your beliefs and so I'm gonna I want to really emphasize this one because it's important 1061 01:20:32.000 --> 01:20:35.920 once you start making content once you start running ads and you start putting stuff out publicly 1062 01:20:35.920 --> 01:20:39.440 start advertising you're gonna get to a point where you're like I feel like I've said everything 1063 01:20:39.440 --> 01:20:44.640 that I was going to say now remember you continue to live life every day you continue to do stuff 1064 01:20:44.640 --> 01:20:48.960 and you can talk about what you did so that can break that but my mom said this to me once and I 1065 01:20:48.960 --> 01:20:53.520 I always I always remember it she said the news never changes just the names and I really thought 1066 01:20:53.520 --> 01:20:57.360 about that it was like there's always a rape there's a war there's a murder there's a car accident 1067 01:20:57.360 --> 01:21:02.240 like the actual story doesn't change only the names and so if you think about that with content like 1068 01:21:02.240 --> 01:21:05.760 there is no new content like the human condition is not changed for thousands of years like the 1069 01:21:05.760 --> 01:21:12.080 older the problem the older the solution and so we are making content and we're putting stuff out 1070 01:21:12.960 --> 01:21:18.800 and when I think about myself the things that I follow like I follow philosophy pages because I am 1071 01:21:18.800 --> 01:21:23.680 okay rereading epictetus to stuff like I read a stuff before and I read it in quote form again 1072 01:21:23.680 --> 01:21:27.920 and when it comes up again I like to be reminded I like to keep the stuff top of mind that's why 1073 01:21:27.920 --> 01:21:32.320 I follow those pages and many people follow your pages for that exact same reason is that the 1074 01:21:32.320 --> 01:21:35.680 stuff you talk about is stuff that they want to keep top of mind they want to be reminded of that 1075 01:21:35.680 --> 01:21:39.680 stuff and getting taught is much more difficult than being reminded but they're equally valuable 1076 01:21:39.680 --> 01:21:44.000 because it changes their behavior then you still did teach them again you just reminded them 1077 01:21:44.000 --> 01:21:49.520 and what's crazy about this is that like the friend show right now if you've ever heard of it is 1078 01:21:49.520 --> 01:21:56.480 being watched more now than it was a few years ago so reruns like people watch reruns because 1079 01:21:56.480 --> 01:21:59.840 there's nostalgia or whatever reasons you want to pick to it but people are willing to rewatch 1080 01:21:59.840 --> 01:22:06.560 the same thing because they know how it ends they know they liked it and so you can make the same 1081 01:22:06.560 --> 01:22:11.840 thing again because also your audience who's new a year later hasn't seen that thing and so if 1082 01:22:11.840 --> 01:22:16.800 you make something new to them even though it's quote old or reminder to your existing audience 1083 01:22:16.800 --> 01:22:20.400 your existing audience doesn't mind the reminder and the new people never saw us begin with 1084 01:22:20.400 --> 01:22:24.480 and if you want to have different ways of creating variety even around the same topics I would 1085 01:22:24.480 --> 01:22:30.240 encourage you instead of thinking of getting into trend hacking and talking about the news talk 1086 01:22:30.240 --> 01:22:34.320 about your news so it's about what are the new things that are happening now this is the 1087 01:22:34.320 --> 01:22:40.240 duepic stuff talk about what you did and so this is where we tell new stories to explain the same 1088 01:22:40.240 --> 01:22:44.640 concept because for that specific audience you'll reach a different type of person or different 1089 01:22:44.640 --> 01:22:49.920 avatar that still might be within your market with a story about a mother and daughter versus a father 1090 01:22:49.920 --> 01:22:55.040 and a son versus a military vet versus a small business owner right there are different avatars and 1091 01:22:55.040 --> 01:22:59.600 you can tell the same story but it happens to a different name just like the news and people still 1092 01:22:59.600 --> 01:23:04.720 watch the news every single day and then we want us them to watch our news you can tell the same 1093 01:23:04.720 --> 01:23:09.360 concept like the value equation the value equation I explained in my book I also have a course on 1094 01:23:09.360 --> 01:23:13.040 my site that I explained the value equation in a different format so think about it in terms of 1095 01:23:13.040 --> 01:23:17.840 formats this is written I have an audio I've got videos that are my site that in a course format 1096 01:23:17.840 --> 01:23:22.560 I'm mentioning it here now I have it on whiteboards that I've explained it I've applied it to 1097 01:23:22.560 --> 01:23:27.680 services I've applied it to education I've applied it to physical products I've applied it to 1098 01:23:27.680 --> 01:23:32.480 software and so you can take the same idea and think how can I display it in new formats new 1099 01:23:32.480 --> 01:23:37.760 mediums and new contexts and so when you have that and then you extrapolate on top the news of 1100 01:23:37.760 --> 01:23:43.280 your life even though you feel like it's saying the same thing the amount that it takes to create 1101 01:23:43.280 --> 01:23:47.520 something novel is very small and so I'll tell you the story that I think will wrap this up with 1102 01:23:47.520 --> 01:23:53.200 the story of Henry Ford and so Henry Ford had in his office he does marketing person right next 1103 01:23:53.200 --> 01:23:56.560 to him so he walked past the market over and over and over again and this is back in the day when 1104 01:23:56.560 --> 01:24:00.080 they like didn't have computer screen so it's just like they had mock ups and like big posters 1105 01:24:00.080 --> 01:24:04.320 and things like that for whatever the next ad campaign for a new Ford car was and so you walk past 1106 01:24:04.320 --> 01:24:08.800 this guy's office for three months and the end of the three months he was like hey John why don't 1107 01:24:08.800 --> 01:24:12.960 we gonna stop running this out I'm so sick of it and John the marketing director looked at me said 1108 01:24:12.960 --> 01:24:17.200 we haven't even started running it yet and so the thing is is that we get so much sicker of our 1109 01:24:17.200 --> 01:24:21.840 own content before our audience even remembers your name and so the thing is is that we assume that 1110 01:24:21.840 --> 01:24:26.000 every person consumes every piece of content you ever put out we put out 50 plus pieces of content 1111 01:24:26.720 --> 01:24:30.960 I'm grateful if somebody watches one a week right and so the idea here is that like you put out 1112 01:24:30.960 --> 01:24:34.480 significantly more but we have this assumption that everyone's paying attention and no one is 1113 01:24:34.480 --> 01:24:38.720 and so we put out tons of volume with the hope that we catch one person on that one day and you 1114 01:24:38.720 --> 01:24:42.080 might have made I might have made four things about the value equation actually you can give me good 1115 01:24:42.080 --> 01:24:46.320 feedback so it would be good if you haven't heard about the value equation whatsoever in my content 1116 01:24:46.320 --> 01:24:51.040 up to this point drop a comment because I want to prove that this even though I've talked about 1117 01:24:51.040 --> 01:24:56.640 in a zillion formats some of you guys didn't even know how to book right people need to be reminded 1118 01:24:56.640 --> 01:25:01.120 more than need to be taught hey guys real quick at acquisition.com our whole mission is to make real 1119 01:25:01.120 --> 01:25:04.640 business education accessible for everyone it would mean the world to me if you helped us accomplish 1120 01:25:04.640 --> 01:25:08.960 that mission by sharing the show if you can share the show on your Instagram story or whatever it 1121 01:25:08.960 --> 01:25:12.720 is that you post content you can tag me in it I'm sharing as many back to my stories that possibly 1122 01:25:12.720 --> 01:25:14.640 can it mean a lot thank you