Mit Affiliates das Business wachsen lassen

0:00Like, if I wanted to create like a UGC or like a a UGC army for, you know, the books is the easiest cuz everyone already has it. I don't want people like trying to promote like our stuff. Um but like if I were to do it not on TikTok Shop, I'd say like we'll start a school group, I'll invite people in um that I think are like micro creators that are interesting. I say, "Hey, I'm going to spend X thousand dollars a month on ads. I'm going to only use people's ads from this this community. The ads that get the highest um basically of this 100,000, what's the spend split between?" And then I say that 100,000 becomes a $10,000 pot, and I'm going to split it proportionally according to the spend.

0:36So like there's tons of ways to do it even if you're not doing it through like TikTok Shop. How do like make affiliates really really warm to go out there and shout shout your customer? I said warm. I was like, "Fucking worms." >> [laughter] >> Um how do you how do you how do you get affiliates to activate, right? >> Yeah, because it feels like we're selling them and they get like kind of defensive sometimes. To refer friends and stuff? Yeah. Yeah. So, um it's going to be product. It's going to be number one. Like you don't have to push any Like if there's any ever product you've loved, you just tell everyone about it because it's great.

1:11So, most of product So, this comes down more to product than it does to like affiliate strategy. Um I'll say this. Like I'd say with the exception of like a TikTok Shop, which is like honestly right now an exception, it's very rare that I see like an affiliate strategy be the reason that something grows. It's because the product is good and then they put kind of like a wrap around it that has like a clear incentive. Like Dropbox was also a great product and then created their affiliate strategy. PayPal, same thing.

1:42Um I'll say that you you have to make the cost So, here I'll show you. So, I've built a lot of businesses now off affiliates like as primary. So, schools, you know, affiliate or referral driven primarily. Allen was affiliate driven primarily. Prestige Labs is affiliate driven primarily. Um so, like very familiar with the model. Um but basically if [sighs] you think you've got right product, right incentive, right time, and then right way, which is basically low friction.

2:28You have to have all of those. So, and probably I'd say if I had to order these, this is number one. This is number two. And then these are probably tied for three in terms of importance. Like is the thing [ __ ] awesome and they like cuz the risk like the cost of it is the social capital they're sacrificing to promote your thing, right? And so even to recommend a restaurant, if the restaurant sucks, people are like, "Why the [ __ ] did you send me this restaurant? It was dog [ __ ] right?" Um so, it has to be very good. With that assumption, which is a gigantic assumption cuz the vast majority of people's products are just mediocre or above average, and that's just not enough to say to go out of your way to promote it, right?

3:10Then you have the friction, which is like, "Okay, so I need you to do nine things in order to become affiliate." It's like it doesn't work. I think primarily the reason that TikTok Shop works is that all of all of this Yeah, all of like it's it's immediate. There's no friction There are they're already posting. Um the incentive is baked in. They're already They're basically all three of these are are all one. And then they just find products they like.

3:39That's why TikTok Shop works. Can you do digital products on TikTok Shop? I don't know. Can you? Easy one products? Digital products? No, you can't. Yeah, it's all physical. >> Yeah, that's probably smart on TikTok's TikTok's part. [laughter] It would open up the world of of scam-tron. Um scam-tron unite. Uh but this is this is kind of like the vectors that I think about. Which if you look at about this, what is this? This is the value equation. Like how do I make it easy? How do I make it fast? This would be the value part of it. Um and then how do I make it uh low risk. This is low risk if in the in the equation if it were value equation.

4:13It's the same idea. But the timing part is when do I ask for the referral? So, this is the point of like, "Do I ask at point of greatest satisfaction?" Right? Like that is you it's the time to ask for a referral and the time to ask for an upsell sometimes are the same moment, and you'd rather ask for the upsell. And so if the the perfectly laid out product is that I have solved your first problem, which then created this much bigger problem, at that moment you could ask for a referral, but the upsell makes more sense for you, right?

4:46If you're ever have a point in the in the customer experience where they are super satisfied, but they're not deprived of like the next thing, um then it makes sense to ask for the referral. The classic example I use is actually a restaurant, which is like if you have an amazing steak, right? And then the waiter comes back to the table and says, "How was the steak?" And you say, "Oh, it was it was [ __ ] awesome." And you're like, "Awesome, would you like another steak?" They're like, "No, I'm good." And they're like, "What? I thought you said you liked the steak." It's like, "No, I mean I I did like the steak." Then why then why don't you want another steak? It's like it They're they're satisfied, but they're not deprived. Right? So, that moment would be like, "Great, do you have friends who would who are also deprived of this thing that you went through?"

5:19Different, right? Whereas uh moment of greater deprivation, you go for the upsell. I love the steak example. So clear. Real quick, if you are a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so we broke it in these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so no matter what you're struggling with, someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page you can just book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.