Die einzigen drei Dinge, die wirklich Geld bringen

0:00I think you were you answered this question which was how do you filter all the information what's changing? You answered it from the point where you have already figured that out cuz now you're like what should I make a video on? You've already decided I should make a video. I don't think anyone's getting to that. I think honestly most people are so overwhelmed like should I learn clawed code this new thing that's been buzzing recently or should I learn NFTs or crypto or whatever. Um how do you trust that what you've decided on is the right thing to do and that you don't need to go back and check, you know? I think what you just said was like the the operative word that Sam said was trust.

0:43And so I think the the scattered braininess comes from a place of fear. Is I'm afraid I'm going to be left behind. I'm afraid my stuff's not going to be relevant. I'm afraid if I don't learn how to code I etc. etc. etc. right? I have a belief. I trust that when something is significant enough that it actually affects my business I will change.

1:08Until then I will continue to do what I know works which is that I will gather attention. I will point it in a direction. I'll make a compelling offer and then I'll deliver on that promise. And so fundamentally like especially most of y'all here are are below a million bucks ish somewhere in that neighborhood. What makes you money? Is letting people know about the stuff and then delivering the stuff and making the stuff you have to deliver. Those are the only components of the business because for those of you who have a conversion mechanism that's automated which is like the about page, there's no like real sales motion you just point it there. If you do have a sales motion you have a sales call or you do a webinar or whatever you'll have that extra step that's in there but that is usually a very curated you don't need to remake your sales script. You don't need to remake your webinar once you know this is the thing that converts. That's just kind of like a performance that either gets auto you know, automated or you just do it on a weekly basis or whatever. But what are the inputs and the outputs of the system? The inputs in the system are more people knowing about the stuff, which means paid ads and content by and large for most of you guys. That's the input.

2:14We have this automated conversion for many of you. And then delivery also for many of you is relatively leveraged in that like there's recordings and maybe you do one call a week if you have 10 times the people on that call, it still probably works pretty okay. And so pretty much everyone here should be spending the lion's share of your time promoting. And I don't say like in a shilly way. I'm saying like let people know about your stuff and do it in a and go two levels deeper. Spend more time on the problem in and then let that come out in the content or the ads and that's what's going to to create the differentiation.

2:49So yes, like right now my my my simple advice is if you have I don't know what let's assume you work a 12-hour day, you can shrink it down to whatever hours you work. I know we had the French guy who was like, "I don't like working within 4 hours a week. Uh it's too much." So yeah, right. Shrink that down according to you. But I just like first 4 hours of the day I'm promoting. Uh next 4 hours of the day I'm I'm building the stuff and then last last one I'm I'm delivering the stuff that I built.

3:18That's that's the it's just third third third. And just set a timer and stick to that block. Like don't like have like some fire like you have if you know what you do every day cuz it shouldn't be a surprise to you. There's slacks, there's decisions, there's whatevers. But many of you guys don't have like massive teams you have to deal with either. And so like if it's not that it is a distraction. And so if you think about like what is focus? Focus is doing ev- is doing one thing. Which means that anything that's not that thing is less focused. Like the most focused video game player would not sleep, would not eat, would only play video games. As soon as they introduce any activity that's not playing video games, they become a less focused video game player.

3:57Now, you can't be 100% focused cuz you'll die cuz you need to drink water, you need to eat food. So, it's like, okay, well, what degrees of not focus can I introduce into the system? But, fundamentally, that is it. Like, the ultimate productivity hack is no. Is this You seem to understand this problem, right? Are we getting it it like the Are we Oh, good. Why do you think these people are just endlessly scrolling and not doing anything? Like, what is going on in their mind?

4:26You're talking about consumers? Just You seem to know what we're talking about. Like, people do this. They They're trying to figure out what's going on, what should I do, and they never quite figure it out cuz every day it changes, right? >> Right. And so, they never are like, I'm This is it. I'm going to do this, and I'm going to ignore everything, and I'm just going to do it. They don't do that. Like, why not? I think just speaking from personal experience, we try to learn as much as we can Mhm. and consume as much as we can, and then we listen to somebody who's a YouTube expert that says, "Do this." Then we listen to a copywriter that says, "Do this." Mhm. And at the end of the day, I know deep down that everything does work if you just do it for long enough and get good at it. Yeah.

5:01>> But, we we get into this circle of trying to learn >> Did you used to do this sort of thing? I used to do more of it. Not Not to this extent. >> That was like But, you read books in like Every book. But, all Every book is on specific problems, though, to be real. But, I remember you saying something, too, where it's like you were reading all these self-help books >> Oh, that's before I started a business, yeah. But, even just in general, the concept of reading all these self-help books and and at some point, they all end up contradicting each other.

5:28>> Oh, totally. >> "Oh, I'm in the same exact spot. I just need to [ __ ] pick one and and do it." But, I think picking that one gets tougher a lot of us. I'll I'll give you a a a wonderful piece of advice that even very high-level entrepreneurs will forget. So, it's something we need to be reminded of more than taught. But, it's like, you will do something, and as soon as it begins to work, do not stop doing that thing until it stops working. Do not stop doing that thing because you fear it will stop working. Do not stop doing that like if it keeps working, you keep doing it.

5:55Repeat successful actions. That was a success. We should repeat that. We should do that [clears throat] again. We did it yesterday. Do it again. Aren't they tired of it? Did it work? Yes, do it again. I'll I'll tell you the most extreme version of this and like why I'm like So, I did the book launch, right? The second day, there was all this juju about like you have to have a a read pitch is a different presentation. All this type of stuff. I I was so added about this that it was like, no, I think I can give the exact same presentation again.

6:26Same exact presentation and more people will buy. Because I believe that it is about asking again. More like it worked, so I will do it again. And so I did the exact same presentation day two and we had did like $25 million in sales day two. Same presentation. Now you're like, but would it be different people? Tons of the same people. They just watched it again. We watch reruns of shows that we already know happened.

6:51And we think, oh, we have I I have to somehow come up with a new business model every week. If you have something and it works and you make money from it, then you have an input-output equation. And so then it's like, great. The real question becomes, how can I actually do 100 times the inputs? Now part of that comes from work ethic. The other part comes from leverage. What kind of systems can I put in there so that this one piece of content gets put in 10 places? That kind of stuff. But like school has one of the simplest business models in the world. Promote [ __ ] point to page, ching deliver [ __ ] And I repeat the [ __ ] out of that on every single

7:27>> [laughter] >> I'm like, look, they have a Instagram, link in bio, about page, money. Yeah. >> [laughter] >> Again and again and again and again and again and everyone's still like, what do I do? Yeah. Yeah. But it's the So like it's So when we look at that, which of those has volume? The conversion is there's no real volume there. Maybe there's a split test, if that. The delivery, most of you guys have fixed delivery in that it's like I do a call a week, I do some sort of Q&A or a breakdown or review for a pickup guy, or I do a a page breakdown for Evelyn, or an ads breakdown, whatever, right? This it's a fixed backend. It's an automated conversion. The only thing the only part of the system that actually you have to do is the input.

8:11Is the ads. And when I say ads, I mean in the formal sense, advertising, let people know about stuff. That means content and paid. And now that content and paid are merged, it's just content. And finding the good content, and then putting more money behind it, so more people see it. That's it. Traffic, conversion rate, churn. Like one of those things might be the problem. Maybe all. Maybe all. But I swear most people don't even start it.

8:39>> Yeah. So, yeah. But we've talked a bit about this, too. It's like maybe it this term for it is too nerdy, but like first-party data. Mhm. Cuz I was telling Homie once in one of our calls that I was like, [ __ ] I don't even know when the last time I read a book was. >> Yeah. It was like 2 years ago. Which seems crazy, right? If But um we know we know as younger and I didn't know what was going on, I would read a lot, and I would take a lot of course, I would consume a lot.

9:07And that's because I didn't have any thing to do to test if it worked or not. I was trying to figure out what I should do, right? So, I was like all over the place. And then when I finally figured out, okay, I'm going to do this, then I did it, and then if it worked, I would be like, okay, now I'll just make it keep working. Or and if there's a problem, I will seek confirmation to solve the problem.

9:32And then I was consuming less, but then the more I got the further on I got, the less the more first-party data you have from doing it. And that's obviously so much more accurate and relevant to you than third-party data, which is other people cheering what they think worked for them. Do you Do you see what I'm saying? Yeah. And I think that once you get that first-party data, you can totally tune out a lot of things.

10:01Like, you can tune out everything that's going on because none of that If that matters, it will touch the first-party data. Right? Like, you'll see a movement and you're like, "Oh, maybe that is important." But if it doesn't, who cares? And is this making any sense? I endorse this message. I love figuring out The my favorite thing to do is like I can completely ignore that. I don't give a [ __ ] Like, that is what I'm trying to do to everything, basically, because I'm trying to figure out what can I ignore?

10:33Um and I try to ignore a lot, really. And I th- Should I repeat? Yeah. It's signal versus noise. Uh regarding the the earlier question, finding out what is signal, what is noise. And wo- Once you get more first-party data, the signal becomes stronger. The noise becomes smaller, right? Yeah, you'll do stuff and then either your conversion rate will be a problem and then you consume a YouTube video about conversion rates and you're like, "Okay, that gives me like six things to try."

11:02And until you try those six things, there's really no point in consuming more stuff cuz you just need to try those six things. And I will say um Leila says this a lot, uh which is just like a great reminder for me, which is like, "Don't change things when a solution is on the way." So, like, we will we'll be mid split test on a price thing and be like, "Man, our churn is a problem." It's like, "We're We're running the test right now."

11:27So, why should ch- It's like, "Dude, we're we're mid flight." Like, unless we land the until we land the plane, if we change mid-flight everyone dies. It was complete waste. And so some things just take time. Is that you just have to let a certain number of repetitions, certain number of posts, certain number whatever occur so you can actually get feedback on that data. Which I think is the second once you get into the first party world, that becomes the next issue. It's like you want to try too many things even with the data that you have and then that's where strategy becomes important because strategy is part of station of resources, right? And so you have 20 I mean how big I mean the the school list of like things that we can do with the platform is longer is very long. I was 2,000 new ones each day and from you guys, thank you.

12:08>> [laughter] >> And so you have to pick. And so that to be fair like that at the absolute core, in my opinion, is the core of entrepreneurship. Is being able to choose. I have these very limited resources in time, money, energy and there's a hundred things I can do, but which of these hundred things that if I were to implement has the highest likely to be yielding the biggest outcome? For most people, you don't have enough data for it to even make sense. Let me ask again. That's why it's not a feature in school, by the way. Uh you're not you're not going to implement AB testing for about page? It's just not worth it because we see how much traffic most people get and we see how schizophrenic their behavior is.

12:45>> [laughter] >> And we see people think that their about page change bombed after five clicks, right? Like and they change it four times in a day with like 20 clicks and I'm like and they want to AB test it. I'm like, "No." >> [laughter] >> You need to leave it alone for at least a week with your amount of traffic, right? And I've got this method I use and I still use it internally at school. We don't even run a lot of AB tests and we've got a shitload of traffic, right?

13:15I call it cowboy testing. And I just change it and watch the number to see if it goes up or down. And a [clears throat] lot of the time a lot of the time I can get away with that [ __ ] >> [laughter] >> And when it's more sensitive, like very sensitive, I'll run an AB test and properly set it up. And I'm still continuously amazed at how hard it is to make something that can beat the control.

13:40That um I think most people don't really understand the the actual underlying mechanics of an AB test. And if you don't understand that, you're just going to create more noise. We ran 16 AB tests on the school games. 14 of them lost. I'll put it this way. This is another way to look at it, right? So, we've got the sign-up page for school. We send an enormous amount of traffic to that page.

14:04So, it's obviously very important. We have tried so hard to like make it better. Most of the time, we make it worse in an AB test, right? However, if we try a different random creative on Meta, it can work five times better. So, like the leverage in the creative is so much more powerful than the leverage on the the page. It's insane. I think Okay, this is a I want to continue down this.

14:32The earlier on in the funnel that you are, the bigger the leverage is in terms of the throughput. So, if you change your your CTRs on your ads from 1% to 2%, you double the whole business. For you to do For you to You're probably not going to double the conversion on your page. It's just It's just very unlikely. You might get a 10% or 20% lift, maybe if it's a really good, you know, improvement. But, you can But, the crazy part is like you absolutely can get a double or a triple in conver in in CTR on the ad side. And that can get paired with if it's a really good creative, you might get double or triple the conversion rate, and your CPMs might be 1/6 of what they are. And so, all of a sudden, you have an 18x improvement, and there's just nothing down funnel that gets you that kind of gain, besides maybe a 10x or 20x in price or something like that. But, like the actual mechanics, it's very rare. And so, like these are the biggest levers in the business. They're going to be price all the way at the end cuz you can you can make that kind of change and then the the pure volume of creative on the front.

15:30Most people don't have about page conversion problems. It's what we see is they mostly need more traffic or they need a fixture. Yeah. Um But you know, if your about page doesn't convert, you do have an about page problem and that is possible. Um So for for example, we had monthly subscription which is $9 and then we added premium and it was only yearly price for 77 and our conversion to yearly rate was like 20% and then we add VIP which was 24 249 per year and we we thought that we're going to increase the the RPU but our premium conversion rate dropped to 5% because we added third tier. So my point was like I want to test like different types of about page.

16:20So one of them like just normal and premium and the second one is just for VIP for example. Can you can you cowboy test it? I think you just did. You see you know what works better? No, I mean if I got two tiers, a conversion to premium is really high but if I run three tiers, so the conversion to premium is is not so good. >> So which one works better?

16:46The first one but I already got a lot of VIP people in the group, right? Maybe do the first one? So what should I do with the people who already bought the VIP for yearly? I don't know. Keep keep them or cancel them, whatever you want. Also to his point, first party data. >> [clears throat] >> Right? Like you can you can read like hey having a high anchor works in a lot of scenarios and yours it didn't.

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