How to Make Ads That Actually Sell — Alex Hormozi (1 Hour Compilation)

0:00So, are you promoting how to do it VSSL? >> Uh, no idea. No, that's probably length is video content right now. >> Why? Considering that you do backyard before and afters like sexy thing to look at in the home. >> I follow backyard transformations as a as a psychopath. Like I don't even have a yard and I follow it. Okay. So, so VSSL is the way I like to structure them. A lot of people like to make these seem like they're this like crazy, you know, magic thing. It's not. So basically you have your intro, you have your you know like unique thing then you have objections you know one through five and I'll I'll basically promise pain uh proof plan.

0:55So, these are a five piece. So, it's like, "Hey, in this video I'm going to walk you through um how we transform shitty backyards into nice backyards. And if right now you haven't had the opportunity cuz like you're ashamed of having people over it, it looks like [ __ ] or you're thinking about selling your house and you're like, "This is actually a major detractor." Um, we can help solve that for you. And just like this house and this house and this house and this house. And so, what I want to walk through is kind of like our five-step process um of how we approach, you know, transforming backyards. And here's a visual road map fundamentally of like where we're going to be in the video. And so this is our, you know, our our LS secret method. This is our thing.

1:33So it's basically this is like one three minutes just like this is how a thing works. This is call it, you know, one minute 90 seconds tops, right? >> And then here it's just what are all the big objections that people come up with? Like think of every like what are the big ones? They're going to say >> bloody backyard, dead grass. >> Yeah. Exactly. So it's like so a lot of people think so it's like here's our process and so a lot of people think uh dead grass is actually a big issue but let me show you this example and so the way we all of these get broken down the same way which is what they think.

2:02So dead grass is the thing here what they think why it's wrong what's right and then proof and that is literally the belief breaking formula for everything. So, a lot of people think that, so it's like what they think. So, what a lot of people think that dead grass is going to like make this like it's never going to look good. Um, but it turns out that you can actually replant or resaw or reurf and it takes less time than people think and it's actually cheaper than having the irrigation system. And so, this is how we do it at Lonear. And let me just show you a couple of dead grass examples that turned into amazing. And the other thing that people think is that mud. And then you just go, you literally just do the same. You hit every one of the objections and you just go what they think, why it's wrong, what's right, proof, and you just do it for all of them. And then at the end, you say, "Great." Um, basically whatever whatever the thing that you want them to do is.

2:55>> So, we have two of these for you. One is, uh, if you're like, "What's the difference between the first one and the second one?" Nothing besides the fact that you just do the video again with different examples. It's the same thing. So because fundamentally here we're selling them on like being excited and we're pre-framing the fact that like we do hardcape like we do all of these things end to end. This is our process. This is how we approach everything. And so you know at the end it's just like hey you can shoot us a text shoot you know at this number uh for a special thing if we want but look forward to the guy who's going to be showing up right and then when the guy comes it's more related to like what's the next step in that process. fundamentally just the CTA changes, but like that's it.

3:35>> Like if you aren't doing enough or you can't stick with a marketing channel long enough or you think that you doing 10 outreaches a week is is sufficient or you making [snorts] you know five pieces of content a week is somehow going to like grow the business. It's like you just have a wildly mismatched expectation against reality. And then and then there's a whole another group of people who you have to be specific, you have to be clear. And a lot of sometimes this happens in a little bit more marketing ccentric entrepreneurs. They think there's so much magic in it. And I feel like some of you guys might have seen this before, but one of my favorite memes of all time, which looks like this, and you've kind of got like uh you know, like an idiot over here.

4:17Uh and then you've got like a you know, smart person here. Uh maybe I'll put some glasses on him. Right. And then you've got like the midwit. And so what happens is you just want to make sure that you're not this guy because usually this guy and this guy agree and then this is the one that gets everyone confused. It's like how many seconds should my ad be and at what point should I drop this color? I think it's because the buttons changed and vibrated. And this guy's like I think you just got to tell people what you have and make sure they understand that it's for them. And this guy's like just tell them what you have and make sure that they understand it's for them.

4:50Right? Right? So you end up going through this whole cycle just to end up with like just be clear, get to the point. And so many times I've seen this happen, but deletion will often beat explanation. I would say nine times out of 10 when we look at a portfolio sales script, if it's underperforming, we remove stuff. We cut stuff. We just make it shorter. And believe it or not, when you make it shorter, you can be very clear about what point we're trying to actually make. And if you don't know what the point of the sales script is, that's the problem. And if you don't know the point of the ad, that's also the problem.

5:22Let's go. Mind supply. Let's look at this puppy. All right, let me share my screen again. I'll keep going until you guys tell me that you're bored. You want to do other stuff. Okay, so Phoenix challenge. This is cool. I like the colors. Designed to help you think just a little bit differently. Okay. Um, three tasks, six calls, nine days. Okay. I'm not entirely sure what this is yet to be clear. So, I'm just giving you my my fresh like no idea, haven't seen this before perspective. Okay. challenge feedback. I decided to join on a whim.

5:50Okay. Community grace about creators. Okay. This is about creators. So, this is the first time that I know this is about creators is in the in the sub this little sub bullet here. I didn't know this. Okay. Um, so you create. Okay. Find myself pushing boundaries and really look deep. Okay. Lucy speak. I'm not exaggerating. I'm willing to do the work. Follow it out. I'll be right cheering you. Okay. Okay. Fine. Uh, I'm guessing this is some sort of I don't know what this is. A presentation probably. Um, okay. Okay. If you're going to do these, highlight got because I'm I'm probably not going to read this whole thing. So, highlight the parts that you want me to you really want me to emphasize.

6:26Look inside. Okay. Um, okay. This is I I would probably show some of the responses, but this is this is does this make me want to buy? This is always my qu like does this increase the likelihood that I'm going to buy? I think this is compelling because I actually got to find out what this was about. So until until I got to hear what said uh a community to inspire creators. I was like okay this is for creators. So looking to change their outer reality going within. Are you ready to do the work? Okay. Um okay. Okay. Soul sanctuary community mission to change their outer reality.

6:58Okay. Maybe this isn't for creators. Okay. Um your self-doubts, insecurities, your fire is power. Okay. Okay. Journey. This community is for those who are inner work ready to heal. Okay. Shadow exploration, useful prompts, inner child, attachment theories. Okay. Okay. So, zooming out, I like the colors. I like that it's bright. I think the design stuff's cool. So, that's my that's my plus column.

7:31My con column is that I'm actually still like it took me a minute to figure out. And the way that I went through it, to be clear, like if you guys are watching what I'm doing, I probably simulate what a normal user would do. Like I didn't look at like think about this. I'm not I I didn't look at the copy. I looked at all the tiles first and then I went to the copy. And so if you're thinking about order of importance, like again, if you need to get it done, get it done. Get it up.

7:58Fine. We're talking about optimization. those tiles. Like if I had to pick, I'd rather have someone have six tiles and no words besides like go click the link and join, [laughter] right? Or click the button and join. Um than all words and no tiles. Okay, so big picture. That's I would prefer that if I had to pick between the two. Um I would I'd want to be much like so take this the way I mean it now because I see you're on here. There's a lot of there's a lot of fluffy language.

8:29So, I would want to boil this down to like what do I get? All right. So, I know in the beginning here you say three tasks, six calls, nine days. I like that consision. I just didn't really know what like what the promise was. And so, if I'm looking through this from promise path or promise plan uh proof, I right now think it's lacking kind of all three. And so the good news is if you have members right now who are on here then you're already succeeding despite having all this stuff. So like again just for everyone this is about making it better. This isn't saying that anyone's good or bad. All right. This is like can we make it better? And this is one man's perspective on how I how I would approach it. So promise I would start with that first one. So it says designed to help you think a little bit differently. So, I would I would probably want to crispen that and just say like like to use the what we've been talking about at school is like what the [ __ ] is the school games. It's like what the [ __ ] is this gen is the Phoenix challenge? Like if you had to explain it to a toddler and like you couldn't use any fancy words, a lot of this is jargon from inside of your world. Just being real with you. A lot of this is probably I would say insider lingo and will make it harder to convert outsiders, right?

9:42And so I would try and play down the language, remove jargon, and clear promise, slide one. My plan is like what are the elements. So you have three tasks, six calls, nine days, whatever. So I'd have each of those tiles is going to relate to one of the key parts of the plan, right? And then proof that the plan works. And the deliverable ideally in the proof should match the promise that I made at the beginning. So, if I were using the porn thing, it's like how to quit porn forever. And at the end, it's like, "Dude, I've been 91 days without porn. I've got a promotion in my job. My girl's happy. I just got my first dates again. I'm getting out there." Like, that's the that's the proof of the promise, right? So, just think about it as one. It's just you're you're basically telling a hero's journey where the person who's reading is going through the entire journey in advance. They're going through what it would look like to first get the promise, go through the plan, and then receive the fulfillment of that promise, which is the proof, but via somebody else. So, they approximate or they feel like they get it vicariously. And that tiny bit of vicarious promise fulfillment is what makes them say, "I want it. I'm willing to buy it. I'm willing to risk my money in order to live that story out like that guy did."

10:53All right? And so, the bullets underneath in terms of copy, we're just saying big headline again. What's the promise? Here's the features. This is the plan of how we're going to get there. And then the proof. You already can relate back. Again, I don't know what the price point is. This is free. Fine. Um well, then I wouldn't put a calendar here because it's free. Uh but then you put a PS statement. I'd still everybody include a PS statement of who this is for, who this is not for. Um as a final sign off to just attract the right people and ward away the wrong. So hopefully nav that gave you a little bit of stuff that you can work on. Um let me know if that uh that sucks.

11:28>> My name is Alex Kar. I'm a music lawyer helping artists close six and seven figure deals. >> Okay. >> Last year we did $487,000 after doing cash. >> Yeah, we I was about to say we uh we did a cash episode. So you did 478 47 487K. That's what you did. And what are you at now? >> Uh right now we are doing 30K the current revenue run rate.

11:54>> That's monthly. Okay. What were you doing when you got on the when you got on the show? 83k >> monthly. >> We grew by $400,000 in one year. >> Oh, great. I'm glad my advice worked. That's good. >> So 80K to 480K. So that was worthwhile to come on the episode. [laughter] >> Okay. Fantastic. I'm glad we 6xed. All right. So what do we do from here? So what's the problem?

12:22>> So the thing the thing that's stopping me right now is qualify leads. um the uh the serviceable obtainable market is less than 100,000 people. Um and I'm looking to build uh a way to get to those people that have, you know, live offers uh at the right moment, at the right time, so they can hire me to help them close those deals.

12:48Okay. Um there's honestly a shitload of static on my side. It's very hard to understand you. It's not on you. So, what do you need help with? Just say it as few words as you can. >> Qualify leads. >> Okay. You need more leads. Got it. Okay. So, you need more leads. Now, if you doubled or tripled your lead flow right now, would you be able to handle it? >> Yeah. >> Okay. Got it. So, what are you doing right now to get more leads?

13:14>> Content. >> Content. Okay. Got it. And I think what I told you to do was to send them over to Instagram and then DM and do a DM funnel. Is that what you're doing? Yeah, that >> wonderful. Okay, so um if you just need more leads, it's going to be it's going to be one of two things that you can control on your own. Um option one is you start running meta ads.

13:42That's option one. Option two is you just make more content. And here's the beautiful part. You can do both of those things and they accomplish the same objective. So if you if you crank up your content and then make all of the best performers your ads, then your ads and your ad create sorry your content and your ads creative can merge. Which by the way for anyone who's listening to this is the future of how ads are working. Like the algorithm for ads and the algorithm for content are the same. Like it has merged. And if you think about what what the platform wants, if the platform could ever every single content creator making ads and the ads are just more content, then that means the entire platform would be quote adfree and still generating revenue, which is a superior experience for the users, which is exactly what the platform wants. And so how many pieces of content are you making right now um that are like what are you making per week right now?

14:30>> Right now 12 on Instagram. >> Okay. So, two a day. >> Two three a day. Yes. One to two long on YouTube >> per week. >> Uh, yes. Per week and five shorts per week. >> Okay. Um, this works. And the five shorts, are those different than the two per day you have on on Meta?

14:54>> Yes. Well, one of them I do two posts on Instagram and the and the same short is the is the carousel on Instagram. So I cross posted. >> Yeah. Got it. Okay. So I think so big picture I mean you could obviously make more content but I mean I think your content cadence right now is, you know, is adequate. We're you're probably have to tighten the screws on is the quality of the content. >> So how much research are you doing on the hooks on the scripting? Are are they scripted or how are how are you making them right now? the shorts.

15:26>> Uh yeah, I'm I'm doing the the content uh create the hood and then steps for stories and do carousel uh and infographic. >> Okay. Do you have any kind of big accomplishment that you've had happen? >> Yeah, we've helped last year we helped artists close over $5 million. >> Okay, great. So, I would put that front and center. Um, and I would probably include it in every YouTube video that you have. So, when you'd introduce yourself to edify you, I would say, "Hey, you know, I'm Alexar. I, you know, I do this for this type of person, and we've done projects as small as this all the way to projects as big as this, our most recent thing that we did last year for $5 million. And so, in this video, I'm going to XYZ, show you how blah blah blah blah works, right?" Um, that's those are small tweaks that are going to improve it, but that's going to like elevate the brand overall. But right now, it's like we just need to grow the brand from a top-end, you know, content perspective. And ads is just something that you can do to scoop up um more people out of the audience you already have. But the big thing is that you just need to hit your advertising with an atomic bomb. Like that's what it is.

16:35Like that's what you need to do. Now, we could look at pricing stuff, but I think I already looked at pricing the last time we spoke. So, we fixed the business model. We 6xed it. So, that was good. Um what are your margins right now? 80% respective margin. >> 80%. Love that. >> Yeah. >> Yeah. So, um, yeah, we just need to make a shitload more content and make better content and then run the best content as ads. Like that's it. You have a front-end thing.

17:01Like you can d take twice the number of customers, right? I think I said that earlier. >> Yeah. >> Yeah. That's it. It's a it's a pure demand thing. And we already fixed the conversion process and we fixed the pricing. So, you just need to do more. So your focus first four hours of every day goes towards this and then you can start your day. >> So >> content and ads >> also they they hear the same. Yeah. Go ahead.

17:26>> Can you hear me? Okay. Yeah. So the my question is there are some people some executives in the industry that says that say that because this game is all about perception status and network that I should go to industry conferences award winners all of that kind of stuff. >> What do you think about that?

17:51I mean, if you want, but I would say like I mean, if you want, you can go like once a month and make sure it's a good one and see make sure you like can solicit the audience for business, but by and large content is going to give you a lot more distribution. So, branding is going to come from the association. So, if you want to make associations with people who are bigger than you, that's fine. Um, I'm not against that. Uh, the big thing that's going to matter the most though is that you have helped people like them get what they want.

18:19Okay. So, >> it's getting more people to know about the things that we are already doing. >> First four hours of every day goes towards making more content and then turning that content into ads. That's it. You don't need to change anything else. You're at 500K. That's how you go to 3 or 4 million. And then we we check back in then. All right. >> Okay. Thank you. >> Rock and roll. Eximar. Congratulations on your 6x. >> Thank you.

18:41>> All right. $34,000 a month around $3,500 in ad spend, 20% net. dental product. Number three on Amazon. When scaling spend, it destroys margins with little gain. Number one, competitors, 250,000 a month. Any advice? I'm guessing you're running your ad spend on Amazon. Um, that's my guess. Uh, because that sounds very Amazon, which is like they pretty much know exactly how much you make and then they just charge you the amount that your profit would be, so you just pay them more. Uh, just saying. Um, okay. So, I mean to scale you're going to probably I mean you want to max out your existing channel, but if you have no other way of making your product more valuable um there then I'd probably look start looking at new channels. Like Amazon is just a channel, you know, I mean like there's really nothing. It's just a channel. It's like can you get micro influencers to do it? Can you get other dentists to do it? Can you do B2B on wholesaling? Like there's so many different angles that you could take um to advertise a product.

19:47I mean, they're spending $250,000 a month. It's like, I don't know how, right? So, I would try and figure out how they're spending $250,000 a month, do they have better reviews than you, and that's what allows their page to convert better? Do they have a backend that when customers buy the first thing, they buy other things? Um, like I I just don't know. And maybe 250,000, they're probably not spending 250 a month. They're probably making 250 a month. Um, and it might just be that they have a better product.

20:13being real. And so Amazon is very like winner take all market for the best products. And so like I don't know what the number 10 business book does, but like the number one business book makes a hell of a lot of money. And so if the number one business, like imagine that, let me give a different example. So like let's say that number 10 business book wrote this question was like, "Hey, I'm doing $5,000 a month for my book. The number one person is doing $250,000 a month. How do I get it bigger?" It's like realistically, it's like you got to have a better book. Like that's the real like you have a better you gota have a better book. Um now of course you can market in more ways but if you're like how do I get better how do I get bigger on Amazon? It's going to be down to the product. I mean they've they've built their whole their whole site to maximize quality of product relative to price of course. Do I have to be unethical to be successful in business? Well the implicit uh question there which is interesting because if you were to ask that question if you deem me successful then you deem me unethical. And why would you want an unethical person to answer your question?

21:06>> [clears throat] >> So, um, I would say that's a silly question. So, I reject the premise. Um, but why don't you tell me what is unethical about this? You have a problem. I know how to solve that problem. And in fact, the problem you have is a problem that many people have. And so, it's I'm unable to solve that problem for everyone. And so, for the people that care the most about solving that problem, some of them are willing to spend money to solve it. And for those people who are willing to spend money, I say I will solve that problem for you in exchange for your money. Where do you see an ethical dilemma? The issue that people who don't have money have with people who have money is that they believe that you need to deceive in order to earn. And I 100% agree that deception is a very poor practice in business, especially in the long term.

21:56And so if you state the facts and tell the truth, which is the number one rule of marketing that I have that I I will restate until I die. If you state the facts and tell the truth and then two people voluntary exchange of money for services and both people say thank you. What is unethical about that? You need to get out of your head, dude. Like you will never and I will say this. If you believe that making money is wrong, monthly revenue right now is 54K, right?

22:22>> Yeah. >> All right. And then ad spend is 3K. >> Well, that's monthly. >> Yeah, per month. I got you. Um, this is per month. Great. Uh ads is 3K. Great. Per month. Okay. Per month. >> Uh industry is your medical. What do you do? Uh custom insoles. >> Yes. I'm a podiatrist. >> Oh, cool. Yeah. Yeah. Buddy of mine's dad was a podiatrist back in Baltimore.

22:46Um okay. The offer is insoles for 300. So this is your your avo call it, right? Um is 325. I know that you're in pounds, but I'm just used to writing dollars, so it doesn't really matter. Okay. constraint is Google ads are under spent. Okay. So, you can't spend more than the 3,000 a month. Is that correct? >> Yeah. >> Okay. Are you local? >> Uh yeah, I do. I have an Google ad specialist that is running my Google ads. So, uh that's something I never learned, but he told me that that's

23:18>> local in the Netherlands. You mean >> like are you running ads for a local business? Are you running this ad spend nationally? >> Oh, sorry. For a local business. Yes. >> Okay. You're local. So people people do that, they come in, they get measured or whatever, and then they they get insults. Correct. >> Exactly. Yes. Correct. >> Okay. Got it. So they're saying they just can't spend more money. >> Yes. >> Okay. Uh I don't know if I believe that.

23:44How big of a city are you in? Like what's your 10 milei radius? >> Um I I thought he he said around 10 kilometers, something like that. But I was also thinking from yeah maybe he isn't did doesn't have the skills just to uh to to uh to to scale the campaign so to say. >> So I am already in touch with the general marketing agency that is already checking in with another uh Google ads specialist to see from if they can duplicate certain campaigns and get better results.

24:14>> Yeah. So I'll say this man um so I mean congrats you're doing you know 600ish a year. Um, I would strongly recommend you learning this stuff because it's not that hard. >> Like, it's really not that hard because then you're not going to like right now you're saying the constraint of the business is under someone else's control, right? That's a tough position to be in. >> Mhm. >> So, I would just want I would want to own this myself and I'll give you a I'll tell you a story that like really changed my person. I haven't told this story in a really long time, so this will be a good one. So,

24:42>> I went to this meetup where everybody was doing, you know, eight figures or more. And at the time, I wasn't. And so I like snuck in. They were like, "No, we think you're going to be, you know, a big baller because whatever." They recognized the the the magic in me. Um, but anyway, so they they let me come. And what was really interesting is one of the guys who was making the most money in the room when he went up and presented, he said this really interesting thing. He said, "I would encourage everyone here because someone asked him like, "Hey, so what are you doing to like reinvest in your education right now?" He said, "Well, at the at the level that I'm at," and he was making, I think, 30 or 35 million. I remember thinking I was like, "Oh my god, this person is God." um when I heard that, but he said he was making $35 million a year and he said, "I would encourage you to write down a percentage of your income, whatever percentage you're comfortable with and put that as your learning budget." All right? And that learning budget, he said you should spend that every month um and expect to have zero ROI on nine out of 10 things and then the 110 thing will make you 10 times the the money. It's almost like doing a venture bet on yourself from an education perspective. And so I took that to heart and then I started spending saying, "Okay, you've got your 3,000 a month. I want you, Stephen, to do $3,000 a month that you control.

25:48And you're saying like, I'm gonna spend 100 bucks a day and I'm gonna see if I can beat this guy because I promise you when it's your business, you'll beat him. [laughter] Like you'll you'll you'll suck in the beginning, but you'll quickly learn. Like at like PPC for for Google Ads is like really not hard. >> Like they make trillions of dollars to try and make it easy for you. Sorry. Go ahead. >> Yeah. >> Yeah. [laughter] That's great advice, man. Thank you.

26:15Definitely go start start with that. >> Yeah. And the nice thing is that no matter what, if you spend more money on ads, you're going to make more money. So even if you're inefficient, you'll still increase topline. But I think that if you just try and get good and good and good at that. And then I would also reach out to >> whatever these other agencies are, I don't mind spending more on this because again, the big picture is like you have bigger goals than this, right? >> 100%. >> Right. So just don't let your ego get wrapped up in your one month or two month profit. Like that profit will be there if you choose not to spend money.

26:42it's always there, right? So, I would want to take as much of that profit as humanly possible. And I'm just I'm telling you how I do things. I take all that profit and I just see that as like this is my opportunity to reinvest in the business. When the business is small, reinvestment is you you're the reinvestment. And so, that's where I'm like, okay, I want to I'm going to pay the my current agency. I'm going to pay the next agency and I'm going to tell both of them I want them to teach me what they're doing, and I'm going to spend my own budget, too.

27:08>> Yeah. Yeah. So, that that was originally already my plan. So I had just a call this afternoon with the new agency and I told them from look if we going forth with the Google ads specialist I want to have weekly calls to at least know what what he's doing in the ad account so I just can follow the the guy and that ever may ever have new ideas that I can just try out but that I understand what he's doing. >> Let me tweak let me tweak it for you. Let me tweak it for you. Let me tweak it for you.

27:35>> You're going to ask how often are they are they going to be you know really doing work on the campaign. Just let's just guess it's twice a week, okay? >> I'm gonna do something even better for you. >> I'm gonna ask that you don't even work on my account. I'm still gonna pay you >> and I want to have two calls a week and all of the work is going to be done on those two calls. That's it. They don't have to do any other work for my account. But I want to be the one who controls the mouse and I want them to tell me what to do and why they're doing it.

28:01>> Oh, that's that's a very good idea. >> Okay. This is how I learned this is how I learned how to run national level Facebook ads. This is how I learned how to do it. I hired an agency and I said, "I'll do whatever. I'll show up whatever hours you want." I was like, "But I control the mouse and you tell me what to do and I'll do it." And I recorded my screen and I would ask questions along the way and they would tell me. I'd be like, "Okay, so why are we doing this?" And then within six weeks, I was like, "I get it. I don't need this guy anymore.

28:25>> That's genius." [laughter] >> Cool. >> Yeah, sounds good. Sounds definitely going to start there. >> Rock and roll. Congrats on the business, Stephen. No, we build and sell like luxury gaming tables like pool tables, casino tables, manufactur. >> Not what I was saying. Okay, got it. Yeah. >> Um, >> that's cool. Like cool backlights and things like that. >> Yeah, like any anything like oneoff custom pieces. >> Sweet. >> Um, we we're at around 2 and a half million revenue a year. We want to be around 10.

28:54>> How do you sell >> at least? Uh, mostly Google ads. >> So, e-commerce. >> Yeah, she sells >> but not so over the phone. mainly. >> Okay. Yeah. Okay. So, invoices, phone calls. Okay. Got it. >> So, how do we increase our leads 2x, 3x without breaking the bank, basically? >> How do you increase your lead flow without breaking the bank?

29:20>> Yeah. >> Well, I'll ask you. >> For quality leads, basically. >> So, what are you currently doing? You said Google Ads. >> Yeah. Around 15 to 20K a month. >> Can you spend more? >> Yeah. Why don't we do that? >> We've tried and we weren't generating the same quality leads or necessarily getting more >> different keywords. We're not getting you more quality. >> Yeah, >> correct. >> This is probably a scale thing though. Like this is a media buying question. Um because I can promise you that at $20,000 a month, you haven't saturated the market for cool custom gaming stuff.

29:52Like you could probably get to like 2 million a month before you'd even get close to that. Um so I think it's probably just a like who does your media buying? We have a company. >> Okay. I would This is a keyword thing. Like this is this is three degrees down like super tactical like we're just buying the wrong words and there's just we like I would be how what's your margins right now? >> 20% 500k a year.

30:16>> So I you just have to see this as like we might burn $200,000 this year on bad keywords to find another six that we can scale up to $100,000 a month. And by doing that, we'll 5x the business. And so if you just see it like that of like, okay, we're going to spend $200,000 or $300,000 to take us from 2 point whatever to 10. That's how I' that's how I think about it. Um, in general, we tend to be like scared to spend more money. And I would say the only thing that's really shifted for me is like from entrepreneur to investor, like kind of wearing both hats, is that I look so much stuff at just like return on capital and like what's the point?

30:55Like if I think we can get to 10, I would rather just get to 10 faster. And I see because I don't live off of that $500,000 a year. I just see all of that as my my fodder for putting back into the thing so that I can get to the next level, which side quest for everyone. If you're a service business and you have cash flow, some businesses are really obvious for where you do reinvestment. If you're brick and mortar, you save up your shekels, you open another location. Very clear where your capex goes. If you're manufacturing, you buy another big machine. very clear where the capex goes, right? If you're a service business, you do accounts, you have you have, you know, you have a law firm, you got uh legal people, what do you do with the extra money to quote reinvest in the business? So, there's two primary sources. Number one is going to be talent and culture. So, who am I going to hire? Uh, and how do I how do I uplevel the team? So, in service businesses in general, you can see how good you are and how advanced you are as a service provider by the by the price you're able to charge. And so over time your price should always go up because fundamentally you should have a virtuous cycle of we do good work that generates more demand. More demand means more than we have supply which means we can raise the price. With the extra cash we can then acquire better talent which means we get we do a better job which increases our reputation which increases our price which allows us to charge more so we can get better talent. And so the talent should always be going up and so should the price. And so if you're in a in a marketplace where you're like man we can't charge more than other people.

32:15It's because you aren't better than other people so we have to beat them. in order like we have to do better. That's point one. The second area is brand, right? It's like how do I spend some of that extra cash to solidify the brand of me? So, this is not direct response ads. This is like kind of the big aspirational moments, these brand moments. Like, we just did this launch just, you know, two weekends ago. It's like, how do I how do I do these big demonstrations that might cost more and might not be the normal run of business? Like, why would Red Bull have a guy jump from out of space down? It doesn't make any sense, but except it makes a ton of sense because I'm talking about it right now, right? And so you're probably more likely to drink a Red Bull at the break.

32:50Real talk. Uh and so anyways, it's like how does this latter back to selling more pool tables? Um for you though, you're not in a service based business per se, but I thought it was a good offshoot for other people. Um see all of the profit that you have, whatever you don't need to live on as your experimentation budget. And that budget is really like do not see it as I lost money. Like you can't think with that perspective. you will just lose.

33:16You have to think of that this is like I'm going to uh rigorously test keywords [snorts] until I find more keywords that win. And these are just investments in finding money printing machines because keywords especially once you really find them, they kind of just print for you, which you guys are experiencing right now, right? You guys sp $250,000 a year, you're making a 2.2, right? You're getting 10 to1 on it. Now, obviously you have cost of goods for sure, but like profitable, right? And I'm sure when you found your first keyword and it started working, you were like, "Holy shit."

33:45It's like, "Great. We just need to find like another hundred." And they're there. They're there. And you might need bridge pages. So you've you may have heard of Eugene Schwarz. Uh so famous marketer. And so when you really want to scale ads to colder markets, um for those of you went through the hooks and the goated ads, anyone go through goated ads playbook? Okay. So this this will sound a little bit more familiar. So you have these levels of awareness that correspond with size of market. And so you've got your most aware customers here.

34:23And the reason that these levels are important is that it changes what the hook is and what the kind of click journey is for the customer. So at the very top you've got unaware. Then you've got problem aware. You've got solution aware, you've got product aare, and then you've got most aware, which is usually your existing customers, right? And so if you want to expand, so right now, I'll bet you most of your keywords are targeting these people.

34:54>> Y >> if you want to go up market, which might have 10 times more clicks, we might have to have a bridge page after you have like the keyword might be more like home home projects or like uh accessor like I I'd have to think of that. I'd use a keyword finder. And then >> would you have like the same team work on that or hire a completely different marketing team to kind of >> a really good media buyer would know this. Um, but you'll likely just need to have keywords that are a little bit broader so you start competing against more people. But as long as you bring them to kind of like an advertorial type page and then they take the next step and then it basically mimics the same path as this. It's like you take them from product aare to then advertorial then to your sales page. that bridge, the clicks here might also be like onetenth the price and there's an ocean of them. And then when you get from there, it's like, okay, what's what's above that? Problem aware. Is your house boring? Right? Like, do you have an extra room that you don't know what to do with, right? These are problem aware.

35:52They have a problem. They have no idea that you're going to sell them a pool table, but we have to start with where they're at and then lead them through the journey. >> Got it. Thank you. >> Yeah. >> Appreciate it. >> Cool. Help. Okay. She was like, it was an okay answer. >> Yeah, sure. >> Sure.

36:22>> Yeah, it doesn't change. You guys are spending so little money. It's like it's laughable. And I want to just say that so that I can hopefully break beliefs around this. Like $20,000 a month is nothing. Nothing. And the fact that you're doing 2 point whatever is amazing and you're doing it on 20. There is so much traffic. There's so much traffic. Like for our launch spend 500 a day. Like there's so much traffic and people just don't know how to access it. And so I promise you this like we only talked about just expanding your existing strategy. For sure if I would say like if I were to market your business, my first step wouldn't have been keywords.

36:57I wouldn't have done that. You guys did and that's fine. I would say cool let's do more of that. But if I was like, if Alex took over the business with my skill set, I'd be on Instagram reaching out to influencers because you have a very visual product. So, I'd be getting shout outs and sending sick customized Mr. Beast pool table billiard stuff and being like, "Let me make the sickest thing possible for you, tag me in it, and then they send it to either an inquiry page or you can send straight to checkout." And because you guys sell really high ticket stuff, they probably will make more promoting your thing than whatever else they're selling.

37:26So like and if you had a good influencer who did do that, you then take the highest converting story that they make and then run it as a white list on Instagram and Meta and it would [ __ ] destroy and you wouldn't have any of these issue. That's what I would do. But I want to go with what you already are doing that has a high likelihood of working which is like let's just find more keywords. But that's if I wanted to go from like when you come back and you're at 6 million or 8 million, I'd be like, "Okay, cool. Now let's get to 50."

37:50>> I'm uh Brian Decker. I uh run a uh investment community called the wealth society on school. Uh we basically teach high-income professionals how to restructure their stock portfolio. So take advantage of like the AI and robotics super cycle. Um and so when I launched it and started it 18 months ago, I just went straight from reels, pushed them into a live webinar, and we used to basically fill 500 people up off of a reel. I do the webinar, we would close off of it, directly push it into our community and did that off of our organic. And so now that's just not hitting as well. We're still close, okay, but we only put maybe 150 people every week when we do it versus 500

38:33>> into the event or into the group >> into the actual uh the live training, right? So um so you know typically say we have you know 400 people register 200 people show up and then from there we end up usually getting 10% of people will book a call with their closer and then they'll close you know 50 to 60% on it. >> And so the question I've been basically doing is we just went directly from organic reel registration page show up at the webinar and kind of close them.

39:03And so now it's kind of filling in those those gaps rather than trying to go necessarily maybe to a different channel. And so that's kind of what my question is is how to really optimize that or to you know we've never done any paid ads. We've never really done any of that. We did about 3.2 million in revenue. Um >> what's the price point? >> The price point is uh 6,500. >> Okay. Um I actually don't think you need to optimize too much on your existing funnel. Okay.

39:30>> So your show rates are really good. your close rates during the webinar are a little low um in terms of book to call. I would >> don't know if that's because the presentation isn't good or because just the lead quality from organic is going to be really mishmash. Um and so I don't know if you score leads on the front end when they opt in. Do you do that? >> Yeah, we we what we noticed was is I don't have like a massive following. I got whatever like 400,000 followers and I noticed that I had owned a big mortgage company for many many years and kind of grew that. So I had a really large group initially that knew me for so long for doing speaking engagements that joined within that and so now it's kind of that kind of getting new the newer people in that don't have the

40:15>> just so we can be precise the opt-in. Do you track who's a marketing qualified lead? >> Uh yes we track it in terms of where it came from. Do we track I maybe I don't >> the quality of the lead as in do you actually see if they're a high income earner? >> Yeah. um when they not when they get into the registration page. No, we do not. >> I would add that. >> Okay. >> Because it give you a lot of good data on whether or not like if you're closing 10% but maybe only 20% of the people who who are showing up for the webinar are actually qualified. You might be actually closing 50%. And then the other 80% aren't good. And so for anybody who does one to many um selling environments who actually who pitches stuff, can I get hands? Okay. So I'll just make it quick then. um you have to qualify the room. Otherwise, you'll get this volatility in your selling and you'll think that you're going nuts. But if you know what percentage of the accounts are quote sellable accounts or are marketing qualified leads, your close rates will become significantly more stable and you'll stop going insane.

41:07>> So, when I hear your numbers, 50% show rate, really good, close rate at 10% at a 10K price point uh for booking a call, typically you can get about 20 if the the the list quality is good. Um, so that's the only one that's a little bit low, but your close rates on the call on the back end at 50 60% post webinar. That all makes sense. So that's the only out point, but that I don't know if it's actually an out point. It could just be the quality of the traffic that's coming from organic. So the TLDDR is I don't think you actually have a conversion issue um in your actual funnel. I think it's more likely that you just need to do way more top one by running more ads.

41:40>> See? Yeah, cuz and with with your because we've I've never ran ads. It's just purely just organic. and um kind of talking with Dion, he was like, "You need to call your people out. Call doctors out. Call these ones out." Now, when it comes time to like running ads, do you recommend sticking to like when you look at that flow? So, say you run an ad, do you run an ad and then push that person to a lead magnet and then from that lead magnet then look at putting them into a webinar or do you like how

42:10>> you can praise webinar as long as the promise of the webinar is compelling. >> Okay. So, just make sure the promise of the webinar is compelling. Um, I don't know how you structured the webinar, but I'm assuming if you've been doing this a while, you've probably optimized it a little bit. >> Yeah. >> And so, the the point that Dion is making is this. So, the old Facebook was all about running >> [snorts] >> uh the best ad you possibly could, which is still true today, but it was more like how do I convert the ocean? Now, with the Andromeda update, Meta and all these platforms have become significantly more verticalized or personalized. And so many of you guys probably noticed that your news feeds are change a lot very quickly based on what you like or what you engage with, right? And so it's no longer a game of boiling the ocean, but boiling a hundred small ponds. And so this is why from an ads perspective, uh, Dion was saying you want to do more call outs. And it can be quite literal callouts like, hey, are you a doctor? But it can also just be the visuals of the background and the person who's in the ad that can do the same work because the algorithm reads it the same way because the AI recognizes it, right? And so they know that people wearing white lab coats are likely to convert with other people who are wearing white lab coats on the other side. Right? If you want old ladies, have an old lady in the ad because it will automatically serve it to old ladies just because it knows just purely on math that old ladies convert better with this type of uh creative. And so if you want to have a higher variety of creative for high- income earners, you want to have every little pond of high- income earner covered so that when you scale, it's super personalized to them.

43:35M >> and so that was then will get you um a lower cost per result but still at high quality. Now the big downside of this big change that happened with meta is that when you have to make 100 ponds ads for 100 ponds got to make 100 times the ads and so this thing will get you absolutely the best results you've ever had in advertising but you will lose your mind with the amount of creative that you have to create. >> Yeah. >> And so for your transition right now you've learned the organic game. you emptied the audience in the beginning and now the people that you're selling on a regular basis are the newer people that are coming in and keep doing that.

44:08But how do we go from 3.2 to 10 is going to be we need to make hundreds of creatives with different hooks and avatars that represent the different pawns of the audience and we need to start running ads to that webinar and you'll split test the promise in that webinar pretty quickly until you find out which promise is the one that converts the best. Now, do you recommend doing changing not changing the webinar, but do you recommend doing specific webinars? Like if I'm going to do dentists and doctors and healthcare and doing a webinar for that versus

44:34>> the more personalized you make it, the better it'll convert. >> Okay. >> It's just it'll just be like this is just more work. >> Yeah. >> So, yes, the like if you have an entirely, you know, green flavored funnel this way, making it green all the way through will convert better than having it green and then generic. >> Okay, perfect. Well, thank you. I appreciate that. >> Hi, Alex. Um, my name's Amos Craig. >> Amos. >> Amos. Nice to meet you. >> Nice to meet you. Um, so we sell magic mushroom products online, uh, e-commerce.

45:01>> Okay. >> Um, we do >> like drug mushrooms. >> Yeah, the psychedelic kind. Yeah. >> Cool. >> Uh, we did about 650,000 in revenue last year. >> That was kind of our first big >> Is that legal? >> Uh, it's it's a kind of a gray area. It depends where you're selling it. [laughter] >> Yeah. So, >> [laughter] >> Um,

45:27>> it's [laughter] Yeah, >> you're good, dude. Don't worry about it. I'll help you out. It's fine. >> So, we'd like to Yeah. grow the business to 3 million, 5 million. >> Have more people get high. I love the impact. >> Exactly. Yeah. >> I'm I'm just kidding. >> I know it is. >> Um, so what what's stopping us? Uh, it's basically um marketing. We have um [clears throat] >> social media. We got most of our >> um from Instagram most of our clients.

45:53Um >> do you make content or someone else make content? >> We make content. >> Okay. Is it you or is it just >> me and my business partner? >> Okay. Got it. >> Yeah, we make part >> medicine. >> Yes. Yeah, >> that's right. >> Yeah. So that was, you know, we were trying different things. Um last December, we kind of had a few pieces of content that went viral. Um started getting a lot of uh a lot more customers from that. Okay. Um it's been a bit of a struggle just because of the the nature of the products, you know, getting strikes and flagged and account shut down

46:24>> even on the organic side. >> Yeah. >> So yeah, you can't run ads, I'm guessing. >> Yeah. Okay. >> Yeah. I don't Yeah, we might be able to run ads. We just have to be careful until you get shut down. >> Yeah. Yeah. [laughter] Exactly. >> Um so we kind of Yeah, it's it's kind of like skating on thin ice. We want to diversify >> our marketing. Um, you know, we have a lot of good months and then dips down and depends on the content. >> So, yeah, we're [clears throat] trying to

46:51>> sell more [ __ ] >> Yeah, sell more [ __ ] Exactly. >> Got it. >> So, uh, I mean, fundamentally, the thing that you're fighting against is irrelevance, right? So, just just to name the enemy is that no one knows you exist. >> And so, we just need to advertise more. That's literally it. Like, this is the lead's book a toz. And so, uh, of the core four, um, I'm assuming that the delivery of this is probably not that complex. >> No. >> Right. And so, what are you guys spending your time doing all day?

47:16>> We do make content. Uh, we also do all the day-to-day stuff. Uh, recently we got a partner that's taking care of a lot of a lot of that now, so we have more time freed up. >> Um, but yeah, we >> make content. >> How much content do you make [snorts] on what platforms? Uh just basically Instagram right now is is mostly um we don't we don't do a ton about content. We we post one reel a day, a couple stories. Um

47:43>> Uhhuh. >> So our plan is to make more content and go Yeah. Yeah. >> I like that. It's a good plan. >> Yeah. >> Um how many hours per day are you spending on advertising? And I say that in the formal sense. >> Zero. We don't do anything. >> Well, yeah. Content being advertising. >> So um hours a day. Mhm. >> Probably 3 to four hours a day and you're making one real

48:06>> Well, okay. Maybe. Yeah, maybe it's not that much. [laughter] >> I'm just think we're we're figuring out like >> I'm only smoking one cigarette a day, doc. [laughter] Like I don't know where this black lung came from. >> Yeah. Yeah. >> Um yeah, we're just in the middle of like reorganizing how we do content, figuring out systems to do more, generating more ideas. Um, so, so yeah, >> if we were actually just making content 3, four hours a day, yeah, we'd have a lot more

48:33>> content. >> What are you doing >> that is more important than that now? >> Cuz that's obviously we should do. So like I'm trying like why is he not doing this? >> Yeah. Nothing. >> Okay. >> Yeah. >> Great. So you one out of like three or four. >> Yeah. Yeah, [laughter] that's what I figured. Yeah. >> So, let's just do quick levels for you because I want you to have like some some easy takeaways. All right. So, number one is like you should be crossplatform on everything. All right.

49:04So, all the real should be Tik Tok, YouTube shorts, uh Instagram. Um so that's like when you Facebook uh Facebook's huge by the way. Um Facebook, LinkedIn video is blowing up right now. So there's there's five that you should be X actually video is big there too. So there's six, >> seven, whatever that this many, right? So that's number one. Number two, um, take the transcriptions of those, those become posts in of themselves.

49:33>> Take the transcriptions, make them into infographics, those become posts. >> All right, so we just went 7* 3 with 21x output. That's that's first lever, >> right? >> Second lever is on the production side. You guys are doing, you know, however much per day, one reel per day. I'm guessing you're like making it and posting it and making it and posting it. Does that sound about right? Okay. So, here's this idea. We're going to plan. Uh, and so we're going to plan the week and we're going to think we're going to spend like two days just planning what we're going to make. And then we're going to spend one day recording all of it.

50:06and then you can just edit and then you can just get into a cadence that now you can post way more because I promise if you plan it out and you chunk the work because you're just going like going end to end is the most inefficient way to produce anything. >> And so it's like it's much easier to say I'm in idea mode. Let me research hooks. Let me research trending topics. Let me uh memes and formats. Great. I've got all these ideas in. Here's all the the shorts that I want to make now. Okay.

50:33Now that I have those ideas, I'm going to go film them. Now we're gonna go edit them, right? >> And so that's like I mean honestly if you just do that you'll probably triple. >> Yeah. Yeah. >> And your conversion is what? They hit your link and then go by. >> Yeah. >> Yeah. So add a CTA at the end of your organics. Go to Many Chat. >> Yeah. The thing about CTAs is that we don't really do CTAs just because we don't want to get flagged and things like that. So a lot of our content is, you know, it's we grow our own mushrooms. So we post mushroom content that way. We do fun

51:04>> fun fun videos, you know, recipes. >> The CTA is going to change whether or not you >> I mean, you're talking about mushrooms, man. >> I think if you're like, "Hey, here's a free mushroom guide to figure out how, you know, which one's the best for your high or whatever." >> Yeah. [clears throat] >> Okay. >> You know, I think like I like diagnostics as a as a lead magnet because it helps people figure out where they're at, but it it's it gives you like endless hooks on the front end because I don't want to have I don't have to create a new lead mag for every piece of content, right? I want to make one hero piece scaling road map etc.

51:33that all you do is you chunk in chunk out. So what I mean is like this applies for everybody. Uh it's like this is what you this is like you just go really deep on like the flower. I don't know [ __ ] about mushrooms but like the flower head or whatever is inside mushrooms, [laughter] right? >> Fruing body. >> Yeah. The fruit of the butt. Is that what you just said? >> The fruing body. >> The fruing body. >> That's what it's called. That's what it's called. [laughter] >> So if it's got if this thing's got a good looking body, right, and it's fruity, right? And it's like I just talked about this one element, but there's 16 other things that you have to think about when you're looking for your first high, right? And so [laughter] and so download the thing and then we'll send it to you. And then obviously inside of there, all of that's going to be hyperl to your store,

52:15>> right? >> Or you can have the the link just go straight to your store to an article that then links to the shop. Either way works, >> uh, what do you think about doing more long form content like podcast? >> But right now, you're not making short form, so let's do that. >> Okay, let's do that. Yeah. Okay. >> Do the first thing. >> Do the first thing >> and then do the second thing. >> Okay. >> Because the thing is it's it's harder to make longs than it is to make short. And so once you learn how to make shorts, longs is just many of those together on a theme.

52:41>> What about uh live and interactive? I I know you mentioned that recently. Doing more of that. >> You're doing one short a day. >> Yeah. >> I say we go way more than that. >> Yeah. [laughter] >> I I mean just do that. Just do that. >> Okay. If once you do that consistently for like three to six months, then like that's systematized, we'll do something else on top. It's just layers. >> Layers. Yeah. >> Because one of the big things, this happens for everybody, is like once you get good at some advertising channel, if you're the one who's leading it and you're like, "Oh, I'm going to try this live stream thing." All of a sudden, these ones like bomb. So, in order to truly scale advertising over a long period of time, you have to literally lay this brick foundation and then it's working.

53:19>> Then you lay the next one. And most people just they jump from brick to brick and they never actually get any foundation. So, it never stacks. Okay, that makes sense. Cool. Okay, appreciate you. >> Thank you. >> I'm 21 years old and me and my wife are currently running a VSSL funnel. >> Yeah. >> Selling a subscription program on the love relationship niche. Okay. >> And it's generating around like 600,000 per month in revenue >> with a 3 to1 ratio.

53:45>> Great. >> And our goal is to make a million dollar per month. >> Sure. However, we are only use Facebook ads and the revenue tends to fluctuate a lot on a daily basis. Yeah. >> And when we put a lot of money on the CPA goes up like a lot. >> Yeah. >> So my question is on three key points. The first how would you solve this to make like the result as consistent as possible? Second, how can we scale from the 500k, 600k to 1 million per month?

54:18And third, what is the difference between in the mindset between someone who makes a million dollar per month versus someone who makes a 500k? >> So rather I'm going to put a pin in the mindset thing for a second. Um, so big thing number one is that most people underestimate, wildly underestimate how much more creative and how how much better the creative needs to be to continue to scale. And so where's my Old Spice, right? The the level of so that that ad campaign. So he made the Old Spice ad, which is like one of the legendary ads of all time. Um, that ad was so good that it converted everyone.

55:01And so I just see it as very much you have the levels of awareness. Uh Eugene Schwarz talks about this in breakthrough advertising in terms of what types of hooks you're using. And so at the at the highest level, you have unaware people, then you have problem aware, you have solution aware, you have product aware, and then you have most aware, which is typically your your your most recent customers, right? And so when we think about scaling ads, we write hooks to those different audiences. And so if you run an where's my uh so you guys do your uh reactivation campaign to uh home services. So you just go to most aware people and you just make them an offer.

55:37So they don't have to educate them on what home services are. They don't need to explain why it increases the value of your house. They just make an offer period and that's their advertising. But the issue there is that that doesn't work at all for anyone who doesn't already know who this person is. And so that's the kind of equal opposite extremes where on this level there's just a hilarious ad and when you're doing at the top level it's based on curiosity and entertainment. a level below that when you're uh when you're at pain based. If you've ever seen the ads that are like, "Do you have trouble sleeping at night? Do you pee six times a day?" You know, whatever, right? Like whatever the thing is is that they that hook could lead you to ashwagandha route. It could also lead you to a sleep program. It could also lead you to orthotics. Like it's so broad, but it starts with the pain. Now, solution aware is what you might not have known about ashwagandha compared to compared to these orthotics is that ashwagandha blah blah blah. So now you're comparing things, right? And so you the hooks are based on the audience that you're going after and the quality of the creative itself.

56:38So those would be the two variables which typically most people need to make significantly more creative to expand your ads. So like many people here who run ads have this artificial limit that you guys have hit. Who here has run ads and is like I'm good up to here and then after that I can't. Right? The difference between here and here is just the quality of creative. Number two, CRO. So, conversion rate optimization. And so, you have a VSSL funnel. This is what I would test in order. The first two things is I would test, you probably already tested the headline on the on the VSSL funnel a bunch, but have you tested the first five minutes of the VSSL?

57:15It will give you one of the biggest lifts in conversion rates. Basically, just slice out the first five minutes, reintroduce it tighter, package it, put some more proof up front, make sure they know they're in the right place, and run two, three, four, five variants. you will be able to see 20% 30% lifts to uh cost to acquire or decreases rather um in CAC just from running the actual VSSL uh slicing out the front end and then testing the intra um the last piece is that you're in a bidding war and so these things these first two things will get you lower CAC that's what this is right better creative CRO that lowers the cost to acquire customers the other one the back end is increasing how much you can spend Right. And so do you have a backend for the VSSL that you have?

58:01You do. >> I have two upsells. One is 97 and the other one is 67. >> Yeah. It's a phone team though. You You're doing low ticket upselles. You need a high ticket upsell. >> Okay. >> Yeah. You need like a $5,000 $10,000 thing. And so the big difference between people like who can get, you know, in the in the number of 600k versus a million doesn't really matter. it's more about uh just more fundamentally. So whenever you add phones, you always can get a double or triple in terms of LTV. And so it's just like when do you pull that lever? And so you got to here on 600,000 you might be able to get to

58:40>> for this year 2025, our total revenue is right at 423,000. >> Okay. >> Profit is 275,000. >> Uh industry mortgage broker. >> Okay. What we sell, >> okay, >> is we are hyper niched into I'm an airline pilot and military pilot. So, we help airline pilots and military pilots

59:05>> buy homes with their VA loan. >> Okay. >> And the problem we're trying to solve is I think we have so many different kind of marketing strategies right now. >> Yeah, you got to pick one. >> It's tough to kind of pick >> Yeah. >> which to put them more on. Yeah. I feel like we get started, then we stop, then we start, then we stop. word. Okay. Well, what are the different ways you're getting customers right now? And what's LDV CAC on each channel?

59:30>> Okay. So, this is fantastic. So, organic. Uh that's where we get uh LTV is 11,17. >> Our CAC is 3,200 >> and we have 18. We had um 46 deals we closed this year. So, 18 came from there >> from Realtor Referral Networks. >> Okay. Our LTV is 7800. >> Okay. >> Like just real.

59:57>> Yeah. >> Um CAC still the same right at 32 across the board on the CAC and then clients >> really by channel. Is that or you just took all your marketing spend and divided it? >> I just did a a gross like a fully loaded CAC across the board. I didn't break it per per group though. >> It it is okay. Well, I'll actually be able to figure that in a second. How many people did you get from the realtor thing? Uh, we only got 14.

1:00:22>> Okay. So, 18 then 14. Okay, got it. And then what was the third uh third channel? >> Just past clients. 14 coming back for, you know, more loans. >> Yeah. Okay, got it. Just repeat business. Okay. Um, and then how many did you have there? >> 14 on repeat business. >> Oh, interesting. Okay. And then what was LTV on them? >> LTV on them was uh 7756. >> Okay.

1:00:49Okay. And so organic for you right now is content. >> Yeah. It's pushing out content. We were sending messages out about 25 a day. >> Okay. >> To people. >> How'd that do? >> However, it wasn't converting. They're just reaching out to us when they're ready. Like they're super warm. They ask us for an application and >> no friction almost. It's almost one for one. It's kind of crazy. >> They're like, "Yep, you like we solve the problem of underwriting for airline pilots. It's super complicated and we know exactly how to solve it.

1:01:19>> That's I love that you're niched on this by the way. I think it's really good. It's really So I I like the model. There's also a ton of pilots. So like love all like like all of it. All right. Um Okay. So you've been making content. Um so let's put a pin in that for a second. So the affiliates, so the realtor networks that you have access to, how do you recruit the realtors? >> Well, that was the thing. Last year we we recruited very heavily but we realized the LTV was so like it was lower almost 30% lower we kind of quit messing with them. So we really don't mess with realtors anymore. We're looking to get back into realtors kind of seeing I really need the affiliate to keep the money model going.

1:01:58>> So we really haven't done much with realtors this year. Just these are some leftover ones from last year. >> So let me ask you a question. How much how much did you do outbound? Is that what you did for the realtors? >> Yeah it's just calling them up. look them up in the local area just calling them up and great you know meeting with them and then they refer business to us. >> Got it. So how much would you say of your time last year

1:02:21>> was allocated towards doing that? >> Almost 80% of our time was doing that last year. >> No way. Really? And what we >> and what we >> kind of realized was like this year we've had 42 >> qualified leads come from them, but only 14 of them we closed and only one of them was our ideal client of an airline pilot. >> They just think you kind of just generic. They just think you just like people.

1:02:47>> Yeah. They're just generic people and and we >> creates more churn in the system, more work, more credit pools, everything. >> Yeah. Yeah. Heard. Okay. So given the fact that you're in a niche, going after generic realtor is going to be tough because the likely that they sell a pilot is going to be super low statistically, right? So I think that your best bet is probably going to be an organic plus ads rather than organic plus affiliates unless there was un like actually, you know, said differently, this actually makes way more sense. So, instead of going after realtors, I think your outbound strategy is the right idea, but I'd be going after group owners or community owners who have pilot related businesses or like pilot related merchandise because actually, it's so funny because I um I want to say two years ago, I had a call like this with a guy who did pilot merch. So, all it was was just like merch for pilots u and he had a community owner of pilots and he ran it was an e-commerce business and so he was running ads. So, I don't think it's one, I don't think it's very hard to find these pilots. Um, I would also recommend starting a school community for all the customers because they're all the same. And I actually think that' just be cool. It's just like a cool benefit that you have um that other people don't can't normally do in your space. And I think you'll be able to generate a shitload of referrals from that.

1:04:04>> That's kind of what we were kind of thinking. We do have a finance course that we built out that we just haven't really been able to use because I kind of get stuck in this. Hey, I need to go back to doing more. But like we've built out Yeah. >> courses just for pilots, just for the veteran exactly how to fix your problem. >> Here's what I would do. Here's what I do. So, you're going to take your course, right? And you're going to make that as a lead magnet for your organic. And I would drive them into a group because to your point of like some of them aren't ready. That's fine. They can join a group in the meantime. That will spin up the wheel. That will then get you leads and then it will also get you referrals because you can tell them, hey, send your friends to this group. They're they're all welcome as long as they're pilots.

1:04:45Pilots only. >> Okay. >> So, they get this lead magnet when they join the group for free. Thing one. The second thing is I would start experimenting uh with Facebook ads. And I would use the lead magnet yet again. Um, and then what I would do is I would include because I would send them to the group and give them a onboarding call for free. So they get the lead magnet plus an onboarding call. And then you can talk to them. You can gauge where they're at in the life cycle.

1:05:20And that that that group can basically act as your as your long-term nurture in the meantime. But I think the referrals from the community are going to be big. And I think paid ads now in today's day and age can get super targeted for this type of avatar. >> And that's what we identified on social media. >> Yeah. >> It's almost 75% are exact clients. >> Yeah. The algorithm is already done. Like the algorithm's finished. They know what's inside. AI gets it. AI knows who the pilots are and they just send that.

1:05:48It's it's interest media, not social media anymore. So if you want to make if you want to get pilots, you have to make pilot stuff, which you've already figured out, right? So it's like >> Yeah. Number one, I think by and large, for sure, this strategy is a more strategy because what I want you to do is make way more pilot content. Number one, I would also experiment with like pilot related humor and memes. I think those will probably do really well and they'll still bring people in because that's fine. I normally I'm not like pro meme, but I think for stuff like this, like inside jokes for pilots, I think would be a great content type. Not like not every day, but like you know, a few of those a week I think would do well. Just top of funnel awareness. Um, but what's cool about that is that like I want you to pump way more content so that when you take the winners of that content, take the content and then slap on a CTA at the end, run that as the ad

1:06:35>> and then the offer is going to be the lead magnet you already made. They can facilitate the the course or they get the the onboarding call for free. We can score where they're at in the life cycle and then you can follow up with them accordingly. >> Okay, >> that's what I would do. >> Well, cool. That was really the decision was go after realtors and just keep going after >> Dude, I don't think No, I don't think Realtors is the play. I don't think Realtors is the play cuz it's If you want to stay in this niche, I don't think that's the play.

1:06:58>> Okay, perfect. >> Rock and roll, dude. Appreciate you. >> If you want more people to know about your stuff, you have to let more people know about your stuff, which is what I wrote this entire book on, which is leads, right? And right now, there's only three things that you can do as a human being to promote anything. You can do outreach, which is one-on-one communication. You can do posting content, or you can run ads. Now, with those three things, you can go get customers, you can get agencies, you can get uh employees using that same skill set, or you can get affiliates. All right? And so, right now, if you just look at your calendar, if you are not doing outreach,

1:07:35>> million dollar money, >> holy [ __ ] >> Oh, yeah. Um, if you are not doing outreach, you are not running ads or you're not posting content with the majority of your day, at least four hours a day, if that is the constraint of your business, then you are not doing your job. So, you have landing page CRO, awesome. You fill your days by spending 4 hours per day. So, the schedule that I like to run if you are starting out is I split the day into three chunks. All right? And it's all 4hour chunks. And if you're like, that's 12 hours a day, Alex, sure. You can always just do less and take longer to get to your goals.

1:08:08That's your prerogative. All right. So, you've got 4 hours, 4 hours, and 4 hours. Okay. So, I'm going to spend the first 4 hours of my day promoting. All right. The next four hours of my day, I'm going to spend building. And when I say building, there's always collateral. There's stuff you have to put together. You have to install something, whatever. And then I'm going to have delivery. And so, this is how I split my day so that I can get ahead of what I need to do. And if you promote what you have, you build and you deliver, you're going to and promotion is going to be marketing and sales. All right?

1:08:46Now, if you're like, I've already built everything, then you can double this up and make it 8 hours for promotion and delivery. But in the beginning, the thing that the thing that you were fighting tooth and nail against is irrelevance. No one knows you exist. That's the issue. It's not your market. It's not your product. No one knows you exist. That's the issue. And so, you have to fight. And by fighting, you have to fight against everyone else who's fighting for your customers attention. You have to become more interesting. You have to get in more inboxes. You have to get on more news feeds. And by doing that, you'll get more people that you can convert into customers. And if they're not interested in your stuff, and if they're not interested in your stuff, you need to give them a better reason to get interested in your stuff, which is going to be a better lead magnet, a better reason to give you the information. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from 0 to 1, 0 to 10, and 0 to 100 plus. And so you can click here and you can check it out.

1:09:45Again, absolutely free. And since you're a business owner, appreciate you. And uh enjoy.