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$100M Leads by Alex Hormozi - Full Audiobook | How to Get Strangers to Buy Your Stuff! — Transcript

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0:00Hey troops, welcome back to the channel.
0:02Today we're covering Alex Herozy's
0:04second book, $100 million leads. How to
0:07get strangers to want to buy your stuff.
0:09After the success of $100 million
0:12offers, Alex wrote this as the natural
0:15next step. The first book taught you how
0:17to create irresistible offers. This one
0:19shows you how to get people to see them.
0:21Alex went from sleeping on a gym floor
0:23to generating over 20,000 leads per day
0:26and $200 million in annual revenue using
0:30these exact methods. He breaks lead
0:32generation into four core ways: warm
0:35outreach, cold outreach, free content,
0:38and paid ads. No fluff, just real
0:41strategies with step-by-step frameworks.
0:44So, grab your coffee, get comfortable,
0:46and let's learn how to fill your
0:47pipeline with quality leads. Let's get
0:50into it. It's hard to be poor with leads
0:52banging down your door. Horoszy family
0:55jingle. You have to sell stuff to make
0:57money. It seems simple enough, but
0:59everyone tries to skip to the make money
1:01part. It doesn't work. I tried. You need
1:04all the pieces. You need the stuff to
1:06sell an offer. You need people to sell
1:08it to leads. Then you got to get those
1:10people to buy it. Sales. Once you put
1:13all those in place, then you can make
1:14money. My first book, $100 million
1:17offers, covers the first step and give
1:19you the stuff. It answers the age-old
1:22question, what should I sell? Answer: An
1:25offer so good people feel stupid saying
1:27no. But strangers can only buy your
1:29stuff if they know you exist. This takes
1:31leads. Leads mean a lot of different
1:34things to a lot of different people, but
1:36most agree that they're the first step
1:37to getting more customers. In simpler
1:40terms, it means they've got the problem
1:42to solve and the money to spend. If
1:44you're reading this book, you already
1:46know leads don't magically appear. You
1:48need to go get them. More precisely, you
1:51need to help them find you so they can
1:53buy your stuff. And the best part is you
1:55don't have to wait. You can force them
1:57to find you. You do that through
1:59advertising. Advertising, the process of
2:02making known lets strangers know about
2:04the stuff you sell. If more people know
2:06about the stuff you sell, then you sell
2:08more stuff. If you sell more stuff, then
2:11you make more money. Having lots of
2:13leads makes it hard to be poor.
2:15Advertising lets you have a terrible
2:17product and still make money. It lets
2:19you be terrible at sales and still make
2:22money. It lets you make a ton of
2:23mistakes and still make money. In short,
2:27having this skill gives you endless
2:29chances to get it right. And in the
2:31unforgiving world of business, second
2:33chances are hard to come by, so you
2:36might as well load up. Advertising is a
2:38skill worth having. And this book, $100
2:41million leads, shows you exactly how to
2:43do it. $100 million leads sits at top
2:46the foundation of my first book, $100
2:49million offers. It assumes you already
2:51have a grand slam offer to sell the
2:53stuff. Once you have an offer to sell,
2:55it creates the next problem. Who do I
2:58sell it to? This book is my answer to
3:00that question. Leads. Lots of leads. And
3:03before you know how to get leads, life
3:05sucks. You don't know where your next
3:07customer will come from. You scramble to
3:09cover rent and pay bills. You worry
3:11about laying people off, putting food on
3:14your table, and going under. You work
3:17your hardest to succeed and others laugh
3:19at you for trying. It feels like death.
3:22I've been there. I get it. This book
3:24puts you in a better situation. One
3:26where you've got more leads than you can
3:28handle and more money than you could
3:30spend. Here's how. First, it explains
3:33how advertising works. Second, it
3:36reveals the four core ways to get leads.
3:39Third, it shows you how to get other
3:41people to do it for you. Finally, it
3:43wraps up with a one-page advertising
3:45plan you can use to grow your business
3:47today. Once you know how to get leads,
3:50life gets easier. As for why you should
3:52blindly listen to me about getting more
3:54leads, don't make up your own darn mind.
3:58But in the spirit of walking the talk,
4:00here's my track record. I advertise in a
4:03variety of industries through my holding
4:05company acquisition.com. Our portfolio
4:08includes software, e-commerce, business
4:10services, consumer services, brick and
4:13mortar chains, digital products, and
4:15plenty of others. Together, they make
4:18$250 million plus in annual revenue. And
4:21they do it by getting 2000
4:24plus leads per day, selling offers from
4:27$1 to $1 million plus. On the personal
4:31side, I have a lifetime average return
4:33on advertising of 36 col1. That means
4:36for every $1 I spend on advertising, I
4:39get $36 back, a return of $3,600%.
4:44Some people built their wealth in the
4:45stock market, others in real estate. I
4:48built my advertising. This year, I
4:50surpassed $100 million in net worth at
4:53age 32. And if you're from the future,
4:56that's in 2022,
4:59which much to my dismay, came with no
5:02flyers, no awards, no parades. I'm still
5:0620,000x poorer than the richest man in
5:08the world. My life is pretty much the
5:10same. I'm still the same height, married
5:13to the same woman, and graying faster
5:15than when I was poor. In these pages, I
5:17share the skills responsible for the
5:19bulk of my material success. I did it
5:22all using the advertising methods in
5:24this book. I left nothing out.
5:27This isn't a book of theories or
5:29armchair analysis. This book is built on
5:31what worked for me. And I wrote it
5:33hoping it'll work even better for you.
5:35To answer a question I got after
5:37releasing my first book, why do your
5:38books look like they're written for
5:40kids? The answer is simple. My books
5:42must be books I would read, and I have a
5:45short attention span. As such, I liken
5:48my reading preferences to that of a
5:49child. short in length, simple in words,
5:52and with lots of pictures. These books
5:55are my attempt to do that. 100 million
5:57Leads is about getting strangers to show
6:00interest in the stuff you sell. And once
6:02I transfer that skill to you, it's your
6:05turn to use it. With that out of the
6:06way, let's get rich, shall we? Pro tip:
6:10faster, deeper learning by reading and
6:12listening at the same time. Here's a
6:14life hack I stumbled on years ago. If
6:17you listen to an audio book and read the
6:19physical book or ebook at the same time,
6:21you read faster and remember more. You
6:24store the contents in more places in
6:26your brain. Nifty stuff. This is how I
6:29read books worth reading. I also do both
6:32because I struggle to stay focused. If I
6:34listen to the audio while reading, it
6:36helps me avoid zoning out. It took me 2
6:38days to record this book out loud. I did
6:41it so if you struggle like me, you don't
6:43have to anymore. If you want to give it
6:45a try, go ahead and grab the audio
6:47version and see for yourself. I hope you
6:49find it as valuable as I have. I figured
6:52I'd put this hack early on. This way,
6:54you'd have a chance to do it if you
6:56found the first chapter valuable enough
6:57to earn your attention. Pro tip: hack
7:00for finishing books. I get distracted
7:02easily. So, I need little tricks to keep
7:05my attention. This one helps me a lot.
7:07Finish chapters. Don't stop in the
7:09middle. Completing a chapter gives you
7:11positive reinforcement. It keeps you
7:14going. So if you meet a tough chapter,
7:17finish it so you can start fresh on the
7:18next one. How I got here. Hope is being
7:21able to see the light despite all the
7:23darkness. Desmond 22. March 2017. I felt
7:28hurried taps on my shoulder while
7:30working at my desk. It was Ila, my then
7:33girlfriend and business partner. What's
7:35up? You all right? We have a problem.
7:38She said, "What now?" I thought, "Look
7:41at this." She shoved a stack of books
7:43out of the way to make room for her
7:45laptop. What am I looking at? I
7:47squinted. A disaster. She ran her finger
7:50down the screen to direct my gaze. To
7:53every other number was more than my
7:54rent. What are these? She started
7:57scrolling. Refunds. All of them. From
8:00the two gyms we launched last month.
8:03Wait, how? What? She scrolled more. I
8:06got lots of weird texts last night from
8:08the members we sold at the Kentucky gym.
8:10I guess the owner stood up on a chair
8:12and told everyone to refund and go home.
8:15He didn't want to deal with all the new
8:17customers. That's insane, I said. She
8:20was still scrolling. Yeah. And the other
8:22gym owner told his new customers he
8:24would take them for half price if they
8:26asked for refunds from us and paid him
8:28instead. Wait, what? They can't do that.
8:31I said, well, they did. She scrolled
8:34faster. The numbers blurred. Have you
8:36called them? That's not allowed in the
8:38agreement. I said, "Yeah, I know.
8:41They're ignoring my calls." I put my
8:43hand on hers. The refund waterfall froze
8:46in place. Hundreds of droplets reminders
8:49of how much I sucked. How bad is this?
8:52How many refunds? Just cutting profits
8:55or enough to go negative and owe money.
8:58I tried to keep my voice steady. I
9:00failed. Leila paused before answering.
9:02It's 150 grand. The number hung in the
9:05air. We won't be able to pay my friends.
9:08Their faces flashed through my mind and
9:11the little hope I had drained from my
9:12chest. A month earlier, I got her
9:15friends to quit their jobs for this. Now
9:17I had to tell them I didn't have the
9:19money to pay them. She continued, "We
9:21can't sell our way out of this either.
9:23It'll just create more refunds to deal
9:25with and we're out of money." Her eyes
9:28met mine, looking for the answers she
9:30deserved. I had nothing. I felt sick a
9:33year earlier. I was good at getting
9:35leads from my gyms. I scaled to five
9:38locations in only 3 years. My claim to
9:41fame was opening my gyms up at full
9:44capacity. On the first day, so I opened
9:47as many as I could as fast as I could.
9:49My fast pace started getting attention.
9:51I got asked to speak at a conference
9:53about my advertising method. To me,
9:55though, I didn't think my process was
9:57special. I figure everyone was doing it.
10:00So, I walked through my presentation
10:02hoping I wasn't boring the audience.
10:04They were silent. The moment I stepped
10:06off stage, a mob formed around me. They
10:09hurled questions at me left and right. I
10:12could barely keep up. They even followed
10:14me into the bathroom. I felt like a
10:16celebrity. It was wild. To this day,
10:19I've never been more bombarded in my
10:21life. Everyone wanted me to teach them
10:23how to do what I had just presented.
10:26They wanted my help, me, but I had
10:28nothing to sell them. Although over 100
10:30people left me their phone numbers and
10:31business cards in case I did. Then a
10:33wild idea came to me. I can make some
10:36money doing this. 3 months later, an
10:39idea turns into a business. Since I used
10:42advertising to launch my gyms at full
10:44capacity, I thought maybe I could launch
10:47other people's gyms to full capacity,
10:50too. I call the company Gym Launch.
10:52Original, I know. My offer was simple.
10:55I'll fill your gym in 30 days for free.
10:57You pay nothing. I pay for everything. I
11:00sell new members and keep the first 6
11:03weeks of membership fees as payment. You
11:05get everything else. If I don't fill
11:07your gym, I don't make money. You spend
11:09nothing either way. It was an easy offer
11:11to sell. I'd fly out, turn on my lead
11:14machine, work the leads, then sell the
11:17leads. Except instead of selling them
11:19into my gym, I'd sell them into whatever
11:21gym I was camped at for the month. Every
11:24month, I'd go to a new gym. Rinse and
11:26repeat. It worked. Were this kid who'd
11:28fill your gym for free got around fast.
11:31Unless I hired help, referrals would
11:33have booked me out for more than two
11:35years straight. I couldn't keep running
11:37my gyms and doing this. So, I sold my
11:39gyms and went all in on gym launch. I
11:42saw a problem, though. I filled their
11:44gyms and they got to keep all the
11:46long-term profits. I left so much money
11:48on the table. But if I were part owner
11:50of some of the gyms, I could stack
11:52revenue month over month. Bingo. Not
11:55much later, one of the gym owners made
11:57such an offer. We'd be 50/50. I would
12:00fill the gym with members and he would
12:02fill it with staff. With this new model,
12:05I could open up one to two gyms per
12:07month and own them all. This would work
12:09much better than only collecting the
12:11upfront cash. A win-win partnership. A
12:14slight hitch in the plan, though. My new
12:17partner had poor financials. So nice guy
12:20Alex offered to pay all the expenses and
12:22take on all the liability for the first
12:24launch. I personally guaranteed the
12:26lease and would spend my time and money
12:28to fill it with members. Once filled, I
12:31would hand the gym over to him. I put
12:33all the money from selling my gyms,
12:35including my life savings, into this
12:37launch and go model. It took everything
12:39I had. A few weeks later, halfway
12:42through the launch, I woke up to find
12:44all the money in the account gone. All
12:46of it. The partner accused me of
12:48stealing and took the money as his share
12:51of the profits, but we hadn't made any
12:53profit. Then he sent the money to a
12:56foreign contact and filed for
12:58bankruptcy. That's what he told me
12:59anyway. When I offered to walk through
13:01the financials and account for every
13:03dollar, he refused. That's when I knew I
13:06had made a terrible mistake. It turns
13:08out he had been indicted for fraud a few
13:11years earlier. And to make matters
13:12worse, I already knew. He told me it was
13:15just a big misunderstanding. I believed
13:18him. As the saying goes, when money
13:20meets experience, the money gets the
13:23experience and the experience gets the
13:25money. Lesson learned. In 3 months, I
13:28went from a successful multilocation gym
13:30owner to selling all my gyms to a cool
13:33new launching gyms thing to completely
13:35broke. Everything I made from selling my
13:38gyms was gone. My life savings was gone.
13:41Wiped out. All of it. For years of work,
13:44saving, sleeping on the floor, erased in
13:47a oh no. Ila, Ila quit her life as she
13:50knew it to do this with me. She
13:52weathered my constant changes. She
13:55supported me in the halfbake partnership
13:57even though she opposed it. Even with
13:59this huge failure, she never once even
14:02hinted, "I told you so." Instead, she
14:05told me, "The gym launch model is still
14:07good. Let's do more of those." So, we
14:10did. I put $3,300 per day on a credit
14:13card to pay for ads, airfare, hotels,
14:16rental cars, etc. for six sales reps,
14:19Leila's friends. I say this lightly, but
14:22I covered what a nightmare was in the
14:24first book, so I won't repeat it here.
14:26In the first month, we launched six gyms
14:29and collected $100,117.
14:33We made enough to cover the $100,000
14:35credit card bill. And for the record,
14:37that meant I was still broke. The next
14:40month, we made $177,399
14:44with $30,000 to $40,000 in profit. It
14:48gave me some room to breathe finally.
14:50And that's when Ila tapped me on the
14:52shoulder to share $150,000
14:55worth of bad news. Now you're caught up.
14:57The morning after Ila told me we had
15:00$150,000
15:02in refunds and lost all our money again.
15:05A honking horn startled me at 3:00 a.m.
15:09My problems flooded back. Welp, I'm
15:11awake now. I pulled myself out of bed
15:13and slinkedked to my work corner. I
15:16walked over out of habit more than
15:17desire. I slid the chair out and
15:20pllopped down notebook and pen at the
15:22ready. I had to make $150,000
15:25in profit, not revenue, in 30 days. And
15:29I had to do it with no money to my name
15:31and no experience making that much
15:33profit in a month ever. So I started
15:36scribbling ideas, charge an upfront fee
15:39for new gyms, ask for a percentage of
15:42revenue from old gyms, get gyms I
15:45already launched to prepay for a future
15:47launch, call every old customer, and
15:50sell them supplements over the phone. I
15:52kept penciling the math. None of these
15:54would make enough money. Not in 30 days,
15:57anyway. I felt glued to the chair. I
16:00have to figure this out. I stared at the
16:02notebook, hoping it knew something. It
16:04didn't. God, I suck. A few hours later,
16:08Ila woke up like clockwork. She walked
16:11into the kitchen and poured a cup of
16:12coffee. She got straight to work at the
16:14kitchen table behind me. "What you
16:16doing?" I asked, trying to distract
16:19myself. "Checkins with online fitness
16:21clients," she said. "What is that
16:23bringing again?" "$13600
16:25last month. What do you charge? 300
16:28bucks a month. Why? How long does it
16:31take you? A few hours a week and there's
16:33no overhead, just time. Yeah. Why? I
16:36plowed on. I know these are old personal
16:39training clients, but do you think you
16:41could do it with strangers? I don't
16:43know. Probably. What are you thinking? I
16:45think I have something. I said, wait for
16:48what? To come up with 150 grand. What?
16:51My online training? How? She looked
16:53skeptical. We just cut the middleman and
16:56sell direct. I think I can just run ads
16:58to a sales page that books phone
17:00appointments. Then we can sell the
17:02fitness programs we've been selling at
17:04the gyms, but sell it as an online
17:06program. We already have the materials.
17:08We already know the ads work and there
17:11won't be any cost to fulfill. Plus, no
17:13more flights, no rent, no mort, and no
17:17gym owner telling them to refund. She
17:20hesitated. You think it could work?
17:22Honestly, I have no idea, but every day
17:25we don't do something is one less day to
17:27come up with the money. She thought
17:29hard. All right, let's do it. That was
17:31all I needed. I worked 38 hours straight
17:34to make the offer go live. A few hours
17:36later, leads started flowing. She took
17:38her first call the next day. I walked in
17:41as the call finished. $14.99.
17:44Yeah. And what car did you want to use?
17:46She had the cander of a pro. A few
17:48minutes later, I asked with
17:50anticipation, "Was that a sale?" "Yep,
17:53dang, she's a pro." I even snapped a
17:55picture of Ila closing our first sale
17:58because it felt so momentous. Within
18:01days, we were doing $1,000 per day in
18:04online fitness sales. We also got the
18:06cash up front with almost no risk of
18:09refunds. This was working, but we were
18:12still way short of the $150,000.
18:15At lunch, she listened to my master plan
18:17between mouthfuls. Okay, the sales guys
18:20can stay home and sell this over the
18:22phone. If they do the same $1,000 per
18:25day as you with eight guys, we should
18:27hit $8,000 per day. In 30 days, we'll
18:31make $240,000.
18:33After ad spend and commissions, we'll
18:36have enough to cover the $150,000.
18:39What about the gyms we're supposed to
18:40launch? I'll call them and tell them
18:43we're going in another direction. They
18:45haven't paid us anything, so there's not
18:47much they can object to. I'll start
18:49calling them after lunch. The first call
18:51was to a gym owner in Boise, Idaho.
18:54Hello. I look down to read the bullet
18:56points on my little script. Hey man,
18:59we're not doing launches anymore. We're
19:01selling direct to consumer weight loss,
19:03so we won't be coming out. And he
19:05interrupted, but I really need this
19:07right now. I just refinanced my house
19:10and maxed out all my credit cards to
19:12keep my gym afloat. I put my life
19:15savings into this place. Is there any
19:17way you can help me? You launched my
19:19buddy's gym. I know what you can do.
19:21Given my worst than your situation, I
19:24didn't care how bad his finances were.
19:26So, I tried to sound polite. I get that
19:28it's a hard time, but we're not flying
19:30out. I'm sorry. Okay. Okay. I get you
19:33can't fly out, but is there any way you
19:35can just show me what to do? We really
19:37need this. I was beat up, exhausted,
19:40broke, and felt betrayed by the entire
19:43industry. I should have said no, but
19:45instead I said, "Fine, I'll show you how
19:48to get leads, but I'm not flying out
19:50there to save you if you can't sell.
19:52Totally get it. It's on me. I can close.
19:55I just don't have anyone walking in the
19:56door. I need leads. How much to show me
19:59how to launch?" I looked down at my
20:01script. This is not how it was supposed
20:03to go. I wanted to say no and hang up.
20:06Our weight loss offer was working and I
20:08didn't want distractions. He'd already
20:10told me he was broke, so I said the
20:12biggest number I could think to get him
20:13off the phone. Dollar6,000.
20:16Consider my selling my secret sale. 6K.
20:20Yes. 6,000. I said, articulating the
20:23whole number, hoping to scare him off.
20:266K. Okay, done. What? I stood there
20:29slack jawed frozen in disbelief. $6,000.
20:34I floated out of myself and watched the
20:37conversation happen. I still get choked
20:39up thinking about it. Oh. Uh, great.
20:42What card do you want to use now? Try
20:44not to scare away the six,000.
20:48Panicked, I wrote his card information
20:50on the flap of a cardboard box. When do
20:53I start? He asked. I'll send you
20:55everything Monday morning. Giving myself
20:57the insane task of packaging my entire
21:00gym leads and sales system in 48 hours.
21:04He agreed. I hung up and sat in shock.
21:07Once I came to my senses, I ran the
21:09credit card. $16,000 success. Is this
21:12real? I desperately wanted to tell
21:14Leila, but she was on a sales call. 15
21:17minutes later, she walked in. Got
21:19another one, she said. You won't believe
21:21this. I just sold our gym launch system
21:24for $6,000 to the gym in Boise. What? I
21:27thought we were doing weight loss. Yeah,
21:29I know. So did I. But she waited. I
21:32think we're still in the gym business. I
21:34think we were just doing it wrong. She
21:36needed more details. I didn't have any
21:38yet. I'm going to call the gyms we plan
21:40to launch next month and see if they'll
21:43buy it, too. Uh, okay. She said. The
21:46next call went the same except when he
21:48said, "How much?" I said, " $8,000."
21:51He agreed. Next call, same thing, except
21:54I said $10,000. He agreed. All eight
21:58gyms we plan to launch said yes to
22:00licensing the launch materials instead.
22:03In a single day, I collected $60,000
22:06selling something with zero cost to
22:08fulfill. In a single day, I was a third
22:11of the way out of my $150,000 prison. I
22:14spent 5 years developing that
22:16advertising system. It finally paid off.
22:19Doing the thing that scared me most,
22:21giving away my secrets, led to the
22:24biggest breakthrough in my life. I can't
22:26believe it. I said, I think we can get
22:28out of this. So, are we not doing the
22:30weight loss thing? No, I guess not. I
22:34think we've had something here all
22:35along. We just had to put the pieces
22:37together. Do you think anyone else will
22:38buy it? I'm going to call the 30 gyms we
22:41already launched. They know our system
22:43works because we did it in front of
22:45them. We also have some gym owner leads
22:47from that conference. That should cover
22:49the $150,000
22:50and give us a clean slate. Okay, then
22:53what is this? What we're going to do?
22:55She looked for some well-deserved
22:56stability. I mean, I think so. It makes
22:59more money than the other thing, and
23:01it's way easier to deliver. She agreed.
23:04So, after I call those leads, I'll start
23:06running ads. I'll post our success
23:08stories in a few gym groups to get leads
23:10from there. And I'll also tell the gyms
23:12I'll pay $2,000 cash for any gym they
23:16send that signs up. That gives us ad
23:18leads, content leads, and referral
23:20leads. In the next 30 days, we made
23:23$215,000
23:25in profit. We covered the $150,000
23:28in refunds with cash to spare. We did so
23:31well because the average gym using our
23:34advertising system added an extra
23:36$30,000 in cash in their first 30 days.
23:39It made them more money than they paid
23:41for it. It delivered in spades. Plus,
23:44they got to keep all the cash. They
23:46loved it. Referrals poured in. I found
23:48the processing records from May June
23:512017, the month it all happened. We
23:54finished that first year at $6,820,000
23:58in revenue. The next calendar year, we
24:01did $25,900,000
24:04in revenue and $17 million in profit.
24:07Yeah, tens of millions. It was insane.
24:10Like nuts. The company continues to this
24:13day with 4,500 plus gym locations and
24:17counting. And no one is more surprised
24:19than me. Something I made actually
24:21worked. Finally, in 2018, we started
24:24Prestige Labs to sell supplements
24:27through our gym client base. We used
24:29Prestige Labs and the gyms as an
24:32affiliate network to generate weight
24:34loss leads for each other. In 2019, we
24:37started Allen, a new type of software
24:39company that worked leads for local
24:41businesses. In 2020, we founded
24:44Acquisition.com as a holding company for
24:47our business interests. In 2021, we sold
24:5075% of Allen to a bigger company. I'm
24:53not allowed to say for how much, but
24:56Allen did $12 million in revenue in the
24:59prior 12 months. So, you can use your
25:01imagination. We sold 66% of our
25:04supplement and gym licensing business to
25:07American Pacific Group at a $46,200,000
25:11valuation. And that was after taking $42
25:14million in owner pay over the first four
25:17years. I share this because I can still
25:19hardly believe it. All this was because
25:21of a girl who believed in me, a credit
25:24card, and the ability to get leads.
25:26Important disclaimer. Knowing how to get
25:28leads saved my business, my reputation,
25:31and likely my life. It was the only way
25:34I stayed afloat. It was the reason I
25:36kept getting second, third, fourth, and
25:39fifth chances. I advertised a lot of
25:42different things in a lot of different
25:43ways. I advertised to get member leads
25:46for local gyms. I advertised to get
25:49online weight loss leads for Leila. I
25:51advertised to get gym owner leads to
25:54sell business services. I advertise to
25:57get affiliate leads for our supplement
25:58company. I advertise to get agency leads
26:01for our software and so on. Getting
26:04leads has been my get out of jail free
26:07card with no expiration date. And at
26:09this point, it's faded and worn with
26:11use. I like to share this skill with
26:13you. I can show you how to get more
26:14leads. And here is your first piece of
26:17good news. By reading these words,
26:19you're already in the top 10%. Most
26:22people buy stuff and never crack it
26:23open. I'll also throw out a spoiler. The
26:26further you read, the bigger the nuggets
26:28get. Just watch. Thank you from the
26:30bottom of my heart. Thank you for
26:32allowing me to do work I find
26:34meaningful. Thank you for lending me
26:36your most valuable asset, your
26:39attention. I promise to do my best to
26:41give you the highest possible return on
26:43it. This book delivers. The world needs
26:46more entrepreneurs. It needs more
26:48fighters. It needs more magic. And
26:51that's what I'm sharing with you. Magic.
26:53The problem this book solves leads. Lots
26:56of leads. You have a problem. You're not
26:58getting as many leads as you want
27:00because you're not advertising enough.
27:03Period. As a result, your potential
27:05customers are ignorant of your
27:07existence. How sad. This means less
27:10money flows your way. So now that you
27:12know you have a problem, unless you hate
27:15helping people and making money, you
27:17kind of have to solve it. How this book
27:19solves it. To make more money, you've
27:21got to grow your business. You can only
27:23grow your business in two ways. One, get
27:26more customers. Two, make them worth
27:28more. That's it. I grow our portfolio
27:31companies with this exact framework.
27:33$100 million leads focuses on number one
27:37getting more customers. You get more
27:39customers by getting one more leads, two
27:42better leads, three cheaper leads. For
27:45reliably, think from lots of places.
27:48Bottom line, all else being equal, when
27:51you double your leads, you double your
27:53business. This book shows you how to
27:55transform your business into a lead
27:57getting machine. Once you apply its
27:59models, you instantly increase lead
28:01flow. And like cash flow, when leads
28:04flow, it's hard not to make money. This
28:07book will solve your not getting enough
28:09leads problem for good. In a nutshell, I
28:12will show you how to get strangers to
28:14want to buy your stuff. What's in it for
28:16me? In one word, trust. I give this book
28:19and the course that comes with it for
28:20free or at cost in hopes of earning your
28:24trust. I want this book to provide more
28:26value than any $1,000 course, $30,000
28:30coaching program, or $100,000 degree.
28:33Although I could sell these materials
28:34that way, I don't want to. I have a
28:36different model. I explain it below. Who
28:38am I looking to help? I want to provide
28:40value to two types of entrepreneurs. The
28:43first is under $1 million per year in
28:45profit. My goal is to help you get to $1
28:47million in profit per year for free and
28:51in so doing earn your trust. Try a
28:54couple of tactics from this book. Get
28:55some leads, then try a few more and get
28:58more leads. The more leads you get, the
29:00better. Do enough and you become the
29:03second type of entrepreneur. The type
29:05making over $1 million in EBITDA, fancy
29:08word for profit per year. Once you get
29:10there, or if that's you now, it would be
29:13my honor to invest in your business and
29:15help you scale. I don't sell coaching,
29:18masterminds, courses, or anything like
29:20that. I invest. I buy equity in growing
29:24profitable bootstrap companies. Then I
29:27use the systems, resources, and teams of
29:30all my companies to fasttrack the growth
29:32of your company. But don't believe me
29:34yet. We just met. Author note, our
29:37investment criteria have changed since
29:39last book. If you notice some changes in
29:41our investment criteria, you're right.
29:43We changed our minimum investment
29:45threshold from $3 million in revenue to
29:48$1 million in profit. On top of that, we
29:52also used to primarily invest in
29:54education and service businesses, but
29:56our portfolio has expanded. We've done
29:58quite well outside of those industries.
30:00So now as long as a business meets our
30:03size requirements and is profitable,
30:06cash flowing and growing, we consider
30:08investing in it. My business model is
30:11simple. One, provide better free
30:13products than the marketplace's paid
30:15products. Two, earn the trust of
30:18entrepreneurs who make over $1 million
30:20per year in profit. Three, invest in
30:23those entrepreneurs to fasttrack their
30:25growth. Four, help everyone else for
30:28free for good. Our process reverse
30:31engineers success. The winners know my
30:33models will work for them because they
30:35already have. And I know the winners
30:37will use them because they already do.
30:39So, we operate on shared trust. This
30:42approach avoids failures and increases
30:45the likelihood of success. Win-win. Easy
30:48to say, but let me show you how much of
30:50a difference our process makes. Within
30:52the first 12 months, our average
30:54portfolio company 1.8x excess revenue
30:58and 3.01 zero 1xs profits and we partner
31:02for the long haul. That's just the first
31:0412 months. Our average portfolio company
31:07who's been with us between 12 and 24
31:09months, 2.3x excess revenue and 4.7
31:13excess profits. As a fun exercise, plug
31:16your numbers in to see what that would
31:18look like for you. This stuff works.
31:20That's how I know the models I'm about
31:22to show you work. They already have.
31:24acquisition.com's
31:26mission to make real business accessible
31:29to everyone. Businesses solve problems.
31:32Businesses make the world better. There
31:35are too many problems for any one person
31:37to solve. And I can't cure cancer and
31:40hunger or solve the world's energy
31:42crisis for now. But I can provide value
31:45to the entrepreneurs who build the
31:47businesses that will. I want to help
31:49create as many businesses as possible so
31:51we can solve as many problems as we can.
31:54So I share these business building
31:56frameworks rather than hoard them. Fair
31:58enough. Cool. Let's press on. Basic
32:01outline of this book. I laid this book
32:03out from zero clients, zero leads, zero
32:06advertising, zero money, zero skills
32:09section two to max clients, max leads,
32:12max advertising, max money, and max
32:15skills section 4. We learn more skills
32:18as we progress in the book. And when we
32:20have more skills, we can get more leads
32:23in the same amount of time. So, we
32:25finish with the most complex skills that
32:27get us the most leads for our time
32:29spent. We save them for the end because
32:31they take lots of skills and money. And
32:34getting good and having money takes
32:36time. I want this book to help a person
32:39get their first five clients and crack
32:41their first $10 million month and
32:43beyond. This order also reminds those
32:46with skills and money, me included, of
32:49the basics we stopped doing. Our
32:51businesses deserve better. Respecting
32:53the tried and trueue methods that got
32:55you to your current level will probably
32:56get you to the next one. Masters never
32:59don't do the basics. So, we go from
33:02getting your first lead all the way to
33:04building a $100 million plus leads
33:06machine. Here's the breakdown. Section
33:09one, you're about to finish reading it
33:11right now. Section two, I reveal what
33:14makes advertising really work. Most
33:16entrepreneurs think about advertising
33:18the wrong way. Since they think about
33:20advertising the wrong way, they do the
33:23wrong stuff to get leads. You want to do
33:25the right stuff to get leads. This is
33:27the way. Section three, we learn
33:30advertising's core four. There are only
33:32four ways to get leads. So, if there's a
33:35most important how to section, it's this
33:37one. Section four, we learn how to get
33:40other people, customers, employees,
33:43agencies, and affiliates to do it all
33:45for you. And this completes the assembly
33:48of your fully functioning $100 million
33:51leads machine. Section five, we wrap up
33:54with a one-page advertising plan you can
33:56use to get more leads today. Section
33:58two, get understanding advertising
34:02simplified. In this section, we cover
34:04three things to make sure advertising
34:07does exactly what we want it to do.
34:09First, we talk about what a lead
34:11actually is. If we want more of them,
34:13then we better be darn well sure we're
34:15talking about the same thing. Second, we
34:18learn how to separate leads that make
34:20you money from leads that waste your
34:21time. Third, I show you the best ways I
34:24know to get the leads that make you
34:25money to show interest in the stuff you
34:27sell. Let's dive in. Leads alone aren't
34:30enough. If you cannot explain something
34:32in simple terms, then you don't
34:34understand it. Dr. Richard Fineman,
34:37Nobel Prize winner in physics. I'll let
34:39you in on a little secret. This book
34:41started because somebody asked me what a
34:43lead was. You think it would be simple,
34:46but I couldn't give a straight answer.
34:48And after 6 months of trying to figure
34:50it out, I was more confused than before.
34:53It became clear I didn't know as much
34:54about leads as I thought. My search for
34:56a clear definition of a lead snowballed
34:59into the massive project that became
35:02$100 million leads. All this to say,
35:04we've got to agree on what the heck a
35:06lead is before we dive head first into
35:09getting them. So, what's a lead anyways?
35:11Someone who clicks an ad, a phone
35:13number, a person that schedules a call,
35:15a list of names, a door you knock on, a
35:18walk-in, an email address, a subscriber,
35:21a person that sees your content, etc.
35:24You see, words matter because they
35:27affect how we think. How we think
35:29affects what we do. And if words have us
35:31thinking the wrong way, then we will
35:33probably do the wrong stuff. I hate
35:35doing the wrong stuff. So to do the
35:37right stuff more and the wrong stuff
35:39less, it's best we know what words mean
35:41and use them. To cut the suspense, a
35:44lead is a person you can contact. That's
35:46all. If you bought a list of emails,
35:49those are leads. If you get contact
35:51information from a website or database,
35:53those are leads. The numbers in your
35:55phone are leads. People on the street
35:58are leads. If you can contact them, they
36:00are leads. But what I came to realize
36:03was leads alone aren't enough. We want
36:06engaged leads. People who show interest
36:08in the stuff you sell. If someone gives
36:11their contact information on a website,
36:13that is an engaged lead. If someone
36:15follows you on social media and you can
36:17contact them, that is an engaged lead.
36:19If people reply to your email campaign,
36:22they're engaged leads. The leads showing
36:24interest are the leads that matter.
36:26Engaged leads are the true output of
36:29advertising. Getting more engaged leads
36:32is the point of this book. But I
36:34couldn't call the book engaged leads
36:36because no one would get it. But now you
36:38do. So the next question is, how do we
36:40get leads to engage? Engager leads
36:43offers and lead magnets. I don't do
36:45drugs. I'm drugs. Salvador Dolly. April
36:492016, I paid $25,000 to be in this
36:53group. And everyone told me to do a
36:55webinar. In fact, my men at the time
36:57told me, "Do a webinar every week until
37:00you make a million dollars." Until then,
37:03don't ask me about anything else. This
37:05is my only path to success. I've got to
37:08figure this out. A webinar, as I
37:10understood it, was a magical
37:11presentation with a zillion slides. If
37:14somebody watched, it would hypnotize
37:16them into buying my thing. There was so
37:18much I didn't know. Landing pages,
37:20registration pages, follow-up emails,
37:24replay emails, cart close emails,
37:27presentation software, website
37:29integration, writing ads, making ad
37:32creative, figuring out where to put the
37:35ads, who to show the ads to, building a
37:37payment page, processing payments, never
37:40mind making the actual webinar. The list
37:43overwhelmed me. So, I started with what
37:46I understood most, the landing page. I
37:48built a few of those for my gyms. My
37:50mentor made millions with webinars. So,
37:53I modeled his landing page, but I didn't
37:55need it to make millions. I just needed
37:58it to make something. Okay, now the
38:00thank you page. An entire Sunday later,
38:03the thank you page went live. Now, for
38:06the big test. I put my email into the
38:08landing page, clicked sign me up, and
38:10waited. My brand new thank you page
38:13loaded. success. I still wasn't a
38:15millionaire. Sad face, but it was
38:18something. The following Sunday, I sat
38:20down for my regular work on the
38:22business. Not in the business ritual. I
38:24had 10 hours to figure out the next
38:26piece of this webinar puzzle. After my
38:29first cup of coffee, I decided I didn't
38:31really want to work, but I still wanted
38:33to feel productive. So, I went to my
38:35advertising groups forum to get some
38:37tips. Just got off my webinar. $32,000
38:40in an hour. I roied the entire tuition
38:43in my first week. Webinars rock. I'm
38:46never going to make this work. He joined
38:48the same month as me. He was in the same
38:50industry as me. He figured out how to
38:52make money with his webinar before me.
38:54He was stealing all the clients before I
38:56even got a chance. Everyone is making
38:59money except me. Desperate, I called
39:01other people in the group. I will do
39:03anything for your business. Build a
39:05sales team, write your sales scripts,
39:07fix your sales process, anything. just
39:10help me finish this webinar, please. One
39:13person agreed to help me. Thank God.
39:16Eight Sundays later, and a little circle
39:18next to my ad campaign turned green.
39:20It's alive. I was officially spending
39:23$150 per day on ads. All I had to do now
39:26was watch the money pour in. I was going
39:28to be rich. 3 days, $450,
39:3280 leads, and zero sales later, I shut
39:36it all down. I suck. No one even watched
39:38my webinar. Meanwhile, that guy posted
39:41again about how much money he was making
39:43off this webinar stuff. Why do I suck so
39:45much? I spent most of my money to join
39:48this group, and I just set another $450
39:51on fire. I didn't have the money to fail
39:54again. I needed the next thing to work.
39:56And if I couldn't even get anyone to
39:57watch, what was the point? The case
39:59study. I scrolled my news feed to see
40:01what other people were doing. And that
40:03caught my eye. free case study on how I
40:06spent $1 and made $123,000
40:10in a weekend or something like that. I
40:12punched in my email and the page sent me
40:14to a video of walking through a
40:16successful advertising campaign. Nothing
40:19fancy, no slides, nobody presenting,
40:22just a dude explaining how his stuff
40:24worked. This I can do. I fired up my
40:27screen recorder. Okay, everyone. So,
40:29here's the ad account of gym we just
40:31launched. Here are the ads we ran. This
40:34is how much we spent. We sent them to
40:36this page with this offer. You can see
40:38how many leads we got here. They got
40:40this many people scheduled. This many
40:42showed. This is how many they sold. This
40:44is how much the gym owner made. This is
40:46everything we did. If you want help
40:48setting something like this up, we'll do
40:50the whole thing for free. And we only
40:52get paid off the sales you make. If that
40:54sounds fair, book a call. It took maybe
40:5713 minutes. Simple. I swapped the
40:59webinar out for this video and changed
41:01the headline. free case study. How we
41:04added 213 members and $112,000
41:08in revenue to a small gym in San Diego.
41:11They would book a call on the next page.
41:13I set up a fresh ad campaign and went to
41:15bed. The next morning, Alex, what did
41:18you do? Ila asked. What do you mean?
41:21Strangers have booked my calendar solid
41:23for like the next week. Really? Yeah.
41:25Did you start a new campaign or
41:27something? Yeah, but I didn't think it
41:29would go live so fast. Wait, people
41:32booked calls. Yeah, tons. Seeing Leila's
41:36calendar stacked with appointments
41:37filled me with joy. It's working. I
41:40learned an important lesson. They didn't
41:42want my webinar, but they didn't want my
41:44case study. This accidental discovery
41:46showed me how getting leads actually
41:49works. You have to give people something
41:51they want. The best part is it's easier
41:54than you think. Off a note, webinars
41:56still work. Obviously, they work for the
41:58other guy in my group, but I didn't have
42:00the skills at the time to make it work.
42:02I was so scarred from my first
42:04experience, I didn't try another webinar
42:06for years. Spend your time testing the
42:09offer rather than perfecting an untested
42:12product. This was my breakthrough. I
42:14just needed to give people something
42:16simple that they wanted. For gym owners,
42:19it was a case study showing how I filled
42:21gyms in 30 days. Leads magnets. Get
42:24leads to engage. Offers are what you
42:26promise to give in exchange for
42:27something of value. Often a business
42:30promises to give its product or service
42:32in exchange for money. This is a core
42:34offer. If you advertise your core offer,
42:37then you go straight for the sale, the
42:40direct path to money. Advertising your
42:42core offer might be all you need to get
42:45leads to engage. Try this way first.
42:48Sometimes though, people want to know
42:50more about your offer before they buy.
42:52This is common for businesses that sell
42:54more expensive stuff. If that's you,
42:56then you'll often get more leads to
42:58engage by advertising with a lead magnet
43:00first. A lead magnet is a complete
43:03solution to a narrow problem. It's
43:05typically a lowerc cost or free offer to
43:08see who is interested in your stuff. And
43:10once solved, it reveals another problem
43:13solved by your core offer. This is
43:15important because leads interested in
43:17lowerc cost or free offers now are more
43:20likely to buy a related higher cost
43:22offer later. Think of it like salty
43:24pretzels at a bar. If somebody eats the
43:27pretzels, they'll get thirsty and order
43:29a drink. The salty pretzels solve the
43:32narrow problem of hunger. They also
43:34reveal a thirst problem solved by a
43:36drink which they can get in exchange for
43:38money. The pretzels have a cost, but
43:40when done right, the drink revenue
43:43covers the cost of the pretzels and nets
43:45a profit. So, your lead magnet should be
43:47valuable enough on its own that you
43:49could charge for it. And after they get
43:51it, they should want more of what you
43:53offer. This gets them one step closer to
43:55buying your stuff. A person who pays
43:57with their time now is more likely to
44:00pay with their money later. Good lead
44:02magnets get more engaged leads and
44:04customers than a core offer alone and do
44:06it for less money. So, let's make a lead
44:08magnet, shall we? Pro tip: Even free
44:12stuff has a cost. People will give you
44:14time before they'll give you money, but
44:16time is still a cost. If your lead
44:18magnet isn't worth their time, it's
44:20overpriced. And free or not, they won't
44:23buy from you again. So, look at it this
44:25way. If they think your lead magnet is
44:27worth their time, they'll think your
44:29core offer is worth their money. Seven
44:32steps to creating an effective lead
44:34magnet. Step one, figure out the problem
44:36you want to solve and who to solve it
44:38for. Step two, figure out how to solve
44:41it. Step three, figure out how to
44:43deliver it. Step four, test what to name
44:46it. Step five, make it easy to consume.
44:49Step six, make it darn good. Step seven,
44:52make it easy for them to tell you they
44:54want more. Something to keep in mind
44:56before we start, Grand Slam offers work
44:58for free stuff as much or better than
45:00they do for paid stuff. So make your
45:03lead magnet so insanely good people will
45:05feel stupid saying no. And yes, this
45:08means you may have a few insanely
45:10valuable offers, even if some are free.
45:13But that a good thing. The business that
45:15provides the most value wins. Period. So
45:18let's get started. Step one, figure out
45:20the problem you want to solve and who to
45:23solve it for. Here's a simple example we
45:25can walk through together. This book is
45:28a lead magnet. You are a lead. I want to
45:30solve an engaged lead problem. And I
45:33want to solve it for businesses making
45:34less than $1 million in annual profit.
45:37With enough engaged leads, they can make
45:40more than $1 million plus in annual
45:42profit. Then they qualify for my core
45:45offer. Me investing in their company to
45:48help them scale. The first step is
45:50picking the problem to solve. I use a
45:52simple model to figure this out. I call
45:55it the problem solution cycle. You can
45:57see it below. Every problem has a
45:59solution. Every solution reveals more
46:02problems. This is the never- ending
46:04cycle of business and life. And smaller
46:08problem solution cycles sit inside
46:10larger problem solution cycles. So, how
46:13do we pick the right problem to solve?
46:15We start by picking a problem that's
46:17narrow and meaningful, then solve it.
46:20And like we just learned, when we solve
46:22one problem, a new problem reveals
46:25itself. Here comes the important part.
46:27If we can solve that new problem with
46:29our core offer, we've got a winner. This
46:32is because we solve this new problem in
46:34exchange for money. That's it. Don't
46:36overthink it. Example, imagine we help
46:39homeowners sell their homes. That is a
46:41broad solution. But what about the steps
46:43before selling a home? Owners want to
46:45know what their house is worth. They
46:47want to know how to increase its value.
46:50They need pictures. They need it
46:51cleaned. They need landscaping. They
46:54need minor things fixed. They need
46:56moving services. They may need staging,
46:59etc. These are all narrow problems.
47:02Great for lead magnets. We pick one of
47:04the narrow problems and solve it for
47:06free. And although it helps, it makes
47:08their other problem more obvious. They
47:11still have to sell their home, but now
47:13we've earned their trust. So, we can
47:15charge to solve the remaining problems
47:16with our core offer and help them
47:18achieve their broader goal. Action step.
47:21Pick the narrowly defined problem you
47:23want to solve. Then make sure your core
47:25offer can solve the next problem that
47:27comes up. Step two, figure out how to
47:30solve it. There are three types of lead
47:32magnets and each offers a different type
47:35of solution. First, if your audience has
47:37a problem they don't know about, your
47:39lead magnet would make them aware of it.
47:41Second, you could solve a recurring
47:43problem for a short amount of time with
47:45a sample or trial of your core offer.
47:48Third, you can give them one step in a
47:50multi-step process that solves a bigger
47:52problem. All three solve one problem and
47:55reveal others. So, your three types are
47:58one, reveal problems, two samples and
48:01trials, and three one step of a
48:04multi-step process. One, reveal their
48:07problem. Think diagnosis. These lead
48:10magnets work great when they reveal
48:12problems that get worse the longer you
48:14wait. Example, you run a speed test that
48:16shows their website loads at 30% below
48:19the speed it should. You draw a clear
48:21line between where they should be and
48:23how much money they lose by being below
48:26standards. Example, you do a posture
48:28analysis and show them what their
48:30posture should look like. You draw a
48:32clear line to what their pain-free life
48:34would look like if their posture were
48:36fixed and how you can help. Example, you
48:39do a termite inspection that reveals
48:41what happens when the bugs eat their
48:43home. If they do have termites, you can
48:46get rid of them for cheaper than the
48:47cost of another home. If they don't,
48:49they can pay you to prevent the termites
48:51from coming to begin with. You can sell
48:53them either way. Win-win. Two samples
48:57and trials. You give full but brief
48:59access to your core offer. You can limit
49:02the number of uses, time they have
49:04access, or both. This works great when
49:07your core offer is a recurring solution
49:09to a recurring problem. Example, you
49:12hook them up to your faster server and
49:14show their website loading at lightning
49:16speed. They get more customers from your
49:18faster load times. If they want to keep
49:20it, they need to keep paying you.
49:22Example, you give a free adjustment for
49:24their bad posture and they experience
49:26relief. To get permanent benefits, they
49:29must buy more. Example, food, cosmetics,
49:33medicine, or any other consumables.
49:36Consumables by nature have limited uses
49:39and solve recurring problems with
49:41recurring use. So single serving,
49:44fun-sized, etc. Samples are great lead
49:47magnets. It's how Costco sells more food
49:50than other stores. They give out
49:52samples. Pro tip: Be a drug dealer. Many
49:55people make money selling drugs legally
49:58and illegally. A free drug sample is a
50:00lead magnet. They can afford to give a
50:02hit away because once people try it,
50:05they're hooked. It's so good they come
50:07back for more. This is why we don't
50:09dilute the value of our lead magnets or
50:12give away sucky fluff. If anything, like
50:15a drug dealer, you'd want to give the
50:17strongest hit first. It keeps them
50:19coming back for more. Your lead magnet
50:21is your first hit. The next one they
50:23have to pay for. Be a legal drug dealer
50:26and you'll make money like one. P.S.
50:29Whatever you do, make sure it's legal.
50:32Three, one step of a multi-step process.
50:35When your core offer has steps, you can
50:37give one valuable step for free and the
50:40rest when they buy. This works great
50:42when your core offer solves a more
50:44complex problem. Example, this book. I
50:48help you get to $1 million plus per year
50:50in profit. Then you'll have new problems
50:52we can help you solve and scale from
50:54there. Example, you give away a freewood
50:57sealant for a garage door, but the
50:59sealing process requires three different
51:02coats to protect from all weather
51:04conditions. I do the first one free,
51:07explain how it only gives partial
51:08coverage and offer the other two in a
51:11bundle. Example, you give away free
51:13finance courses, guides, calculators,
51:16templates, etc. They are so valuable
51:19people really can do it all themselves.
51:21But they also reveal the time, effort
51:24and sacrifice of doing all. So you offer
51:27financial services to solve all that.
51:30Action step. Pick how you want to solve
51:32your narrowly defined problem. Author
51:34note. What we can learn for dressing
51:36rooms. Try before you buy. Years ago,
51:38you weren't allowed to try things on
51:40before you bought them. Then one savvy
51:42business owner created a fitting room.
51:45Their sales presumably skyrocketed. So
51:47much so that it's now a standard
51:50practice in all clothes stores. Here's
51:52why the dressing room is so powerful. It
51:55is all three types of lead magnet in
51:57one. You get to try something on like a
52:00trial. It also reveals a problem as once
52:02you try one thing on, you might find
52:04that you need something different than
52:06you intended. And once you find a shirt
52:08you like, a good salesperson would say,
52:10"Do you want pants to go with it?" It
52:12becomes step one on a multi-step process
52:15of creating an outfit. So, if you can
52:17try get a lead magnet that does all
52:20three. Reveal a problem, give them a
52:22taste of a solution, and show it as a
52:24small piece of a total package. Step
52:26three, figure out how to deliver it.
52:29There are unlimited ways to solve
52:31problems. But my favorite lead magnets
52:33solve them with software, information,
52:36services, and physical products. And
52:39each of those works great with the three
52:41types of lead magnets from step two.
52:43I'll show you what I've done to attract
52:45gym owners using each lead magnet type.
52:48One, software. You give them a tool. If
52:50you have a spreadsheet, calculator, or
52:53small software, your technology does a
52:55job for them. X, I give away a
52:58spreadsheet or dashboard that gives a
53:00gym owner all their relevant business
53:02stats, compares them to industry
53:03averages, then gives them a rank. Two,
53:07information. You teach them something.
53:09courses, lessons, interviews with
53:12experts, keynote presentations, live
53:14events, mistakes and pitfalls,
53:16hacks/tips,
53:18etc. Anything they can learn from X. I
53:21give away a mini course for gyms on how
53:23to write an ad. Three services. You do
53:26work for free, adjust their back,
53:28perform a website audit, apply the first
53:31layer of garage sealant, transform their
53:33video into an ebook, etc. X. I run gym
53:38owners ads for free for 30 days. For
53:41physical products, you give them
53:43something they can hold in their hands.
53:45A posture assessment chart, a
53:46supplement, a small bottle of garage
53:48door sealant, boxing gloves to get
53:51boxing gym leads, etc. X, I sell a book
53:54for gym owners called Gym Launch Secrets
53:57with three different types of lead
53:58magnets and four ways to deliver them.
54:01That's up to 12 lead magnets that solve
54:03a single narrow problem. So many
54:05magnets, so little time. I make as many
54:08versions of a lead magnet as I can and
54:10rotate them. This keeps the advertising
54:12fresh and low effort. Plus, you see
54:15which ones work best. Like my case study
54:18story at the beginning of the chapter,
54:20the results are often surprising, and
54:22you won't know until you try. Action
54:24step. As a thought exercise, think of a
54:27lead magnet and then a version of it for
54:29each delivery method. You always can, I
54:31promise. Then pick how to deliver your
54:34lead magnet. Step four, test what to
54:36name it. David Oglevie said, "When you
54:38have written your headline, you have
54:40spent 80 cents of your advertising
54:42dollar." What that means is five times
54:46more people read your headline than any
54:48other part of your promotion. They read
54:50it and make a snap decision to read
54:52further or not. Like Oelv hints, leads
54:55have to notice your lead magnet before
54:57they can consume it. like it or not.
55:00This means how we present it matters
55:02more than anything. For example,
55:04improving the headline, name, and
55:07display of your lead magnet can 2x, 3x,
55:10or 10x your engagement. It's that
55:12important. Besides, if no one shows
55:14interest in your lead magnet, no one
55:16will ever know how good it is. You can't
55:18leave it to chance. So, listen up.
55:21Here's what you do next. You test. The
55:23three things you want to test are the
55:24headline, the images, and the sub
55:26headline in that order. The headline is
55:29the most important. So if you only test
55:31one thing, test that. For example, I had
55:35no idea what to title this book. So
55:37here's what I did to figure out which
55:38name would do the best. I tested. The
55:41results may surprise you as much as they
55:44surprised me. Headline tests. Round one,
55:47advertising versus promotion. Round two,
55:51advertising versus leads. Round three,
55:54marketing versus leads. Image test. Real
55:57versus cartoon. Sub headlines. Round
56:00one, how to get more people to want to
56:02buy your stuff. How to get strangers to
56:04want to buy your stuff. Round two. How
56:07to get more strangers to want to buy
56:09your stuff. How to get strangers to want
56:11to buy your stuff. Round three, how to
56:14get as many leads as you darn well
56:16please. How to get strangers to want to
56:18buy your stuff. Round four. Get
56:21strangers to want to buy your stuff. How
56:23to get strangers to want to buy your
56:25stuff. Note two things with the sub
56:27headline tests. One, how to get
56:30strangers to want to buy your stuff
56:31overwhelmingly beat get strangers to
56:34want to buy your stuff. The only
56:36difference is two little words, how to,
56:38and it also beat how to get more
56:41strangers to want to buy your stuff with
56:43a single word, remove more. Small
56:46changes can make big differences. Two,
56:48since so many people asked, I figured
56:50I'd answer it here. I didn't subtitle
56:52the book, How to Get Strangers to Buy
56:54Your Stuff, because that's sales, not
56:57getting leads. The point of this book is
56:59to get strangers to show interest not to
57:02buy yet. A raised hand is where this
57:04book ends. Dollar 100M sales or
57:07persuasion. I haven't decided yet. Will
57:10be a future book. One problem at a time.
57:13Action step test. If people engage in
57:16droves, you've got a winner. And if you
57:18have any following at all, you can run
57:20polls like these. You don't need a lot
57:22of votes to get a directional idea. If
57:24you can't do that, make a post on every
57:26platform and ask people to respond with
57:28a one or a two. Then count them up. If
57:31you still can't even do that, then just
57:33message people and ask. There's always a
57:35way. And this is one of the highest
57:38leverage things you can do with your
57:40time. Make sure how you package it gets
57:42engagement and you give yourself a big
57:44head start. Bonus points. If people
57:47respond to the poll and ask when they
57:49can get their hands on it, you have a
57:51mega winner. Step five, make it easy for
57:54them to consume. People prefer to do
57:56things that take less effort. So, if we
57:59want more people to take us up on our
58:00lead magnet and consume it, we got to
58:03make it easy. You can see 2x, 3x, and
58:07even 4x plus increases and take rates
58:09and consumption simply by making it
58:12easier to consume. One, software. You
58:15want to make it accessible on their
58:16phones, on a computer, and in multiple
58:19different formats. This way, they'll
58:21pick the one easiest for them. Two,
58:24information. People like to consume
58:26things in different ways. Some people
58:28like watching, other people like
58:30reading, others like listening, etc.
58:32Make your solution in as many different
58:34formats as you can. Images, video, text,
58:38audio, etc. Offer them all. That's why
58:41this book comes in every format people
58:44consume. Three services be available at
58:47more times and more ways. More times a
58:49day, more days of the week via video
58:52call, phone call, in person, etc. The
58:55easier you are to get a hold of, the
58:57more likely people will become engaged
59:00leads to claim the free value. For
59:03physical products, make it super simple
59:05to order and fast to get to them. Make
59:07the product itself fast and easy to
59:10open. Give simple directions on how to
59:13use the product. Example, Apple made its
59:16products so well they didn't even need
59:18directions. And the packaging is so good
59:20most people keep the boxes. Action step.
59:24Package your lead magnet in every way
59:26you can. It dramatically increases how
59:28many engaged leads come your way. And
59:31more leads engaging with your lead
59:33magnet means more leads getting value
59:35from it. This is huge. Fun fact, my book
59:39$100 million offers has a near perfect
59:41one quarter one quarter split between
59:43ebooks, physical books, audiobooks, and
59:46videos free on acquisition.com.
59:49Making the book available in multiple
59:51formats is the easiest way I know to get
59:54two, three, fourx the amount of leads
59:57for the same work. If I only made it
59:59available in one format, I'd miss out on
1:00:01the three 4x the people who wouldn't
1:00:03have read the book otherwise. What a
1:00:05shame that would have been and what a
1:00:06waste. Step six, make it darn good. Give
1:00:10away the secrets. Sell the
1:00:11implementation. The marketplace judges
1:00:14everything you have to offer, free or
1:00:16not. And you can never provide too much
1:00:18value. But you can provide too little.
1:00:21So you want your lead magnet to provide
1:00:23so much value people feel obligated to
1:00:26pay you. The goal is to provide more
1:00:29value than the cost of your core offer
1:00:31before they bought it. Think about it
1:00:32this way. If you're scared of giving
1:00:35away your secrets, imagine the
1:00:37alternative. You give away sucky fluff.
1:00:40Then people who might have become
1:00:42customers think this person sucks. They
1:00:44only have sucky fluff. Then they buy
1:00:47from someone else. So sad. Not only
1:00:50that, they tell other folks who might
1:00:52have bought from you not to. It's a
1:00:54vicious cycle you don't want to ride.
1:00:56But remember, people buy stuff based on
1:00:58how much value they think they'll get
1:01:00after they buy it. And the easiest way
1:01:02to get them to think they'll get tons of
1:01:04value after they buy is, drum roll
1:01:06please, to provide them with value
1:01:08before they buy. Imagine a company
1:01:11scaled from $1 million to $10 million
1:01:14just by consuming my free content. The
1:01:17chance they'll partner with
1:01:18Acquisition.com is huge because I paid
1:01:20for my share before we even started.
1:01:22Action step. 99% of people aren't going
1:01:25to buy, but they will create or destroy
1:01:28your reputation based on the value of
1:01:30your free stuff. So, make your lead
1:01:33magnets as good as your paid stuff. Your
1:01:35reputation depends on it. Provide value.
1:01:38Stack the deck. Reap the rewards. Step
1:01:41seven, make it easy for them to tell you
1:01:43they want more. Once the leads consume
1:01:45the lead magnet, some of them will be
1:01:47ready to buy or learn more about your
1:01:49offer. This is the time to give a call
1:01:51to action. A call to action CTA tells
1:01:55the audience what to do next. But
1:01:57there's a little more to it than that.
1:01:59At least if you want your advertising to
1:02:02work. Good CTAs have two things. One,
1:02:05what to do and two, reasons to do it
1:02:08right now. What to do. CTAs tell the
1:02:11audience to call the number, click the
1:02:12button, give information, book the call,
1:02:15etc. There are way too many to list.
1:02:18Just know CTAs tell the audience how to
1:02:20become engaged leads. Good CTAs have
1:02:23clear, simple, and direct language. Not
1:02:26don't delay, but instead call now. Read
1:02:29the next paragraph to learn more. See
1:02:31what I did there? Reasons to do it right
1:02:33now. If you give people a reason to take
1:02:36action, more people will do it. But
1:02:38couple things to keep in mind. First,
1:02:40good reasons work better than bad
1:02:42reasons. And second, any reason, even
1:02:46bad ones, tends to work better than no
1:02:48reason at all. So to get more people to
1:02:50take action, I include as many effective
1:02:54reasons as I can. Here are my favorite
1:02:56reasons to act now. A scarcity. Scarcity
1:03:00is when there is a limited amount of
1:03:01something, especially when there is a
1:03:03small supply compared to demand. When
1:03:06something is scarce, like your lead
1:03:07magnet or offer, people also tend to
1:03:10want it more. And this is why they're
1:03:12more likely to act right now. The fewer
1:03:14you have, the more valuable people think
1:03:16it is. But there's a catch. The fewer
1:03:19you have, the fewer engaged leads you
1:03:21can get before running out. So, the best
1:03:23strategy one know for scarcity is
1:03:27reality. Let me explain. If you sold
1:03:301,000x the customers tomorrow, could you
1:03:32handle it? If not, you have some limit
1:03:35to how much you can sell. Maybe you're
1:03:37limited by customer service, onboarding,
1:03:40inventory, time slots per week, etc.
1:03:43Don't keep it a secret. Advertise it.
1:03:45This gives you ethical scarcity. If you
1:03:47can't handle more than five new
1:03:49customers per week, say so. Draw
1:03:52attention to the natural scarcity in
1:03:54your business. If you have limitations,
1:03:56you may as well use them to make money.
1:03:58X the most convenient class times fill
1:04:01up fast. Call now to get the one you
1:04:03want. I can only handle five people per
1:04:06week, so if you want it solved soon, do
1:04:08X. We only printed one batch of shirts
1:04:11and we'll never reprint this design. Get
1:04:13one so you don't regret missing out
1:04:15forever. B, urgency. You can have
1:04:18unlimited units to sell, but let's say
1:04:20you stop selling them in an hour on
1:04:23purpose. I bet more people than normal
1:04:25will buy your thing in that hour. This
1:04:27is urgency in action. Urgency is when
1:04:30people act faster because they have a
1:04:32short amount of time. And the less time
1:04:34people have, the faster, more urgent
1:04:37they tend to act. So, if you make the
1:04:39time they can act on your CTA shorter,
1:04:41you can get more of them to act on it
1:04:42faster. You can also use the same
1:04:45urgency with discounts or bonuses that
1:04:47go away after x minutes or hours, after
1:04:50which this offer will never be available
1:04:52again. X. Our July 4th promotion ends
1:04:56Monday at midnight. So if you want it,
1:04:58take action now. Our Black Friday
1:05:00promotion ends at midnight. There are
1:05:02only 4 hours left. Get it while the
1:05:05getting's good. Through Friday, I'll
1:05:07also throw in a free hat to anyone who
1:05:10buys more than three books. So, if you
1:05:12want to look slick in an acquisition.com
1:05:14hat by now, pro tip, the urgency tactic
1:05:18I use the most. I put time limits on
1:05:20bonuses. This way, I don't need to
1:05:22change my pricing or products all the
1:05:24time. I can just change the bonus. I
1:05:26like to make a handful of valuable
1:05:28bonuses and rotate them each week. And
1:05:31if they don't take action by the end of
1:05:33the week, they'll actually miss out on
1:05:35the bonus. The best part is that it's an
1:05:37easy way to make CTAs more effective
1:05:40without capping sales. C. Fraternity
1:05:43party planner. My favorite. Make up a
1:05:46reason. Fraternities don't need a reason
1:05:48to party, but they sure make up some
1:05:50doozies. John got his wisdom teeth
1:05:53removed. Kegger Margarita Monday, Toga
1:05:56Tuesdays, Thursday, etc. Your reason
1:06:00doesn't even have to make sense and it
1:06:02will still get more people to act. In
1:06:05fact, Harvard ran an experiment showing
1:06:07that people were more likely to let
1:06:09someone cut in line if they only gave a
1:06:11reason. The number of people that let
1:06:13others cut increased if the reason made
1:06:16sense, like scarcity and urgency. But
1:06:19any reason still works better than no
1:06:21reason. So, I always try to include one.
1:06:24Think the stuff you say after the word
1:06:25because. Examples: Because moms know
1:06:29best. Because your country needs you.
1:06:32because it's my birthday and I want you
1:06:34to celebrate with me. Action step, give
1:06:37a clear, simple, actionoriented CTA.
1:06:40Then give them a reason why using
1:06:42scarcity, urgency, and any other reasons
1:06:45you can think of. And do it often. Don't
1:06:48be clever, be clear. Even if your lead
1:06:51magnet costs money to deliver, it should
1:06:53still lower your cost to get a new
1:06:55customer. This is because more engaged
1:06:57leads means more chances to get
1:06:59customers. and the extra customers more
1:07:02than cover your costs. That's the point.
1:07:04Let's say you make $10,000 of profit on
1:07:07your core offer and it costs you $1,000
1:07:10in advertising to get someone on a call
1:07:12for it. If you close one out of three
1:07:14people, it costs you $3,000 in
1:07:18advertising to get a customer. Since we
1:07:20have $10,000 in profit to work with,
1:07:22that's fine. But we're savvy. We can do
1:07:25better. So, let's do better. Imagine you
1:07:28advertise a free lead magnet instead of
1:07:31your core offer. Your lead magnet costs
1:07:34you $25 to deliver. And because it's
1:07:36free to them, more will engage. The
1:07:39extra engagement means it only costs $75
1:07:42in advertising to get someone on a call.
1:07:44Allin, it's $100 per call. By delivering
1:07:48value before they buy, you get 10 times
1:07:50more engaged leads for the same cost.
1:07:53Note, this happens all the time when you
1:07:55nail the lead magnet. Now, let's say one
1:07:58out of 10 folks who get the lead magnet
1:08:00buys your core offer. This means your
1:08:02new cost to acquire a customer is
1:08:04$1,000. $100 x10 people. We just cut our
1:08:08cost to get a customer by 3x. So,
1:08:11instead of spending $3,000 to get a new
1:08:13customer by using a lead magnet, we
1:08:16spend only $1,000.
1:08:18Given we make $10,000, that's a 10 colon
1:08:22one return. So, if we keep our
1:08:24advertising budget the same and use a
1:08:26lead magnet, we triple our business.
1:08:29Remember, the goal is to print money,
1:08:32not just make our fair share. This is
1:08:34where experienced business owners beat
1:08:36newbies. With a $25 budget to deliver
1:08:38your lead magnet, you can provide far
1:08:41more value than a $0 budget. Crazy, I
1:08:44know. You attract more customers because
1:08:46your lead magnet is more valuable than
1:08:49other people's. oftentimes by a lot.
1:08:52This translates into more strangers
1:08:54becoming engaged leads. It also
1:08:57translates into more sales because you
1:08:59provided value in advance. Win win.
1:09:02Action steps. Step zero. If you're
1:09:05struggling to get leads, make an amazing
1:09:08lead magnet. Step one, figure out the
1:09:10problem you want to solve for the right
1:09:12customer. Step two, figure out how you
1:09:15want to solve it. Step three, figure out
1:09:17how to deliver it. Step four, make the
1:09:20name interesting and clear. Step five,
1:09:23make it easy to consume. Step six, make
1:09:26sure it's darn good. Step seven, tell
1:09:28them what to do next, why it's a good
1:09:30idea, do it clearly, and do it often.
1:09:33Section two, conclusion. My goal with
1:09:36this book is to demystify the lead
1:09:38getting process. In the first chapter,
1:09:41we covered why leads alone aren't
1:09:43enough. You need engaged leads. In the
1:09:46second chapter, we covered how to get
1:09:48leads to engage a valuable lead magnet
1:09:51or offer. And a good lead magnet does
1:09:53four things. One, engages ideal
1:09:56customers when they see it. Two, gets
1:09:59more people to engage than your core
1:10:01offer alone. Three, is valuable enough
1:10:04that they consume it. For makes the
1:10:06right people more likely to buy, so more
1:10:09people show interest in our stuff. We
1:10:11make more money from them and we deliver
1:10:13more value than we ever have all at the
1:10:16same time. Next up, we've armed
1:10:18ourselves with a powerful lead magnet.
1:10:21Now, I'll show you the four ways we can
1:10:23advertise it. In other words, now that
1:10:25we have this stuff, we got to tell
1:10:27people about it. Let's get some leads.
1:10:30Section three, get leads. The core for
1:10:34advertising methods. We get engaged
1:10:36leads by letting people know about our
1:10:38stuff. And there are two types of people
1:10:40we let know. People who know us and
1:10:43people who don't. And there are two
1:10:45paths of letting them know about it. One
1:10:47to one and one to many. Those combine
1:10:49into the four basic ways one person can
1:10:52let other people know about anything.
1:10:54Let's break down how we can use those
1:10:56four ways to get us leads. Two types of
1:10:59audiences, warm and cold. Warm audiences
1:11:02are people who gave you permission to
1:11:04contact them. Think people who know you,
1:11:07aka friends, family, followers, current
1:11:10customers, previous customers, contacts,
1:11:13etc. Cold audiences are people who have
1:11:16not given you permission to contact
1:11:18them. Think strangers, aka other
1:11:21people's audiences. Buying contact
1:11:23lists, making contact lists, paying
1:11:25platforms for access, etc. The
1:11:28difference matters because it changes
1:11:30how we advertise to them. Two ways to
1:11:32communicate. One to one private, one to
1:11:35many public. We can contact people one
1:11:38to one or one to many. Another way of
1:11:41thinking about this is private or public
1:11:44communication. Private communication is
1:11:46when only one person gets a message at a
1:11:49time. Think phone call or email. If you
1:11:52announce something publicly, many people
1:11:54can get it at the same time. Think
1:11:56social media posts or billboards or
1:11:59podcasts. Now, automation can make this
1:12:02seem confusing. Don't let it. Automation
1:12:05just means some of the work is done by
1:12:07machines. The nature of the
1:12:09communication stays the same. Email, for
1:12:12instance, is onetoone. Emailing a 10,000
1:12:15person list once is more like onetoone
1:12:18really fast by a machine. Automation,
1:12:21which we cover later, is one of the many
1:12:24ways we can get leads on steroids. like
1:12:26audiences, the difference between public
1:12:28and private communication matters
1:12:30because they change how we advertise.
1:12:33Section three, outline, get leads.
1:12:36Combining warm and cold audiences with
1:12:38onetoone and one to many leads us to the
1:12:41only four ways we can let anyone know
1:12:43about anything. The core four, I
1:12:46combined them below for you. One to a
1:12:49warm audience equals warm outreach. One
1:12:51to many to a warm audience equals
1:12:54posting content. One to one to a cold
1:12:57audience equals cold outreach. One to
1:12:59many to a cold audience equals paid ads.
1:13:02These are the only four things you can
1:13:04do to let other people know about the
1:13:06stuff you sell. And each method takes us
1:13:08one step closer to the land of
1:13:11overflowing leads. I refer to the core
1:13:13four throughout the rest of the book. So
1:13:15get to know them. In fact, make them
1:13:18part of yourself. Once you do, you'll
1:13:20have your own get out of jail free card
1:13:22to carry around forever. It will give
1:13:25you as many chances to succeed at
1:13:27business as you could ever want for the
1:13:29rest of your life. Or at least it has
1:13:31for me. So if you aren't getting as many
1:13:33leads as you want, you're not doing the
1:13:35core four with enough skill or with
1:13:37enough volume. We cover all this stuff
1:13:40in lots of detail. How they work, how to
1:13:43do them, when to do them, and show how
1:13:45to measure your progress along the way.
1:13:47This simplifies the overly confused
1:13:50world of advertising into four core
1:13:52actions. Either do them and get as many
1:13:55leads as you darn well please or get
1:13:57crushed by those who do. Number one warm
1:13:59outreach. How to reach out to people you
1:14:02know. The world belongs to those who can
1:14:04keep doing without seeing the result of
1:14:07their doing. May 2013. Starting out for
1:14:11the third time that day. I pulled out my
1:14:13phone and checked my bank account.
1:14:15$51,128.13.
1:14:19I let out a small sigh of relief. It's
1:14:21amazing how years of work and saving can
1:14:24fit into such a tiny screen. Feeling
1:14:27good for the moment, I switched over to
1:14:29social media to get more dopamine.
1:14:32Friends from college were applying to
1:14:33business school. Acceptance letters
1:14:35filled my news feed. I too started the
1:14:38business school application process. I
1:14:40had a choice. I could either quit my job
1:14:43and go to business school or I could
1:14:45quit my job and start a business. The
1:14:47application stared at me. How will a
1:14:49Harvard MBA help your short and
1:14:51long-term goals? That question changed
1:14:54my life. I spent three days trying to
1:14:57answer it. At the end of the third day,
1:14:58I saw the truth. It wouldn't. $150,000
1:15:02in loans and 2 years without income
1:15:05wouldn't help me start a business. At
1:15:07least not as much as starting a business
1:15:09and taking 2 years to figure it out. I
1:15:12can make the same amount by the time I
1:15:13graduate and skip the debt. Or at least
1:15:16that's what I told myself. So, I quit my
1:15:18job and took the steps to start my
1:15:21business. I set up Impetus Group LLC.
1:15:24Check. I set up a business banking
1:15:26account. Check. I set up a merchant
1:15:28account to process payments. Check.
1:15:31There still wasn't any money coming in,
1:15:33but at least I felt legit. Impetus Group
1:15:36LLC. Say it out loud. The first person I
1:15:39told about my new business said,
1:15:41"Impotence.
1:15:43God, I suck. No wonder the name was
1:15:45available." I immediately changed it to
1:15:48the free training project name that
1:15:50doesn't suck. Check. I was in business,
1:15:53but I had a problem. I didn't know
1:15:55anything about advertising or sales, but
1:15:58I didn't know I needed clients. So, I
1:16:00just asked around where I could. I
1:16:02called, texted, and sent Facebook
1:16:05messages to a bunch of people I knew.
1:16:07Hey, do you know anyone who's trying to
1:16:08get into shape? I'm training people for
1:16:10free for 12 weeks. On top of that, I'll
1:16:14make them a custom nutrition plan and
1:16:15grocery list. All they have to do is
1:16:18donate to a charity of their choice and
1:16:20let me use their testimonial. Only six
1:16:23people said yes. Six two high school
1:16:26friends, one college friend, and three
1:16:29people they referred. I emailed everyone
1:16:31fitness plans and we got to work. We
1:16:34texted during the week to keep tabs on
1:16:36progress. Thankfully, they were all
1:16:38friends of mine, so they gave it their
1:16:40all. They encouraged me more than anyone
1:16:43in the beginning. A decade later, I
1:16:45still have their before and after
1:16:47pictures. And this is where the decision
1:16:49to skip business school started coming
1:16:51back to haunt me. A few months into
1:16:53this, I was less sure of myself. My pile
1:16:56of money didn't look as big without new
1:16:58money coming in every month, and it
1:17:00started turning into a real problem. So,
1:17:04after 12 weeks of the pay a charity
1:17:05period, I asked them to pay me instead.
1:17:08I was the charity now. Huh? I worried
1:17:11they'd be upset to pay me instead, but
1:17:14they didn't seem to mind. Once they got
1:17:16results, I asked them to send their
1:17:18friends over. To my surprise, I got
1:17:20another five or six clients from their
1:17:22referrals. I asked the referrals to pay
1:17:24me directly. Again, none of them minded.
1:17:27That little business made about $4,000
1:17:30per month and replace the income from my
1:17:32first job. It gave me enough money to
1:17:34live on and some. My savings started to
1:17:37grow again. Sigh of relief. If this
1:17:39business sounds straightforward, that's
1:17:41because it was. I emailed clients their
1:17:44plans and they texted me the questions
1:17:46they had along the way. That's about it.
1:17:49So, if you're starting, you don't need a
1:17:51lot. All you need is a tax ID, a bank
1:17:54account, a way to take payments, and a
1:17:56way to communicate with people. But that
1:17:59last part, a way to communicate with
1:18:01people is the most important part. It's
1:18:03how you get leads. So, even though I had
1:18:05no idea I was doing warm reachouts, one
1:18:08of the core four is how I got my first
1:18:09leads, I still get leads this way, just
1:18:12with bigger numbers. And I'll show you
1:18:14how you can, too. How warm reachouts
1:18:16work. Warm reachouts are when you make
1:18:18one-to-one contact with your warm
1:18:20audience, aka the people who know you.
1:18:24It's the cheapest and easiest way to
1:18:26find people interested in the stuff you
1:18:28sell. It's super effective, and most
1:18:31businesses don't do it. Don't be like
1:18:33most businesses. Also, you do have a
1:18:35warm audience, even if you don't know
1:18:37it. Everybody knows somebody, so your
1:18:40personal contacts are the easiest place
1:18:42to start. Warm reachouts usually come in
1:18:44the form of calls, texts, emails, direct
1:18:48messages, voicemails, etc. And like we
1:18:51learned in section two, you advertise
1:18:53one of two things. You let them know
1:18:55about your lead magnet, something free
1:18:58and valuable, or you let them know about
1:19:00your core offer, the main thing you
1:19:02sell. When you start doing warm
1:19:04reachouts, you don't get many engaged
1:19:06leads for your time. You do everything
1:19:08on your own and make each message
1:19:10personal. But for that reason, it is
1:19:13reliable. As certain as the sun rises
1:19:15and sets, it works. Note, reaching out
1:19:19to your warm audience works whether you
1:19:21have 100 contacts or 1 million. So as
1:19:24your business grows, you will use
1:19:26automation and employees to make it more
1:19:28efficient. The systems start small with
1:19:31you, but they scale all the way up. I
1:19:33detail how to scale these systems to
1:19:35larger audiences in section 4. How to do
1:19:39warm reachouts in 10 steps. Warm
1:19:42reachouts are a fantastic way to get
1:19:44your first five clients for any new
1:19:46product or service. Advanced folks,
1:19:49think re-engagement and new product
1:19:51lines. Here's how to do it. Step one,
1:19:53get your list. Step two, pick a
1:19:56platform. Step three, personalize your
1:19:59message. Step four, reach out. Step
1:20:02five, warm them up. Step six, invite
1:20:05their friends. Step seven, make them the
1:20:07easiest offer in the world. Step eight,
1:20:10start at the top. Step nine, start
1:20:12charging. Step 10, keep your list warm.
1:20:16Step one, but I don't have any leads.
1:20:18Everyone has a list. You know other
1:20:20humans. Let me prove it to you. Grab
1:20:22your phone. Inside you have contacts.
1:20:25Each contact has subscribed to
1:20:27communication from you. They have given
1:20:29you the means and permission to contact
1:20:31them. Pull up all the email accounts
1:20:33you've used over the years. Pull your
1:20:35contacts and address list from each.
1:20:38Bingo. Look at all them leads. Now go to
1:20:41all your social media profiles. See your
1:20:44followers, subscribers, friends,
1:20:46connections, or whatever kids call them
1:20:48these days. Eureka, you got more leads.
1:20:52Add up all your contacts from all the
1:20:54platforms. Seriously, figure out the
1:20:57number. Between your phone, email,
1:20:59social media, and other platforms, you
1:21:02will have more than enough contacts to
1:21:03get started. For many of you, this will
1:21:06be your first 1,000 leads. Would you
1:21:09look at that? I don't have any leads.
1:21:11Just found some. And if you're
1:21:13terrified, you'll have to talk to
1:21:14people. Relax. You'll like what I'm
1:21:16going to show you next. Step two. but I
1:21:19don't know where to start. Pick a
1:21:20platform. Pick the platform you have the
1:21:22most contacts on. Phone, email, social
1:21:26media, mail, carrier, pigeon, etc. It
1:21:29doesn't matter. Just pick the one with
1:21:31the most contacts. You'll hit them all
1:21:33eventually anyways. Step three, but what
1:21:36do I say? Personalize your greeting. Use
1:21:39something you know about the contact as
1:21:41your actual reason to reach out. If you
1:21:43don't have much personal info, you can
1:21:45check their social media profiles, etc.
1:21:47to learn a bit about them first. Don't
1:21:49be a weirdo. Pay your social dues.
1:21:52Remember, you haven't asked for
1:21:54anything. You're just checking in and
1:21:56providing value. So, relax. X. So, you
1:21:59just had a baby. Congrats. How is the
1:22:02baby doing? How are you? Step four. Now,
1:22:04what? Reach out to 100 people every day.
1:22:11To get what you want, you have to
1:22:12deserve what you want. Charlie Mer. Now,
1:22:15reach out to 100 of them per day with
1:22:18your personalized messages. You'll call,
1:22:20text, email, message, send a postcard,
1:22:24etc. And you will reach out to them up
1:22:26to three times. Once per day for 3 days,
1:22:30or until they respond, whichever comes
1:22:32first, once per week with physical mail.
1:22:35Pro tip: rip off the band-aid. The first
1:22:38reach out is always the hardest and
1:22:40takes the longest. Your second reach out
1:22:42will take minutes. Your third seconds.
1:22:46Be okay with sucking. It's new. This is
1:22:48how we learn when thinking about
1:22:50starting new things. I remember this
1:22:52Chinese proverb. Everything must be hard
1:22:54before it can be easy. Step five. What
1:22:57do I say when they respond? Act like a
1:22:59human. Now we can break the ice without
1:23:02sounding icky. Reply using the ACA
1:23:05framework. Acknowledge what they said.
1:23:07Restate in your own words. This shows
1:23:10active listening. X. Two kids and you're
1:23:13an accountant. Compliment them on
1:23:15whatever they tell you. Tie it to a
1:23:17positive character trait if you can. Ex.
1:23:20Guom,
1:23:21so hardworking, managing a full-time
1:23:24career, and two kids. Ask another
1:23:26question. Lead the conversation in
1:23:29whatever direction you want. In this
1:23:31case, to a topic closer to your offer.
1:23:33Examples: therapy/life
1:23:36coaching. Do you get time for yourself?
1:23:39Fitness/weight
1:23:40loss. Do you have time to get workouts
1:23:42in cleaning services? Do you have anyone
1:23:45who helps you keep the house tidy? The
1:23:47ACA framework is great because it helps
1:23:49you talk to anyone. It just so happens
1:23:51it's also useful for letting people know
1:23:53about your stuff. This means you can
1:23:55learn about the person and guide the
1:23:57conversation toward your offer. People
1:24:00love talking about themselves, so let
1:24:02them. They also love to be complimented,
1:24:04so do that, too. And if people feel good
1:24:07when talking to you, they'll like and
1:24:09trust you more. You want people to like
1:24:11and trust you more. Besides, it's solid
1:24:14practice to find the good in everyone
1:24:16anyway. Speaking of practice, this will
1:24:18take practice, and that's okay. Pro tip,
1:24:21on email, you'll be more upfront. On
1:24:24email, you will have a personalized
1:24:25opener to show that you actually took
1:24:27time to research them in some way. Think
1:24:30two to three sentences. Then, you'll
1:24:33transition directly to your offer or
1:24:35lead magnet, which we talk about next.
1:24:37You sort of do it all at once with email
1:24:39or voicemails. Step six, how do I know
1:24:42if they're interested? Make them an
1:24:44offer. Get through a normal amount of
1:24:46conversation. Think three to four
1:24:48exchanges if on the phone or messaging
1:24:51and 3 to four minutes if in person. Then
1:24:55you'll make them an offer to see if
1:24:56they're interested. When I make an offer
1:24:58from scratch, I refer to the value
1:25:00equation. If you're wondering what's the
1:25:02value equation, it was the core concept
1:25:04of my first book, $100 million offers.
1:25:08Value, as I define it, has four
1:25:10elements. One, dream outcome. What the
1:25:13person wants to happen the way they want
1:25:15it to happen. State the best possible
1:25:17results your product can get. Big bonus
1:25:19points if those results come from people
1:25:22like the one you're talking to. Two,
1:25:24perceived likelihood of achievement. How
1:25:27likely they think it is for them to
1:25:28achieve their goal. include results,
1:25:31reviews, awards, endorsements,
1:25:33certifications, and other forms of
1:25:35third-party validation. Also, guarantees
1:25:38are huge. Three, time delay. How long
1:25:42they believe it'll take to get results
1:25:43after they buy. Describe how fast people
1:25:46start getting results, how often they
1:25:48get results when they start, and how
1:25:50long it takes to get the best results
1:25:52possible. Four, effort and sacrifice.
1:25:56the bad stuff they'll have to endure and
1:25:58the good stuff they'll have to give up
1:26:00in their struggle to get the result.
1:26:02Show them the good stuff they can keep
1:26:04doing or get to do and still get
1:26:06results. And show them the bad stuff
1:26:08that they can get rid of or avoid doing
1:26:11and still get results. The goal is to
1:26:14maximize the first two and minimize the
1:26:16second two. So all you have to do now is
1:26:19show someone you have exactly what they
1:26:21want. They're guaranteed to get it
1:26:23insanely fast without lifting a finger
1:26:26or giving up anything they love. No
1:26:29biggie, right? Obviously, that's ideal.
1:26:31We got to get as close to that as we can
1:26:33without lying or exaggerating. So, let's
1:26:36do just that with a real life offer. By
1:26:39the way, do you know anybody who is
1:26:40describe their struggles looking to
1:26:42dream outcome in time delay? I'm taking
1:26:45on five case studies for free because
1:26:48that's all I can handle. I just want to
1:26:49get some testimonials for my service/
1:26:51product. I help them dream outcome
1:26:54without effort and sacrifice. It works.
1:26:58I even guarantee people get dream
1:27:00outcome or I work with them until they
1:27:02do. I just had a girl named Trip X work
1:27:04with me. Dream outcome. Even though she
1:27:07described the same struggle your contact
1:27:10has. I also had another guy who dream
1:27:12outcome and it was his first time. I
1:27:15just like more testimonials to show it
1:27:17works across different scenarios. Does
1:27:19anyone you like come to mind? Pause if
1:27:21on the phone. And if they say no, huh?
1:27:24Well, does anyone you hate come to mind?
1:27:26Ah, this helps break any awkwardness.
1:27:29Pro tip, implied perceived likelihood of
1:27:31achievement. You'll notice besides the
1:27:34guarantee, there's no slot for perceived
1:27:37likelihood of achievement. But how we
1:27:39explain the testimonials fulfills that
1:27:42need. After all, we're not going to say,
1:27:44"Hey, I can obviously help you because
1:27:46I've helped someone exactly like you."
1:27:48But we imply that by selecting a
1:27:50testimonial that's as close to their
1:27:52situation as possible. And the longer
1:27:55you are in business, the more perfect
1:27:57fit testimonials you'll have. So, the
1:28:00easier it'll be to show testimonials
1:28:02that perfectly match the person you're
1:28:04speaking with. Then, once you can show
1:28:06one perfect testimonial, the only thing
1:28:08better is a buttload of them. There's an
1:28:10important feature here. We're not asking
1:28:12them to buy anything. We're asking if
1:28:14they know anyone. And of the people who
1:28:16say yes, most say they are interested.
1:28:19This entire thing is engineered to boost
1:28:22their perceived likelihood of
1:28:24achievement. It's why we show struggles
1:28:26and results from people like them who
1:28:28have struggles like theirs. But we let
1:28:31them connect the dots. Since you didn't
1:28:33ask them to buy anything, you don't come
1:28:35off as pushy. Some people will show
1:28:37interest in your stuff. Some will refer
1:28:39you to those who might. So, we'll do
1:28:41both. In all three outcomes, you win.
1:28:44And you win without pushing anything on
1:28:46anyone. If you have even less time or
1:28:49space to deliver it, just use the value
1:28:51elements back to back. I help ideal
1:28:54customer get dream outcome in time
1:28:57period without effort and sacrifice and
1:29:01increase perceived likelihood of
1:29:02achievement. Look at the pro tip below.
1:29:05Note, these work well for emails, texts,
1:29:08direct messages, calls, and in person.
1:29:11Just fill in the blanks. Pro tip: 11
1:29:14ways to increase perceived likelihood of
1:29:17achievement. Here's how you increase
1:29:19their perceived likelihood of
1:29:21achievement so more people take you up
1:29:23on your offer. Include one or more of
1:29:25the following. Showing proof we have
1:29:27done what they want, our own story.
1:29:29Showing proof of people just like them
1:29:32getting what they want. Think
1:29:33testimonials showing the sheer volume of
1:29:36happy reviews we've received. Think lots
1:29:38of five stars. A if you don't have
1:29:41reviews yet, even the number of people
1:29:43you've helped works, certifications,
1:29:46degrees, third party accreditations that
1:29:48were legit, numbers, stats, research
1:29:51that supports the outcome you want them
1:29:53to believe. Experts vouching for us.
1:29:56Some new/ unique characteristic they
1:29:58haven't failed with before, so it might
1:30:00work this time. Celebrities who have
1:30:02endorsed us, they trusted them, so
1:30:05should I. Guaranteeing they'll achieve
1:30:07it, so we put some skin in the game,
1:30:08too. How well you describe them or the
1:30:11current pain they're experiencing. The
1:30:13more specific, the better. Think he she
1:30:16really gets me. They must know how to
1:30:17help. If possible, demonstrate the
1:30:20outcome live or show a recording of it
1:30:23happening. Hey, example advertising
1:30:26agency plays a recording of a call that
1:30:28a gym owner has to make to a lead on the
1:30:30sales call. Could you handle making a
1:30:32call like that to a lead if we get them
1:30:34for you? It demonstrates the outcome of
1:30:36the advertising services. People don't
1:30:39want leads, they want customers. They
1:30:41just don't know a better way to ask for
1:30:42them. Step seven, how do I get them to
1:30:45say yes. Make it easy for them to say
1:30:47yes. Make it free. After people show
1:30:50interest, make your offer easy to say
1:30:52yes to. I like to start with the easiest
1:30:55offer enhancer in the world free. And
1:30:57don't try to look advanced if you're
1:30:59not. People aren't dumb. Just be honest
1:31:01and keep it simple. Since I'm only
1:31:03taking on five people, I can give you
1:31:06all the attention you need to get
1:31:07bragworthy results. And I'll give it all
1:31:09for free so long as you promise to one,
1:31:13use it. Two, give me feedback. And
1:31:15three, leave a killer review if you
1:31:17think it deserves one. Does that sound
1:31:19fair? This sets reasonable expectations
1:31:22up front and boom, now you're just
1:31:25helping people for free, winning. Pro
1:31:27tip: Stack yes to build early momentum.
1:31:30Early on, I felt terrified asking for
1:31:33money. So, if you recall from the story
1:31:36above, I told people I would work with
1:31:38them for free as long as they donated to
1:31:41a charity of their choice. I still got
1:31:43them invested in their results, but
1:31:44asking them for a feel-good tax
1:31:46write-off felt like a much safer way to
1:31:48do it. By the way, this was the first
1:31:50thing I ever sold. Looking back, I
1:31:52wanted easy, low pressure yes under my
1:31:54belt. And those early yes built my first
1:31:57business. And they can build your
1:31:59business, too. My recommendation,
1:32:01whenever you launch a new product or
1:32:03service, make the first five free. The
1:32:06exact number matters less than knowing
1:32:08why you benefit from it. Here's why.
1:32:10One, you get the reps in and become
1:32:13comfortable with making offers to
1:32:14people. It'll calm your nerves knowing
1:32:16you're just helping for free for now.
1:32:20Winky face. Two, you probably suck for
1:32:23now. People are far more forgiving when
1:32:26you haven't charged anything. Three,
1:32:28because you probably suck, you need to
1:32:30learn how to suck less. You suck less by
1:32:33doing more. It's better to have a few
1:32:35guinea pigs to get the kinks out. You
1:32:37learn a ton from the people you help for
1:32:39free. I promise even though it may not
1:32:41feel like it now, you're getting the
1:32:43better end of the deal. For if people
1:32:46get value, especially for free, they're
1:32:49far more likely to leave positive
1:32:51reviews and testimonials, give you
1:32:53feedback, send their friends and family.
1:32:56And if that's not awesome enough, free
1:32:58customers can make you money in three
1:33:00other ways. One, they convert into
1:33:02paying customers. Two, they send you
1:33:05paying customers via referrals. Three,
1:33:07their testimonials bring in paying
1:33:09customers. So, no matter what, you win.
1:33:12Pro tip, apply the Hinge method to
1:33:15referrals. If you ask for a referral,
1:33:17get a three-way introduction. My
1:33:19favorite way to do this in person is to
1:33:21grab the customer's phone, take a
1:33:23picture of the two of us, then text that
1:33:25picture to the referral and your own
1:33:27number. If I'm virtual, screenshot a
1:33:30video call, and do the same thing. If
1:33:32you can't do that, then at least get a
1:33:34three-way conversation going with them.
1:33:36initiating it. What if they say no?
1:33:38Often the most expensive part of what
1:33:40you sell isn't the price, it's the
1:33:42hidden costs. Hidden costs are the time,
1:33:46effort, and sacrifice it takes to get
1:33:48results from the thing you sell. In
1:33:50other words, the bottom part of the
1:33:52value equation. If you struggle to give
1:33:54your stuff away for free, it means
1:33:56either people don't want it, dream
1:33:58outcome. They don't believe you.
1:34:00Perceived likelihood of achievement or
1:34:02the hidden costs, time, effort, and
1:34:04sacrifice are too high. In short, your
1:34:08free stuff is too expensive. So figure
1:34:10out the hidden costs. Once you do, you
1:34:13unlock even more value that you'll
1:34:16eventually be able to charge for. To
1:34:18build your understanding of hidden
1:34:20costs, ask. So when someone says no, ask
1:34:23why. What would I have to do to make it
1:34:24worth it for you to continue? Their
1:34:27answers give you a chance to solve their
1:34:29problem. And if you solve that problem,
1:34:31they'll probably buy from you. And even
1:34:33if they don't buy from you, they'll give
1:34:35you the ammo to get the next person,
1:34:37too. And remember, failure is a
1:34:40requisite for success. It's part of the
1:34:42process. So, rack up failures as fast as
1:34:45you can. Get them out of the way to
1:34:46start paying down your no tax. If you
1:34:49get thousands of nos, you will get your
1:34:51yes. I promise. I always tell myself,
1:34:54yes, give me opportunity. No, give me
1:34:57feedback. Either way, I win. Off a note,
1:35:00Warren Buffet and Benjamin Graham.
1:35:03Before Warren Buffet became the greatest
1:35:05investor of our time, he offered to work
1:35:07for his hero, Ben Graham, for free. Want
1:35:10to know Graham's response? You're
1:35:12overpriced. Graham knew what was up. The
1:35:15most expensive thing about hiring Buffet
1:35:18wasn't a paycheck, but the time to train
1:35:20him. Graham would actually be working
1:35:21for Buffet. And in the same way, your
1:35:24early customers are working for you.
1:35:26They're training you for free, and you
1:35:28want to minimize that cost to them. Know
1:35:30your hidden costs. PS. Buffet still
1:35:33managed to get Graham to take his free
1:35:35offer. The rest is history. Pro tip:
1:35:39learning or earning. If anyone tells you
1:35:41not to undervalue yourself by giving
1:35:43your services away for free in the
1:35:46beginning, tell them a hush. Sure,
1:35:48you're a special snowflake, but the
1:35:50stuff you sell isn't. It isn't valuable
1:35:53yet. You've barely started. The
1:35:55objective right now is to learn not to
1:35:57earn. We'll get to the earning once
1:35:59we've learned more. But we must crawl
1:36:01before we run. Don't get the objectives
1:36:03mixed. The earning will come. I promise.
1:36:06Step eight. What I do once I've reached
1:36:08out to everyone. Start back at the top.
1:36:11After reaching out to all the leads on
1:36:13one platform, switch to the platform you
1:36:15have the second most leads on. After you
1:36:17reach out to those leads, go to the
1:36:19platform you have the third most leads
1:36:21on and so forth. Let's say you follow
1:36:24this to the tea because being poor sucks
1:36:26more than helping people for free. If
1:36:29between all platforms, you have 1,000
1:36:31leads, that gives you 10 solid days of
1:36:34work. A month of work, including
1:36:36follow-ups. By this point, I promise
1:36:39five or more people will have accepted
1:36:41your free offer, and some will have
1:36:43converted into paying customers. If you
1:36:46did a good job, they'll send friends and
1:36:48they'll become paying customers, too.
1:36:50So, let's make our first dollar. Step
1:36:52nine. But I can't work for free forever.
1:36:55Start charging. This is important. This
1:36:58is your litmus test to know when you're
1:37:00good enough to charge. Once people start
1:37:02referring, start charging. When that
1:37:05happens, swap out free in the script
1:37:07above to 80% off for the next five. Then
1:37:1060% off for the next five. Then 40% off
1:37:14for the next five. and so forth. The I
1:37:17increase my prices every five rule also
1:37:20adds urgency because prices actually go
1:37:22up. And if you're curious, you don't
1:37:24have to stop raising your price. Feel
1:37:27free to keep raising it by 20% every
1:37:30five until you find your sweet spot.
1:37:32It's your business. You could do what
1:37:34you want. Charge more as you get more
1:37:36experienced. A nice reward. Pro tip: Get
1:37:39more cash upfront and more. Yes, prepaid
1:37:42plus guarantee. Offering a guarantee
1:37:44gets more people to buy because it
1:37:46reverses risk. Here's a nice twist on a
1:37:49guarantee that'll get you more yes and
1:37:51more cash. You can offer a guarantee
1:37:54only to people who pay upfront. Reason
1:37:56why people who invest upfront are more
1:37:59committed. And as a result, we're able
1:38:01to guarantee their outcomes. So if you'd
1:38:04like our guarantee, you can prepay our
1:38:06service. Another version of wording I
1:38:08got my good friend Dr. Cashy. After the
1:38:11person agrees to buy, you say, "Would
1:38:13you rather pay less today or get all
1:38:15your money back?" Paying less today
1:38:18equals payment plan, so less money down.
1:38:20Get all your money back equals prepay
1:38:23and get a guarantee that you get the
1:38:25result you want. Example, pay less
1:38:27equals $2,000 per mo for 3 months equals
1:38:31$6,000. No guarantee. Or get all your
1:38:35money back equals $6,000 upfront with a
1:38:38guarantee. presented this way, the
1:38:41majority of the people take the upfront
1:38:43cash option with a guarantee. So, if you
1:38:45plan on offering one anyways, you may as
1:38:48well weaponize it to incentivize more
1:38:50people to pay upfront. Step 10. But what
1:38:53do I do from here? Keep your list warm.
1:38:56Give regular value to your list through
1:38:58email, social media, etc. to keep it
1:39:01warm. A warm list stays primed for your
1:39:04warm reachouts in the future. We cover
1:39:06exactly how to give that value in the
1:39:08next chapter. Once you've given value
1:39:10for a while or see who wants value,
1:39:13probe your list with Dean Jackson's
1:39:14timeless nineword email template. Are
1:39:17you still looking to fourword desire? No
1:39:20images, no freeze, no links, just a
1:39:23question. Nothing else. This message is
1:39:26money for getting leads to engage. And
1:39:28it's among the first things I do when I
1:39:30invest in a new business. Here are a few
1:39:33examples. Are you still looking to buy
1:39:35your dream home, get more sales leads,
1:39:38tone up your arms, open an online store,
1:39:41start a YouTube channel? You get the
1:39:42idea. Swipe and deploy. You make the ask
1:39:45to see who replies, aka engaged leads.
1:39:49And these replies should be your top
1:39:50priority for warm reachouts. I'll end
1:39:53step 10 here because I break down this
1:39:55give ass process in the next chapter.
1:39:58The main point is that a warm list is a
1:40:00huge asset because it's a consistent and
1:40:02growing source of engaged leads. If you
1:40:05treat them well, your audience will feed
1:40:07you forever. Advertising checklist
1:40:10summary. Now, let's look at this in 10
1:40:12lines because it took 10 pages to get
1:40:14here. Warm reachouts daily checklist.
1:40:17Who yourself? What? First five free
1:40:21where phone email physical mail/s SMS/
1:40:26etc. To whom your contacts when first
1:40:29four hours of your day why you want to
1:40:32get customers or intros how personalized
1:40:35message using ACA how much 100 attempts
1:40:39per day how many follow up two more
1:40:42times after first how long until you get
1:40:45customers benchmarks how well am I doing
1:40:48warm reachouts should get about one in
1:40:50five contacts to engage so 100 warm
1:40:53reachouts should get about 20 replies Of
1:40:56the 20 who reply, another one in fiveish
1:40:59will take you up on your free offer. So
1:41:01for people of the four who take your
1:41:04free offer now, you should be able to
1:41:06convert one into some sort of paid offer
1:41:09later. Hoay money. This framework allows
1:41:12you to predict how many customers you
1:41:14get per 100 warm reachouts. In the
1:41:17example, you would get one customer per
1:41:19100 reachouts. These numbers vary based
1:41:22on the value of your offer and how much
1:41:24they trust you. But no matter what, with
1:41:26enough volume, you'll get a customer.
1:41:29And the more you do it, the better your
1:41:31numbers will get. It just takes effort.
1:41:33You'll also learn a lot about what
1:41:35engages your audience, what they value,
1:41:37and how to make offers to them. This
1:41:40knowledge can make you millions. You get
1:41:42to learn while you earn score. This
1:41:44process alone can take you to $100,000
1:41:47plus per year with nothing else. Wild, I
1:41:50know. Here's the money math. This
1:41:52assumes 1% of your list buys a $400
1:41:56offer using only warm reachouts. 500
1:41:59reachouts per week equals five customers
1:42:02per week. $400 product, five customers
1:42:05per week. X $400 each equals $2,000 per
1:42:10week. $2,000 per week x 52 weeks equals
1:42:15dollar 10400.
1:42:17Bingo. which as of this writing is still
1:42:20two times the median household income in
1:42:23the US. Not bad. Pro tip, join
1:42:26communities to learn even faster. Join
1:42:29communities of people doing the same
1:42:31advertising method as you. They're great
1:42:33for peer support and up-to-date tricks
1:42:35and tips. Also, don't do anything
1:42:38sketchy. There are lots of people who
1:42:40pride themselves on pushing the legal
1:42:41envelope. Don't be that person. It
1:42:44always comes back to bite you. Do it the
1:42:46right way and you will feed yourself for
1:42:48life. You'll learn more in the first 10
1:42:50days of doing 100 reachouts than you did
1:42:53from everything you've ever read or
1:42:55watched. Get that learning done as fast
1:42:58as you can. Remember, we want to get
1:43:00rich, not just get by. What's next? Warm
1:43:03reachouts have two limitations. The
1:43:06first is time. When you're starting out,
1:43:08getting new customers should take the
1:43:10majority of your time. Think 4 hours per
1:43:12day minimum. It should be the first
1:43:14thing you do when you get up and you
1:43:16shouldn't stop until you achieve your
1:43:18goal. Embrace the work. It will be part
1:43:20of the story you tell one day. It has
1:43:22been for me. The second limiter is the
1:43:25number of people who know you. You'll
1:43:27eventually run out. Don't worry though,
1:43:29we can get more, a lot more. Now we add
1:43:32the second of the core four advertising
1:43:35activities, posting free content. Number
1:43:38two, post free content. Part one, how to
1:43:41build an audience to get engaged leads.
1:43:45No one's ever complained about getting
1:43:46too much value. January 2020. Did you
1:43:50hear about Kylie Jenner? Ila asked. No,
1:43:53what? I replied. She's now the youngest
1:43:56female self-made billionaire. Wait,
1:43:58what? Yeah, she's 20. Forbes just put
1:44:01her on the cover. I was 10 years older
1:44:03than her and not a billionaire. Why do I
1:44:06suck so much? How could she make so much
1:44:08more than me? I thought I was pretty
1:44:10good at business. We took home $13
1:44:12million in personal income the year
1:44:14before, but I was clearly missing
1:44:17something and I felt horrible about it.
1:44:19My ego protected me. Well, Chris Jenner
1:44:22is her mother and she must have
1:44:24organized all this. I wrote it off as
1:44:26rich parents and moved on. A few months
1:44:29later, Ila looked up from her computer.
1:44:32Dude, Huda just sold a minority stake in
1:44:34her company at a $600 million valuation.
1:44:38Huda the makeup girl. I replied, "Yeah,
1:44:42holy cow." Again? How have I been
1:44:44screwing up so bad? How is someone so
1:44:46young making so much more money than me?
1:44:49She's in beauty. She can do that. I
1:44:51can't. I told myself, then carried on. A
1:44:54few months later, a headline caught my
1:44:57eye. Conor McGregor's proper 12 whiskey
1:45:00hits a $600 million valuation within 12
1:45:04months of launching. Seriously? Another
1:45:06person making gobs of money in what felt
1:45:09like seconds. A few months later, I saw
1:45:12another headline with an insane $3.5
1:45:15billion worth. Dwayne Johnson's
1:45:17Terrammana sweeps the floor with Conor
1:45:19McGregor's Proper 12. Dwayne the Rock.
1:45:22Johnson was now a multi-billionaire and
1:45:25he never even talked about business.
1:45:27What am I doing wrong? A few months
1:45:29later at a famous friend's house. Up to
1:45:32this point, I stayed behind the scenes
1:45:34for the most part. I did not want to be
1:45:36famous. I wanted to be rich and I
1:45:38succeeded at that. But seeing these
1:45:40successes chipped away at my beliefs.
1:45:43Could building a personal brand be that
1:45:45powerful? Simple answer, yes. But I
1:45:49wanted my privacy. We sat around his
1:45:51kitchen table and I asked him, "You get
1:45:53all these weird messages from strangers.
1:45:56People threaten your family. Are you
1:45:58still happy you became famous?" He
1:46:00replied with something that changed my
1:46:02life forever. If getting weird messages
1:46:04and hate from people I don't know is the
1:46:07price I have to pay to make the impact I
1:46:09want to have, I'd pay that price any day
1:46:11of the week. I felt exposed. I was being
1:46:14a pansy. I claimed I wanted to make the
1:46:16impact but wasn't willing to pay the
1:46:18price for it. After that conversation,
1:46:21Leila and I went all in on building
1:46:23personal brands. I have a core belief.
1:46:26I'd like a transfer to you. If someone
1:46:28is making more money than you, they are
1:46:30better at the game of business in some
1:46:32way. Take it as good news. It means you
1:46:34can learn from them. Don't think they
1:46:36had it easy. Don't think they had a
1:46:38shortcut. Don't tell yourself they broke
1:46:40some moral code. Even if it's true, none
1:46:43of those beliefs serve you. None of
1:46:45those beliefs make you better. Years
1:46:47ago, I was vocal about making content. I
1:46:51didn't see the point. Why would I waste
1:46:53my time making something that would
1:46:54disappear in a few days? I thought it
1:46:56was a stupid waste of time and let
1:46:58everyone know I was wrong. It really
1:47:01wasn't about the content at all. It was
1:47:03about the audience. What I didn't
1:47:05understand was the content you create
1:47:07isn't the compounding asset. The
1:47:10audience is. So even though the content
1:47:12may disappear in time, your audience
1:47:14keeps growing. This was a lesson my ego
1:47:17prevented me from learning for too long.
1:47:20It took an entire year of getting hit in
1:47:22the face with solid evidence before I
1:47:24changed my ways. Building an audience is
1:47:27the most valuable thing I've ever done.
1:47:30I saw Kylie Jenner, Huda Katon, Conor
1:47:33McGregor, and The Rock become
1:47:35billionaires overnight. My famous friend
1:47:38said a massive audience was crucial to
1:47:40his success. The overwhelming evidence
1:47:43broke my beliefs, so I rewrote them. I
1:47:46now saw the power of having an audience,
1:47:48but I didn't know where to start. So, I
1:47:51did what I always do. I paid for
1:47:53knowledge. Buying somebody else's
1:47:55experience saves the time it would take
1:47:56to figure everything out yourself. Ila
1:47:59bought me four calls with a big
1:48:01influencer who had the type of audience
1:48:03I wanted to build. She paid $120,000.
1:48:07On my first call, he told me to post
1:48:09regularly on every platform. So that's
1:48:12what I did. 12 months later, my audience
1:48:14grew by more than 200,000 people. On my
1:48:18second call, he noted the progress, but
1:48:20I wanted more. Do you have a blueprint
1:48:22for your personal branding? How do you
1:48:24put out all that content? He said, "Bro,
1:48:27anyone telling you there's some secret
1:48:29is trying to sell you something? We just
1:48:31put out as much as we possibly can. Pull
1:48:34up your Instagram and pull up my
1:48:35Instagram. Look, you've posted once
1:48:38today. I posted three times. Pull up
1:48:41your LinkedIn. Look, you posted once
1:48:43this week. I posted five times today."
1:48:46He went platform by platform. I grew
1:48:49more embarrassed with each comparison.
1:48:51You just got to do more, bro. Simple,
1:48:54not easy. Over the next 6 months, I put
1:48:56out 10 times the content. And over the
1:48:59next 6 months, I added 1.2 people to my
1:49:02audience. Also, when I put out 10 times
1:49:04the content, my audience grew 10 times
1:49:07as fast. Volume works. Content works. A
1:49:11growing audience is the result. And in
1:49:13this chapter, I'll break down how I did
1:49:16it so you can too. How building an
1:49:18audience works. You post great free
1:49:20content. Warm reachouts don't get a lot
1:49:23of engaged leads for the time we invest.
1:49:25If we want to reach 10 people, we have
1:49:27to repeat ourselves 10 times. Lots of
1:49:30effort. By posting free content, we can
1:49:33say it once and reach all 10. So posting
1:49:37free content can get a lot more engaged
1:49:39leads for the time we invest. Hooray.
1:49:42The people who think it's valuable
1:49:44become part of your warm audience. If
1:49:46they think other people will find it
1:49:47valuable, they share it. And if the
1:49:49people they share it with like it, they
1:49:51become part of your warm audience, too.
1:49:53Rinse and repeat. The sharing can go on
1:49:56infinitely. The more they share your
1:49:57stuff, the larger your warm audience
1:49:59gets. And once in a while, you'll make
1:50:02them an offer. If your offer has enough
1:50:04value, they'll take it. When they do,
1:50:07you make money. And the bigger the
1:50:09audience, the more money you make. Look
1:50:11at it this way. Posting free content
1:50:13grows your warm audience. So, constantly
1:50:16posting free content means you'll have a
1:50:19constantly growing audience of people
1:50:21more likely to buy your stuff. Free
1:50:23content makes all other advertising more
1:50:25effective. If you reach out to someone
1:50:27and they can't find content related to
1:50:30your services, they're less likely to
1:50:31buy. On the other hand, if they find
1:50:34lots of valuable content, they are more
1:50:36likely to buy. This is what my ego
1:50:38prevented me from learning. Now, the
1:50:40headlines with Jenner, Huda, McGregor,
1:50:43and The Rock all made perfect sense. But
1:50:46posting free content is not all sunshine
1:50:49and rainbows. It has trade-offs. First,
1:50:52it is more difficult to personalize your
1:50:55message, so fewer people respond.
1:50:57Second, you compete with everyone else
1:51:00posting free content. This makes it
1:51:02harder to stand out. Third, if you do
1:51:05stand out, people will copy you. This
1:51:07means you need to constantly innovate.
1:51:09That being said, a bigger audience means
1:51:11more engaged leads. More engaged leads
1:51:15means more money. More money means you
1:51:18more happy. Just kidding. It won't do
1:51:20that. But it'll give you the resources
1:51:21to remove stuff you hate. Anyways, this
1:51:25chapter covers only two topics. First,
1:51:28we demystify audience growing content by
1:51:31showing it's all made of the same basic
1:51:33units. A content unit has three
1:51:35components. Hook, retain, and reward.
1:51:39Second, how linking basic units together
1:51:42will make audience growing content for
1:51:44any platform or media type. The next
1:51:47chapter, post-free content, part two,
1:51:49shows you how to weaponize this content
1:51:51to make money. But for now, you can't
1:51:54monetize content until you know how to
1:51:56make it. The content unit, three
1:51:58components. All audience growing content
1:52:01does one thing. It rewards the people
1:52:03consuming it and a person can only get
1:52:06rewarded by the content if they one have
1:52:09a reason to consume it and two pay
1:52:12attention long enough to three get that
1:52:14reason satisfied. Thankfully we can
1:52:17reverse those three outcomes into the
1:52:19three things we have to do to make
1:52:21audience growing content. This means we
1:52:23have to A hook attention, get them to
1:52:26notice your content, b ret retain
1:52:29attention, get them to consume it. C
1:52:32reward attention, satisfy the reason
1:52:34they consumed it to begin with. The
1:52:37smallest amount of material it takes to
1:52:38hook, retain, and reward attention is a
1:52:41content unit. It could be as little as
1:52:43an image, a meme, or a sentence.
1:52:47Meaning, you can hook, retain, and
1:52:49reward at the same time. This is how
1:52:51short tweets, meme images, or even a
1:52:54jingle can go viral. They do all three.
1:52:57I separate them so we can discuss them
1:52:59more clearly, but they can all happen at
1:53:02once. Let's dive into each of the things
1:53:04we do to create a content unit. This
1:53:06way, you can create effective content
1:53:08that grows your audience. One, hook.
1:53:12They cannot be rewarded unless we first
1:53:13get their attention. The objective. We
1:53:16give them a reason to redirect their
1:53:18attention from whatever they are doing
1:53:19towards us. If we do that, we've hooked
1:53:22them. The effectiveness of your hook is
1:53:24measured by the percentage of people who
1:53:26start consuming your content. So, if you
1:53:28hook attention well, many people will
1:53:31have a reason to consume your content.
1:53:33If you do a poor job, few people will
1:53:35have a reason to consume your content.
1:53:38Remember, this is a competition for
1:53:40attention. We have to beat every
1:53:42alternative they have to win theirs.
1:53:44Make yourself the best option. We
1:53:47increase the percentage of people who
1:53:48pick our content by picking topics they
1:53:51find interesting, headlines that give
1:53:53them a reason, and matching the format
1:53:55of other stuff they like. Let's dive
1:53:57into each. Topics. Topics are the things
1:54:00you make your content about. I prefer to
1:54:02use personal experiences. Here's why.
1:54:05There's only one of you. The easiest way
1:54:07to differentiate is to say something no
1:54:10one else can say, and no one else has
1:54:12lived your life but you. I divide topics
1:54:15into five categories. Far past, recent
1:54:18past, present, trending, and
1:54:20manufactured. A far past, the important
1:54:24past lessons in your life. Connect that
1:54:27wisdom to your product or service to
1:54:29provide huge value to your audience.
1:54:32Give [snorts] them the story without the
1:54:33scar. It's why I write these books. One
1:54:37example, a personal lesson where I broke
1:54:39my belief that I don't have enough time.
1:54:42One, hook. I complained to a friend that
1:54:45I didn't have enough time to do
1:54:46something while glued to my phone. Two,
1:54:49retain. They yanked it out of my hands
1:54:51and looked at its usage. It showed I
1:54:53spent 3 hours per day on social media.
1:54:56Three, reward. They looked back at me
1:54:58and said, "Hey, I found you some time."
1:55:01It's a simple story other people can
1:55:03relate to. This makes it an interesting
1:55:05topic to more people. And it connects
1:55:08what I do, growing businesses, to a
1:55:10struggle many people experience, not
1:55:13having enough time. The epiphany I give
1:55:15away makes this less valuable for my
1:55:17audience. People starting, growing, and
1:55:20selling their businesses. B. Recent
1:55:23past. Do stuff, then talk about what you
1:55:26did or what happened. Anytime you speak
1:55:28with somebody, there's a chance your
1:55:29audience can get value from it. Look at
1:55:31your calendar for the last week. Look at
1:55:34all your meetings. Look at all your
1:55:36social interactions. Look at all your
1:55:38conversations with warm reachouts.
1:55:40There's gold in these conversations.
1:55:42Tell stories from them that would serve
1:55:44your audience. For example, one, this
1:55:47tweet came from a meeting I had with a
1:55:49portfolio CEO that was just copying the
1:55:52same offer everyone else in his market
1:55:54was making and was getting subpar
1:55:57results. Two, this means taking notes,
1:55:59recordings, and other records to make
1:56:02that stuff easy to access. But it also
1:56:04means a free, easy, and valuable stash
1:56:08of content. Three, testimonials and case
1:56:11studies fall in this category. If you
1:56:13can tell a cool client story in a way
1:56:15that provides value to your audience,
1:56:17you'll both promote your services and
1:56:20provide value. Win-win. C. Present.
1:56:23Write down ideas at the exact time they
1:56:25come to you. Always have a way to record
1:56:28your ideas in arms reach. I'll even
1:56:30pause meetings to make note of text or
1:56:34email ideas to myself. People don't mind
1:56:36when you ask to take notes anyway, so
1:56:38it's not weird. Then when you make
1:56:40content, you have a bucket of fresh
1:56:43stories to work with. One, I know my
1:56:45ideas publicly. I used to keep ideas to
1:56:48myself. Now, I tweet them publicly as
1:56:51they happen. If a post does better than
1:56:53normal, I know it's something people
1:56:55find interesting. Then I make more stuff
1:56:57on that topic. D. Trending. Go where the
1:57:00attention is. Look at what's trending
1:57:03right now and make stuff about it. Apply
1:57:05your own experiences to it. If you have
1:57:07relevant commentary or it touches your
1:57:10expertise in some way, talk about it.
1:57:12Talking about trendy stuff is very
1:57:14effective for gaining the attention of a
1:57:17broader audience. E. Manufactured. Turn
1:57:20your ideas into reality. Pick a topic
1:57:23people find interesting. Then learn
1:57:25about it. Make it or do it. then show it
1:57:28to the world. This costs the most time
1:57:31and effort since you have to create the
1:57:33experience versus talking about one you
1:57:35already had, but it can have the biggest
1:57:37payouts. One example, manufacturer
1:57:40experience. I lived on $100 for a month.
1:57:43Here's how. Now, I don't live that way,
1:57:45but I could manufacture that experience,
1:57:47then make content about it. Author note,
1:57:50manufactured versus documenting.
1:57:52Manufactured content has the most
1:57:54potential to grow and monetize an
1:57:57audience by far. This is because skilled
1:58:00content creators can engineer the
1:58:02maximum reward for every content unit.
1:58:05To give you an idea, as of this writing,
1:58:07the top 10 videos on the most popular
1:58:09video platform are all music videos, and
1:58:12they've racked up about 60 billion views
1:58:15watching or listening. That's a lot of
1:58:17attention. But for us mortals, the lower
1:58:20cost of documenting our experiences
1:58:22versus manufacturing them lets us keep
1:58:25the volume high. And I believe it's more
1:58:28sustainable over a lifetime. A quote I
1:58:30heard from a famous content creator, I
1:58:32don't want to be filling my living room
1:58:33with sand when I'm 50. And personally,
1:58:37I'd rather see entrepreneurs put out
1:58:39more content more often and in more
1:58:42places. Just one man's two cents. Action
1:58:45step. Life happens. profit by sharing
1:58:48yours. Headlines. A headline is a short
1:58:51phrase or sentence used to grab the
1:58:53audience's attention. It communicates
1:58:55the reason they should consume the
1:58:57content. They use it to weigh the
1:58:59likelihood they will get a reward for
1:59:01consuming your content versus another.
1:59:04Rather than give you a bunch of
1:59:05templates, I'd rather give you the
1:59:07timeless principles that make great
1:59:09headlines. And there's no greater
1:59:11headline creator than the news. So,
1:59:14let's study them. A metaanalysis of news
1:59:16revealed headline components that drove
1:59:19the most interest in stories. They are
1:59:21as follows. Try and include at least two
1:59:24in your headline. Recency. As recent as
1:59:27possible, quite literally the news.
1:59:29Example, people pay attention to
1:59:32something that happened an hour ago,
1:59:34more than a year ago. Relevancy,
1:59:36personally meaningful. Example, nurses
1:59:39pay more attention to stuff that affects
1:59:41nurses compared to stuff that affects
1:59:43accountants. Celebrity including
1:59:46prominent people, celebrities,
1:59:48authorities, etc. Example. Normally, we
1:59:52wouldn't care what another human has for
1:59:55breakfast every day. But if it's Jeff
1:59:57Bezos, we do. Since he's a celebrity,
2:00:00many people care. Proximity, close to
2:00:02home, geographically. Example, a house
2:00:06on fire across the country doesn't get
2:00:08your attention. If it's your neighbor,
2:00:10it sure does. Make it as close to home
2:00:12as possible. Conflict of opposing ideas,
2:00:16opposing people, nature, etc. Example,
2:00:20pineapple versus no pineapple on pizza.
2:00:23Conflict. Example, good versus evil,
2:00:26hero versus villain. Left versus right.
2:00:29Example, freedom versus security.
2:00:32Justice versus mercy. You get the idea.
2:00:35Unusual, odd, unique, rare, bizarre.
2:00:39Example, think of a six-fingered man at
2:00:41the oldtime circuses. If it's outside of
2:00:44the norm, people pay more attention.
2:00:46Ongoing stories still in progress are
2:00:48dynamic, evolving, and have plot twists.
2:00:52Example, if someone goes into labor,
2:00:54people want updates every 10 minutes
2:00:57because anything could happen. Action
2:00:59step. Include one or more of these
2:01:01components to give yourself meteor
2:01:04attention-grabbing headlines. Format.
2:01:06Once we have a good topic and
2:01:08communicate it with a headline using one
2:01:10or more components, we need to match our
2:01:13format to the best content on the
2:01:15platform. People consume content because
2:01:17it's similar to stuff they've liked in
2:01:19the past. And matching the popular
2:01:21format of the platform gets the most
2:01:24people to interact with it. So, we want
2:01:26to make our content look like the stuff
2:01:28they've liked before. Format example.
2:01:31This meme communicates the point better
2:01:33than I can with words. All four images
2:01:35above are all images, but they have a
2:01:39different look and feel. This is because
2:01:41formatting depends on the audience you
2:01:42want to hook and the platform your
2:01:44audience is on. Bottom line, you got to
2:01:46make your content look like what they
2:01:48expect will reward them. Otherwise, no
2:01:51matter how good it is, better-l looking
2:01:53content will hook them before yours even
2:01:55has a chance. Action step, format your
2:01:58content for the platform first, then
2:02:00tweak it so it hooks your ideal
2:02:02audience. Use the best content on the
2:02:04platform that targets your market as
2:02:06your guide. This concludes the hook step
2:02:09of our content unit. Always following
2:02:11these basics will already put you in the
2:02:13top 1%. At least it has for me. Two,
2:02:16retain. My favorite driver of retention
2:02:19is curiosity. It's my favorite because
2:02:22if done correctly, people will wait
2:02:24years. People want to know what happens
2:02:26next. For example, I get messages daily
2:02:30for years now about when I will release
2:02:32a book on sales. My favorite way to get
2:02:34the audience curious is to embed
2:02:37questions in their minds. Unresolved
2:02:39questions can be explicit or implicit.
2:02:42You can directly ask the question or the
2:02:45question can be implied. My three
2:02:47favorite ways to embed questions are
2:02:49lists, steps, and stories. A lists.
2:02:53Lists are things, facts, tips, opinions,
2:02:56ideas, etc. presented one after the
2:02:59other. Good lists and free content also
2:03:02follow a theme. Think top 10 mistakes or
2:03:05five biggest money makers and so on.
2:03:07Giving the number of listed items in
2:03:09your headline or in the first few
2:03:11seconds of your content tells people
2:03:13what to expect. And in my experience,
2:03:16this retains more the audience's
2:03:17attention for longer. One example, seven
2:03:21ways I invested $1,000 in my 20s that
2:03:24paid off big. Two example, 28 ways to
2:03:28stay poor. Three example, a content unit
2:03:32has three pieces. B. Steps. Steps are
2:03:35actions that occur in order and
2:03:37accomplish a goal when completed.
2:03:39Provided the early steps were clear and
2:03:41valuable, the person will want to know
2:03:43how to do them all to accomplish the
2:03:45overall goal. One example, three steps
2:03:48to creating a great hook. Two example,
2:03:52how I create a headline in seven steps.
2:03:55Three example, the morning routine that
2:03:58boosts my productivity. Note, here's the
2:04:01difference between steps and lists.
2:04:03Steps are actions that must be done in a
2:04:05specific order to get a result. So steps
2:04:08are less flexible but have a more
2:04:10explicit reward. Lists can have just
2:04:12about anything on them in any order you
2:04:14want. So lists are more flexible but
2:04:16have a less explicit reward. C. Stories.
2:04:21Stories describe events, real or
2:04:23imaginary. And stories worth telling
2:04:26often have some lesson or takeaway for
2:04:28the listener. You can tell stories about
2:04:30things that have happened, might happen,
2:04:32or will never happen. All three drive
2:04:35curiosity because people want to know
2:04:37what happens next. One example, almost
2:04:41every chapter in this book has a story.
2:04:43Two example, my editor made me do 19
2:04:46drafts of this book. Here's what I did
2:04:48to him. Three example, my journey from
2:04:51sleeping on the bottom floor of a gym to
2:04:53the top floor of a five-star hotel. You
2:04:56can use lists, steps, and stories on
2:04:58their own or interweave them. For
2:05:00example, you could have lists within
2:05:02steps and a story about each list item.
2:05:05You can have stories to reinforce the
2:05:07value of a step. You could have a list
2:05:10of stories or many ongoing story lines,
2:05:13etc. Your creativity is the only limit
2:05:16here. That's why people who make a lot
2:05:18of content call themselves content
2:05:20creators. This chapter, for example, has
2:05:23lists within steps and stories
2:05:25interweaving them. Action step. Use
2:05:28lists, steps, and stories to keep your
2:05:31audience curious. Embed questions in
2:05:33their minds to make them want to know
2:05:35what happens next. Three, reward. Anyone
2:05:38can think of cool hooks and organize
2:05:40their content using lists, steps, or
2:05:43stories. But the real question is, is it
2:05:46good? Does it satisfy the reason they
2:05:48watch to begin with? Does it make people
2:05:50want to share it? How good your content
2:05:52is depends on how often it rewards your
2:05:55audience in the time it takes them to
2:05:56consume it. Think value per second. For
2:05:59example, the same person who gets bored
2:06:023 seconds into a 10-second video may
2:06:04also binge a 900page book. And that same
2:06:08person may binge a television series for
2:06:118 hours straight. So, there is no such
2:06:13thing as too long, only too boring. Now,
2:06:17we can't guarantee a specific reward,
2:06:20but we can increase the chance reward
2:06:22happens by hooking the right audience
2:06:24with proper topics, headlines, and
2:06:27formatting, retaining them with lists,
2:06:29steps, and stories to get them curious
2:06:32and wanting more. Clearly, satisfying
2:06:34the reason the content hooked them to
2:06:36begin with. Example, if your hook
2:06:39promises seven ways to make up with your
2:06:41spouse and you give a four ways be seven
2:06:45ways that stunk or they've heard them
2:06:47all before. See, you're talking to a
2:06:50room of single guys who don't have
2:06:51spouses. You did a bad job of rewarding.
2:06:54People will not want to watch again and
2:06:56certainly won't share it. Example, if
2:06:59your hook promises four marketing
2:07:01strategies dentists can use and they
2:07:03can't use them, they will not share it
2:07:05or watch your content in the future. You
2:07:07did a bad job of rewarding. Bottom line,
2:07:10I've had tons of content I thought would
2:07:12smash records, but the audience smashed
2:07:15the next button instead. So, no matter
2:07:17how good you think your content is, the
2:07:20audience decides. Rewarding your
2:07:22audience means matching or exceeding
2:07:24their expectations when they decide to
2:07:26consume your content. Here's how you
2:07:28know if you succeeded, your audience
2:07:30grows. If it's not growing, your stuff
2:07:32isn't that good. Practice and you'll get
2:07:35better. Action step. Provide more value
2:07:38than anyone else. Make it on your
2:07:40promises. Clearly satisfy the hook you
2:07:43use to get their attention. In other
2:07:44words, completely answer the unresolved
2:07:47questions you embedded in their minds.
2:07:49So, what's the difference between short
2:07:51and long form content? Answer: not much.
2:07:54If you recall from earlier, the smallest
2:07:56amount of material it takes to hook,
2:07:58retain, and reward attention is a
2:08:01content unit. So to create a longer
2:08:03piece of content, we simply link content
2:08:06units together. For example, a single
2:08:08step in a five-step list might be a
2:08:11content unit. When we link all five
2:08:13together, we have a longer piece of
2:08:15content. Here's a visual to drive it
2:08:17home. Shorter content hooks retains
2:08:20rewards fewer times. Longer content does
2:08:23it more times. And doing it more times
2:08:26takes more skill because you have to
2:08:28string more good content units in a row.
2:08:31For example, a new comedian typically
2:08:33will only get a few minutes on stage to
2:08:35perform their bit. Only a master comic
2:08:38gets an hour. It takes practice to
2:08:40reward attention, just often enough to
2:08:42keep it for that long. So, start small,
2:08:45then build from there. Even if you start
2:08:47with longer content, which is fine, I
2:08:50suggest starting with shorter versions.
2:08:52You'll have an easier go of it. Many
2:08:54successful authors with epic length
2:08:56novels started by writing, you guessed
2:08:58it, short stories. Pro tip, make all
2:09:01your content for strangers. This is
2:09:03important. Pay attention. If you want to
2:09:05grow your warm audience, then you need
2:09:07to make content assuming the people
2:09:10consuming it have never heard of you
2:09:11before. If you make it for strangers,
2:09:13then strangers will like it because you
2:09:16made it for them and they'll share it
2:09:19and your audience will grow that much
2:09:20faster. And consider the alternative.
2:09:23You litter your content with inside
2:09:25jokes that no one gets besides your
2:09:27audience. Cool for you guys, but no one
2:09:30else will feel welcome and your audience
2:09:32growth will slow down. This is one of
2:09:34the most common mistakes I see content
2:09:36creators make. So, don't make it. So,
2:09:39make every piece of content assuming the
2:09:41person has never heard of you before and
2:09:43everyone who already knows you won't
2:09:45mind. They'll appreciate the reminders.
2:09:47Once you understand how to make a
2:09:49content unit, all you have to do is
2:09:51more. Then, your audience will grow. And
2:09:54once your audience grows big enough, you
2:09:56may want to monetize it. I had too much
2:09:59to say to fit into one chapter. So,
2:10:01we'll talk about how to monetize the
2:10:03audience in the next one. See you there.
2:10:05Number two, post free content part two.
2:10:08Monetize your audience. Give, give,
2:10:10give, give, give, give until they ask.
2:10:13Pro tip, give in public, ask in private.
2:10:16If you continue to give in public,
2:10:18people will ask you privately to sell
2:10:20them stuff. Bank on it. The best of both
2:10:22worlds is to never stop giving in public
2:10:25and get an increasing number of people
2:10:27asking you privately to buy your stuff.
2:10:30Give, give, give and you will get
2:10:32without losing goodwill or slowing your
2:10:34audience growth. The point of this
2:10:36chapter is to show you how to monetize
2:10:38your warm audience. First, we talk about
2:10:41how we can make offers and not be a spam
2:10:43monster, mastering the give ask ratio.
2:10:47Then we'll talk about the two offer
2:10:48strategies to monetize the audience.
2:10:51After that, I'll talk about how to scale
2:10:53your output so you can grow a bigger
2:10:55audience faster and make even more
2:10:57money. Then, I'll share a bunch of
2:10:59lessons I've learned in building my own
2:11:01audience that I wish I had known sooner.
2:11:04Finally, I'll wrap this up with how you
2:11:06can take action on everything today.
2:11:08Mastering the give ask ratio. Gary
2:11:11Vaynerchuk popularized jab, jab, jab,
2:11:13right hook. It simplifies the idea of
2:11:16giving to your audience many times
2:11:18before making an ask. You deposit
2:11:21goodwill with rewarding content, then
2:11:23withdraw from it by making offers. When
2:11:26you deposit goodwill, your audience pays
2:11:29more attention. When you deposit
2:11:31goodwill, your audience is more likely
2:11:33to do what you ask. So, I try to
2:11:35underass my audience and build as much
2:11:38goodwill as possible. Thankfully, the
2:11:41give ask ratio has been well studied.
2:11:43Television averages 13 minutes of
2:11:46advertising per 60 minutes of air time.
2:11:49That means 47 minutes are dedicated to
2:11:51giving and 13 minutes are dedicated to
2:11:54asking. That's roughly a 3.5 to1 ratio
2:11:58of giving to asking. On Facebook, it's
2:12:00roughly four content posts for every one
2:12:03ad on the news feed. This gives us an
2:12:05idea of the minimum give ask ratio we
2:12:08can sustain. After all, television and
2:12:10Facebook are mature platforms. They care
2:12:13less about growing their audiences and
2:12:15care more about making money from them.
2:12:17So they give less and ask more. Which
2:12:20means give, give, give, ask is the ratio
2:12:23that gets us closer to maximally
2:12:25monetizing an audience without shrinking
2:12:27it. But most of us want to grow. So we
2:12:30shouldn't model them. We should model
2:12:31growing platforms. So what do growing
2:12:34platforms do? They display lots of
2:12:36content without many advertisements at
2:12:38all. In short, they give give give.
2:12:43Maybe ask. they dramatically overgive
2:12:46and underask. Why? Because the more you
2:12:49reward your audience, the bigger it
2:12:51gets. So, if you want to grow an
2:12:52audience, give far far more than you
2:12:55ask. And now that I have some experience
2:12:57with it, I've got a slight tweak on the
2:12:59traditional give strategy that puts it
2:13:01on steroids. Give until they ask. People
2:13:04are always waiting for you to ask for
2:13:06money. And when you don't, they trust
2:13:08you more. They share your stuff more.
2:13:10You grow faster, etc. But I'm not some
2:13:13altruistic saint. I'm here to make
2:13:15money. After all, I wouldn't be a good
2:13:17businessman if I weren't making any. So,
2:13:20it's simple. If you give enough, people
2:13:22start asking you. It makes people
2:13:24uncomfortable to continue to receive
2:13:26without giving back. It is core to our
2:13:29culture and DNA. They'll go to your
2:13:31website, DM you, email you, etc. to ask
2:13:35for more. Not only that, when you use
2:13:37this strategy, you get the best
2:13:39customers. They're the ones who are the
2:13:41biggest givers. They're the ones who,
2:13:44even as paying customers, still feel
2:13:46they get the better end of the deal. And
2:13:49best of all, if you advertise this way,
2:13:51your growth never slows. When you use
2:13:54this strategy, you give in public, ask
2:13:57in private. You let the audience self-
2:13:59select when they're ready to give you
2:14:01money. That's why, in my opinion, give
2:14:04until they ask is the best strategy. But
2:14:06if you feel like asking, I get it. So,
2:14:09let's talk about how to ask. If you're
2:14:11going to do it, you might as well do it
2:14:12well. Bottom line, the moment you start
2:14:15asking for money is the moment you
2:14:17decide to slow down your growth. So, the
2:14:20more patient you are, the more you will
2:14:22get when you finally make your ask.
2:14:24Action step, give, give, give, give,
2:14:26give, give until they ask. How to make
2:14:29money from content. Ask. To be clear, I
2:14:33think you should use the give until they
2:14:35ask strategy. But if you need to pay
2:14:37rent, feed your family, etc. I get it.
2:14:40Sometimes you got to ask. So, let's talk
2:14:42about how to do that without sounding
2:14:44like a ninkham poop. Think of asks as
2:14:47commercials. You interrupt this program
2:14:49with a very important message. Since
2:14:51you're the one providing the value, you
2:14:54interrupt your own content with
2:14:55commercials about the stuff you sell.
2:14:58But since it's your audience, you pay
2:15:00the cost of potential loss of trust,
2:15:02slowing growth, and of course, the time
2:15:04it took you to gather the audience in
2:15:06the first place. But moneywise, it's
2:15:09free. Now, I use two strategies to weave
2:15:12promotions into content. Integrated
2:15:14offers and intermittent offers. Let's
2:15:16cover both. Integrated. You can
2:15:19advertise in every piece of content. So
2:15:22long as you keep your give ask ratio
2:15:24high, you will continue to grow your
2:15:25warm audience and get engaged leads.
2:15:28Win-win. For example, if I make an
2:15:30hourong podcast, having 3x3 second ads
2:15:34means I'd have 58.5 minutes of giving to
2:15:371.5 minutes of asking. Well above the
2:15:393:1 ratio. On the flip side, I had a
2:15:43friend who had a podcast that blew up
2:15:44quickly. Eager to monetize his new
2:15:47audience, he started making offers,
2:15:49asking too frequently in the content.
2:15:53His podcast not only stopped growing, it
2:15:55actually shrank. Don't be like that.
2:15:58Don't kill your golden goose. It's a
2:16:00balancing act. Overg to protect your
2:16:02most valuable asset, the goodwill of
2:16:05your audience. Action step. I most
2:16:08commonly integrate the asks, aka CTAs,
2:16:11after a valuable moment or the end of
2:16:13the content piece. Consider trying one
2:16:15of those places first and make sure your
2:16:17audience growth doesn't slow, then add
2:16:19in the second and so forth. Pro tip: PS
2:16:23statement asks. The PS statement is one
2:16:26of the most read parts of any content
2:16:28often because it summarizes the main
2:16:30thing the author wants the audience to
2:16:32do. So, I try to include them in
2:16:35everything I write. It's also one of my
2:16:37favorite places to put make asks. PSC,
2:16:41everyone reads these intermittent.
2:16:43Second way you can monetize is through
2:16:45intermittent asks. Here's how it works.
2:16:48You make many pieces of content of pure
2:16:51gives. Then occasionally you make an ask
2:16:53piece. Example, you make 10 give posts
2:16:56and on the 11th you promote your stuff.
2:16:59The difference between the first way and
2:17:01the second way depends on the platform.
2:17:03On short platforms, the intermittent way
2:17:06will dominate. On long- form platforms,
2:17:09integrations are often your best bet.
2:17:11When you make your ask, you either
2:17:13advertise your core offer or you
2:17:15advertise your lead magnet. That's it.
2:17:18Don't over complicate this lead magnet
2:17:20example. If I just talked about a way to
2:17:22get more leads on a post/v
2:17:24video/mpodcast/
2:17:26etc. I would then say I have 11 more
2:17:29tips that have helped me do this. Go to
2:17:31my site to grab a pretty visual of them.
2:17:34And as long as I have an audience that
2:17:35wants to get more leads, this will get
2:17:37some of them to engage. Then the thank
2:17:40you page after the opt-in page for my
2:17:42lead magnet would display my paid offer
2:17:45with some video explaining how it works.
2:17:47Bonus points if your lead magnet is
2:17:50relevant to your content advertising it
2:17:52offer example. You can also go for the
2:17:54jugular with your core offer and go
2:17:57straight for the sale. The direct path
2:17:59to money. We model our offer from the
2:18:01last chapter. I'm looking for five
2:18:04specific avatar to help achieve dream
2:18:07outcome in time delay. The best part is
2:18:10you don't have to effort and sacrifice
2:18:12and if you don't get dream outcome I
2:18:15will do two things increase perceived
2:18:17likelihood of achievement one I will
2:18:19hand you your money back too I will work
2:18:21with you until you do I do this because
2:18:24I want everyone to have an amazing
2:18:26experience with us and because I'm
2:18:28confident I could deliver on my promise
2:18:30if that sounds fair DM me/book a call/
2:18:34comment below/rely
2:18:36to this email slash etc After you make
2:18:39your ask, get back to providing value.
2:18:42Pro tip: $100 million offers. My first
2:18:45book, $100 million offers, breaks down
2:18:48the offer creation process step by step.
2:18:51If you want to know how to create a
2:18:52valuable offer that the right person
2:18:54would feel stupid saying no to go check
2:18:57out that book, the Kindle version is
2:18:59sold as cheap as the platform will allow
2:19:01me to sell it if you're strapped for
2:19:02cash. if it helps you feel more
2:19:04comfortable. More than 10,000 people
2:19:07left it a five-star review in the first
2:19:0915 months since it was published and it
2:19:12has sat at top the number one bestseller
2:19:14in marketing, advertising, sales list
2:19:17for 100 plus weeks in counting. If you
2:19:19don't know what to sell, read that book
2:19:21to get it right the first time. This box
2:19:23is an example of integration. Action
2:19:26step one, pick whether you integrate it
2:19:28or make an intermittent ask. Then pick
2:19:31whether you'll advertise your core offer
2:19:33or lead magnet. If you're not sure, do
2:19:35the lead magnet. It's lower risk. How to
2:19:38scale it? After you start asking, you're
2:19:40going to start getting leads and making
2:19:42money. But you don't want to stop there,
2:19:44do you? Didn't think so. Cool. So, let's
2:19:47talk about scale. There are two opposing
2:19:49strategies to scale your warm audience.
2:19:52They both follow progressive steps.
2:19:54First, you have the depth and width
2:19:56approach. Then you have the width and
2:19:59depth approach. Both are right. Here's
2:20:01how they work. Depth then width.
2:20:04Maximize a platform then move on to the
2:20:06next platform. Step number one, post
2:20:09content on a relevant platform. Step
2:20:11number two, post content regularly on
2:20:13that platform. Step number three,
2:20:16maximize quality and quantity of the
2:20:18content on that platform. Short form,
2:20:21you may sometimes be able to get up to
2:20:2210 times per day per platform. Long
2:20:25form, you may have to get up to 5 days
2:20:27per week. See soap operas. Step number
2:20:30four, add another platform while
2:20:32maintaining the quality and quantity on
2:20:34the first platform. Step number five,
2:20:37repeat steps one to four until all
2:20:40relevant platforms are maximized.
2:20:42Advantages. Once you figure out one
2:20:45platform, you maximize your return on
2:20:47that effort. Audiences compound faster
2:20:50the more you do. You take advantage of
2:20:52this compounding. Fewer resources are
2:20:54required to make this work.
2:20:56Disadvantages, you have less lowhanging
2:20:58fruit of new platforms and new
2:21:01audiences. You don't accomplish the
2:21:03feeling of omnipresence. In the
2:21:05beginning, you risk your business being
2:21:07reliant on a single channel. This is a
2:21:10risk because platforms change all the
2:21:12time and sometimes ban you for no
2:21:14reason. If you only have one way to get
2:21:16customers, it can kill your business if
2:21:19it gets shut down. within depth. Get on
2:21:22every platform early, then maximize them
2:21:24together. Step number one, post content
2:21:27on a relevant platform. Step number two,
2:21:30post content regularly on that platform.
2:21:33Step number three, here's where this
2:21:35strategy differs from the one before.
2:21:37Instead of maximizing your first
2:21:39platform, move on to the next relevant
2:21:41platform while maintaining the previous.
2:21:44Step number four, continue until you're
2:21:46on all relevant platforms. Step number
2:21:49five, now maximize your content creation
2:21:52on all platforms at once. Advantages:
2:21:55You reach a broader audience faster and
2:21:58you can repurpose your content. So with
2:22:01a little extra work, you can capture
2:22:03tons of efficiency with minimal changes
2:22:05to the format. You can make the same
2:22:07content fit multiple platforms. For
2:22:10example, it takes little extra effort to
2:22:12format a single short video across all
2:22:15platforms distributing short video
2:22:17content. Disadvantages, it costs more
2:22:20labor, attention, and time to do this
2:22:23well. Often times, people end up with
2:22:26lots of bad content everywhere. Sucky
2:22:28fluff. No bueno. If you already have a
2:22:31sizable business, scale up faster and
2:22:33reap the rewards of an asset that only
2:22:35gets better with time. I said it before
2:22:37and I'll say it again. The best day to
2:22:40start posting content was the day you
2:22:42were born. The second best day is today.
2:22:44Don't wait like I did. Pro tip, how I
2:22:47get it done. I'm not a full-time content
2:22:49creator. I run businesses, but content
2:22:52creation is a part of my responsibility.
2:22:55Here's my simple process for recording.
2:22:57I find topics using the five ways from
2:22:59the topic section in part one of this
2:23:01chapter. This takes me about an hour. I
2:23:04sit down twice every month and record 30
2:23:07or so short clips based on step one. On
2:23:10the same day, I record two to four
2:23:12longer videos unpacking tweets that had
2:23:15more stories or relevant examples. This
2:23:18creates my longer form content. If this
2:23:21sounds simplistic, it's because it is.
2:23:23Just start. You can add volume over
2:23:25time. Action step, pick an approach,
2:23:28start posting, then go up the scaling
2:23:31steps over time. Pro tip, only one call
2:23:33to action at a time. A confused mind
2:23:36doesn't buy is a common saying in the
2:23:38sales and marketing world. To increase
2:23:40how many people do what you want, only
2:23:43ask them to do one thing per call to
2:23:45action. For example, don't ask people to
2:23:48share, like, subscribe, and comment at
2:23:51the same time. Because instead of doing
2:23:53them all, they'll do none. Instead, if
2:23:56you want them to share, only ask them to
2:23:58share. And if you want them to buy, only
2:24:00ask them to buy. Make up your mind so
2:24:03they don't have to. Why you should make
2:24:05content, even if it's not your primary
2:24:07advertising strategy. January 2020, I
2:24:10called all the major departments to a
2:24:12meeting to answer an important question.
2:24:14Why isn't our paid advertising working
2:24:16like it used to? Opinions flooded the
2:24:19room. The creative, the copy, the offer,
2:24:23our pages, our sales process, our price,
2:24:26they shot back and forth at each other.
2:24:28every bit as invested as I was in
2:24:29solving the problem. Ila and I sat
2:24:32quietly as the team debated. After the
2:24:34den died down, Ila in her wise fashion
2:24:37asked a different question. What do we
2:24:39stop doing in the months before the
2:24:41decline? A new debate arose and a
2:24:43unanimous answer surfaced. Alex stopped
2:24:46making gym content and started talking
2:24:48about general business. Now, I didn't
2:24:50know how important that was, but I had
2:24:52to find out. So, I sent a survey to our
2:24:55gym owners. I asked if they had consumed
2:24:57any content of mine before they booked a
2:24:59call. The results astounded me. 78% of
2:25:03all clients had consumed at least two
2:25:06long form pieces of content prior to
2:25:08booking a call. I had fallen in my old
2:25:11ways and given paid ads all the credit.
2:25:14But our free content was nurturing the
2:25:17demand. Don't make the same mistake I
2:25:19did. Your free content gives strangers
2:25:21an opportunity to find, get value from,
2:25:24and share your stuff. And it warms
2:25:27people on the fence that go to and come
2:25:29from the cold audience methods we dive
2:25:31into next. So, even if it's hard to
2:25:33measure, free content gets you better
2:25:35returns on all advertising methods.
2:25:37Bottom line, start making content
2:25:40relevant to your audience. It will make
2:25:42you more money. Seven lessons I've
2:25:44learned from making content. One, switch
2:25:46from how to to how I. From this is the
2:25:49best way to these are my favorite ways,
2:25:52etc. Especially when starting out. Talk
2:25:54about what you've done, not what others
2:25:56should do. What you like, not this is
2:25:59the best. When you talk about
2:26:00experience, no one can question you.
2:26:02This makes you bulletproof. A, I make my
2:26:05oatmeal this way versus you should make
2:26:07your oatmeal this way. B, how I built my
2:26:10sevenf figureure agency versus how to
2:26:12build a sevenf figureure agency. See, my
2:26:15favorite way to generate leads for my
2:26:17business versus this is the best way to
2:26:20generate leads for your business. It's
2:26:22subtle, but when you tell your
2:26:24experience, you are sharing value. When
2:26:26you tell a stranger what to do, it's
2:26:28hard to avoid coming off preachy or
2:26:30arrogant. This helps avoid it. Two, we
2:26:33need to be reminded more than we need to
2:26:35be taught. You're a silly goose if you
2:26:38think 100% of your audience listens 100%
2:26:41of the time. For example, I post about
2:26:43my book every single day. I surveyed my
2:26:46audience and asked them if they knew I
2:26:48had a book. One in five that saw the
2:26:50post said they didn't know. Keep
2:26:52repeating yourself. You'll get bored of
2:26:54your content before your whole audience
2:26:57even sees it. Three, puddles, ponds,
2:27:00lakes, oceans. Narrow the focus of your
2:27:02content. If you have a small local
2:27:04business, you probably shouldn't make
2:27:06general business content. Not at first,
2:27:09at least. Why? The audience will listen
2:27:11to people with better track records than
2:27:13you, but you can narrow your topics to
2:27:15what you do and the place you do it.
2:27:17Example, plumbing in a certain town. If
2:27:20you do that, you can become king of that
2:27:22puddle. Over time, you can expand your
2:27:25plumbing puddle to the general local
2:27:26business pond, then the lake of brick
2:27:28and mortar chains, and so forth. Then
2:27:31eventually the ocean of general
2:27:33business. Four, content creates tools
2:27:36for salespeople. Some content will
2:27:39perform well and get more people
2:27:41interested in buying your stuff. That
2:27:43content helps your sales team. Create a
2:27:45master list of your greatest hits. Label
2:27:48each hit with the problem it solves and
2:27:50the benefit it provides. Then your sales
2:27:53team can send it before or after sales
2:27:55calls and help people decide to buy.
2:27:57They work especially well if the content
2:28:00resolves specific concerns prospects
2:28:02commonly face. Five, free content
2:28:05retains paying customers. How a customer
2:28:08gets value from you matters less than
2:28:10where they got it. Imagine a person pays
2:28:12for your thing and then consumes your
2:28:15free content. If your free content is
2:28:18valuable, they will like you more and
2:28:20stay loyal to your business longer. On
2:28:22the flip side, if they consume your free
2:28:24content and it sucks, they will like
2:28:27your paid product less. Here's something
2:28:28you may not know. Somebody who buys your
2:28:31stuff is more likely to consume your
2:28:33free content. This is why it's so
2:28:35important to make your free content
2:28:37good. Your customers will include it in
2:28:39how they calculate their ROI from your
2:28:41paid thing. Six, people don't have
2:28:44shorter attention spans. They have
2:28:46higher standards. Repeated for emphasis,
2:28:49there's no such thing as too long, only
2:28:52too boring. Streaming platforms have
2:28:54proven that people will spend hours
2:28:56binging long form content if they like
2:28:59it. Our biology hasn't changed. Our
2:29:02circumstances have. they have more
2:29:04rewarding stuff to choose from. So, make
2:29:07good stuff people like and reap the
2:29:09rewards rather than whining about
2:29:10people's short attention spans. Seven,
2:29:13avoid pres-scheduling posts. The posts I
2:29:16manually post perform better than ones I
2:29:18preschedu. Here's my theory. When you
2:29:21manually post, you know that within
2:29:23seconds, you will be rewarded or
2:29:25punished for the quality of the content.
2:29:27Because of that close feedback loop, you
2:29:30try that much harder to make it better.
2:29:32When I schedule stuff out, I don't feel
2:29:34that same pressure. So, whenever I post
2:29:37or my team does, we strongly believe in
2:29:40someone pressing the submit button
2:29:42because it gives that last bit of
2:29:43pressure to get it right. Try it.
2:29:45Benchmarks. How well am I doing? If our
2:29:48audience grows, we did good. But if our
2:29:50audience grows fast, we did goodter. So,
2:29:53I like to measure my audience size and
2:29:55speed of growth monthly. Here's what I
2:29:57measure. One, total followers and reach.
2:30:00How big? A. Follower example. If I go
2:30:04from 1,000 followers across all
2:30:06platforms to,500, I grew my audience by
2:30:09500. B. Reach example. If I go from
2:30:1310,000 people seeing my stuff to 15,000
2:30:16people seeing my stuff, I grew my reach
2:30:18by 5,000 people. Two, rate of getting
2:30:22followers and reach. How fast you
2:30:24compare the growth between months. A
2:30:27example, if I gain those 500 followers
2:30:30in a month, that would make it a 50%
2:30:33growth month. 500 new/1,000
2:30:36started equals 50% growth rate. Be
2:30:40example, if I reach those 5,000 extra
2:30:42people in a month, that would make it a
2:30:4450% growth month. 5,000 new/10,000
2:30:49started equals 50% growth rate.
2:30:52Remember, we can only control inputs.
2:30:55Measuring outputs is only useful if we
2:30:58are consistent with inputs. So pick the
2:31:01posting cadence you want to stick with
2:31:02on a particular platform. Then pick your
2:31:05ass cadence on that platform. How you
2:31:07will direct people to become engaged
2:31:09leads. Then start and do not stop. For
2:31:13reference, I posted a new podcast twice
2:31:16a week for four years before even
2:31:18getting picked up on the top 100 list.
2:31:20Because I did the same thing every week
2:31:22for years. I knew I could trust the
2:31:24feedback. In the beginning, it didn't
2:31:26grow much. It took time for me to get
2:31:28better and I knew I had to make more
2:31:31over a long time for that to happen. So,
2:31:33if your listeners go from 10 to 15 in a
2:31:36month, that's progress, baby. Even with
2:31:38small absolute numbers, that's 50%
2:31:41monthly growth. It's why I like to
2:31:44measure both the absolute and relative
2:31:46growth and pick the one that makes me
2:31:48feel better. Huh. As my friend Dr. Cashy
2:31:50says, the more ways you measure, the
2:31:53more ways you can win. Be consistent.
2:31:55Measure a lot. Adapt to feedback. Be a
2:31:58winner. To close the loop, in its fifth
2:32:01year, my podcast, The Game, became a top
2:32:0410 podcast in the US for business and
2:32:06top 500 in the world. This was only
2:32:09possible after 5 years of multiple
2:32:11podcasts per week, every week. Remember,
2:32:14everyone starts at zero. You just got to
2:32:16give time time. your first post. You've
2:32:19probably been providing value to other
2:32:21humans knowingly or unknowingly for a
2:32:24while. So, the first post you make, you
2:32:26can make an ask. My hope is that it gets
2:32:29you your first engaged lead. If it
2:32:31doesn't, you need to give for a while,
2:32:33then make an ask once you've earned the
2:32:34right, too. To show you that I'm not
2:32:36making this up, below you can find my
2:32:38first business post ever. Is it ideal?
2:32:41No. I had no idea what I was doing.
2:32:44Should you copy it? Probably not. Main
2:32:46point. Don't be afraid of what other
2:32:48people think. If someone won't speak at
2:32:50your funeral, you shouldn't care about
2:32:52their opinion while you're alive. Honor
2:32:54the few who believe in you by having
2:32:56courage. Whenever I read this, I just
2:32:59thank you, Goon. But hey, I was trying.
2:33:01And for that, I'm proud. Recap. We
2:33:04covered eight things. One, the content
2:33:07unit done. Two, short versus long form
2:33:10content done. Three, mastering the give.
2:33:13Ask ratio done. Four, how to ask done.
2:33:17Five, how to scale it done. Six, lessons
2:33:20from content done. Seven, benchmarks
2:33:23done. Eight, your first post done. Now
2:33:26you know nothing's stopping you. So what
2:33:28do I do right now? Posting free content
2:33:31is less predictable than but
2:33:33complimentary to warm reachouts. So keep
2:33:37doing warm reachouts. Also, posting free
2:33:40content grows your warm audience and a
2:33:43bigger warm audience means more people
2:33:45for warm reachouts. So, free content
2:33:48gets engaged leads on its own and keeps
2:33:50getting engaged leads through warm
2:33:52reachouts. Instead of ditching one for
2:33:54the other, I recommend you post free
2:33:56content in addition to warm reachouts.
2:33:59Let's fill out our daily action
2:34:01commitment for our first platform. Post
2:34:03content daily checklist. Who yourself?
2:34:06What value? Give. Give, give until they
2:34:09ask. Where? Any media platform. To whom?
2:34:13People who already follow you. When?
2:34:15Every morning, 7 days a week. Why? Build
2:34:19goodwill. Get engaged leads. How?
2:34:22Written image, videos, audio posts. How
2:34:25much? 100 minutes per day. How many? As
2:34:29many times as the platform shows it. How
2:34:31long? As long as it takes. Next up,
2:34:34first we start with warm outreach. We
2:34:36reach out to every person we have
2:34:38permission to contact. Second, we post
2:34:41publicly about the successes and lessons
2:34:44we have from our first clients. We post
2:34:46testimonials. We provide value then
2:34:49occasionally ask. We commit to doing
2:34:51both of these activities every day. With
2:34:54these two methods alone can eventually
2:34:56build a six or seven figure business.
2:34:59But you may want to go faster. So we
2:35:00venture from warm audiences who know us
2:35:03to cold audiences who don't. We begin
2:35:06reaching out to strangers. This begins
2:35:08the third step in our advertising
2:35:10journey. Cold outreach. Three. Cold
2:35:13outreach. How to reach out to strangers
2:35:15to get engaged leads. Quantity has a
2:35:18quality all of its own. Napoleon
2:35:21Bonapart. July 2020. COVID 19 raged. In
2:35:25a matter of months, 30% of my customers
2:35:28went out of business. Protesters filled
2:35:31every platform with hate and anger.
2:35:34Politicians made promises. Small
2:35:36businesses suffered in silence.
2:35:38Unemployment skyrocketed. The most
2:35:41tumultuous election ever was upon us.
2:35:44And here we were trying to generate
2:35:45leads to pay our bills. Employees
2:35:48everywhere and their families depended
2:35:50on it. All three of my companies at the
2:35:53time, Gym Launch, Prestige Labs, and
2:35:55Allen, relied on brickandmortar
2:35:57businesses staying open, and they were
2:36:00closed. Brilliant strategy, Alex. To
2:36:03make matters worse, Apple did a software
2:36:05update that crippled our ads. The market
2:36:07was crap. Our paid ads were crap and I
2:36:10carried the bucket. I ran through worst
2:36:12case scenarios. How much cash would it
2:36:15take to keep us afloat? How long do I
2:36:17keep paying people when there's no end
2:36:19in sight? Should I dip into personal
2:36:21accounts? Give up a third of my life
2:36:24savings? Half. All of it. What does that
2:36:27say about me? I had no idea what to do.
2:36:30Early that Saturday morning, I tried to
2:36:32sleep long enough for my alarm to wake
2:36:34me, but it was no use. I went to my
2:36:37office and checked Instagram. I had a
2:36:39new message waiting for me. Hey, Alex.
2:36:42Kale told me you guys don't need
2:36:43salesman anymore, so my offer got
2:36:45pulled. I quit my job to accept it.
2:36:47Super honored you considered me. I hope
2:36:50you'll consider me again the next time
2:36:51you have openings. Looking for context,
2:36:54I scrolled up. Reading our earlier
2:36:56messages rewarded me with a pang of
2:36:58guilt. I was the one who told him to
2:37:00apply. He took the rejection. Well, a
2:37:02sign of a good salesman. I felt
2:37:04obligated to reply. You on? I messaged.
2:37:08Yes, he replied. Got five. Yes. We
2:37:11hopped on a call. He sounded a little
2:37:13nervous, but I could tell he knew his
2:37:15stuff. It sucks we don't have enough
2:37:17leads for this guy. I've wanted to work
2:37:19for you a while now. I read your book
2:37:21and used the scripts to become the top
2:37:23producer of my company, he said. That's
2:37:26awesome. I'm so glad to hear it. What
2:37:28kind of company? I asked. A gym software
2:37:31company. I hadn't heard of them. Oh,
2:37:33interesting. How do you guys get leads?
2:37:35We're 100% cold outreach. You cold call
2:37:39and cold email gyms, then sell them
2:37:41software. Yeah, pretty much. How big is
2:37:44the team? We got about 30 guys. A team
2:37:47of 30. What's your revenue like if you
2:37:49can share that with me? We're doing
2:37:51about $10 million per month now. Insane.
2:37:55Just from cold outreach. Yeah, we run
2:37:57some ads, but we haven't cracked that
2:37:59yet. And you do this with a retention
2:38:01offer. You're not even really making
2:38:03gyms more money. Yeah, it's definitely
2:38:06not as easy to sell as the stuff you do
2:38:08for gyms. Do you think you could use the
2:38:10same cold outreach system here? I've
2:38:12never started a team, but I bet I could
2:38:15figure it out. All right, what was the
2:38:17offer Kale pulled? I was going to be a
2:38:19closer, but he said you guys didn't need
2:38:21one anymore. I thought for a moment.
2:38:24Well, given our current lead volume,
2:38:26he's probably right. But if you can get
2:38:28your own leads, I'll give you the runway
2:38:30to get cold outreach going. What do you
2:38:32think? It takes a while to get going.
2:38:34I'll have to figure out the scripts for
2:38:36your offer. Yeah, that makes sense. How
2:38:38long you think? I'm confident I can make
2:38:41it profitable in 12 weeks. All right,
2:38:43deal. I'll let Kale know the plan. To be
2:38:46clear, you'll be expected to figure all
2:38:48this out. The software, the lists,
2:38:51everything. I'll front you the time, but
2:38:53we can't support you much beyond that.
2:38:56Understood. Here's what happened during
2:38:57the months that followed. September,
2:39:00zero sales. Zippa, nothing. Zilch. Nada.
2:39:05October, two sales, $32,000 in revenue.
2:39:09Team asked me to pull the plug on cold
2:39:11outreach. December, four sales, $64,000
2:39:16in revenue. Team asked me to pull the
2:39:18plug again. January, six sales, $96,000
2:39:23in revenue. February, 10 sales, $160,000
2:39:28in revenue. March, 14 sales, $224,000
2:39:33in revenue. April, 20 sales, $320,000
2:39:38in revenue. May 30 sales, $480,000
2:39:42in revenue. Today, Cold Outreach
2:39:45generates millions per month for our
2:39:47businesses. Making this work took every
2:39:50legal cold outreach method we knew. Cold
2:39:53calls, cold emails, cold direct
2:39:55messages, voicemails, everything. But
2:39:59piece by piece, we built a reliable
2:40:01customer getting machine. I wanted
2:40:03something that would endure. And that's
2:40:04what I'm going to show you how to build.
2:40:06I learned five important lessons from
2:40:08this experience. One, there was another
2:40:11company in my space making a lot more
2:40:13money than mine. It broke my belief
2:40:15about how big the market really was.
2:40:18Two, they made all their money through
2:40:21private advertising. I had no way of
2:40:23knowing they existed unless they
2:40:25contacted me first. So, they kind of
2:40:27operated in secret. Three, they built a
2:40:30very profitable cold outreach machine in
2:40:32my space. If they could do it, so could
2:40:35I. For it's good to have proper
2:40:37expectations. Cold outreach veterans
2:40:39told me it would take a year to scale. I
2:40:42figured we could do it in 12 weeks. I
2:40:44was wrong. It took almost a year. Cold
2:40:47outreach takes a long time. At least it
2:40:50did for me. Five. We tried cold outreach
2:40:53two times before and failed. Working
2:40:55with a person that had done it all
2:40:56before was immensely helpful in getting
2:40:59this going. I hope to be that person for
2:41:01you now. How cold outreach works. At
2:41:04some point, you'll want one of two
2:41:05things. Either you want to grow faster
2:41:08than you currently are, or you want to
2:41:10increase the predictability of your lead
2:41:12flow. Here's how we can do that. We
2:41:15advertise to people who don't know us,
2:41:17cold audiences. And like before, we can
2:41:20contact them publicly or privately. In
2:41:22this chapter, we focus on private
2:41:25one-to-one communication with cold
2:41:27outreach. For added context, cold
2:41:29outreach sits at top the foundation of
2:41:31warm outreach. So, think of this as the
2:41:34more advanced cousin of warm outreach.
2:41:37No longer limited by your warm audience.
2:41:40If you can figure out a way to contact
2:41:41somebody onetoone, you can use it for
2:41:44cold outreach. You knock on 100 doors,
2:41:46you make 100 phone calls, you send 100
2:41:49direct messages, you send 100
2:41:52voicemails. All these are examples of
2:41:54cold outreach that have made companies
2:41:56zillions. It worked 100 years ago. It
2:42:00works today. And when the platforms
2:42:01change, it'll work tomorrow. Cold
2:42:04outreach has one key difference from
2:42:06warm outreach. Trust. Strangers don't
2:42:09trust you. And compared to people who
2:42:11know us, strangers present three new
2:42:14problems. One, first, you don't have a
2:42:17way to contact them. Duh. Two. Second,
2:42:20even if you can contact them, they
2:42:22ignore you. Three, third, even if they
2:42:25give you their attention, they're not
2:42:27interested. Let me describe what these
2:42:29problems look like in the real world. If
2:42:31you're knocking on doors, you don't have
2:42:33the addresses. Then even if you do, they
2:42:36don't open the door when you knock. If
2:42:38they open, they still tell you to pound
2:42:40sand. If you're making cold calls, you
2:42:43don't have their phone numbers. Even if
2:42:44you do, they don't pick up. If they pick
2:42:47up, they hang up on you. If you're
2:42:48sending cold emails, you don't have
2:42:50their email addresses. Even if you do,
2:42:53they don't open the email. Even if they
2:42:55do, they don't respond. If you're
2:42:57sending direct messages, you don't have
2:43:00a place to send it. Even if you do, they
2:43:02don't read it. Even if they read it,
2:43:04they don't reply. If you're sending
2:43:06voice memos or text messages, you don't
2:43:09have their numbers. Even if you do, they
2:43:12don't read or listen to it. Even if they
2:43:14read or listen to it, they don't reply.
2:43:17Now that we got that out of the way, the
2:43:19order we solve these problems is one,
2:43:22get a way to contact them. Two, figure
2:43:24out what to say. Three, contact them
2:43:26until they're ready and able to listen.
2:43:28The result, we find lots of ways to
2:43:31contact the most qualified strangers. We
2:43:34reach out to a lot of them in a lot of
2:43:36ways a lot of times. Then we overwhelm
2:43:39them with value upfront to get them to
2:43:41show enough interest to move forward.
2:43:43Author note, it'll take a few more steps
2:43:46than normal. As a personal rule of
2:43:47thumb, I sell expensive stuff. I sell
2:43:50expensive stuff better when I do it in
2:43:52multiple steps rather than on the first
2:43:54contact. So my first priority is to get
2:43:57the prospect to show interest in the
2:44:00stuff I sell. When they show interest, I
2:44:02schedule a time to sell them. If my lead
2:44:04magnet requires a second exchange to
2:44:06deliver it, I do that. Then if my lead
2:44:09magnet provides value on its own, then
2:44:11the next call is to talk about the value
2:44:13they received. Either way works. Cold
2:44:16outreach is a numbers game. The more
2:44:18people you reach out to, the more
2:44:20engaged leads you get. Once we figure
2:44:22out how much outreach it takes to engage
2:44:24a lead, then we only have one thing to
2:44:26do more. Let's go hunting. As there are
2:44:29three new problems strangers introduce,
2:44:32I divided this chapter into three steps.
2:44:35One step per problem. First, we get a
2:44:37targeted list of leads. Next, we need to
2:44:40know what to say to get them to reply.
2:44:42Third, we make up for a lower response
2:44:45rate by increasing the volume and type
2:44:47of our reachout attempts. Problem one.
2:44:50But how do I contact them? Build a list.
2:44:53Up until this point, from warm reachouts
2:44:55and posting free content, you've had to
2:44:58accept the leads that came to you from
2:45:00your warm audience. No more. With cold
2:45:02outreach, unlike any other way of
2:45:04advertising, we get to be as specific as
2:45:07we want. Only want to talk to hedge fund
2:45:09managers managing over $1 billion? Done.
2:45:13You can do that. Only want to speak with
2:45:15golf apparel retail store owners over $3
2:45:18million in sales? Done. Only want to
2:45:21talk to influencers who get over 50,000
2:45:24unique page views per month? Done. Now
2:45:27we get to pick our targets rather than
2:45:29them picking us. Now, you probably don't
2:45:31have a way to reach out to 1,000 perfect
2:45:34fit strangers. And if we're going to get
2:45:36them a buy from us, we've got to first
2:45:38find a way to contact them. Duh. So,
2:45:40let's solve that problem. First, there
2:45:42are three different ways I get my
2:45:43targeted lead lists. First, I use
2:45:46software to scrape a list of names.
2:45:48Second, I pay brokers to assemble me a
2:45:51list of targeted leads. And if neither
2:45:54of those work, I manually scrape a list
2:45:56of names myself. Here's the process.
2:45:59Step number one, softwares. I subscribe
2:46:02to as many softwares as I can that
2:46:04scrape lead from different sources. I
2:46:06search them all based on my criteria.
2:46:09The software then spits out names, job
2:46:11titles, contact information, etc. I try
2:46:15out a representative sample, say a few
2:46:17hundred from each software I use. Then
2:46:20if the contact information is up todate,
2:46:22the leads are responsive and they're the
2:46:24type of person the software claims them
2:46:27to be. Bingo. Then I get as many leads
2:46:29as the software will give me. But if I
2:46:32can't seem to find the right audience, I
2:46:33move on step two. Step number two,
2:46:36brokers. I go to multiple list brokers
2:46:38and ask them to make me a list based on
2:46:40my audience criteria. They then send me
2:46:43a sample. I test out sample lists from
2:46:45each of the brokers. If I get good
2:46:47results from one or more brokers, I
2:46:49stick with their lists. And if I still
2:46:51can't find who I'm looking for, I move
2:46:54to step three. Step number three, elbow
2:46:57grease. I join groups and communities
2:46:59that I think have my audience. When I
2:47:01find people that meet my qualifications,
2:47:03I check to see if they have ways to
2:47:05contact them in the group's directory,
2:47:07like links to their social media
2:47:09profiles, etc. If they do, I add them to
2:47:12my list. If they don't, I can reach out
2:47:14to them within the platform hosting the
2:47:16group. I prefer to find contact
2:47:18information outside the group so I don't
2:47:21come off as someone solely trying to
2:47:22milk the group for business, but I will
2:47:24if I have to. So, I work my way from the
2:47:27most accessible leads to the least
2:47:29accessible leads. Here's an important
2:47:31point. If you can search the database,
2:47:34so can everyone else. But if you
2:47:36assemble a list of names yourself, it's
2:47:38less likely that person has already
2:47:40received many cold reachouts from other
2:47:43companies, so they're the freshest.
2:47:45Downside, it takes the most time. Of
2:47:47course, you can pay someone else to do
2:47:49this for you once you figure it out for
2:47:51yourself, but we're only talking about
2:47:53getting started in this chapter. We'll
2:47:55talk about scaling in section 4. Action
2:47:58step. Find your scraping tool by
2:48:00searching outbound lead scraping tool or
2:48:03database lead scraping. Find brokers the
2:48:06same way. With a few clicks, you'll find
2:48:08what you're looking for. Put your first
2:48:111,000 names together. If you have more
2:48:13time and money, you might want to start
2:48:15at step three since it only costs time.
2:48:18Pro tip: Interest groups are the warmest
2:48:20cold audience you can get. Interest
2:48:23groups contain the highest quality leads
2:48:25because there are concentrated pools of
2:48:28people looking for a solution. Give them
2:48:30one. Nowadays, there's software that can
2:48:32scrape information from these groups.
2:48:35Use it. They're one of my favorite
2:48:36places to fish. Problem number two. I
2:48:39have my list, but what do I say to them?
2:48:42Personalize, then give big fast value.
2:48:45Now that you have your list of leads,
2:48:47you got to figure out what to say. I
2:48:49went over a lot of scripting in the warm
2:48:51reachout section. This section builds on
2:48:53that one. At the end of this chapter, I
2:48:56also include three sample scripts you
2:48:58can model for cold calls, cold emails,
2:49:00and cold chat messaging. That being
2:49:02said, there are two important factors I
2:49:05emphasize to get strangers to engage.
2:49:08Personalization and big fast value. This
2:49:10is important because they don't know us
2:49:12and they don't trust us. We got to
2:49:14overcome both issues in a matter of
2:49:17seconds. Hey, they don't know us
2:49:18personalize. Act like you know them. To
2:49:21get more leads to engage, we want a
2:49:23message to look like it's from someone
2:49:24they know. The best way to do that is to
2:49:27actually know something about the person
2:49:29you are contacting. In essence, we want
2:49:31our cold reach out to look like a warm
2:49:33reach out. Imagine your phone rings from
2:49:35an unknown number and area code. Are you
2:49:38likely to pick it up? Probably not. What
2:49:40about if the number is from your area
2:49:42code? A little more likely. Why is that?
2:49:45Because it might be someone you know. So
2:49:47to take this concept further, imagine
2:49:49you pick up the phone. The person says
2:49:51your name, then pausing like a normal
2:49:54person. You'd say, "Yeah, who's this?"
2:49:57Now, if that person then went on to say,
2:49:59"It's Alex." Then pauses, "I watched a
2:50:02few of your videos and read that recent
2:50:04blog post you wrote on dog training. It
2:50:06was killer. Really helped me out with my
2:50:08Doberman. She's a beast. That peanut
2:50:10butter trick really helped. Thanks for
2:50:12that." You'd still be wondering what's
2:50:14going on. But you know what? You
2:50:16wouldn't be doing hanging up. Then you
2:50:18hear, "Oh yeah, sorry. I got ahead of
2:50:20myself. I work for a company that helps
2:50:23dog trainers fill up their books. We
2:50:25like to partner with the best in the
2:50:26area. So I'm always on the lookout. We
2:50:28work with someone about an hour north
2:50:30from you, John's Doggy Daycare. Heard of
2:50:32them?" You'd respond yes or no. It
2:50:36doesn't matter. and they'd say, "Yeah,
2:50:38we ended up getting them 100
2:50:39appointments in 30 days using a
2:50:41combination of text, email, and some
2:50:43ads. Do you offer similar services to
2:50:45them?" To which you'd probably say,
2:50:47"Yes." Then they'd say, "Oh, that's
2:50:50perfect." Then we'd be able to use that
2:50:52same campaign in your market and drive
2:50:54leads over to you. If you got a boatload
2:50:57of highpaying new dog training
2:50:59customers, you wouldn't be upset with
2:51:00me, would you? You'd laugh lightly.
2:51:03Okay, great. Well, tell you what, I can
2:51:06walk you through the entire thing, soup
2:51:08to nuts, later today. Will you be around
2:51:10at 4:00? And you'd say, "Sure," or
2:51:12whatever. The point is, if that person
2:51:15had started the call with, "Hey man,
2:51:16want to buy some marketing services?"
2:51:18You'd probably have hung up.
2:51:20Personalization is what gets your foot
2:51:22in the door to get the sale. Basically,
2:51:25one to three pieces of information we
2:51:27can find that a friend might know about
2:51:29the prospect. Then we want to compliment
2:51:31them on it and ideally show them how it
2:51:34benefited us. People like people who
2:51:36like them. Even if someone doesn't know
2:51:38you, they'll give you more time if you
2:51:40know something about them. This comes in
2:51:42handy for personal subject lines on
2:51:44emails, the first few messages in chat,
2:51:46or the first few sentences someone
2:51:48hears. Even if someone doesn't know you,
2:51:51they will appreciate the time you took
2:51:52to research them before contacting them.
2:51:55This tiny effort goes a long way. Action
2:51:58step. Do a little research on each lead
2:52:00before you send them a message. We can
2:52:02do this ourselves. Pay people to do it
2:52:04for us or use software. Batch this work.
2:52:07Then use your notes to figure out the
2:52:09first thing you'll open with to feel
2:52:11more familiar. Pro tip: 50% email
2:52:14response rate bump. I took our cold
2:52:16outreach template and rewrote it below a
2:52:19third grade reading level. The results,
2:52:2250% more leads responded. I recommend
2:52:25running all scripts and messages through
2:52:27a free reading level app online. I won't
2:52:29recommend one because they go out of
2:52:31business all the time, but I promise you
2:52:33can find one. Make your messages easier
2:52:35to understand and more people will
2:52:37respond. B, they don't trust us big fast
2:52:40value. The key difference between people
2:52:43who know you and strangers is strangers
2:52:46give you far less time to prove your
2:52:47worth and they need a lot more incentive
2:52:50to move towards you. So, make your life
2:52:53easier by giving away the farm. We're
2:52:55not trying to tickle their interest.
2:52:57We're trying to blow their minds in
2:52:58under 30 seconds. Like warm reachouts,
2:53:01you can directly make your offer or
2:53:03offer a lead magnet or both. It gives
2:53:06the person a strong reason to respond. I
2:53:09specifically call out big fast value
2:53:11rather than your lead magnet as a
2:53:13reminder that it needs to be big fast
2:53:15value. If it's not or it's mediocre,
2:53:18you'll blend in with the ocean of people
2:53:20trying to get their attention and
2:53:22they'll treat you the same. They'll
2:53:24ignore you. Here's how much it matters.
2:53:26The first 4 months of cold outreach felt
2:53:29like torture. We offered a game planning
2:53:31session as our lead magnet. Some gyms
2:53:34took us up on it, but most didn't. We
2:53:36needed something better. I tested many
2:53:38parts of our process, but swapping the
2:53:40lead magnet blew everything else out of
2:53:42the water. We swapped from game planning
2:53:45code for sales call to actually giving
2:53:47them as much free service as we could
2:53:49possibly afford. Our take rates 3XD and
2:53:52cold outreach became a monster channel
2:53:54for us. If your offer/lead magnet isn't
2:53:58working for you, up the Annie. Keep
2:54:00offering more until you make it so good
2:54:02they feel stupid saying no. They either
2:54:05buy from you or have nice things to say
2:54:07about you. Win-win. If you forget
2:54:10everything about this chapter, remember
2:54:12one thing. The goal is to demonstrate
2:54:14big value as fast as possible. Give
2:54:17yourself a downhill battle by giving
2:54:19away something crazy. Give away
2:54:21something for free people would normally
2:54:23pay for and they will want it. Note, I
2:54:26didn't say so good they should pay for
2:54:28it. I said stuff they actually pay for.
2:54:31Big difference. Take this to heart and
2:54:33your results will show it. Action step.
2:54:36Provide the biggest, fastest value you
2:54:38can afford to with your lead magnet or
2:54:40offer. Then write your scripts. And
2:54:42don't worry, I got your back there. To
2:54:45give you a head start, I provide sample
2:54:47phone, email, and direct message scripts
2:54:49at the end of the chapter. Note, phone
2:54:52and chat scripts are never more than a
2:54:54page or two, and cold emails rarely more
2:54:56than half a page. So don't overthink it.
2:54:59There are no awards for prettiest a
2:55:01script. Get your first 100 conversations
2:55:04or 10,000 emails out of the way before
2:55:07tweaking it. Get testing, then tweak as
2:55:10you learn. Problem number three, I'm not
2:55:13getting enough chances to tell people
2:55:14about my amazing stuff. What do I do?
2:55:17Volume. Once we have our list of names,
2:55:20personal info, and our big sexy lead
2:55:22magnet, we need to get more strangers to
2:55:25see it. We do this in three ways. First,
2:55:28we automate delivery to the greatest
2:55:30extent possible. Next, we automate
2:55:33distribution to the greatest extent
2:55:36possible. Finally, we follow up more
2:55:38times in more ways. Hey, automated
2:55:41delivery to the extent that we can.
2:55:43Automating delivery unlocks huge scale
2:55:46as someone doesn't need to literally
2:55:48communicate the message to the prospect.
2:55:51This means you get more engaged leads
2:55:53per unit of time, even if fewer engage
2:55:56by overall percentage. Remember, you
2:55:58have far more people who don't know you
2:56:00than people who do. So, you don't have
2:56:02to worry as much about burning through
2:56:04an audience. Here's what the difference
2:56:06between manual and automated delivery
2:56:09looks like. Manual examples. A live
2:56:12person can say a script to someone over
2:56:14the phone. You can send a personal voice
2:56:16memo to each lead. A person can write a
2:56:18handwritten letter to every person on
2:56:20the list. If it takes a person time to
2:56:23convey the message each time, it's
2:56:25manual. Automated examples. We can send
2:56:28a pre-recorded voice memo to someone's
2:56:30direct messages. We can send a
2:56:32pre-recorded voicemail to someone's
2:56:34voicemail box. We can send templated
2:56:37emails to an inbox or a templated text
2:56:39to someone's phone. We can send a
2:56:41pre-recorded video, etc. You record your
2:56:44message one time and then send the same
2:56:46message to everyone. Pro tip: Use
2:56:49technology that gets you more engaged
2:56:51leads for your time. Every day,
2:56:53artificial intelligence, deep fakes, and
2:56:56other technology advance. They become
2:56:58more indistinguishable from human
2:57:00communication. This means we will be
2:57:02able to automate elements of what we
2:57:05currently are forced to spend time on.
2:57:07Embrace technology as it comes out to
2:57:10reap the rewards. Ultimately, technology
2:57:13serves a single purpose to get us more
2:57:16output per unit time. Use it. B.
2:57:19Automate distribution. Once we have our
2:57:21messages prepared, we got to distribute
2:57:23them. And there's no award for who works
2:57:25the hardest, only for who gets the best
2:57:28results. Although one leads to the
2:57:30other. And as you build your skills, you
2:57:32will find ways to automate portions of
2:57:34the work. I encourage you to automate
2:57:37when ethical and available. Manual
2:57:39examples. Dial each phone number. Click
2:57:42send on each email, direct message,
2:57:45text, etc. Automated examples. Use a
2:57:49robot to dial multiple numbers at a
2:57:50time. Send a blast of 1,000 emails,
2:57:54texts, voicemails at one time, etc.
2:57:57Generally speaking, you sacrifice
2:57:59personalization for scale. You get a
2:58:02higher response rate with personalized
2:58:04messages. The fewer leads you have, the
2:58:07less automation you should use. For
2:58:09example, if there are only 1,000 hedge
2:58:12fund managers who meet your criteria,
2:58:14you're going to want to personalize
2:58:16every one of them. On the other hand, if
2:58:18you're targeting women 25 to 45 trying
2:58:21to lose weight, there are tens of
2:58:23millions of them. So, you can get away
2:58:25with less personalization. But if you
2:58:28personalize, you'll get even more wink.
2:58:31Pro tip: personalization tech. The
2:58:33perfect combination for maximum leads is
2:58:36max personalization with max volume. And
2:58:39with tech, you don't always sacrifice
2:58:41personalization for scale. Every day
2:58:44data becomes more accessible to find
2:58:47personal data. If you can set up the
2:58:49tech to accomplish both personalization
2:58:52and volume, you create a deadly
2:58:54effective lead getting combo. Action
2:58:57step. Embrace new technology. Allocate
2:59:0010 to 20% of your effort towards brand
2:59:03new untested technology. For example, if
2:59:06you make phone calls five days per week,
2:59:09try out a new dialer or tech one of the
2:59:11days and see how it does compared to
2:59:13your standard dialer. See, follow up
2:59:15more times, more ways. There are two
2:59:18more ways you can get more from your
2:59:19list of names. First, you try to contact
2:59:22them more than once. Shocker, but want
2:59:24to know something crazy most people
2:59:26don't. Here's a different way to think
2:59:28about it. Imagine you really needed to
2:59:30get a hold of your parents because
2:59:32something important came up. What would
2:59:34you do? You'd probably call them, text
2:59:36them, leave a voicemail, etc. And if
2:59:39they still haven't responded, what would
2:59:41you do? You'd call and text them again,
2:59:43probably shortly thereafter. It's the
2:59:45same way with prospects. They are in
2:59:48danger of living life without your
2:59:50solution. Be a hero. Save them. The more
2:59:53ways you try to contact someone, the
2:59:55more likely you are to contact them.
2:59:57People respond to different methods. For
2:59:59example, I never respond to phone calls,
3:00:02but I reply to direct messages far more.
3:00:05Contacting someone multiple times,
3:00:07multiple ways shows them you are
3:00:09serious, and doing so quickly
3:00:11communicates you have something
3:00:13important to discuss. Curiosity
3:00:15increases because they fear they're
3:00:17missing out. Personally, I like to email
3:00:20first. You know why? Because most people
3:00:23don't respond. If someone doesn't
3:00:25respond to one of your reachout methods,
3:00:27use that as a reason to follow up with
3:00:29another method. Hey, I'm calling you to
3:00:31follow up about my email. We either get
3:00:33a response or a real reason to reach out
3:00:36again. We went either way. And once you
3:00:38do get them booked for an appointment,
3:00:40expect more than one conversation.
3:00:43Remember, we're contacting complete
3:00:45strangers. Outreach takes more touch
3:00:48points with people who don't know you.
3:00:49So, expect two to three conversations
3:00:52before a higher ticket sale. Shoot for
3:00:54less, but expect more when you start
3:00:56out. Bottom line, act like you're
3:00:59actually trying to get a hold of these
3:01:00people rather than going through the
3:01:02motions, and you probably will. Action
3:01:05step, contact each lead multiple times
3:01:08in multiple ways. Pro tip, don't be an
3:01:10income poop. If someone asks you not to
3:01:12contact them, don't contact them again.
3:01:15Not because there isn't a chance it
3:01:16could work, but because for the same
3:01:18effort, you could reach out to someone
3:01:20who isn't already negatively inclined.
3:01:22It's just more efficient to turn
3:01:24neutrals to yes than no to yes. On top
3:01:28of that, you don't want a bad
3:01:29reputation. That kind of stuff follows
3:01:31you. Try hard because you have a genuine
3:01:34desire to solve their problems, but be
3:01:36respectful. Second, once you finish
3:01:39contacting your list, start back at the
3:01:41top again. This actually works for three
3:01:43reasons. One, because they simply may
3:01:46not have seen your first series of
3:01:47messages. Only a fool would think 100%
3:01:50of people see what you put out 100% of
3:01:53the time. So, we make up for that
3:01:55discrepancy with follow-up. Two, even if
3:01:58they do see it, it may not have been a
3:02:00good moment to respond. People's
3:02:02schedules change every day, and there
3:02:04are times when people can't respond to
3:02:06you even if they wanted to. So, the more
3:02:08opportunities you give them to respond,
3:02:11the greater the chance they will. Three,
3:02:13their circumstances may have changed.
3:02:15They might not have needed you then, but
3:02:18need you desperately now. Imagine a
3:02:20person you message about losing weight
3:02:22before the holidays. At that time, they
3:02:25fit into their skinny jeans, so they
3:02:27feel no pain. They probably wouldn't
3:02:29respond, but after they gained 10 lbs
3:02:32over the holidays, they may all of a
3:02:34sudden be in desperate need of what you
3:02:36offer. And now they respond to your
3:02:39reachout attempt. The only thing that
3:02:41changed was their circumstance. So try
3:02:43again in 3 to 6 months and get an
3:02:45entirely new group of engaged leads from
3:02:48the same list. Everything may be right
3:02:51except the timing. So the more times we
3:02:53contact them, the more likely we will
3:02:55catch them at the time they're ready to
3:02:57engage. Action step. After you've
3:02:59attempted to contact them multiple
3:03:01times, multiple ways, wait 3 to 6
3:03:05months, then do it again. Pro tip. If
3:03:08you're new to an outreach team, shadow
3:03:11the best guy on the team, then double
3:03:13their inputs. If they make 200 calls,
3:03:16make 400. If that means you work more,
3:03:18duh, you'll suck before you are good.
3:03:20You can make up for your lack of skill
3:03:21with volume. Volume negates luck. And
3:03:24when you do twice as many, you'll get
3:03:26good in half the time. Once you beat
3:03:28their numbers, then you can get cute and
3:03:30try new things. Replicate before you
3:03:33iterate. Three problems strangers create
3:03:36solved. I wrote the book in this order
3:03:38to build on itself. Start with warm
3:03:40reachouts. Get some reps. Post some
3:03:43content to grow your warm audience. Get
3:03:45even more reps. Then you'll be ready for
3:03:48cold reachouts. And now we solve the
3:03:51three core problems cold audiences
3:03:54create. Finding the right list of
3:03:56people, getting them to pay attention to
3:03:58you, and getting them to engage.
3:04:00Victory. Author note for people with low
3:04:03ticket products. I had trouble making
3:04:05cold outreach profitable when selling
3:04:07from my direct to consumer business.
3:04:10Cold outreach teams are expensive and my
3:04:13average ticket wasn't high enough. But I
3:04:15learned I could make a low ticket
3:04:17product a high ticket product if I sold
3:04:19a lot at once. So I switched from using
3:04:21cold outreach to get customers to using
3:04:24cold outreach to get affiliates who got
3:04:26customers for me. There were two ways
3:04:28that worked. Either I'd sell the
3:04:30affiliates lots of products in bulk
3:04:32upfront. Then they'd sell my products to
3:04:34their customers. Or I'd use cold
3:04:37outreach to recruit them, then get them
3:04:39to sell my products to their customers
3:04:41and receive a commission after the sale.
3:04:43One affiliate sale can be worth
3:04:45thousands of customers. Both ways
3:04:47transform my low ticket sale into a high
3:04:50ticket sale by selling many at once. So,
3:04:52the numbers pencil out. If you have
3:04:54trouble using cold outreach for your
3:04:56direct to consumer business, consider
3:04:59going after affiliates instead. More on
3:05:01this in the affiliates chapter later.
3:05:04Benchmarks. How well am I doing? The two
3:05:06times I failed at cold outreach, I hired
3:05:09people who never track metrics well. The
3:05:11third person did and cold reach out
3:05:14succeeded. The person who runs it, maybe
3:05:16you, has to know the metrics of the
3:05:18sales process like the back of their
3:05:20hand. Every single stat. Let's break
3:05:22down the numbers with a couple platform
3:05:24examples. I cannot give an example for
3:05:27every platform because it would take too
3:05:29long. My hope is that you can generalize
3:05:31the concept to whatever platform you
3:05:33use. Phone example, let's say I make 100
3:05:36cold calls per day and let's say I get a
3:05:3920% pickup rate. From there, I am able
3:05:42to get 25% of people to want to take my
3:05:44lead magnet. That means I got four
3:05:46engaged leads. If it took me 4 hours to
3:05:49make those calls, it means I got one
3:05:51engaged lead per hour. I can do this at
3:05:54first. Once the amount of engaged leads
3:05:56that convert to customers makes me more
3:05:59than it costs to pay a cold outreach
3:06:01rep, I teach someone else to do it for
3:06:03me. More on this in section four. So,
3:06:05you know you do well when you make at
3:06:07least three times the lifetime profit of
3:06:10a customer compared to what it costs you
3:06:12to get them. Email example. Let's say
3:06:14you send 100 personalized emails per
3:06:17day. From there, 30% open our email.
3:06:20From there, 10% reply showing interest.
3:06:24That means we'd have three engaged
3:06:26leads. 30% x 10% equals 3%. The numbers
3:06:31will vary, but shoot for 3% of your list
3:06:33turning into engaged leads. Here's a
3:06:36sample from a new campaign for a very
3:06:38niche high ticket service business in
3:06:40our portfolio. It shows a 4% lead
3:06:43engagement rate and presumably a third
3:06:47of them convert into sales. That would
3:06:49net us one new customer per 100 outreach
3:06:51attempts. Direct message example. Let's
3:06:54say I make a personal video or record a
3:06:57personal voice memo for 100 people. I
3:07:00say their name and add one personal line
3:07:03before delivering my standard message.
3:07:05From there, 20% of people reply. We now
3:07:08have 20 engaged leads. From there, we
3:07:11use the same ACA format from the warm
3:07:14outreach section to qualify them for a
3:07:16call and so forth. So, like the phone
3:07:18example, you know you do well when the
3:07:21cost of doing cold outreach is less than
3:07:23three times what you make in profit from
3:07:25a customer. Note, you can do way better
3:07:27than three times. That's the bare
3:07:30minimum. For context, the portfolio
3:07:32company above gets over 30 colon one
3:07:35returns from its outreach efforts.
3:07:37Costs. This method is labor intensive.
3:07:40Nearly all costs are in the form of
3:07:42labor. In order to calculate our return
3:07:44on advertising, we add up all labor and
3:07:47software costs associated with steps one
3:07:50through three in the section before
3:07:52last. Let's imagine we have a team doing
3:07:54cold calls. We pay them $15 per hour and
3:07:58$50 per shown appointment or shows. We
3:08:01have $3,600
3:08:03in profit per sale. Leads cost us 10.
3:08:06They call 200 leads per day. We would
3:08:08likely get about two shows per day from
3:08:11one rep. If they worked eight hours per
3:08:13day, we would pay $120 in labor and $100
3:08:17in show commissions per rep and $20 for
3:08:20the leads. This means we would pay $240
3:08:23for two shows or $120 per show. If we
3:08:26closed $33% of shows, our cost to get a
3:08:30client excluding commissions would be
3:08:32$360.
3:08:34Since we get $3,600 profit per new
3:08:37client, we would make a 10 col1 return.
3:08:39That's how cold outreach works. Then you
3:08:42just add bodies is boring and tedious
3:08:45but brutally effective. Pro tip: give
3:08:48each rep an explicit number of leads to
3:08:50work every week. They should care for
3:08:52these leads like they are their
3:08:54children. If you give a rep too many,
3:08:56they will waste them. If someone can
3:08:58work 100 leads at full capacity, I'll
3:09:01give them 70ish. That way, they have
3:09:03time and energy to squeeze everything
3:09:06they can out of the leads they've got.
3:09:08And since all reps get the same amount
3:09:09of leads every week, you can give them
3:09:12absolute quotas for deals. Example, I
3:09:15give you 70 leads. You give me back
3:09:17seven appointments. I pay you. No leads
3:09:20left behind. This sounds hard. Why
3:09:22bother? Most people dramatically
3:09:24underestimate the amount of volume it
3:09:26takes to use cold outreach. They also
3:09:29underestimate how long it takes. But
3:09:31there are seven enormous benefits to
3:09:33using cold outreach. One, you don't need
3:09:36to create lots of content or ads. You
3:09:39focus only on one perfectly crafted
3:09:42message you convey to all your
3:09:43prospects. Your only goal is to make
3:09:46that one message better every day. There
3:09:49is no ad fatigue or banner blindness
3:09:51since your prospects have never seen
3:09:53anything from you. So, you don't need to
3:09:55be a marketing genius to make this work.
3:09:58Two, your competition won't know what
3:10:00you're doing. Everything is private. By
3:10:03that fact alone, you can continue to
3:10:05operate in secrecy. You're not educating
3:10:08your competitors about how you acquire
3:10:10customers. They don't know what you're
3:10:11doing or even that you exist. Three,
3:10:15it's incredibly reliable. All you have
3:10:17to do to get more is do more. A certain
3:10:20amount of input creates a certain number
3:10:22of responses. It becomes like clockwork,
3:10:25bringing a reliable flow of new engaged
3:10:28leads into your world. You can reverse
3:10:31engineer the amount of sales you want to
3:10:33make to the number of inputs at the top
3:10:35of your lead pathway. Eventually, you'll
3:10:37have an equation. For every X people
3:10:40contacted, you get Y customers. Then you
3:10:43simply solve for X. Example, let's say
3:10:46for every 100 emails, I get one
3:10:48customer. If I want 100 customers, I
3:10:51need to send 10,000 emails. That's 333
3:10:55per day. One person can send 111 emails
3:10:58a day. Therefore, I need three people
3:11:01sending emails every day to get 100
3:11:03customers per month. Four, fewer
3:11:06platform changes. Private communication
3:11:08is rarely subject to platform changes,
3:11:11whereas public platforms change rules
3:11:13and algorithms every day. You got to
3:11:16stay on top of rule changes to remain
3:11:18effective. In contrast, rules for cold
3:11:21calling, door knocking, and cold email
3:11:24have hardly changed in 30 years. Five,
3:11:27compliance is less painful. Many
3:11:29platforms have stringent rules around
3:11:32claims you can make about the stuff you
3:11:33sell. Some also ban certain industries
3:11:36altogether, tobacco, firearms, cannabis,
3:11:39weight loss, etc. With cold outreach,
3:11:42you don't need to deal with any of this.
3:11:44You still need to be FDC compliant, but
3:11:46you don't also need to worry about
3:11:48platform rules on top. This makes life
3:11:50easier. If you have a phone, you can
3:11:53make money. If you have an email
3:11:54account, you can get leads. This makes
3:11:56you very hard to stop. Six, no
3:11:59spokesperson equals sellable business.
3:12:02If an investor can buy from you without
3:12:04worrying your business will stop getting
3:12:06customers if you leave, your business is
3:12:08far more valuable. Having an established
3:12:10outreach team is how we were able to
3:12:12sell gym launch. The business could grow
3:12:15without me dancing in front of the
3:12:17camera or relying on me being super
3:12:20ridiculously good-looking, huh? I don't
3:12:22think they would have wanted to buy us
3:12:23without it, or at least not for as much.
3:12:26Seven, hard to copy. Even if someone
3:12:29wants to copy your entire cold outreach
3:12:31system, they'll often need to learn how
3:12:33to do each step. And many steps are
3:12:36invisible. They don't know how you
3:12:37scrape your lists. They don't know how
3:12:39you personalize your messages. They
3:12:41don't know what softwares you use to
3:12:43distribute the messages, etc. On top of
3:12:45that, they'd still need to learn how to
3:12:47hire, train, and operate a team of
3:12:50people who can do each step. Once you
3:12:52have a head start, it compounds with
3:12:54time. It becomes very hard to catch you.
3:12:56Author note: belief breaking volume
3:12:59scaling to 60,000 emails per month. To
3:13:02break your beliefs around what is
3:13:04possible, here's an example. To break
3:13:06past $1 million per month, we automated
3:13:09the entire process of scraping,
3:13:12crafting, and sending emails for one of
3:13:14our portfolio companies. One virtual
3:13:16assistant sends 2,000 emails per day
3:13:19using multiple pieces of software. This
3:13:22generates the business 40 engaged leads
3:13:25per day. Note, the response rate dropped
3:13:28because we took out so much
3:13:30personalization. From there, they're
3:13:32able to get 10% of engaged leads sold,
3:13:35meaning they get four new customers per
3:13:37day. This got them past the 100
3:13:39customers per month barrier. Fun facts,
3:13:42they started with us at $250,000 per
3:13:45month, our minimum size requirement for
3:13:48investment at the time. The business
3:13:50makes $20,000 per customer with four new
3:13:53customers per day. Do the math at how
3:13:55big they are now. Smiley face. Your
3:13:58turn. If you recall our advertising
3:14:00checklist, this kicks off your journey
3:14:02to get more engaged leads with cold
3:14:04outreach. You start this as you run out
3:14:06of people to advertise to or because you
3:14:09just want more. Here's a sample cold
3:14:11reachouts daily checklist. Who yourself?
3:14:15What? Hook plus lead magnet/core offer
3:14:18where any private communication platform
3:14:21to whom list scraped bot or software
3:14:25used when every day 7 days per week.
3:14:28Why? Get leads to engage to sell stuff.
3:14:31How? Live calls, voicemail drops, email
3:14:35blasts, text blasts, direct message
3:14:38texts, video messages, voice messages,
3:14:41direct mail pieces, handwritten cards,
3:14:43etc. How much? 100 per day. How many?
3:14:47Day 1, 2x. Day 2, 2x, day 7, 1x. How
3:14:53long? As long as it takes. Pro tip:
3:14:56count in 100s. This is a volume game.
3:14:59You'll need to do a lot of volume
3:15:01efficiently to get the results you want.
3:15:03Don't set a daily goal below 100 and
3:15:06don't stop for 100 days minimum. If you
3:15:08do 100 reachouts for 100 days straight,
3:15:11I promise you will start getting new
3:15:13engaged leads. Next up, now that you
3:15:16have set your commitment for this cold
3:15:17outreach method, we move on to the last
3:15:20thing a single person can do to
3:15:22advertise. Run paid ads. Number four,
3:15:25run paid ads. Part one, making an ad.
3:15:28How to publicly advertise to strangers.
3:15:30Advertising is the only casino where
3:15:33with enough skill you become the house.
3:15:36June 2013. Let's try some Facebook ads
3:15:39for the gym. I spouted. Sam's eyebrow
3:15:42went up. They don't work. I already
3:15:44tried. Now, this was the brief time
3:15:46between quitting my real job and
3:15:48starting my first gym. I wanted some
3:15:51experience. So, I cold emailed more than
3:15:5340 gym owners for a chance to shadow
3:15:56them. Sam was the only one who responded
3:15:58to my pleas for mentorship. He let me
3:16:00work at his gym with him for minimum
3:16:03wage. I'm forever grateful for that
3:16:05opportunity. I promise. I really think
3:16:08they'll work. I said, "Let me give it a
3:16:10shot with the stuff I learned from that
3:16:12workshop last weekend. I'll do
3:16:14everything. That workshop took most of
3:16:16my puny savings." Sam leaned back in his
3:16:19chair, crossing his arms. I'll tell you
3:16:21what, I'll give you a,000 bucks to play
3:16:23with. If you lose it, then you have to
3:16:25shut up about this Facebook stuff. If
3:16:28you make more, I'll split the profit
3:16:30with you. Deal. I worked with a
3:16:32freelancer to get everything set up. We
3:16:34went back and forth until it was
3:16:36perfect. A few days later, I marched
3:16:38into Sam's office to show him what I'd
3:16:40made. "It's ready," I said. He spun his
3:16:43laptop to face me. "All right, Horoszi,
3:16:46show me what you've got." I placed the
3:16:48ugliest ad you've ever seen. I'm looking
3:16:51for five Chino Hills residents to take
3:16:53place in a free six-w weekek challenge.
3:16:57You must let us use your before and
3:16:59after pictures in our marketing in
3:17:01exchange for the program. Click link to
3:17:03sign up. Link: No images, no videos, no
3:17:08freeze, just words, all caps. The ad
3:17:11went live. We got leads within hours. I
3:17:14called them all and booked appointments
3:17:16as fast as I could. I also texted them
3:17:18about an hour before to remind them of
3:17:20our appointment. And as soon as they
3:17:22walked in, I started yapping about our
3:17:246- week challenge. I had zero sales
3:17:27skills. My conviction made up for my
3:17:30lack of skill. They bought. I sold 19
3:17:32people at $299 each. We made just under
3:17:37$5,700
3:17:38from the $1,000 investment. True to his
3:17:41word, Sam cut me a check and handed it
3:17:44over. He made it out for $2,500.
3:17:48More than my share. Sam, this is He cut
3:17:50me off. Nice work, Hormosi. Do it again.
3:17:54This 6 week challenge became the biggest
3:17:56promotion in the gym industry for 7
3:17:59years. It drove at least $1.5 billion in
3:18:02revenue, more by now. I taught it to
3:18:05over 4,500 gyms, and I bet more than
3:18:0810,000s plus gyms used versions of the
3:18:11promotion without licensing it. Maybe
3:18:14you saw ads for it in your local market.
3:18:16And yes, if you're curious, it got more
3:18:18sophisticated as time went on. How paid
3:18:21ads work. Paid ads are a way to
3:18:23advertise one to many to cold audiences,
3:18:26people who don't know you. Paid ads work
3:18:28by paying another person or business to
3:18:31put your offer in front of their
3:18:32audience. Think of it like renting
3:18:34eyeballs or earballs. And because you
3:18:37don't need to spend time building an
3:18:38audience, paid ads are the fastest way
3:18:41to get the most people to see your
3:18:42stuff. You trade money for reach, a
3:18:45considerable advantage when you know
3:18:47what you're doing. Ads are riskier, but
3:18:50when done right, they can get you more
3:18:51leads than any other method. With warm
3:18:54and cold outreach, we have to do more
3:18:56stuff to reach more people. To reach
3:18:58more people with free content, we depend
3:19:00on the platform or audience sharing it
3:19:03if they feel like it. Paid ads are
3:19:05different. The reach is guaranteed, but
3:19:07getting your money back isn't. So, it's
3:19:09a game of efficiency rather than reach.
3:19:12Let me explain. In principle, if you
3:19:14paid enough money, you could get every
3:19:16person in the world to see your ad. And
3:19:18if every person in the world saw your
3:19:20ad, someone would buy, even if only by
3:19:23accident. How? So, the question isn't,
3:19:25do ads work? It's how well can you make
3:19:28them work? In other words, it's a push
3:19:30and pull between how much you spend and
3:19:32how much they buy. And like cold
3:19:34outreach, paid ads go to cold or lower
3:19:37trust audiences. So even with good
3:19:39offers, a smaller percentage of people
3:19:41will respond. And like cold outreach,
3:19:44paid ads get over this hurdle by putting
3:19:46your offer in front of more people. And
3:19:48if an ad isn't profitable, most of the
3:19:50time it's because the right people never
3:19:52saw it. So to make an ad profitable, the
3:19:55right people have to see it. This keeps
3:19:57our ads efficient. This chapter reveals
3:20:00how I create more efficient paid ads by
3:20:03finding needles in the haystack. I start
3:20:05with the entire world as my audience
3:20:08haystack, then narrow down to get a
3:20:10higher percentage of engaged leads
3:20:12needles. First, I pick a platform that
3:20:15contains my ideal audience. Second, I
3:20:18use whatever targeting methods that
3:20:19exist within the platform to find them.
3:20:22Third, I craft my ad in a way that
3:20:24repels anyone else. Finally, I tell
3:20:27whoever's left standing to take the next
3:20:29step. People over complicate it, but
3:20:32that's it. That's all we're doing.
3:20:34Narrowing down who sees our ad so we
3:20:36have the highest chance of getting the
3:20:38right type of people to respond. Once we
3:20:40advertise profitably in a small puddle
3:20:42of an audience, we expand to a pond,
3:20:45then a lake, than an ocean. And as the
3:20:48audience gets bigger, it does have more
3:20:50of the wrong people, but it has more of
3:20:52the right ones, too. So ads decrease in
3:20:55efficiency, but at that point you can
3:20:56afford it. In other words, the ratio
3:20:59between what you spend and how much they
3:21:01buy goes down, but the total amount of
3:21:03money you make goes up. So instead of
3:21:05spending $1,000 to make $10,000 with
3:21:08$9,000 in profit, you spend $100,000 to
3:21:12make $300,000 with $200,000 in profit.
3:21:15Your ratio goes down, but you make more
3:21:18money. So the risk is higher because you
3:21:20spend more, but so is the reward. This
3:21:22means we want to make the audience as
3:21:24big as possible while still turning a
3:21:27profit. Paid ads give us four new
3:21:29problems to solve. Let's break them down
3:21:31together. One, knowing where to
3:21:33advertise. Two, getting the right
3:21:36audience to see it. Three, making the
3:21:38best ad for them to see. Four, getting
3:21:40permission to contact them. Step one,
3:21:43but where do I advertise? Find a
3:21:46platform where these four things are
3:21:47true. Platforms distribute content to an
3:21:50audience. If you're not familiar with
3:21:52any available platforms, I invite you to
3:21:55come join me on planet Earth. If you've
3:21:57ever consumed content, which you have,
3:21:59you've directly or indirectly used a
3:22:02platform and been a member of its
3:22:03audience. And wherever there's an
3:22:05audience, you can usually advertise. So,
3:22:08if you want to become a great
3:22:09entrepreneur, you have to learn about
3:22:11them. Here's what I look for in a
3:22:12platform I want to advertise on. I've
3:22:15used it and gotten value from it as a
3:22:17consumer. So, I have some idea how it
3:22:19works. I can target people on the
3:22:21platform interested in my stuff. I know
3:22:23how to format ads specific to the
3:22:25platform, which I'll dive into in step
3:22:27three. I have the minimum amount of
3:22:29money to spend to place an ad. And yes,
3:22:31platforms change all the time, but these
3:22:33principles stay the same. Pro tip, place
3:22:36ads where your competitors place ads to
3:22:38start. Platforms often have different ad
3:22:41types. For example, on LinkedIn, you can
3:22:44send message ads or you can run newsfeed
3:22:46ads. On Instagram, you can run ads to
3:22:49the news feed or stories. On YouTube,
3:22:52you can run ads on the sidebar,
3:22:54midstream, or as pre-roll. So, how do
3:22:56you know where to start? Look at the ad
3:22:58placement of other people in your space
3:23:01and start there. If they can make it
3:23:02work, so can you. Replicate before you
3:23:06iterate. Action steps. Start with one
3:23:08platform that meets the four
3:23:10requirements and start watching,
3:23:12listening, or reading ads on the
3:23:14platform as a first step to learning how
3:23:16to make one. Step number two, but how do
3:23:19I get the right people to see it? Target
3:23:21them. So, if we start with the entire
3:23:24world, which we kind of do, we need to
3:23:26be a bit more specific. For example, if
3:23:29you choose a platform that has 100
3:23:30million users, you've already cut out
3:23:3399% of the world right off the bat. And
3:23:36if everyone who buys from you speaks
3:23:38English, you also want to exclude the
3:23:40audiences within the platform who don't.
3:23:43If that's half the platform's users,
3:23:45you're already at 99.5%
3:23:47of the world excluded. Specific is good.
3:23:50The right message to the wrong audience
3:23:52will fall on deaf ears. It doesn't
3:23:54matter how good your ads are. If you're
3:23:56marketing to Florida residents about a
3:23:58local business in Iowa, it's probably
3:24:01not going to work. So, you have only one
3:24:03goal when targeting. Get the highest
3:24:06number of people you think will buy your
3:24:07stuff to see your ad. We did our first
3:24:09round of targeting by selecting our
3:24:11platform. We do the second round within
3:24:14the platform itself. Modern advertising
3:24:16platforms have two ways to target. You
3:24:19can use them separately or combine them.
3:24:22One, target a lookalike audience. Modern
3:24:24platforms can show your ad to an
3:24:26audience that is similar to and much
3:24:28bigger than a list you provide.
3:24:30Advertisers call this a lookalike
3:24:33audience. Modern platforms will make
3:24:35lookalike audiences for you so long as
3:24:38you upload their minimum list size. The
3:24:41bigger the list and the higher quality
3:24:43the contacts, the more responsive the
3:24:45lookalike audience will be. Start with
3:24:47your list of current and previous
3:24:49customers. If your customer list is big
3:24:51enough to meet the platform minimum, use
3:24:54it. If it's not big enough, add your
3:24:56warm reachout list. If it's still not
3:24:58big enough, add your cold reachout leads
3:25:01to hit the minimum. This is exactly what
3:25:03I do. Forcing the list to the right size
3:25:06sometimes makes the lookalike audience
3:25:08too broad. And that's okay because you
3:25:10can two target with factors of your
3:25:13choosing. Targeting options include age,
3:25:17income, gender, interest, time,
3:25:20location, etc. For example, if you know
3:25:23no one over 45 or below 25 has ever
3:25:26bought your thing, then exclude anyone
3:25:28outside that range. If you sell car
3:25:30parts, then show your ad during car
3:25:32shows and on car channels. If only
3:25:35people with pets by your thing, then
3:25:37include pets as an interest. Basic
3:25:39filters on top of the platform generated
3:25:41lookalike audience are a simple way to
3:25:44get more of the right people to see your
3:25:46ads. End result, more efficient ads. Pro
3:25:50tip, local targeting. Since local
3:25:52markets are already tiny in comparison
3:25:55to national markets, you won't want to
3:25:57add many more filters. Be as specific as
3:26:00possible, but no further. The local
3:26:02market on its own is already.1% of a
3:26:05nation, so you're already pretty narrow.
3:26:08The more filters you use, the more
3:26:10specific the list. The more specific the
3:26:12list, the more efficient your ads, but
3:26:15the faster you will burn through it.
3:26:17However, this specificity sets you up to
3:26:20get more wins early on. The wins from
3:26:23smaller specific audiences now give you
3:26:26the money to advertise to larger and
3:26:28broader audiences later. This is how you
3:26:30scale. Action steps bring all your lead
3:26:33list together into one place. Separate
3:26:36them by past and previous customers,
3:26:39warm outreach, and cold outreach.
3:26:41Eventually, you'll have a list of people
3:26:43that engaged with your paid ads by
3:26:45giving you contact information but
3:26:47didn't buy. That'll come in handy. Then
3:26:50if the platform allows, use these lists
3:26:52in order of quality to create your
3:26:54lookalike audience. Then if the platform
3:26:57also allows, add filters on top of your
3:27:00lookalike audience to target an even
3:27:02higher percentage of people to engage
3:27:04with your ad. If you're incapable of
3:27:06making a lookalike audience, then simply
3:27:09start by targeting interests. Step
3:27:11number three, but what should my ad say?
3:27:13Call out plus value plus call to action
3:27:16CTA. To this day, I don't change the
3:27:19channel when I see an ad. I rarely mute
3:27:21ads or skip ads. In fact, I have no
3:27:25premium subscriptions that remove ads on
3:27:27any media platforms either. Main reason,
3:27:30I want to consume the ads. I want to see
3:27:32how businesses do three things. One, how
3:27:36they call out their ideal customers.
3:27:38Two, how they present the value
3:27:40elements. Three, how they give their
3:27:42audience a call to action. When I look
3:27:44at ads this way, it turns what was once
3:27:47an everyday nuisance ads into a
3:27:50continuous learning experience.
3:27:52Consuming ads on purpose with the core
3:27:54elements in mind makes me a better
3:27:56advertiser and it will make you a better
3:27:58one, too. Let's use the three chunks to
3:28:01make an ad. One, call outs. I need to
3:28:03get them to notice my ad. Two, value. I
3:28:06need to get them interested in what I
3:28:08have to offer. Three, calls to action. I
3:28:11need to tell them what to do next. One,
3:28:14call out. People noticing your ad is the
3:28:16most important part of the ad by a lot.
3:28:18The purpose of each second of the ad is
3:28:20to sell the next second of the ad, and
3:28:22the headline is the first sale. As David
3:28:25Oglevie says, after you've written your
3:28:27headline, you've spent 80 cents of your
3:28:30advertising dollar. Focus your effort
3:28:32front to back. As crazy as this sounds,
3:28:35and all the pros are nodding their
3:28:37heads, my advertising became 20x more
3:28:40effective when I focused the majority of
3:28:42my effort on the first 5 seconds. We
3:28:45need the audience's eyes and ears just
3:28:47long enough for them to realize this is
3:28:49for me. I'll keep paying attention. This
3:28:52first impression is the part of the ad I
3:28:54test the most. Imagine you're at a
3:28:56cocktail party in a big ballroom. Lots
3:28:59of people talking in groups. Loud music
3:29:01playing in the background. In all that
3:29:03noise, a single sound pierces through it
3:29:06all. And you turn around. Want to know
3:29:08the sound? Your name. You hear it and
3:29:11instantly look for the source.
3:29:13Scientists call it the cocktail party
3:29:15effect. In simple terms, even when
3:29:17there's tons of stuff going on, a single
3:29:20thing can still catch and hold our
3:29:22attention. So, our goal with call outs
3:29:24is to harness the cocktail party effect
3:29:26and cut through all the noise. After
3:29:28all, if they never notice your ad,
3:29:31nothing else matters. A call out is
3:29:33whatever you do to get the attention of
3:29:35your audience. Call outs go from hyper
3:29:38specific to get one person's attention
3:29:40to not at all specific to get everyone's
3:29:43attention. Let me explain. If someone
3:29:45drops a tray of dishes, everyone looks.
3:29:48If a child yells mom, then the mom's
3:29:50look. If someone says your name, only
3:29:52you look. But again, they all get
3:29:54attention. And I try to make my call
3:29:57outs specific enough to get the right
3:29:59people and broad enough to get as many
3:30:01of them as I can. So, pay close
3:30:03attention to how advertisers use call
3:30:05outs, especially the ones targeting your
3:30:08audience. Here's what I look for with
3:30:10verbal call outs. Using words to get
3:30:12attention. One, labels. A word or set of
3:30:16words putting people into a group. These
3:30:18include features, traits, titles,
3:30:21places, and other descriptors. X Clark
3:30:25County moms, gym owners, remote workers.
3:30:27I'm looking for XYZ, etc. To be most
3:30:30effective, your ideal customers need to
3:30:33identify with the label. A people
3:30:36automatically identify with their local
3:30:38area. So, with local ads, the more
3:30:40local, the better. A local ad with local
3:30:43area plus type of person call out is
3:30:46still one of my all-time favorite ways
3:30:48to get someone's attention. It worked
3:30:50200 years ago. It works today and it'll
3:30:53work tomorrow. So, think Americans,
3:30:56Texans, Dallas residents, Irving
3:30:58residents. If you live in Irving, you'll
3:31:01immediately think this ad could affect
3:31:03you. So, it catches your attention. Two
3:31:07yes questions. questions where if people
3:31:09answer yes, that's me, they qualify
3:31:12themsel for the offer. Example, do you
3:31:15wake up to pee more than once a night?
3:31:17Do you have trouble tying your shoes? Do
3:31:19you have a home worth over $400,000?
3:31:22Three, if then statements. If they meet
3:31:24your conditions, then you help them make
3:31:26a decision. If you run over $100,000 per
3:31:29month in ads, we can save you 20% or
3:31:31more. If you were born between 1978 and
3:31:351986 in Muscogi, Oklahoma, you may
3:31:37qualify for a class action lawsuit. If
3:31:40you want XYZ, then pay attention. Four,
3:31:44ridiculous results. Bizarre, rare, or
3:31:47out of the ordinary stuff someone would
3:31:48want. Massage studio books out 2 years
3:31:51in advance. Clients furious. This woman
3:31:55lost 50 lbs eating pizza and fired her
3:31:58train of the government. is handing out
3:31:59thousand checks to anyone who can answer
3:32:02three questions, etc. Call outs don't
3:32:05have to be just words. They can also be
3:32:07noises or visuals in the environment.
3:32:10Let's go back to the cocktail party.
3:32:12Sure, a drop tray of dishes would get
3:32:14everyone's attention, but so would the
3:32:16cling cling cling of a knife against a
3:32:19champagne flute. They both get
3:32:21everyone's attention for different
3:32:22reasons. One signals an embarrassing
3:32:25disaster, and the other signals
3:32:27important news. But in either case,
3:32:29everyone still wants to know what
3:32:31happens next. So if the platform allows,
3:32:34good advertisers use verbal and
3:32:36non-verbal callouts together. Here's
3:32:38what I look for with non-verbal
3:32:40callouts. Using the setting and
3:32:42spokesperson to get attention. One,
3:32:44contrast. Any stuff that sticks out in
3:32:47the first few seconds, the colors, the
3:32:50sounds, the movements, etc. Note what
3:32:53catches your attention. Example, A. A
3:32:56bright shirt almost always gets more
3:32:57attention than a black or dull shirt. B.
3:33:01Attractive people almost always get more
3:33:03attention than plain looking people. C.
3:33:06Moving stuff almost always gets more
3:33:08attention than still stuff. Two,
3:33:11likeness. Think visually showing labels,
3:33:14features, traits, titles, places, and
3:33:17other descriptors that people identify
3:33:19with. Hey, people want to work with
3:33:22people who look, talk, and act in ways
3:33:24familiar to them. And you may not look,
3:33:26talk, or act in ways familiar to them.
3:33:29So, if you serve a broad customer base,
3:33:31use more ethnicities, ages, genders,
3:33:34personalities, etc. in your ads. If you
3:33:37serve a narrow customer base, X, medical
3:33:40devices for seniors, then use people who
3:33:42look like them. One, quack like a duck.
3:33:45If you want to attract ducks, look like
3:33:47a duck, walk like a duck, and quack like
3:33:49a duck. If you want to attract plumbers,
3:33:52dress like a plumber, talk like a
3:33:54plumber, be in a plumbing environment,
3:33:56even with the same message. Your ad will
3:33:58do far better if you look the part or
3:34:00find people who do. Two, if you see an
3:34:03ad for doctors, notice the spokesperson.
3:34:05What age are they? Gender, ethnicity,
3:34:08are they wearing a lab coat, a
3:34:10stethoscope, are they in a medical
3:34:12facility? All these things get a
3:34:14specific type of person interested in
3:34:16health rellated products and services to
3:34:18pay more attention than they would have
3:34:20otherwise. Three mascots also work well
3:34:23because they don't age, never ask for
3:34:26more money, and never take days off.
3:34:28Think Mickey Mouse for Disney, the Geico
3:34:30Gecko, Tony the Tiger for Kelloggs, the
3:34:33Michelin man, etc. A mascot is a great
3:34:36way to create an enduring spokesperson
3:34:39for your business. Four, advanced.
3:34:42Whichever likenesses you choose to use,
3:34:45if it's not you, the business becomes
3:34:47less dependent on you and therefore more
3:34:49sellable. You also may just be an ugly
3:34:51son of a gun. Plus, pretty people
3:34:54convert better. Anyways, good news is it
3:34:56doesn't cost much to get a pretty person
3:34:58to say stuff to a camera. Three, the
3:35:01scene. Think showing the yes questions
3:35:03and if then statements. Example, an ad
3:35:06with A. A person tossing and turning in
3:35:09bed calls out people with sleep
3:35:11troubles. B. A pair next to an hourglass
3:35:14can call out people with a pear-shaped
3:35:15body. C. A room full of stuff stacked to
3:35:19the ceiling calls out people with too
3:35:20much junk. D. A rock hitting a window
3:35:23calls out people with broken windows. E.
3:35:26A local lunge. Locals think, "Hey, I
3:35:29know that place." And pay attention.
3:35:32Now, this isn't an exhaustive list. Far
3:35:35from it. I show you these to pull back
3:35:37the curtain. This way you can see the
3:35:39infinite ways advertisers cut through
3:35:41the noise so you can too. Pro tip:
3:35:44Infinite ads. Here's one of the highest
3:35:46ROI tips I can give you about making
3:35:48ads. Record 10 or so new ads every week.
3:35:53But record 30 or more first sentences or
3:35:56questions to begin the ad. Think
3:35:585-second clips. These are the call outs
3:36:01people consume before deciding to watch
3:36:03more. With 30 callouts and 10 main ads,
3:36:07you can make 300 variations in a matter
3:36:09of hours. Once you know the best call
3:36:11out, you apply it to all ads. Action
3:36:14step. I'm always impressed with the
3:36:16clever and innovative ways advertisers
3:36:18call out their prospects. So instead of
3:36:21muting or hitting skip ad, look for the
3:36:23call outs. Become a student of the game.
3:36:26My goal is that for the rest of your
3:36:28life, when you see an ad, you turn up
3:36:29the volume. Now, once they've noticed
3:36:31our ad, it leads us to the second chunk
3:36:34of the ad. We need to get them
3:36:35interested. Two, get them interested. If
3:36:38people think an offer or lead magnet has
3:36:40big benefits and tiny costs, they value
3:36:43it. And they'll exchange money or
3:36:45contact information to get it. But if
3:36:47the cost outweighs the benefits, they
3:36:49don't value it and they won't. So, the
3:36:52best ads make the benefits look as big
3:36:54as possible and the costs look as small
3:36:56as possible. This makes an offer or lead
3:36:59magnet as valuable as it can be and gets
3:37:02the most engaged leads because of it. A
3:37:04good advertisement, paid or not, uses
3:37:07clear and simple ways to answer the
3:37:10question, why should I be interested in
3:37:11your thing? It tells people why they
3:37:13should want a lead magnet or offer. Now,
3:37:16there are a million ways to do this, but
3:37:18I'll share with you my what, who, when
3:37:20framework. This mental framework hinges
3:37:23on knowing the value equation forwards
3:37:25and backwards. So, all you have to do is
3:37:28know eight key things about your own
3:37:30product or service. How it fulfills each
3:37:33element of value for your prospect and
3:37:35how it helps them avoid their hidden
3:37:37costs. Remember those. Think of them
3:37:39like carrots versus sticks. How your
3:37:42offer delivers more good stuff and less
3:37:44bad stuff. Then think of the
3:37:46perspectives of the people who would
3:37:48experience them. Who? And finally, what
3:37:51time period when they'd have these
3:37:53experiences, positive or negative? In
3:37:56the words of David Oglevie, the customer
3:37:58isn't a She's your wife. So, you
3:38:01know what that means? Write to her. Ads
3:38:04cause the prospect to think questions to
3:38:06themselves. And a good ad answers those
3:38:08questions at precisely the time they
3:38:11think it. So, if you can answer what
3:38:12they're thinking with your ad using the
3:38:14words they'd use, you've won. So, let's
3:38:17start with the what. Eight key elements.
3:38:19Dream outcome. A good ad will show and
3:38:22tell the maximum benefit the prospect
3:38:24can achieve using the thing you sell. It
3:38:27should align with the ideal prospect's
3:38:29dream outcome for that sort of product
3:38:31or service. These are the results they
3:38:33experience after buying the thing.
3:38:35Opposite nightmare. A good ad will also
3:38:38show them the worst possible hassles,
3:38:41pain, etc. of going without your
3:38:43solution. In short, the bad stuff
3:38:46they'll experience if they don't buy.
3:38:48perceived likelihood of achievement
3:38:49because of past failures. We assume that
3:38:52even when we buy, there's a risk we
3:38:54don't get what we want. Lower perceived
3:38:57risk by minimizing or explaining away
3:38:59past failures. Emphasizing the success
3:39:02of people like them. Giving assurances
3:39:04by authority, guarantees, and how what
3:39:06you have to offer will at least give
3:39:08them a better chance of success than
3:39:09what they currently do, etc. Opposite
3:39:13risk. A good ad will also show them how
3:39:15risky it is to not act. What will their
3:39:18life be like if they carried on as they
3:39:20always have? Show how they will repeat
3:39:22their past failures and how their
3:39:24problems will get bigger and worse. Time
3:39:27delay. A good ad will also show them how
3:39:29slow their current trajectory is or that
3:39:32they'll never get what they want at
3:39:33their current rate. Opposite speed. To
3:39:36get things we want, we know we have to
3:39:38spend time getting them. A good ad will
3:39:40show and tell how much faster they will
3:39:43get the thing they want. Effort and
3:39:45sacrifice. A good ad will also show them
3:39:48the amount of work and skill they'll
3:39:50need to get the result without your
3:39:51solution and how they'll be forced to
3:39:54keep giving up the things they love and
3:39:56continue suffering from the things they
3:39:58hate. Or worse, that they work hard and
3:40:01sacrifice a ton right now and have
3:40:03gotten nowhere. In other words, they
3:40:06waste more time and money doing what
3:40:08they currently do than if they just
3:40:09bought our darn solution. Opposite ease.
3:40:13To get things we want, we know we have
3:40:15to change something, but we then assume
3:40:17we have to do stuff we hate and give up
3:40:19stuff we love. And ease comes from a
3:40:22lack of needed work or skill. A good ad
3:40:25disproves the assumption. It tells and
3:40:28shows how you can avoid the stuff you
3:40:29hate doing, do more of the stuff you
3:40:32love doing without working hard or
3:40:34having a lot of skill, and still get the
3:40:36dream outcome. Those are the eight key
3:40:38elements. Now we fully understand the
3:40:40what, how we deliver the four value
3:40:43elements and how we avoid their four
3:40:45opposites. We now go to the next W. The
3:40:47who. Who humans are primarily status
3:40:50driven and the status of one human comes
3:40:53from how the other humans treat them. So
3:40:55if your product or service changes how
3:40:58other people treat your customer, which
3:40:59it does in some way, it pays to show
3:41:01how. And talking about the value
3:41:03elements from someone else's perspective
3:41:05shows all the ways it'll improve the
3:41:08status of your customer. So we want to
3:41:10outline two groups of people. The first
3:41:12group is the people gaining status, your
3:41:15customers. The second group is the
3:41:17people giving it to them. Spouse, kids,
3:41:20parents, extended family, colleagues,
3:41:22bosses, friends, rivals, competitors,
3:41:25etc. All of these perspectives give us
3:41:28different opportunities to show how the
3:41:30prospect's status may improve. And they
3:41:33give us a ton of bonus benefits. As in,
3:41:36if you lose weight, do your kids have a
3:41:38new role model? Does your spouse now
3:41:40decide to get healthy, too? Are you more
3:41:42likely to get promoted at work? Science
3:41:44says yes. Does your friendmy no longer
3:41:47make those little jabs at dinner? Let's
3:41:49do business examples. If I said
3:41:52something was risk-free, I want to spell
3:41:53out how their spouse won't nag them
3:41:55about the purchase since there's no
3:41:57risk. I talk about how their kids would
3:41:59notice they weren't as stressed or
3:42:01distracted anymore about work. How their
3:42:04competitors notice their phones don't
3:42:06ring as much because all their customers
3:42:08are flowing to your new customer. How
3:42:10their business owner buddies say
3:42:12business must be good when they pull up
3:42:14in their new car at the golf ranch. You
3:42:16get the idea. These are all added
3:42:18benefits to the prospect. we'd miss out
3:42:21on if we only looked at it from their
3:42:23own perspective. And we can apply each
3:42:25new who perspective to each value
3:42:27driver. This is how you get so many
3:42:29different stories, examples, angles,
3:42:33etc. to describe the benefits more
3:42:35carrot and less stick. That leads me to
3:42:37the third lens of the what who win
3:42:40framework, the when. When people often
3:42:43only think of how their decisions affect
3:42:46the here and now. But if you want to be
3:42:48extra compelling, and we do, we should
3:42:50also explain what their decisions led to
3:42:52in the past and what their decisions
3:42:55could lead to in the future. We do this
3:42:57by getting them to visualize through
3:42:58their own timeline, past, present,
3:43:01future. This way, we help them to see
3:43:04the consequences of their decision or
3:43:06indecision right now. Let's use the
3:43:09weight loss example from earlier from
3:43:11their perspective. We'd show them
3:43:13getting teased as a kid, past,
3:43:15struggling to button their favorite pair
3:43:17of jeans, present, or moving up yet
3:43:20another belt loop, future. What does
3:43:22that nightmare look like to their
3:43:24spouse, to their rivals? How
3:43:26embarrassing. Remember, we can also run
3:43:29the same timeline through someone else's
3:43:31perspective. Their kid asking why other
3:43:33kids make fun of them because they
3:43:35passed on bad food habits. Past or how
3:43:38their kids complain now that the other
3:43:40kids' dads participate a practice when
3:43:42they don't. Present or how their doctor
3:43:44said they might not walk their daughter
3:43:45down the aisle at her wedding future.
3:43:47Note, this is all the bad stuff they
3:43:49want to avoid. Our next copy elements
3:43:51would contrast those with the good stuff
3:43:53that could happen, present and future,
3:43:56if they buy our thing. We use both
3:43:58towards good stuff and away from bad
3:44:00stuff. Then combine it with the past,
3:44:02present, and future of the prospect's
3:44:04life to create powerful motivators in
3:44:06our copy. Putting the what, the who, and
3:44:09the when together, we answer why they
3:44:11should be interested. If I continued on
3:44:13with the weight loss thing, I might talk
3:44:15about how their spouse who will perceive
3:44:18how fast what they fit into that suit
3:44:20your wife loves that didn't fit but does
3:44:23now in the future when or how their kids
3:44:26who month after month when got more
3:44:29interested in eating healthy and tagging
3:44:31along during workouts. What? Or how they
3:44:34who catch a look at themselves in a
3:44:36reflection in the mall in a few months
3:44:38when and realize stuff actually fits me
3:44:41in this store. What? Pro tip. Make your
3:44:43ads as specific as you can, but no more
3:44:46specific. The more specific your copy,
3:44:48the more efficient it can get, but also
3:44:50the longer it tends to get. And if it
3:44:52gets too long for the platform, it
3:44:54lowers efficiency. So, make the ad in
3:44:57its entirety as specific as you can in
3:45:00the most efficient space you've got. If
3:45:02you got audio and visuals at your
3:45:04disposal, then use contrast, likeness,
3:45:06and the scene itself to match your copy.
3:45:09It becomes more specific without getting
3:45:11any longer. And this makes your ad even
3:45:14more efficient and profitable. When we
3:45:16combine everything we can to get the
3:45:18prospect going toward the four value
3:45:21drivers while also getting them away
3:45:23from their opposites, the many
3:45:25perspectives we can show them gaining
3:45:26status and different timelines for each.
3:45:30This adds up to why they should be
3:45:32interested. And now we have a lot of
3:45:34ways to get them interested. And the
3:45:36more angles we cover, the more
3:45:38interested they'll become. Also, since
3:45:40you asked, the only difference between
3:45:43long ads and short ads is how many
3:45:45angles we have time to cover from the
3:45:47copyrightiting framework. Longer ads use
3:45:49more. Shorter ads use fewer. So add or
3:45:53take away based on the platform, but
3:45:55keep the call outs, the first few
3:45:57seconds, and CTAs, what to do next, the
3:46:00same. Pro tip: Get unlimited
3:46:02inspiration. Many platforms have a
3:46:05database of ads past and present. As of
3:46:08this moment, if you search platform ad
3:46:11library in a search engine, in a few
3:46:13clicks, you will find them. If you see
3:46:15an ad that runs for a long time, a month
3:46:17or more, assume it's profitable. Then,
3:46:20take notes on the callouts they use, how
3:46:23they illustrate the value elements, and
3:46:25their CTAs. Look for the words they use
3:46:28and how they demonstrate them. Break
3:46:30down 50 or so ads and you'll have a
3:46:33massive head start to creating winners
3:46:34of your own. Action steps. Get as many
3:46:37advertising angles with your offer as
3:46:40you can with the Watt who win framework.
3:46:42What? Know the eight key things about
3:46:44your own product or service. How it
3:46:47fulfills each element of value and how
3:46:49it helps avoid their opposites. Who show
3:46:53how the eight key things about your
3:46:54product or service can change your
3:46:56prospect status. Then show how the
3:46:59people they know give status to the
3:47:01prospect when they buy your thing or
3:47:04take status away if they don't. When get
3:47:06the prospect to see the consequences of
3:47:08buying and not buying through their
3:47:10past, present and future, especially
3:47:13through their change in status with
3:47:15people they know. This way we help them
3:47:18to see the value of their decision or
3:47:20indecision at this very moment. Author
3:47:23note, you don't need to become a
3:47:25copyrightiting expert. I'm certainly
3:47:27not. And if I thought copy was the
3:47:29limiter for most, I'd have spent more
3:47:32time on it. Sure, worldclass
3:47:34entrepreneurs have copywriting skills,
3:47:36but worldclass copywriters don't
3:47:38necessarily have entrepreneurial skills.
3:47:41Don't sacrifice one for the other. If
3:47:43you explain your offer clearly using the
3:47:46what, who win framework, you'll have
3:47:48enough skill to remove copywriting as a
3:47:51limiter on your growth. And that's all
3:47:53you have to do. Get good enough to grow.
3:47:55After all, if you call out the right
3:47:57people and have an amazing offer, you
3:48:00barely need any copy to begin with. You
3:48:02just got to explain your offer, get good
3:48:04enough to make your ads profitable, then
3:48:06scale, and see what breaks next. I also
3:48:09include a few more ad tips and tricks
3:48:11that have served me well in the lessons
3:48:12at the end of the chapter. But even if
3:48:14you never use them, there's only one
3:48:17more thing you'll need to turn these
3:48:18interested folks into engaged leads.
3:48:21Three, CTA. Tell them what to do next.
3:48:24If your ad got them interested, then
3:48:26your audience will have huge motivation
3:48:29for a tiny time. Take advantage. Tell
3:48:32them exactly what to do next. Spell it
3:48:34out. Click this button. Call this
3:48:36number. Reply with yes. Go to this
3:48:39website. Scan this QR code. Wink. So
3:48:42many ads still don't do this. Your
3:48:45audience can only know what to do if you
3:48:46tell them. Make CTAs quick and easy.
3:48:49Easy phone numbers, obvious buttons,
3:48:52simple websites. For example, a common
3:48:55CTA is to direct the audience to a
3:48:58website. So, make your web address short
3:49:00and memorable. Instead of alexprivate
3:49:03equityfirm.com/free-book-course2782,
3:49:09use acquisition.com/training.
3:49:13Note, this comes from a guy who spent
3:49:16$370,000 on a single word
3:49:18domain,acquisition.com.
3:49:21So, I may overvalue easy domains, but I
3:49:23don't think I do. I think everyone else
3:49:25undervalues them. Just my two cents.
3:49:28Beyond these basics, which most still
3:49:30forget, you can also use all the tactics
3:49:32like urgency, scarcity, and bonuses from
3:49:35step seven from the engage your leads
3:49:37chapter to make even stronger CTAs. They
3:49:40apply here and everywhere else you tell
3:49:43your audience to do something. So, we
3:49:45can now pick a platform to advertise on,
3:49:47target who we show our ads to, make the
3:49:50ads they see, and tell them what to do
3:49:52next. All we have to do now is get their
3:49:54contact information. Step number four,
3:49:57how do I get their info? Get permission
3:49:59to contact them. After they take the
3:50:01action, get their contact information.
3:50:04My favorite way to get contact
3:50:06information is a simple landing page.
3:50:09Don't overthink it. The simple your
3:50:10landing page, the easier it is to test.
3:50:13Focus on the words and the image. Here
3:50:16are my three favorite templates. Pick
3:50:18one and start testing. And make your
3:50:20landing pages match your ads. People
3:50:23click an ad because you promised them
3:50:25some benefit. So carry that same look
3:50:27and language over to your landing page.
3:50:30Make sure what you promised in your ad
3:50:31is what you deliver. This sounds simple,
3:50:34but a lot of people forget and waste
3:50:36money until they remember it. You don't
3:50:38want to end up with some Frankenstein
3:50:40experience where everything looks
3:50:41different. You want a continuous
3:50:43experience from click to close. Get more
3:50:46people through more steps. In Robert
3:50:48Seelini's seminal work influence, he
3:50:51shows that people like to think of
3:50:53themselves as consistent. So if you
3:50:56remind them of the action they just
3:50:57took, CTA, and show how taking the next
3:51:00action aligns with it. You'll get more
3:51:02people to take the second action,
3:51:04contact info. For example, now that you
3:51:07just did A, you need to do B to get the
3:51:10most of A. or doing a makes you a doing
3:51:13a kind of person. Doing a kind of people
3:51:15will do be. To be clear, we aren't
3:51:17selling anything. We are asking if
3:51:19they're interested in the stuff we sell.
3:51:21And if they're interested, they'll give
3:51:23us a way to tell them more about it. And
3:51:24when they do, they become engaged leads.
3:51:28Woo! Action step. Build your first
3:51:30landing page. I wasted 4 years feeling
3:51:34too scared to make a landing page. When
3:51:36I finally tried, I finished before
3:51:38lunch. Nowadays, there are tons of drag
3:51:41and drop tools to build websites in
3:51:43minutes. And if you're still worried
3:51:44about it, freelancers will build a site
3:51:47probably using those same drag and drop
3:51:49tools on the cheap. So, just get it
3:51:51done. Now, you have engaged leads from
3:51:54paid ads. Hooray! We did it. Run paid
3:51:57ads part one conclusion. What has to
3:51:59happen for advertising to work? Well, we
3:52:02have to show our ad to the right people.
3:52:04So, we pick the right platform and
3:52:07target the people within that platform
3:52:09that have the highest percentage of our
3:52:11audience. Once we do that, we have to
3:52:13get them to notice our ad. Once they
3:52:15notice it, they have to consume it to
3:52:17get a reason to take action now rather
3:52:19than later. We do that using the value
3:52:22equation and demonstrated in the past,
3:52:25present, and future from their
3:52:27perspective and the perspectives of the
3:52:29people they know. And once they have a
3:52:31reason to take action, they have to have
3:52:33a way to give us permission to contact
3:52:35them. That action turns them into an
3:52:37engaged lead. And since those things got
3:52:39to happen, they slowly but surely became
3:52:42the three core elements of every ad I
3:52:45create. One, call outs for them to
3:52:48notice it. Two, value elements to give
3:52:51them reason to do something. Three,
3:52:53calls to action to give them a way to do
3:52:55it. Now, only one question remains. How
3:52:59efficient are we? Let's talk about money
3:53:01stuff. Number four, run paid ads part
3:53:04two. Money stuff. I'm just trying to buy
3:53:06a dollar and sell it for two.
3:53:09Proposition Joe, the wire. We focus on
3:53:12efficiency with paid ads throughout this
3:53:14chapter and the last one because
3:53:16efficiency matters more than creativity.
3:53:19All advertising works. The only thing
3:53:21that differs between advertisements is
3:53:24how well they work. Maybe people get
3:53:26crazy about making paid ads because they
3:53:28have words like copy and creative and
3:53:31media, then get hyperfocused on getting
3:53:33all that stuff perfect. As if you can,
3:53:36you can tweak all day and night until
3:53:38the cows come home. The reality is that
3:53:41paid ads, any advertising really, is all
3:53:44about the return on your investment. And
3:53:46with paid ads, it gets clear as day
3:53:48because you put X dollars in for people
3:53:50to see the ad and get Y dollars out if
3:53:52they buy your stuff. So, if you want a
3:53:54$100 million leads machine, you just
3:53:56need to get it good enough to scale.
3:53:59Why? Because good enough is good enough.
3:54:01Since efficiency matters most, we want
3:54:04to be as efficient as possible so we can
3:54:06scale as much as possible. That way, we
3:54:09get as many leads as our little hearts
3:54:12desire. That being said, there's enough
3:54:14nuance to scaling paid ads that it felt
3:54:17better to break it into its own chapter.
3:54:19This chapter answers four big questions
3:54:21about ads as I understand them. How much
3:54:24do I spend? Three phases of scaling ads.
3:54:27How do I know how well I'm doing? Cost
3:54:29and benchmarks. If my ads aren't
3:54:32profitable, how do I fix it? Client
3:54:34financed acquisition. What I wish I had
3:54:37known before I ran my first paid ad.
3:54:39Lessons. But how much do I spend on paid
3:54:41ads? The three phases of scaling paid
3:54:44ads. There are three stages to spending
3:54:46money on ads as I see it. Phase one,
3:54:49track money. Phase two, lose money.
3:54:52Phase three, print money. Let's break
3:54:55them down together. Phase one, track
3:54:57money. Before spending a dollar on ads,
3:55:00set everything up so you can accurately
3:55:02track your returns. If you don't track,
3:55:04you're going to get cleaned out. It
3:55:06would be like going to a casino and
3:55:08playing your favorite game for as long
3:55:10as you felt like it rather than for as
3:55:12long as you could afford it. But once
3:55:14you have tracking, you can do more of
3:55:16the stuff that makes you money and less
3:55:18of the stuff that doesn't. It rigs the
3:55:20game in your favor. So get a consultant,
3:55:22watch tutorials, and get it set up. End
3:55:25of story. Once you have the tracking,
3:55:27you can start losing money like a pro
3:55:29wink. Phase two, lose money. Half
3:55:32joking. I prefer to call it investing in
3:55:35a money printing machine. After all,
3:55:37when running paid ads, you pay first.
3:55:40So, your bank account has to go down
3:55:42before it comes up. I emphasize this
3:55:44because I'd rather prepare you. You're
3:55:47going to lose money. In fact, I've lost
3:55:49money more times than I've made money
3:55:52running paid ads. But every time I make
3:55:54money with paid ads, I make back
3:55:56everything I lost and then a bunch more.
3:55:58So, the number of times I lose is high,
3:56:00but the amount I lose is low because I
3:56:03know when to shut it down. and my number
3:56:05of wins is low, but the amount I win is
3:56:08very high because I know when to hit the
3:56:10gas. So, think of it like this. Imagine
3:56:13I spend $100 on 10 ads, $1,000 in total.
3:56:18Nine of them lose all $100. Then, one of
3:56:21them makes $500 back for the $100 I
3:56:23spent. I'm still down $500. Many people
3:56:27stop here because they see a $500 loss,
3:56:31but not us. We see a winner. So, now we
3:56:34buckle up and 100x down. We spend
3:56:36$10,000 on the winning ad and make
3:56:39$50,000 back. Note, I still lost nine
3:56:42times, but the one time I won, I won
3:56:44big. And this is important because you
3:56:46might lose 9 or 99 times in a row before
3:56:49you win big. But to win big, you have to
3:56:52see the winners in double, triple,
3:56:54quadruple, 10x down on them. This is why
3:56:57paid advertising is a lot like a casino.
3:57:00You'll often lose in the beginning to
3:57:02learn the game, but with enough skill,
3:57:05you eventually become the house. That
3:57:07being said, during this lose money
3:57:09phase, you can still be smart about it.
3:57:12Here's how I do it. I budget two times
3:57:14the cash I collect from a customer in 30
3:57:16days, not LTGP, when testing new ads. I
3:57:20wasted tons of money letting ads run too
3:57:23long before I realized they sucked. But
3:57:25on the flip side, I've lost even more
3:57:27money by giving up on ads before I gave
3:57:29him chance. Eventually, I hit a sweet
3:57:32spot by budgeting two times the cash I
3:57:34collected from a new customer in the
3:57:36first 30 days to test a new ad. For
3:57:38example, if I know I make $100 in profit
3:57:42from a customer in the first 30 days,
3:57:44I'll let an ad go up to $200 and spend
3:57:46before shutting it off as long as I'm
3:57:48getting leads. If I'm not getting any
3:57:51leads from an ad at all before I spend
3:57:531x30-day cash, I shut it off. $100 in
3:57:56the example. It costs money to build an
3:57:59advertising machine. I worked with a
3:58:01business that took a year to get paid
3:58:03ads profitable. It was tough. But other
3:58:06businesses in their space ran profitable
3:58:08ads, which meant we could too. Once they
3:58:11were profitable, they made their years
3:58:13worth of wasted money back in the next
3:58:15month. It costs money to build an
3:58:17advertising machine. And that's normal.
3:58:20Just make sure you measure the returns
3:58:22over a long time horizon, not next week.
3:58:25Can you think of anything more valuable
3:58:27than a machine that prints money? It
3:58:29would be unreasonable for it be cheap or
3:58:32easy. Once you start making more money
3:58:34than it costs you to make it, you're in
3:58:36phase three. Phase three, print money.
3:58:39If you're making back more money than
3:58:41you spend, the answer is simple. Spend
3:58:43as much as you can. After all, if you
3:58:46had a magic machine that gave you $10
3:58:48for every $1 you put into it, what would
3:58:51your budget be, right? All the money.
3:58:53But realistically, you probably have
3:58:56some other constraint on your business
3:58:57that prevents you from unlimited
3:58:59customers coming in. So, here's how I
3:59:01scale my budget. Instead of asking, "How
3:59:03much money should I spend on an ad?" I
3:59:06ask, "How many customers do I want?" or
3:59:09"How many customers can I handle?" So
3:59:11once ads break even or better, I reverse
3:59:14my budget for my sales goals. If I can
3:59:17only handle 100 customers next month and
3:59:19customers cost me $100 to get, I need to
3:59:22spend $10,000 to get them 100x $100. But
3:59:27since ads get less efficient as they
3:59:29scale, I usually pad the budget by 20%.
3:59:32So that means $12,000 over 30 days or
3:59:36$400 per day in ad spend. I reverse my
3:59:39daily ad budget for my lead getting
3:59:41goal. Then I commit to it. If the number
3:59:44terrifies you, then you're doing it
3:59:45right. Trust the data. This is how you
3:59:48scale. And that's why most people never
3:59:50do. How well am I doing? Cost and
3:59:53returns efficiency benchmarks. Efficient
3:59:56paid ads make more money than they cost.
3:59:59If that sounds painfully obvious, good.
4:00:02You've already got most people beat. I
4:00:04measure paid ad efficiency by comparing
4:00:06the lifetime gross profit of a customer
4:00:09LTGP with the cost to acquire a customer
4:00:12CAC. I express this ratio as LTGP to
4:00:16CAC. I measure LTGP instead of lifetime
4:00:19value or LTV. Lifetime gross profit is
4:00:23all the money a customer ever spends on
4:00:25your stuff minus all the money it takes
4:00:27to deliver it. For example, if a
4:00:30customer buys something for $15 and it
4:00:32costs $5 to deliver it, your gross
4:00:35profit is $10. So, if that customer buys
4:00:3810 things over their lifetime, then they
4:00:41bought a total of $150 in stuff. But it
4:00:44cost you a total of $50 to deliver that
4:00:47stuff. That makes the lifetime gross
4:00:49profit $100. Gross profit is important
4:00:52in general because it's the actual money
4:00:54you use to acquire customers, pay rent,
4:00:57cover payroll, and everything else to
4:01:00run your business. So, if you've ever
4:01:02heard me say, "I'm getting 3:1 on this."
4:01:05I refer my LTGP to CAC ratio. I compare
4:01:08how much I made against how much I
4:01:09spent. So, if LTGP is greater than CAC,
4:01:13you have profitable advertising. If it's
4:01:15lower than CAC, you're losing money.
4:01:17What's a good LTGP to CAC ratio? Every
4:01:21business I invest in that struggles to
4:01:23scale has at least one thing in common.
4:01:25Their LTGP to CAC ratio was less than
4:01:283:1. As soon as I get above 3:1, either
4:01:32through decreasing CAC or increasing
4:01:34LTGP, they take off. This is a pattern I
4:01:37personally observed, not a rule. You
4:01:40have two big levers to improving LTGP.
4:01:43CAC, make CAC lower, get cheaper
4:01:46customers. We do this with more
4:01:48efficient ads following the steps we
4:01:50just outlined. Make LTGP higher.
4:01:53Increase how much you make per customer.
4:01:55We do this with a better business model.
4:01:57For maximum money, I prefer to do both.
4:02:00For example, if you made a billion per
4:02:03customer, then you could spend $999
4:02:06million to get a customer and still have
4:02:08a million dollars left over. You could
4:02:10spend pretty much whatever it takes to
4:02:12get a customer. No matter how crappy
4:02:14your ads, you'd still probably win. On
4:02:17the flip side, if you made one cent per
4:02:19customer, you'd have to get each
4:02:21customer for less than a penny to make
4:02:23it work. Even with the best ads, you'd
4:02:25fail. I bring this up because we speak
4:02:28with hundreds of entrepreneurs every
4:02:30month. They often think they have crappy
4:02:32ads, high CAC, when in reality, they
4:02:36have a crappy business model, low LTGP.
4:02:39Here's a finding that will probably
4:02:41surprise you as much as it surprised me.
4:02:43The cost to acquire customers between
4:02:46competitors in the same industry is much
4:02:48closer than you'd think. The difference
4:02:50between the winners and the losers is
4:02:52how much they make off each customer.
4:02:55So, how do you know if it's your ads or
4:02:57your business model that needs work? I
4:02:59use the industry average CAC as my
4:03:01guide. Research your industry averages
4:03:03for the cost to acquire customers. If
4:03:05your CAC is below 3x your industry
4:03:08average, good. Focus on your business
4:03:10model, LTGP. If your CAC is above 3x the
4:03:14average, bad. Focus on your advertising
4:03:17CAC. Things can only get so cheap.
4:03:19Eventually, you just got to make more.
4:03:21Think about it like this. Lowering the
4:03:23cost of getting a customer by $100 will
4:03:26eventually take more work than making an
4:03:28extra $100 from them. So, once your cost
4:03:31is low enough, focus on your business
4:03:33model. Cost can only approach zero, but
4:03:36how much you make can go up to infinity.
4:03:38Increasing advertising efficiency beyond
4:03:40a certain point is like trying to save
4:03:43your way to a billion dollars. You feel
4:03:45like you're making progress, but you're
4:03:47never going to get there. My ads aren't
4:03:49profitable. How do I fix it? Client
4:03:52financed acquisition. For many
4:03:54businesses, LTGP is bigger than CAC.
4:03:57Yay. But not after the first purchase.
4:04:00Boo. The profit from the customer's
4:04:02first purchase is often less than the
4:04:04cost to get them. It could take many
4:04:06months to collect the full LTGP, so you
4:04:09get your money later instead of now.
4:04:11This cash flow problem cripples your
4:04:14ability to scale ads and get more
4:04:16customers. Who again? But if your
4:04:18customer spends more than it costs you
4:04:20to get and fulfill them in the first 30
4:04:23days, then you have the funds to scale
4:04:25now and forever. I call this client
4:04:28financed acquisition. I pick 30 days
4:04:31because any business can get interestf
4:04:33free money for 30 days in the form of
4:04:36credit card. And if we make more than
4:04:37the cost to get and fulfill the customer
4:04:40in the first 30 days, we square our
4:04:42balance. Now we have zero debt and a new
4:04:45customer which we can keep profiting
4:04:46from forever. Then we repeat the
4:04:49process. Money is no longer your
4:04:51bottleneck. This is the key to limitless
4:04:54scale. I repeat the same image above so
4:04:56you can reference it. Let's see client
4:04:59financed acquisition in action. Say we
4:05:01have a $15 per month membership that
4:05:03costs us $5 to deliver. That leaves us
4:05:07$10 gross profit left over. $15
4:05:10membership, $5 cost equals $10 gross
4:05:14profit per month. And let's say our
4:05:16average member stays for 10 months. That
4:05:18makes our lifetime gross profit $100.
4:05:22$10 gross profit per month. X 10 months
4:05:25equals $100 LTGP. If the cost to get a
4:05:29customer is $30, CAC equals $30, we have
4:05:32a 3.3 to1 LTGP. CAC ratio $100 LTGP/
4:05:40$30 CAC equals 3.3 LTGP/1
4:05:44CAC 3.3 col1. Our ads make money.
4:05:48Hooray. But wait, there's a problem. You
4:05:50spent $30 in ads and only got $10 back.
4:05:5410 bucks trickles in one month at a time
4:05:57until you finally break even two months
4:06:00later. That's tough. Make no mistake.
4:06:03You should 100% make that trade. But now
4:06:06we have a cash flow problem. Here's the
4:06:08way I fix it. I immediately sell them
4:06:11more stuff. If I offer a $100 upsell
4:06:14with 100% margins that one in five new
4:06:17customers take, that adds $20 of gross
4:06:21profit per customer. $100 upsell slash5
4:06:25customers equals $20 average upsell
4:06:28dollars per customer. This takes us from
4:06:30$10 to $30 in the first 30 days. Our
4:06:33break even window. The first purchase is
4:06:36$10, but now the average upsell adds
4:06:40$20. $10 plus $20 equals $30 gross
4:06:44profit per customer in less than 30
4:06:47days. And since it costs $30 to acquire
4:06:50them, we break even. Great. $30 CAC
4:06:54minus $30 cash collected within 30 days
4:06:57equals free customers. Every $10 a month
4:07:00that comes in thereafter is gravy. Now I
4:07:04can go get another customer while I keep
4:07:06collecting that $10 profit per month for
4:07:08the next 9 months. This is how you print
4:07:10money. The things you can sell or upsell
4:07:13are unlimited. If I cover the cost to
4:07:15get and fulfill a customer in the first
4:07:1730 days, I can pay off my card, then do
4:07:19it again. It's how I've scaled every
4:07:22company I've started for the past 7
4:07:23years past $1 million per month in the
4:07:27first 12 months without outside funding.
4:07:29With efficiency out of the way,
4:07:31creativity is your only limit. Bottom
4:07:34line, figure out a way to get your
4:07:36customers to pay you back in the first
4:07:3830 days so you can recycle your cash to
4:07:41get more customers. Personal lessons
4:07:43from paid ads. Don't confuse sales
4:07:45problems with advertising problems. The
4:07:48cost to get customers doesn't only come
4:07:50from advertising. It just mostly does.
4:07:53For example, a company I invested in
4:07:55spent 12 weeks and $150,000 to run paid
4:07:59ads. They were getting the right leads
4:08:01on the phone, but they weren't buying.
4:08:03The owner said advertising didn't work.
4:08:06But the ad worked fine. Great. Even
4:08:08their sales sucked. The owner threw up
4:08:10his hands and gave up 6 in from gold.
4:08:13Frustrating. Confusing an advertising
4:08:16problem with a sales problem cost them
4:08:19an estimated $30 million in enterprise
4:08:22value. If your engaged leads have the
4:08:24problem you solve and the money to spend
4:08:26and they're not buying, then your ads
4:08:28work fine. You have a sales problem.
4:08:31Your best free content can make the best
4:08:33paid ads. So, the best paid ads I've
4:08:36ever run came from free content. If you
4:08:38make a free content piece that generates
4:08:40sales or performs very well, nine times
4:08:44out of 10, it'll make a great paid ad.
4:08:46Usergenerated content, UGC. If you can
4:08:49get your customers to create
4:08:50testimonials or reviews using your
4:08:53product, post them. If they perform well
4:08:55as free content, they often make killer
4:08:58ads, too. Having a system in place to
4:09:00encourage these public posts from
4:09:02customers is my favorite way of getting
4:09:04a steady stream of potential ads. And
4:09:08the best part is it's no extra work. If
4:09:10you say you suck at something, you will
4:09:12probably suck at it. Never say I'm not
4:09:14techy or I hate tech stuff. It just
4:09:17keeps you poorer than you should be. I
4:09:19said it for, wait for it, 4 years. Then
4:09:22one day I snapped because I hated my
4:09:25website designer more than I hated tech
4:09:27itself. If this idiot can do it, so can
4:09:30I. Four years of wasting time and loss
4:09:33money reversed with 4 hours of
4:09:35concentrated effort. Your turn. I can
4:09:38teach you how to place an ad in 20
4:09:39minutes. It'll cost you $100. Worth it?
4:09:43I hope so. It's an important skill. It
4:09:46won't make you money, but you will learn
4:09:48a lesson worth far more than a hundred
4:09:50bucks. Running ads is easier than you
4:09:52think. In fact, platform spend zillions
4:09:55to make it as easy as possible so they
4:09:58can make more money. Here's all you got
4:09:59to do. Search how to place a platform
4:10:03ad, then place one for $100. Don't go
4:10:06all the way to the end, then chicken
4:10:08out. Spend the gosh darn money. Rip off
4:10:11the band-aid. As soon as you do, you're
4:10:13no longer an observer. You're in the
4:10:15game. Once you have put all these pieces
4:10:17together, it's time to send it. Spend
4:10:20money. Start with an acceptable amount
4:10:21of money. you are willing to lose each
4:10:24month. Expect to lose it. You won't be
4:10:26earning, you'll be learning. If you
4:10:28recall our advertising checklist, you'll
4:10:31need to pick each line to fill out your
4:10:32action card. This kicks off your journey
4:10:34in paid ads to get more engaged leads.
4:10:38Sample paid ads checklist. Paid ads
4:10:41daily checklist. Who yourself, what your
4:10:44offer where any platform/ audience you
4:10:48can buy access to. To whom? Target
4:10:50audience or lookalike audience when
4:10:54every day 7 days per week. Why? Get
4:10:57engaged leads to sell. How? Call out
4:11:00plus 3WS plus CTA. How much? Learning
4:11:04budget. Then reverse to sales goal. How
4:11:07many? 30 plus call outs. X10 ads. How
4:11:11long? As long as it takes. Paid ads.
4:11:13Part two. Conclusion. Paid ads are the
4:11:16fastest way to scale how many leads you
4:11:18get. We spent the lion share of this
4:11:20chapter talking about efficiency because
4:11:23once you understand how ads really make
4:11:26money, it becomes much easier to win.
4:11:28I've been very successful with paid ads,
4:11:31but it wasn't because I was the most
4:11:32creative or had the best copy. It was
4:11:35because I knew the numbers. So, follow
4:11:37the steps outlined. I recommend doing
4:11:39paid ads last for two reasons. First,
4:11:43skills from the other three methods
4:11:45transfer to this one. And second, paid
4:11:48ads cost money. Money you will have if
4:11:51you start with the other three methods
4:11:52first. So learn the skills and make the
4:11:55money from the other three methods. So
4:11:57you have the shortest learning curve on
4:11:59this one. And once we have all that, we
4:12:01scale it. We expect to lose more times
4:12:04than we win. And once we win, we scale
4:12:07the hell out of it. And that's how we do
4:12:09it. Paid ads is the last of the core
4:12:11four ways a single person can let other
4:12:14people know about their stuff. But
4:12:15before we transition to the second half
4:12:17of the book, I want to show you how to
4:12:19put these strategies on steroids. Core
4:12:21four on steroids. More better new. If at
4:12:24first you don't succeed, use force. I
4:12:27surveyed the 50 or so faces of the
4:12:30group. All entrepreneurs looking to
4:12:32scale their businesses. Each hungry for
4:12:35the missing link that would flood them
4:12:37with engaged leads. After finishing a
4:12:39presentation on lead generation, I open
4:12:42up the floor for Q&A. The first business
4:12:45owner chimed in. I just feel like I've
4:12:47saturated the market. I don't think we
4:12:49can get any bigger in the chiropractor
4:12:50niche than we already are. What are you
4:12:53doing in revenue? I asked. 2 millions a
4:12:56year. And how much do you spend on
4:12:57advertising? About $30,000 a month on
4:13:01Facebook. What's your conversion rate
4:13:03from click to close? I don't know. So,
4:13:05you don't track overall throughput? I
4:13:08guess not. Okay. What other platforms do
4:13:10you advertise on? None. How much content
4:13:13do you make for chiropractors? None. How
4:13:16much cold outreach do you do? None. And
4:13:19the $30,000 you spend on one platform
4:13:22for a $2 million business saturated the
4:13:25$15.1 billion chiropractor industry.
4:13:28Does that sound reasonable? A second
4:13:30business owner chimed in before he could
4:13:32answer. If it helps, I'm in a
4:13:34chiropractor niche, too, and I spent
4:13:37$30,000 in advertising across four
4:13:39platforms last week. Do you still feel
4:13:42like you've saturated your niche? I
4:13:44asked. You got the point. I have this
4:13:46conversation daily with entrepreneurs
4:13:48looking to grow. Typically, they have
4:13:51figured out how to get enough customers
4:13:52from one platform to get them to $1
4:13:55million to $3 million per year. It's
4:13:58still not completely predictable, and
4:14:00they have their ups and downs, but they
4:14:03have the gist of what they need to do
4:14:05and have seen some success. So, it's at
4:14:07this point they hit a wall because they
4:14:09think they can't make more money. They
4:14:11assume they've tapped their market. I
4:14:14kid you not. I had a conversation with a
4:14:16different entrepreneur making about $3
4:14:18million per year in the weight loss
4:14:20space. He worried increasing his ad
4:14:23spend past $40,000 per month would
4:14:26saturate his ad platform. For context,
4:14:28the platform has over 1 billion active
4:14:31daily users. and he was selling weight
4:14:33loss in America, a $60 billion industry.
4:14:38Silly. There are more leads out there
4:14:40than you can possibly imagine. I've used
4:14:42a framework to unlock those leads over
4:14:45and over again. And now you can use it,
4:14:47too. How to get even more leads, more
4:14:49better new. First, you reach out to
4:14:52people who know you. Then, you start
4:14:54making free content. Then, you start
4:14:56reaching out to people who don't know
4:14:57you. Then, you start running paid ads.
4:15:00This is how you do the core four to get
4:15:02engaged leads. And there's really
4:15:04nothing else a single person can do on
4:15:05their own to get them. But what if
4:15:07you're doing the core four and still not
4:15:09getting as many engaged leads as you
4:15:11want? Well, worry not. There are two
4:15:14ways to boost any of the core four to
4:15:16get even more engaged leads on your own.
4:15:18I use these every time I want to
4:15:21increase the engaged lead flow in a
4:15:23portfolio company. They're easy to
4:15:25remember. More, better, new. simply
4:15:28stated, one, you can do more of what
4:15:31you're currently doing. Two, you can do
4:15:33what you're currently doing better.
4:15:35Three, you can do it somewhere new. And
4:15:37just like the story in the beginning
4:15:39with the agency owner, that's exactly
4:15:41what I was asking him. Could you
4:15:43advertise more? Could you advertise
4:15:45better? Could you advertise somewhere
4:15:46new? So, let's start with the one I
4:15:48actually do first. More? More? You've
4:15:51done some advertising by now, and you
4:15:53know the advertising that you do works
4:15:55to some degree. So, the next obvious
4:15:57thing you can do to get more engaged
4:15:59leads is more. A lot more. Crank up the
4:16:03volume to your max capacity. Even with
4:16:05no improvements at all, if you double
4:16:07your inputs, you'll get more engaged
4:16:10leads. Make twice the reachouts, post
4:16:12twice the content, run twice the ads,
4:16:15double the ad spend, etc. You won't
4:16:18regret it. Unless, of course, you hate
4:16:21money. So, while we'll always focus on
4:16:23testing to make ourselves better, which
4:16:25we'll get to in a moment, the biggest
4:16:27increases often come from advertising
4:16:29more, here's how I do more. The rule of
4:16:32100. The rule of 100 is simple. You
4:16:35advertise your stuff by doing 100
4:16:37primary actions every day for 100 days
4:16:40in a row. That's it. I don't make many
4:16:42promises, but this is one. If you do 100
4:16:45primary actions per day and you do it
4:16:48for 100 days straight, you will get more
4:16:50engaged leads. Commit to the rule of 100
4:16:54and you will never go hungry again.
4:16:56Here's what it looks like applied to
4:16:57each of the core four. Warm reachouts,
4:17:00100 reachouts per day. Example, primary
4:17:03actions, email, text, direct message,
4:17:06calls, etc. Post content, 100 minutes
4:17:10per day making content. Release at least
4:17:13one per day on a platform. As you get
4:17:15better, post even more. Example, primary
4:17:18actions, short and long videos or
4:17:20articles, podcasts, infographics, etc.
4:17:24Cold reachouts, 100 reach outs per day.
4:17:28Example, primary actions, email, text,
4:17:31direct message, cold call, flyers, etc.
4:17:35As with all cold advertising, expect
4:17:37lower response rates, so use automation.
4:17:40Paid ads, 100 minutes per day making
4:17:43paid ads. Example, primary actions,
4:17:46direct response media ads, direct mail,
4:17:49seminar, podcast spots, etc. 100 days
4:17:53straight of running those paid ads. Use
4:17:56the daily budget we calculated together
4:17:58in the paid ads chapter. Aim for client
4:18:01financed acquisition. Pro tip, more ads
4:18:04means better ads means more leads.
4:18:06Facebook reviewed the accounts of all
4:18:09advertisers on a platform. They found
4:18:11something curious. The top 0.1%
4:18:15of advertisers test 11 times more
4:18:18creative than everyone else. Often
4:18:20times, it's not that you can't scale an
4:18:22ad profitably. You just can't scale a
4:18:25mediocre ad profitably. And the only way
4:18:27to find the exceptional ads is to make
4:18:30more of them. Success leaves clues. Do
4:18:33what the 0.1% do and get what the 0.1%
4:18:37get. Here's some inspiration from
4:18:39someone in # Mosanation following the
4:18:42rule of 100. Better. Getting better gets
4:18:45you more leads for the same effort. We
4:18:47want that. And you can only get better
4:18:49by doing one thing, testing. So you do
4:18:52more and more until it breaks. Then you
4:18:55make it better. In other words, if you
4:18:58do more for long enough, your CAC will
4:19:00eventually get too high to sustain. So,
4:19:02you make a tweak and see if it improves.
4:19:05If it does, keep doing it. If it
4:19:07doesn't, toss it out. Thousands of these
4:19:09tiny tests separate the winners from the
4:19:11beginners. Every action a lead takes
4:19:14before they become a customer is a
4:19:16potential drop off point. So, I do the
4:19:18most testing at whatever step the most
4:19:20leads drop off. I call these
4:19:22constraints. Constraints are the points
4:19:24where the smallest improvements create
4:19:26the biggest boost in results. That's why
4:19:29they're so important. We get the biggest
4:19:31bang for our buck. For example, if you
4:19:34have three steps in your process, 30%
4:19:37optin, give you their contact
4:19:39information. 5% apply. This is the
4:19:42constraint because it has the biggest
4:19:44drop off. 50% schedule. But let's ignore
4:19:48the constraint for a moment. Imagine we
4:19:50improve each step by 5% by itself. 30 +
4:19:555% 35% opt-in equals 16% increase in
4:20:00leads 1.16x
4:20:035 + 5% 10% apply equals 100% increase in
4:20:08leads 2x 50 + 5% 55 5% schedule equals
4:20:1410% increase in leads 1.1x we get wildly
4:20:19different results improving the
4:20:21constraint also comes out the clear
4:20:24winner winner. So, focus on the
4:20:26constraint. And again, if you're not
4:20:28sure which step is the biggest
4:20:30constraint, find the step where the most
4:20:32leads drop off. You'll get the biggest
4:20:35reward for the smallest improvement.
4:20:37Here's how I get better. I test one
4:20:39thing per week per platform, and I do it
4:20:41for four big reasons. One, if you test
4:20:44multiple things at a time on one
4:20:46platform, you never really learn what
4:20:48worked. Two, steps affect each other. A
4:20:51single change can affect results at
4:20:53other steps. For example, if you change
4:20:56step one and more people opt in, but
4:20:58fewer people apply, no bueno. But you
4:21:01wouldn't know that if you change both
4:21:02steps. If you make one change, you can
4:21:05see what happened. If you make a bunch
4:21:06of changes, good luck trying to figure
4:21:08out what worked or didn't. Three, it
4:21:11forces you to prioritize what will get
4:21:13you the most engaged leads. You can do
4:21:16an infinite amount of tests, but time is
4:21:18limited, so you must choose your tests
4:21:20wisely. For example, if you only do one
4:21:23big test per week per platform, don't
4:21:25waste it on a color change from red to
4:21:27bright red. For maybe the most
4:21:29important, you run the test for long
4:21:31enough to see if you actually get an
4:21:33improvement. Too short and you won't get
4:21:35enough data. Too long and you waste time
4:21:38you could have spent improving the next
4:21:40constraint. With the size of my team and
4:21:42the amount of money I spend on
4:21:44advertising, one week is typically long
4:21:46enough for me. In every company I own, I
4:21:49set up a testing schedule. Every Monday,
4:21:51we run one split test per platform. We
4:21:54give it a week and the next Monday, we
4:21:57do three things. One, look at the
4:22:00results and pick the winners for each
4:22:02platform test. Two, then important, we
4:22:05write down the results of the test in a
4:22:07log of all tests. So the next time we do
4:22:09something, we start a zillion
4:22:11improvements later, not a square one.
4:22:14Three, come up with our next test to
4:22:16beat our current best version. If we
4:22:18can't beat the version we're currently
4:22:20running in four tries or 1 month, we
4:22:23move on to the next constraint. You
4:22:25continue to allocate effort to make
4:22:27things better. But at a certain point,
4:22:30the effort you put into making it better
4:22:32brings lower and lower returns. At some
4:22:34point, it makes more sense to invest
4:22:36your effort into something that will
4:22:38bring higher returns. Only at this point
4:22:41do we try something new. Pro tip: front
4:22:44back most times. In general, the lowest
4:22:47percentage steps usually happen at the
4:22:49front and the higher percentage steps
4:22:51happen at the back. As in 1% of people
4:22:54may click an ad, then 30% will give you
4:22:57their contact information. This is why
4:22:59most times you'll end up focusing on the
4:23:01front more than the back. And that's
4:23:03fine. Those steps are usually the
4:23:06constraint. They have largest returns
4:23:08for the smallest improvements. The call
4:23:10out, the value elements, the offer, the
4:23:14CTA, the landing page, headline, sub
4:23:17headline, image, etc. Down the pathway
4:23:20you go in order of what the lead will
4:23:22see and then do. Pro tip: Better, more,
4:23:25new. When talking to businesses less
4:23:27than $1 million per year in profit, I
4:23:30usually advise them to do more first.
4:23:33They haven't done enough volume for
4:23:35percentage changes to make a big
4:23:37difference. But once you cross $1
4:23:39million in annual profit, making things
4:23:42better could be the lowest cost, highest
4:23:44return thing you do. So once a business
4:23:46is big enough, I flip the order from
4:23:48more, better, new to better, more new.
4:23:52So after you've improved your marketing
4:23:53efforts through more and better, the
4:23:55only thing you have left is new places
4:23:58in new ways. In simple terms, new. And
4:24:01if you think your business can't
4:24:02possibly get any bigger, let me show you
4:24:04why it can. Then I'll show you how it
4:24:07can. Most business owners look only at
4:24:09the platform and tiny community they
4:24:12market in. And usually there are only
4:24:15three or four big companies marketing in
4:24:17their niche. So they assume those
4:24:20companies must split the entire market
4:24:22between them. This is exactly what the
4:24:24entrepreneur in my intro story did.
4:24:27Think for a moment about how ridiculous
4:24:29this is. I call this problem the size of
4:24:31the pi fallacy. Here's a drawing to
4:24:34illustrate how the market is in fact
4:24:37much bigger than most assume. The size
4:24:39of the pi fallacy. A small business uses
4:24:42one of the core four on one platform in
4:24:45one specific way with a very targeted
4:24:48audience. And in that same space
4:24:50advertising the same way, there may only
4:24:53be a handful of other competitors. They
4:24:55mistakenly assume the tiny slice of the
4:24:58universe they advertise to is the entire
4:25:01available market. This is why most
4:25:04businesses stay small. When they
4:25:05plateau, they think there's no more
4:25:08leads to get. They believe they got as
4:25:10big as they possibly can. Because for
4:25:12many, saying, "I'm as big as I can get,"
4:25:15is much easier than saying, "I'm not as
4:25:18good at advertising as I thought." This
4:25:20false argument keeps entrepreneurs
4:25:23everywhere poorer than they should be.
4:25:25When to do new, when the returns you get
4:25:27from doing more better are lower than
4:25:29what you could get from a new placement
4:25:31or new way of advertising. There are
4:25:33many other slices of attention and
4:25:36potential leads sitting just inside the
4:25:39tiny universe of post content. They
4:25:42could add new placements since many
4:25:44platforms have multiple places and forms
4:25:46of content. For example, on Instagram
4:25:49you can make stories, messenger ads and
4:25:51posts. On YouTube you can make shorts,
4:25:54longs, community posts, etc. Or they
4:25:57could add new platform. They go from
4:25:59Instagram Messenger to Facebook
4:26:01Messenger. They go from YouTube shorts
4:26:03videos to Instagram short videos, reals,
4:26:07etc. And once they've exhausted those,
4:26:10they could add an entirely new core for
4:26:13activity. And if you're curious, the
4:26:15order I pick my next new comes down to
4:26:17one thing. What will get me the most
4:26:19leads for the amount of work? That is
4:26:21the rule. And nine times out of 10, it
4:26:23goes like this. New placements, new
4:26:26platforms, new core. Bottom line, no
4:26:29matter how you advertise, you could do
4:26:31it in new ways, different styles of
4:26:33content or in new places. Think other
4:26:36platforms. Then finally, do a new core
4:26:39four activity altogether. And you
4:26:41guessed it, each of them gets us what we
4:26:43want, more leads. Now, this is much
4:26:46harder in practice, which is why I
4:26:48exhaust more better first. But at a
4:26:51certain point, you have to expand to new
4:26:52placements, platforms, and core four
4:26:55activities to let more people know about
4:26:57your stuff. Action step, exhaust more
4:27:00better first. What you can't do anymore,
4:27:02any better. Meaning the returns are
4:27:04lower than putting that same effort into
4:27:06a new platform. Try new. Use this rough
4:27:10order. New placement, new platform, new
4:27:13core for activity. Get it going. Measure
4:27:16how you do and scale up from there using
4:27:18more better. Then rinse and repeat. More
4:27:21better news summary. First, you do way
4:27:24more of the advertising that works until
4:27:26it breaks. Then the next drop off point
4:27:29becomes obvious. Then you keep that
4:27:31level of advertising up while you go
4:27:33back. Fix the constraint and make it
4:27:35better. So really better and more work
4:27:38with each other more than they work
4:27:40separately. The first question I usually
4:27:42ask myself before we invest in a company
4:27:44that needs to get more customers is
4:27:46what's stopping them for doing 10 times
4:27:49what they're currently doing. Sometimes
4:27:51nothing. So we just do more. Other times
4:27:54we just need to make something better
4:27:55first. So answer that question and
4:27:58you'll know what to do next. Only once
4:28:00you've exhausted more better do the real
4:28:02returns come from doing new. First go
4:28:05with new ad placements on a platform you
4:28:06know. Second, go with placements you
4:28:09know on a new platform. Then once you
4:28:11get the hang of that new platform, use
4:28:13new placements on it. Once you exhaust
4:28:16that, you can add a new core four
4:28:18activity on top of what you currently
4:28:19do. That gives you my simple real world
4:28:22way. I put the core four on steroids to
4:28:24get even more leads. Conclusion:
4:28:26advertising is the process of making
4:28:29known. It's what we do to let strangers
4:28:31know about the stuff we sell. Now, we
4:28:34solved the stuff problem with your lead
4:28:36magnet or offer. But to get them to turn
4:28:38into engaged leads, you have to tell
4:28:40them about it. So, we spent this section
4:28:42going over the only four ways a single
4:28:45person can advertise. Let other people
4:28:47know about their stuff. And to do it,
4:28:50you trade either time, money, or both.
4:28:53And when you do it, you can advertise to
4:28:55people who know you warm, or you can
4:28:58advertise to strangers cold. You can
4:29:00advertise publicly content/ ads or
4:29:03privately outreach. As far as what to do
4:29:06when whenever I build a business, I
4:29:09think about it this way. After I do warm
4:29:11outreach to get my pool of customers
4:29:13going, if I have more time and money, I
4:29:16move to posting content. If I have more
4:29:18money than time, I go with cold outreach
4:29:21or running ads. But remember, you only
4:29:24need to do one to get engaged leads. So,
4:29:26just pick one, then max it out. Do more,
4:29:29do better, do new, and all the
4:29:32advertising methods compound together.
4:29:35The money, systems, and experience you
4:29:38earn from the prior method will help you
4:29:39master the next. A business that posts
4:29:42free content and runs paid ads will get
4:29:44more out of their ads and their content
4:29:46than a business that does only one or
4:29:49the other. A business that does cold
4:29:51outreach and makes content will get more
4:29:53from their cold outreach and work their
4:29:55warm leads better than one that does
4:29:57only one. Every combination of the core
4:30:00four advertising activities boost each
4:30:03other in some way. And as a personal
4:30:05note, I've done them all. I built my
4:30:07first business off posting content and
4:30:09warm outreach. I built my gyms off free
4:30:12content and paid ads. I built gym launch
4:30:15off paid ads and cold outreach. I built
4:30:18Prestige Labs off affiliates, which we
4:30:21cover in section 4. I built Allen off
4:30:23paid ads and affiliates. Also, section
4:30:26four, I built acquisition.com off
4:30:29posting content. There are many ways to
4:30:31get engaged leads. If you master one,
4:30:34you'll be able to feed yourself for the
4:30:36rest of your life. They all work if you
4:30:38do. Next up, if you follow the steps in
4:30:40this book, you'll run out of hours in
4:30:43the day. You won't be able to do
4:30:44anymore, any better, let alone add
4:30:47anything new. So, you'll need help on
4:30:49your journey to the land of endless
4:30:51leads. You'll need allies. Those allies
4:30:54come in four different flavors. And
4:30:57since there are more of them than there
4:30:58are of you, they're the key to getting
4:31:00there. So, let's go get them. Section
4:31:03four, get lead getters. Get people who
4:31:05get you more leads. Give me a lever long
4:31:08enough and a fulcrum on which to place
4:31:10it, and I shall move the world.
4:31:13Archimedes. Building a $100 million lead
4:31:16machine is all about leverage. An old
4:31:19lady can lift a semitr with a long
4:31:21enough lever. The strongest man in the
4:31:23world without one can't. The length of
4:31:26the lever determines how much someone
4:31:28can lift. This is leverage. We can use
4:31:31the principle of leverage in
4:31:32advertising. Let me explain. Someone
4:31:35with internet can send a message to
4:31:37millions of people at once. Someone
4:31:39writing postcards by hand can't. The
4:31:41internet allows us to reach more people
4:31:44for the same time spent. So, it's higher
4:31:46leverage. That means leverage boils down
4:31:49to how much we get for the time we spend
4:31:51getting it. So, we want to use higher
4:31:52leverage activities to get what we want.
4:31:55More stuff we want, less time getting
4:31:57it. Good. And we want leads. Lots of
4:32:00leads. Pro tip. Don't mistake leverage
4:32:02for speed. One person can only move so
4:32:05fast. A person 1,000x ahead of you isn't
4:32:08moving 1,000x faster. They can't.
4:32:11They're doing different stuff. So, the
4:32:13future that feels so far away with
4:32:16leverage is closer than you think. Lead
4:32:19getters give you leverage. People can
4:32:22find out about the stuff we sell from
4:32:24two sources. We can let them know using
4:32:26the core for or other people can let
4:32:28them know using the core for. I call
4:32:30these other people lead getters. When
4:32:32other people do it for us, we save time.
4:32:35That means we get more engaged leads for
4:32:37less work. Leverage baby. Imagine four
4:32:40scenarios. Scenario number one, you are
4:32:43the lead getter. You do the core for all
4:32:46day every day by yourself. You get
4:32:48enough leads to pay the bills. Work high
4:32:52leads, low leverage, low. Scenario
4:32:55number two, you get a lead getter. You
4:32:57get a lead getter to do the core four on
4:33:00your behalf. Now, the lead getter brings
4:33:02enough leads to pay the bills without
4:33:04you advertising. You work less than
4:33:06scenario number one and get the same
4:33:08number of leads. Work low, leads low,
4:33:12leverage high. Scenario number three,
4:33:14you get lots of leadgetters. You spend
4:33:17all your time getting other lead
4:33:18getters. Your leads go up every time you
4:33:21get another one. You work all day every
4:33:23day, but you get way more leads than you
4:33:26did when it was just you. You work more
4:33:28than scenario number two, but get way
4:33:30more leads. Work high, leads high,
4:33:33leverage higher. Scenario number four,
4:33:36you get a lead getter who gets lead
4:33:38getters. You recruit somebody who
4:33:40recruits other people to advertise on
4:33:43your behalf. They get more lead getters
4:33:45every month. You only had to work to get
4:33:47the first lead getter once. But his
4:33:50leads continue climbing without you
4:33:52working. You works less than scenario
4:33:54number three and you get more leads each
4:33:57and every month. Work low, leads high,
4:34:00leverage highest. Now you've got the
4:34:03makings of a $100 million leads machine.
4:34:10Outline of the lead getters section. The
4:34:12lead getters aren't part of the core
4:34:14four because they're not things you do.
4:34:16You do not do affiliates or do customer
4:34:18referrals or do agencies or do
4:34:21employees, but you have to do the core
4:34:24four to get them. They come from warm
4:34:26outreach, cold reachouts, posting
4:34:28content, and running paid ads. And once
4:34:31you get them, they do it for you. So the
4:34:33core four stacks, one time to get them,
4:34:36and a second time for when lead getters
4:34:38get engaged leads on your behalf. But it
4:34:40doesn't have to end there. In fact, it
4:34:42shouldn't. The process repeats. Lead
4:34:45getters can go get lead getters. So, we
4:34:47do something once, then lead getters can
4:34:50do it forever. But wait, I thought this
4:34:52book was about getting leads. So, am I
4:34:55trying to get leads or don't want lead
4:34:57getters? Answer: Yes. Lead getters start
4:35:00out as leads, then get interested in the
4:35:02stuff you sell and become engaged leads
4:35:05like anyone else. The difference is they
4:35:07get other people interested in the stuff
4:35:09you sell, too. And ideally, every lead
4:35:12becomes a lead getter. The following
4:35:14chapters explain in detail how to get
4:35:17other people to advertise for you. And
4:35:20if you want to scale to $100 million
4:35:22plus, you have to understand them.
4:35:24Number one, customers. They buy your
4:35:26stuff, then tell other people about it
4:35:28to get you leads. Number two, employees.
4:35:31People in your business that get you
4:35:32leads. Number three, agencies.
4:35:35Businesses with services that get you
4:35:37leads. Number four, affiliates.
4:35:40Businesses who tell their audiences
4:35:41about your stuff to get you leads. All
4:35:44four lead getters let other people know
4:35:46about your stuff. In other words, all
4:35:49four are higher leverage than you doing
4:35:50it on your own. Once you do understand
4:35:52the four lead getters, you can build a
4:35:55lead getting machine for every company
4:35:57you start for the rest of your life.
4:35:58I'll break down how I use all four lead
4:36:01getters, how each is different, how to
4:36:03work with them, when to use them, best
4:36:06practices, and how to measure your
4:36:07progress along the way. At the end of
4:36:10this section, you will understand how to
4:36:12get other people to bring you more leads
4:36:14than you can possibly imagine. And since
4:36:16we already use the core four to get
4:36:19customers, let's start with something we
4:36:20can do right now. Get those customers to
4:36:23refer more customers. Number one,
4:36:25customer referrals, word of mouth. The
4:36:28best source of new work is the work on
4:36:30your desk. Charlie Mer. October 2019.
4:36:35Ila and I sat together on her parents'
4:36:37living room couch. The one she watched
4:36:39movies on as a kid. The faded edges of
4:36:41the coffee table begged us to kick our
4:36:43feet up. We balanced laptops on our
4:36:46thighs. Extension cords snaked around
4:36:49the couch to outlets down the hall. Her
4:36:51stepmother clanged in the kitchen. This
4:36:53was not a work environment, but we made
4:36:55do. Two years earlier, I lost everything
4:36:59and met her parents on the same weekend.
4:37:01Hey, Dad. I met this guy on the
4:37:03internet. He lost everything and has no
4:37:05money. But don't worry, I quit my job
4:37:08and moved in with him to help with his
4:37:10next big business idea. By the way, can
4:37:12we crash here for a while? Great first
4:37:14impression, Alex. A lot had changed
4:37:17since then. We were multi-millionaires
4:37:19now. We made enough to buy her childhood
4:37:21home in cash. Every week, Leila reviewed
4:37:24reports from our department heads. Oh,
4:37:26yeah. We had executives now, too. Hey,
4:37:29sales numbers look a little soft this
4:37:30week, she said. Really? How many did we
4:37:33close? 15. And sales started dipping
4:37:37last week, too. Is there anything
4:37:38different on your end? I don't know. Let
4:37:41me check. I log into Facebook's
4:37:43advertising portal. Red rejection
4:37:45notifications filled the screen. Welp,
4:37:48that'll do it, I said. What? What
4:37:51happened? All the ads got shut off.
4:37:53Well, that's a problem. When you think
4:37:55you can get them back up, it'll take a
4:37:57day or two to get a new campaign
4:37:59started. I squinted at the screen.
4:38:01Something even more alarming jumped at
4:38:03me. Facebook rejected the ads 2 weeks
4:38:06ago. I acted like nothing was wrong. So,
4:38:09we closed 15 this week. And how many the
4:38:11week before? I asked 21. Well, I've got
4:38:15good news and I've got bad news. Off.
4:38:19The bad news is the ads got shut off two
4:38:22weeks ago. So that explains the dip. The
4:38:25good news is our product is so good that
4:38:27we're still doing $500,000 a week from
4:38:30word of mouth alone. You ignored the ads
4:38:32for 2 weeks. She had Oh no, you didn't
4:38:35written all over her face. I shrugged
4:38:37with a sheepish grin. You still love me,
4:38:40right? We busted out laughing at the
4:38:42absurdity of all. Those two years were
4:38:44insane. The amount of money we were
4:38:46making didn't make sense. We didn't
4:38:48comprehend how much until years later.
4:38:51We were just grateful to be doing this
4:38:53together, flaws and all. And this
4:38:56accidental stretch without running paid
4:38:58ads made something very clear. Our
4:39:01customers were telling their friends. A
4:39:03few months later, I stood on stage and
4:39:06looked out over the 700 plus gym owner
4:39:08audience. Everyone paid $42,000 to be
4:39:12there. All wore black gym lord t-shirts
4:39:15and stick on mustaches. It was nuts. I
4:39:19was mid-presentation explaining how
4:39:22excellent service generates leads
4:39:24through word of mouth. All the while, I
4:39:27obsessed over whether the money we made
4:39:29during 2 weeks without running paid ads
4:39:31was a fluke. Feeling confident, I paused
4:39:34the presentation, trying to find out.
4:39:36All right, just to show you how
4:39:38important this is, who here learned
4:39:40about gym launch from another gym owner?
4:39:42Raise your hand. As soon as the words
4:39:44left my lips, I felt instant regret.
4:39:47What if no one raises their hand? What
4:39:49if our growth was all forced? I'm such
4:39:51an idiot. I looked around the room with
4:39:53my arm raised like a monkey. The room
4:39:56stood still. Oh no. Then a few gym
4:39:59owners raised their hands. That doesn't
4:40:01look great, but it could be worse. Then
4:40:04more. Thank god. Then more. Then a wave
4:40:07of hands. Holy cow. People looked to
4:40:10their sides and behind them. It was
4:40:12almost the entire room. I let the moment
4:40:14sink in for all of us. I'll never forget
4:40:17it. I knew we had good word of mouth,
4:40:18but not this good. That I said is the
4:40:22power of word of mouth. I know you
4:40:24weren't there when Leila and I realized
4:40:26we were making $500,000 plus per week
4:40:29from word of mouth. I know you weren't
4:40:31there to see $30 million in customers.
4:40:33Say someone referred them. The first
4:40:35time I realized the power of referrals,
4:40:38it was by accident. Seeing how much it
4:40:40made me, I studied what had gone right.
4:40:42I wanted to make sure I could recreate
4:40:44it on purpose. For me to transfer that
4:40:47ability to you, I have to transfer the
4:40:49beliefs that created it. And these
4:40:51experiences formed those beliefs. This
4:40:54is why I share them. People copied our
4:40:56offers, ads, and lead magnets. They
4:40:59copied our landing pages, emails, and
4:41:02sales scripts. They copied everything
4:41:04they could, but they did it with little
4:41:06success. They think it's about
4:41:08advertising, and it is. But the best
4:41:11advertising is a happy customer. An
4:41:13amazing product turns every customer
4:41:16into a lead getter. The world loses
4:41:19trust by the second. Every day, more
4:41:22customers do their research. They arm
4:41:24themselves with information to make
4:41:26purchasing decisions, as all they
4:41:28should. So to play at higher levels, we
4:41:30need our product to not only deliver,
4:41:33but delight. Customers must get so much
4:41:36value, it compels them to tell other
4:41:38people about us. The good news is once
4:41:40you know how, it's easier than you
4:41:43think. In this chapter, I explain how to
4:41:45get the lowest cost, highest profit, and
4:41:48best quality leads out there. Referrals.
4:41:51How referrals work. A referral happens
4:41:53when somebody refer an engaged lead to
4:41:57your business. Anyone can refer, but the
4:42:00best referrals come from your customers.
4:42:02So, this chapter focuses on getting more
4:42:04referrals from your customers. How
4:42:06referrals grow your business. Referrals
4:42:09are important because they grow your
4:42:10business in two ways. They're worth
4:42:13more, higher LTGP. Referrals buy more
4:42:16expensive stuff and buy more times. They
4:42:19also tend to pay in cash upfront.
4:42:21Lovely. They cost less, lower CAC. If
4:42:24one customer send you another customer
4:42:26because they like your stuff, that new
4:42:28customer cost you nothing. And free
4:42:30customers are cheaper than customers
4:42:32that cost money. So free customers
4:42:35equals good. But what does this stuff
4:42:36really mean? Check this out. Imagine you
4:42:39had an LTGP to CAC ratio of 4:1. That
4:42:43means it costs 25% of your lifetime
4:42:46gross profit of one customer to get
4:42:48another. Not bad. But now imagine if
4:42:51every customer brought you two more
4:42:53customers. You'd now have an LTGP to CAC
4:42:56ratio of 12:1. You'd use just over 8.3%
4:43:01of your lifetime gross profit to get a
4:43:03new customer. So, you get three
4:43:05customers for the price of one. Now,
4:43:07we're talking. Hooray. What a deal. On
4:43:10top of that, referrals are exponential.
4:43:12Let me explain. The number of engaged
4:43:14leads you get from the core for depends
4:43:16on how much you do them. The inputs to
4:43:19outputs have pretty linear
4:43:21relationships. If you do 100 reachouts,
4:43:23you get engaged leads. If you double it,
4:43:26your leads roughly double. If you spend
4:43:28$100 on ads, you get engaged leads. If
4:43:32you double it, your leads roughly
4:43:34double. So, no matter how well you
4:43:36advertise, how much you get depends on
4:43:38how much you do. And that's great. But
4:43:40with word of mouth, we could do even
4:43:42better. With word of mouth, one customer
4:43:45brings two. Two, bring four. For bring
4:43:48eight, and so forth. It's not linear,
4:43:51it's exponential. Nothing scales like
4:43:53word of mouth. Want to know why so few
4:43:56people scale by word of mouth? They lose
4:43:58customers faster than they get them.
4:44:00Look at the referral growth equation to
4:44:02see it in action. Referrals in minus
4:44:05churn customers out. If referrals are
4:44:08greater than churn, you grow without any
4:44:10other advertising. Yay. If referrals are
4:44:13equal to churn, you need other
4:44:15advertising to grow your business. Meh.
4:44:18If referrals are less than churn, you
4:44:20got to advertise to break even. Boom.
4:44:23Most folks, this gets nutty when you
4:44:25look at percentages. If the percentage
4:44:27of referrals every month is bigger than
4:44:30the percentage of customers who leave,
4:44:32your business compounds every month.
4:44:34You'd have to spend that much more money
4:44:36on ads, do that many more reachouts, or
4:44:39post that much more content just to
4:44:41maintain that growth. You eventually hit
4:44:43a wall. But with referrals, you can
4:44:46maintain growth no matter how big you
4:44:48get. This is how companies like PayPal
4:44:50and Dropbox exploded into multi-billion
4:44:53dollar businesses. I'll break down their
4:44:55exact strategies later in the chapter.
4:44:58On the other hand, small businesses
4:45:00barely scrape by because they have about
4:45:02the same customers exiting as they do
4:45:04entering. A hamster wheel of death.
4:45:07Here's why. Two reasons most businesses
4:45:10don't get referrals. Most businesses
4:45:12don't get referrals for two reasons.
4:45:15First, their product isn't as good as
4:45:17they think it is. Second, they don't ask
4:45:20for them. Problem number one, the
4:45:22product isn't good enough. Everyone
4:45:24loves our stuff. We just need to get the
4:45:26word out. Says every small business
4:45:28owner with a product that's not as good
4:45:30as they think it is. I'm going to take
4:45:32off my nice guy hat for a second. If
4:45:34your product were exceptional, people
4:45:36would already know about it and you'd
4:45:39have more business than you could
4:45:40handle. So, if you sell direct to
4:45:42consumers and they're not bringing you
4:45:44more customers, your product has room to
4:45:47improve. I like to ask myself, why are
4:45:50my customers too embarrassed to tell
4:45:52everyone they know about my product? It
4:45:54may be okay, but it's unremarkable, as
4:45:57in not worthy of remark. In fact, most
4:46:00of the stuff I pay for kind of sucks. My
4:46:03pool guy forgets stuff half the time. My
4:46:05landscapers make tons of noise at the
4:46:08worst hours. My cleaners routinely put
4:46:10my clothes in my wife's closet. I guess
4:46:12that's what I get for extra medium
4:46:14t-shirts. The list goes on. Business
4:46:17owners wonder why they don't get
4:46:19referrals. The answer is right in front
4:46:21of them. They're just not good enough.
4:46:23Let me show you how I think about it.
4:46:25Price is what you charge. Value is what
4:46:27they get. The difference between price
4:46:29and value is goodwill. This means that
4:46:32price not only communicates value, but
4:46:34it's also how we judge value. Economics
4:46:37dorks call it customer surplus, but I'm
4:46:39just going to call it goodwill. You want
4:46:41lots of goodwill. Lots of goodwill
4:46:43creates word of mouth. Word of mouth
4:46:46means referrals. There are two ways to
4:46:48build goodwill with your customers. You
4:46:50can lower your price or you can give
4:46:52more value. After all, if you lower the
4:46:55price of your product enough, people
4:46:56would line up to get it, but you
4:46:58probably lose money. So, lowering the
4:47:01price is at best a temporary solution.
4:47:04You can only lower the price so much for
4:47:06so long. And as marketing legend Rory
4:47:09Sutherland says, any fool can sell
4:47:12something for less. So to build goodwill
4:47:15to get referrals, the question isn't how
4:47:17do we lower our price, but how do we
4:47:19give more value? Six ways to get more
4:47:22referrals by giving more value. There
4:47:24are six ways I get referrals by giving
4:47:26more value. And it just so happens to
4:47:28map to the parts of an ad. Callouts sell
4:47:31better customers. Dream outcome. Set
4:47:34better expectations. Increase perceived
4:47:37likelihood of achievement. Get more
4:47:39people better results. Decrease time
4:47:41delay. Get faster results. Decrease
4:47:45effort and sacrifice. Keep making your
4:47:47stuff better. Call to action. Tell them
4:47:50what to buy next. Call out. Sell better
4:47:52customers. We want to sell better
4:47:54customers because they get the most
4:47:56value from our products. Customers that
4:47:58get the most value have the most
4:48:00goodwill. And the customers that have
4:48:02the most goodwill are most likely to
4:48:04refer. Yes, it's that simple. Let me
4:48:07give you a real life example. We have a
4:48:09portfolio company that did public
4:48:11relations for genera small businesses.
4:48:13They had a lot of sales, but they had a
4:48:16lot of churn. So, they plateaued. They
4:48:18didn't grow for years. To see what we
4:48:20could do, we looked at their lowest
4:48:22churning customers to see if they had
4:48:24anything in common. They did. They were
4:48:27all in a specific niche and looking to
4:48:29raise funding from investors. So the
4:48:32solution looked obvious, get more of
4:48:34them. But the founder had a big worry.
4:48:36These customers were only 15% of his
4:48:39business. If he changed his targeting,
4:48:42and it failed, he would lose 85% of his
4:48:46business. But the business wasn't
4:48:48growing anyway. A tough situation for
4:48:50any entrepreneur. But after reviewing
4:48:53the data many times, he agreed to change
4:48:56the advertising call outs to match this
4:48:58narrower perfect fit customer. The
4:49:01results, the company broke through its
4:49:03plateau. They grew for the first time in
4:49:05years and now on track to adding
4:49:07millions per month. Plus, their cost of
4:49:10advertising, a huge expense for their
4:49:12stagnating business, went down. They got
4:49:15even cheaper leads since they could be
4:49:17more specific with their messaging. But
4:49:19not only that, the cheaper leads got
4:49:21even more value from the product because
4:49:23it was meant for them. And those
4:49:25customers, because they had more
4:49:26goodwill toward the business, started
4:49:29referring like clockwork. Action step,
4:49:32increase the quality of the prospect,
4:49:34and you'll increase the quality of the
4:49:36product. Figure out what your most
4:49:38successful customers have in common. Use
4:49:40those similarities to target a new
4:49:42audience that has the greatest chance of
4:49:44getting the most value. Then sell only
4:49:47people who meet those new criteria. Set
4:49:50yourself up to build more goodwill. More
4:49:52goodwill means more referrals. Dream
4:49:55outcome. Set better expectations. The
4:49:58fastest, easiest, and cheapest way to
4:50:00make your product remarkable. Make it
4:50:03better than they expect. And that's
4:50:05easier than you might think because you
4:50:06set the expectations. Pro tip: dating
4:50:09advice. On first dates, I like to set
4:50:12the bar as low as possible by admitting
4:50:14all my flaws. After telling my now wife
4:50:17all my flaws, I joked, "I can only go up
4:50:20from here." Have you ever had a stranger
4:50:22tell you a new movie was awesome? Then
4:50:25you go see it and think, "That wasn't as
4:50:27good as I expected." On the flip side,
4:50:30have you ever had someone tell you a
4:50:31movie was terrible, then you ended up
4:50:33seeing it anyways and thought, "That
4:50:35wasn't as bad as I expected." Our
4:50:38expectations of an experience can
4:50:40dramatically affect the experience
4:50:42itself. We can increase goodwill by
4:50:44lowering expectations. It gives us room
4:50:47to overd deliver. In the beginning, I
4:50:49promised everything in the kitchen sink
4:50:52to get people to buy. Fulfilling on that
4:50:54turned into a nightmare. So, I began
4:50:57inching down my promises while
4:50:59maintaining quality. It gave me more
4:51:01room to overd deliver and I netted a
4:51:03major benefit, referrals. Customer
4:51:06expectations are fickle. That's why we
4:51:08set the expectations for them. And if we
4:51:11set those expectations, then we can
4:51:13exceed them. Action step. Slowly lower
4:51:16the promises you make when making
4:51:17offers. Keep lowering them until your
4:51:20close rates lower. At that point, stop.
4:51:22This maximizes how many customers you
4:51:25get and the goodwill you build with
4:51:26them. Maximize customers, and more
4:51:29goodwill means more referrals. Increase
4:51:32perceived likelihood of achievement get
4:51:34more people better results. The
4:51:36customers with the best results get the
4:51:38most value from your product. Figure out
4:51:40what they do to get the most value. And
4:51:43you can help your other customers do the
4:51:44same. Two steps ago, to sell better
4:51:47customers, we figure out who the best
4:51:49ones were. So now, to get everyone the
4:51:52best results, we figure out what the
4:51:54best ones did. Let me show you what it
4:51:56looked like at Gym Launch. We started by
4:51:58tracking customer activities, speed to
4:52:00running their first paid ad, speed to
4:52:02their first sale, their attendance on
4:52:04calls, etc. Then we compared the
4:52:07activities of our average customers to
4:52:10the activities of our best customers. We
4:52:12found out something huge. If a gym owner
4:52:15ran paid ads and made a sale in the
4:52:18first 7 days, their LTGP tripled. Once
4:52:21we realized this, we focused on getting
4:52:23everyone to launch ads and make sales in
4:52:26the first seven days. The results of our
4:52:28average customers skyrocketed. More
4:52:30customers, more testimonials, and more
4:52:33referrals followed. Here's the process I
4:52:35used to get more people better results.
4:52:38Step number one, survey customers to
4:52:40find the ones who got the best results.
4:52:43Step number two, interview them to find
4:52:45out what they did differently. Step
4:52:47number three, look at the actions they
4:52:49had in common. Step number four, force
4:52:52new customers to repeat the actions that
4:52:54got the best results. Step number five,
4:52:57measure the improvement in average
4:52:59customer results, speed, and outcome.
4:53:02Step number six, match the conditions of
4:53:04your guarantee to the actions that get
4:53:06the best results to get more people to
4:53:08do them. Pro tip, make the success
4:53:10activities the conditions of your
4:53:12guarantee. Do not do this if you hate
4:53:15money and helping people. As soon as you
4:53:18start getting customers results, know
4:53:20what they did. Then start guaranteeing
4:53:22new customers those results. But do it
4:53:25on the condition they do what the best
4:53:27customers did. The guarantee sells more
4:53:30people. The conditions get them better
4:53:32results. You win, they win. Action
4:53:35steps. Figure out what the best people
4:53:37did, then get everyone to do it. Make
4:53:39your guarantees around the actions that
4:53:42create the most success. More success,
4:53:45more goodwill, more referrals. Decrease
4:53:48time delay make faster wins. I define a
4:53:51win as any positive experience a
4:53:53customer has. Faster wins increase their
4:53:57perception of speed, increase the
4:53:59likelihood they'll stick, and increase
4:54:01how much they trust you. Triple win. To
4:54:03make wins feel faster, we give them wins
4:54:06more often. Let's imagine you have a
4:54:08product that takes a week to deliver.
4:54:10The customer can get one win at the end
4:54:12of that week or win every day with daily
4:54:15progress updates. Same amount of
4:54:17progress, seven times the wins. On top
4:54:20of that, if someone said seven things
4:54:22would happen and all seven do, I trust
4:54:25them even more. Referring a friend is
4:54:28now lower risk since seven promises were
4:54:30made and all seven were kept. Here's
4:54:33five ways I make wins happen faster in
4:54:36the real world. If I have seven small
4:54:38things to deliver, I deliver them at
4:54:41shorter intervals rather than all at
4:54:42once. Updates are wins. If it's a bigger
4:54:45project, I share progress updates as
4:54:48frequently as possible. You can never
4:54:50give someone too much good news. And
4:54:52regular updates, progress or not, is
4:54:55better than leaving your customers
4:54:56hanging. Customers form their lasting
4:54:58impression of a business within the
4:55:00first 48 hours after they buy. Force a
4:55:03good impression. Force as many wins as
4:55:06you can in that window. Set many
4:55:08expectations. Meet many expectations.
4:55:11Repeat. They should always know the next
4:55:13time they'll hear from you. I got a
4:55:15slick saying from a public CEO friend of
4:55:17mine. Bam. Book a meeting from a meeting
4:55:20again. Never leave a customer in no
4:55:22man's land. They should always know what
4:55:24happens next. Never expect customers to
4:55:27forgive you ever. So act like it. For
4:55:30example, you can deliver early but never
4:55:33late. I add 50% to my timelines so I
4:55:37always deliver early. That makes on time
4:55:39for me early for them. Action step.
4:55:42Break down outcomes into the smallest
4:55:44possible increment. Communicate as often
4:55:46as reasonable even if there is no
4:55:49progress. Update them. Set timelines
4:55:51with breathing room. Deliver early. More
4:55:54customer wins means more goodwill. And
4:55:57more goodwill means more referrals.
4:56:00Decrease effort and sacrifice. Keep
4:56:02making your stuff better. If the
4:56:04customer does less stuff they hate to
4:56:06benefit from your product, you've made
4:56:08it better. If the customer gives up
4:56:10fewer things they love to benefit from
4:56:13your product, you've made it better. And
4:56:15there's no such thing as a perfect
4:56:17product. You can always make it better.
4:56:19And the easier you make it for them to
4:56:20benefit, the more goodwill you get and
4:56:23the more likely they'll refer. Here's my
4:56:25process to keep making my stuff better.
4:56:27Step number one, use customer service
4:56:30data, surveys, and reviews to find the
4:56:32most common problem with your product.
4:56:34Step number two, figure out your fix. To
4:56:37get a head start, get feedback from the
4:56:39customers who made your product work for
4:56:41them despite the problem it has. Step
4:56:43number three, use that feedback to
4:56:45improve your product. Step number four,
4:56:48give the new version to a small group of
4:56:50your struggling customers. Step number
4:56:53five, get your next round of feedback.
4:56:55If you solve the original problem, then
4:56:58roll it out to all customers. If it
4:57:00didn't, go back to step number two. Step
4:57:03number six, move to the next most common
4:57:05problem and repeat the process. Do this
4:57:08until the end of time. Action step, keep
4:57:11making your stuff better. Survey, make
4:57:13changes, implement, measure, repeat. I
4:57:17run this process every month. Set this
4:57:20as a recurring monthly process. A
4:57:22product that takes less effort and fewer
4:57:24sacrifices means more goodwill. And more
4:57:28goodwill means more referrals. Six call
4:57:31to action. Tell them what to buy next.
4:57:33If you have an amazing product, they'll
4:57:35want more. You have to satisfy their
4:57:37desire to buy. If you don't, they'll
4:57:39still buy, but from someone else. Don't
4:57:41let that happen. Sell them again. You
4:57:44can either sell them a new thing or more
4:57:46of the thing they just bought. In either
4:57:48case, you'll get even more goodwill and
4:57:50extend the lifetime of the customer. And
4:57:53besides, the more stuff they can buy,
4:57:55the more stuff they can refer their
4:57:57friends to. For example, in a weight
4:57:59loss company we know, lots of customers
4:58:02referred friends to their first tier
4:58:04product, but some didn't. A lot of those
4:58:06customers who didn't refer to the first
4:58:08product when they bought their more
4:58:10expensive thing referred their friends
4:58:12to that. So, you got to keep selling. In
4:58:14my experience, people obsess over their
4:58:17front-end offers, and that makes sense,
4:58:19but then they neglect the back end and
4:58:22customers fall off. And customers that
4:58:24fall off your product are unlikely to
4:58:26refer. So, keep selling them so they
4:58:29don't. Action step, treat every customer
4:58:32like it's the first time you sold them.
4:58:33Make sure your next offer is more
4:58:35compelling than your first. Remind them
4:58:37to buy more after each big win. More
4:58:40things to buy means more opportunities
4:58:42to add even more value. More value means
4:58:46more goodwill. And more goodwill means,
4:58:48you guessed it, more referrals. One
4:58:50question to rule them all. Let's
4:58:52consolidate these six steps into one
4:58:55thought experiment. I encourage you to
4:58:57try it out with your team. Here it is.
4:58:59You've lost all your customers but one.
4:59:02The gods of advertising ban you from
4:59:04doing the core four and decree. All
4:59:06customers must come from this one
4:59:08customer. Violate our terms and we will
4:59:11destroy your business and every other
4:59:13business you start for eternity. Tough
4:59:15break. But the question remains, how
4:59:18would you treat this customer? What
4:59:20would you do to make their experience so
4:59:23valuable they would send all their
4:59:25friends? What kind of results would they
4:59:27need to get? What would their onboarding
4:59:28be? What type of customer would you
4:59:30pick? Think about it right out. Your
4:59:33business depends on it. Then do its
4:59:35smiley face. Start acting like the
4:59:37advertising gods will revoke your core
4:59:40four privileges at any moment. Soon
4:59:43you'll see you have no choice but to
4:59:45start adding more value to get more
4:59:47customer referrals. Now that we covered
4:59:49that, do you want to know how you can
4:59:51get even more referrals? Ask for them.
4:59:53Referrals, ask for them. Do you know why
4:59:56businesses have so few referrals
4:59:58compared to what they could have? They
5:00:00never ask for them. Your customers, like
5:00:02any audience, can only know what to do
5:00:05if you tell them. Now, I've tried a lot
5:00:07of referral strategies. Most failed, and
5:00:10I struggled until I had this epiphany.
5:00:13Asking for referrals only works when you
5:00:15treat it like an offer. The referrals
5:00:18come when you show the value the
5:00:20customer gets when they refer their
5:00:21friends. Let me give you two quick case
5:00:23studies to show the power of asking for
5:00:25referrals. Case study number one,
5:00:28Dropbox gave free storage to customers
5:00:30and free storage to the friends they
5:00:32referred. The referral program went
5:00:34viral and they 39x their business in 15
5:00:38months. Case study number two. PayPal
5:00:41gave $10 in credit to customers and $10
5:00:45to the friends they referred. Within 2
5:00:47years, the program helped them reach a
5:00:50million users and 6 years later they hit
5:00:53100 million users. They still use it
5:00:55today. So, how do we harness the same
5:00:58viral growth in our own small
5:01:00businesses? We do what they did. We
5:01:02asked for it. Seven ways to ask for
5:01:04referrals. There are three components to
5:01:07a referral program. How you give the
5:01:09incentive, what you incentivize with,
5:01:11and how you ask. Rather than give you a
5:01:13100 variations that may or may not work,
5:01:16here are the seven combos that worked
5:01:17best for me. One, one-sided referral
5:01:20benefit. I'd rather pay customers than a
5:01:22platform any day of the week. Pay your
5:01:25average cost to acquire a customer to
5:01:27the refer or the friend. Make them aware
5:01:30of the incentive. X. Imagine it costs
5:01:33$200 to get a new customer. Ask the
5:01:36current customer to make an actual
5:01:37three-way introduction to a friend by
5:01:40call, SMS, or email, not just a name and
5:01:43number. Also, ask them to do it right
5:01:46when they buy. Don't wait. Then, write
5:01:48them a check for $200 when their friend
5:01:50signs up or give their friend $200 off.
5:01:53X. This works great for spouses because
5:01:55they both basically get the benefit.
5:01:58always ask for the spouse and give a
5:02:00household discount. Two two-sided
5:02:02referral benefits. This is what Dropbox
5:02:05and PayPal used. We pay our CAC to both
5:02:08parties. Half goes to the referer in
5:02:10credit or cash and half goes to the
5:02:13friend in credit. This way they both
5:02:16benefit. X we sell $500 programs. Our
5:02:20cost to get a customer is $200. For
5:02:23every friend someone refers, we give
5:02:25them $100 cash and give their friend
5:02:28$100 off signing up. Good for up to
5:02:30three friends. This worked really well
5:02:33for my local businesses. Pro tip, run
5:02:35your paid ads for free. In our service
5:02:38businesses, we routinely get an
5:02:40additional 25 to 30% of signups as
5:02:43referrals. if we asked for a referral
5:02:46right when they signed up. So if we
5:02:48signed up 100 clients for a promotion,
5:02:50we would usually get another 25 to 30
5:02:53clients from referrals. And since we
5:02:55always operate above 3:1 LTGP to CAC,
5:02:59the cash from referrals often cover the
5:03:01cost of the ads and some bingo bango.
5:03:05Three, ask for a referral right when
5:03:07they buy. on the sales contract or
5:03:10checkout page. Ask for some names and
5:03:12phone numbers of people they'd like to
5:03:14do this with. Show them how they will
5:03:16get better results when they do it with
5:03:17a friend. X. I had a new salesman come
5:03:20into one of my portfolio companies and
5:03:22shatter all the sales records for an
5:03:24upcoming event. We didn't know what was
5:03:26going on, so I hopped on the phone with
5:03:28him. How are you selling more tickets
5:03:30than everyone else? He shrugged and
5:03:32said, I'm doing the same thing as
5:03:35everyone else. I just make sure I ask
5:03:37them who else they want to have come
5:03:38with them. Then ask them to introduce
5:03:40me. Half his sales were referrals. So
5:03:43simple and yet no one does it. Scripting
5:03:46example. People who do our program with
5:03:48someone else tend to get 3x the results.
5:03:51Who else could you do this program with?
5:03:52Pro tip. Not if, but who. Once someone
5:03:55is a customer, be more direct with your
5:03:57ask. Don't ask if they know someone, ask
5:04:00who they know. Four, add referrals as a
5:04:03negotiation chip. On top of that, you
5:04:06can ask for referrals as a way to
5:04:08negotiate a lower price. In other words,
5:04:11if someone wants to pay $400 and your
5:04:13price is $500, you can give them the
5:04:15discount in exchange for an introduction
5:04:17to three friends. You can ethically
5:04:19charge a different price for the same
5:04:21thing because you changed the terms of
5:04:23the sale. X I can't do anything less
5:04:26than $500 down, but if you make a
5:04:28three-way text introduction to a few of
5:04:30your friends right now, I'd be happy to
5:04:32cut that initiation fee. And to address
5:04:35the question you didn't ask. If a full
5:04:38price customer finds out you gave
5:04:39someone else a discount, which I've had
5:04:41happen, here's all you say. Yeah, Stacy
5:04:44got $100 off because she referred three
5:04:46friends. I'm happy to give you $100 if
5:04:49you refer me three friends. Who do you
5:04:51have in mind? They either back off or
5:04:54they give you three friends. Win-win.
5:04:56Five, referral events, where people get
5:04:59points, credits, dollars, or even just
5:05:02bragging rights for bringing friends
5:05:03within an explicit time period. Referral
5:05:06events typically last from 1 to 4 weeks.
5:05:09Whenever you run one of these events,
5:05:11sell everyone on the benefits of working
5:05:13with others. Use some stats, internal or
5:05:17external, to show high success rates and
5:05:19the selfish benefit to bringing friends.
5:05:22I use names like bring a friend
5:05:24promotion, spouse challenge promotion,
5:05:27accountability buddy promotion, coach
5:05:30challenge promotion where you create
5:05:32teams with your employees and customers.
5:05:34This works well in coaching style
5:05:36businesses. Six, ongoing referral
5:05:39programs. Instead of running a limited
5:05:41duration referral promotion, you talk
5:05:44about the benefits of doing things with
5:05:45others all the time. Think in your free
5:05:48content, outreach, paid ads, etc. After
5:05:52a buddy did this, he saw a 33% boost in
5:05:55total signups. For context, he had 1
5:05:59million customers buy tickets to his
5:06:01virtual event and 250,000 of them were
5:06:04referred. This stuff works. Seven,
5:06:07unlockable referral bonuses. Create
5:06:09bonuses for people who one, refer, and
5:06:12two, leave a testimonial. A few
5:06:15examples. Unlock VIP bonuses, courses,
5:06:19tokens, status, training, merchandise,
5:06:22service levels, premium support,
5:06:24additional hours of service, etc.
5:06:27Unlockable referral bonuses work well if
5:06:29you don't like paying out cash. The
5:06:31bonuses can also be for both parties if
5:06:34you like since they cost you less than
5:06:35cash. Visit the lead magnet section for
5:06:38some extra inspiration. As always, the
5:06:41more insane you make the offer, the more
5:06:43people will refer. If you want them to
5:06:45refer, make it so good they'd be stupid
5:06:48not to. You're only limited by your
5:06:50creativity. Here's what it looks like to
5:06:52combine a few of the strategies above
5:06:54into a killer referral promotion. Give
5:06:57everyone a gift card for 1/3 the cost of
5:06:59their program. Tell them they can give
5:07:01it to a friend of theirs if they sign up
5:07:03with them. Give a gift card an
5:07:05expiration date within 7 to 14 days from
5:07:08the date you give it to them. It will
5:07:10force them to use it. This gives the
5:07:12refer status when they give it to their
5:07:13friend. Rather than saying, "Hey, join
5:07:16my program for $2,000 off." They say, "I
5:07:19got this gift card for $2,000. Do you
5:07:21want it? I don't want to waste it." It's
5:07:24seen as a much bigger deal for them and
5:07:26you. You can still use the three-way
5:07:28introduction with this tactic. Then text
5:07:30a picture of the gift card. Bonus points
5:07:32if you write the friend's name on it
5:07:33before texting the picture. It makes it
5:07:36feel personalized and gives you a
5:07:38legitimate reason for asking for their
5:07:40friend's name. Wink. PS. You can also
5:07:43sell the gift cards at 90% off as
5:07:45purchasable gifts only for friends of
5:07:48customers. The referer looks like they
5:07:50spent a lot of money and you get paid to
5:07:52get new customers. I can hardly think of
5:07:54a better way to make money. Again, the
5:07:57only limit is your creativity. Pro tip.
5:08:00Match the thing you give with the thing
5:08:02you sell. If you don't want to give away
5:08:03money, try to match the referral
5:08:05incentive to the core product you sell.
5:08:08For example, if you have a t-shirt
5:08:10manufacturing company, giving away free
5:08:12t-shirts makes a lot of sense because
5:08:14your incentive will attract people who
5:08:16actually want t-shirts and they're more
5:08:18likely to become paying customers. Hint,
5:08:22that's why the gift card works so well.
5:08:24On the other hand, if you give away an
5:08:26amazing limited edition t-shirt for your
5:08:29IT services business, it may or may not
5:08:31attract people who want IT services. So,
5:08:35try to match the thing you give with the
5:08:36thing you sell. Conclusion: referrals
5:08:39aren't an advertising method you can do.
5:08:41It's not one trick or hack, although we
5:08:43learned some of those. It's a way of
5:08:45doing business, and it starts with you.
5:08:48After all, referring is always a risk
5:08:50for the customer. They risk their
5:08:52goodwill with their friend in the hopes
5:08:53of getting more by showing them
5:08:55something cool, your stuff. So,
5:08:57customers only refer when they think
5:08:59it's very likely their friend will have
5:09:01a good experience. In other words, when
5:09:04the benefits to them personally outweigh
5:09:06the risk of hurting the relationship
5:09:08with their friend. So, we add benefits
5:09:10for them and their friends with
5:09:12incentives. And we lower the risk by
5:09:14building goodwill, showing we deliver on
5:09:16our promises. And we do that by using
5:09:19the six ways to give your customers more
5:09:21value. Now, don't get me wrong, building
5:09:23goodwill does a fantastic job of getting
5:09:26referrals on its own. But if we're
5:09:28smart, which we are, we capitalize on
5:09:30that goodwill. So, we can get even more
5:09:33referrals by using the seven ways to ask
5:09:36for them. Few. So, give more than you
5:09:38get and you'll never go hungry again.
5:09:40This is how we treat our customers. Do
5:09:43this and you can monetize Goodwill
5:09:45forever. To keep this in perspective, I
5:09:48always remind myself I am compensated
5:09:51tomorrow for the value I provide today.
5:09:54Action items. Figure out your referral
5:09:56percentages and churn percentages to set
5:09:59a baseline. Implement the six giving
5:10:02value steps to build goodwill. Then
5:10:04capitalize on that goodwill using one or
5:10:07more of the seven ways to ask for
5:10:09referrals. Next up, so now we have to
5:10:12figure out how to scale a team. It looks
5:10:14like we'll have to call out potential
5:10:15teammates, show them the value of
5:10:17joining the team, then ask them to join.
5:10:20Wait, that sounds familiar. But
5:10:22seriously, if you really want a $100
5:10:24million leads machine, buckle up. The
5:10:27most valuable chapter in the book is
5:10:28coming up next. Employees. For real,
5:10:31this isn't a boring chapter, and you're
5:10:34going to need them if you want to make
5:10:35the big money. Number two, employees. If
5:10:37you want to go fast, go alone. If you
5:10:40want to go far, go together. African
5:10:42proverb. June 2021. The new sales
5:10:46director piped up. I know we came in
5:10:48under our goal again, but I don't think
5:10:49we need to change anything. We'll hit it
5:10:52this quarter. Eyes darted around the
5:10:54room and looked in every direction but
5:10:56mine. The silence was long enough for
5:10:58the executive assistant to mark the
5:11:00topic covered and move on. No wonder we
5:11:03missed our cold outreach goal for the
5:11:05second quarter in a row. Nobody
5:11:07challenged the failure. What? So now we
5:11:10think the third time's a charm. Wait, I
5:11:12said. Now everyone looked in my
5:11:14direction. I'd like to know why we
5:11:16didn't hit this two quarters in a row. I
5:11:18know we can sell. So if we want to make
5:11:20more sales with cold outreach, then we
5:11:22do more cold outreach. What's the issue?
5:11:25We lose a rep every four weeks, the
5:11:28sales director said. Uh-huh. Okay. Why
5:11:30is our churn so high? I was wondering
5:11:32the same thing, but HR says we're
5:11:35actually below industry average churn
5:11:37for this position. he continued. But by
5:11:39the time we hire an onboard one, another
5:11:42churns out. I saw the HR director
5:11:45nodding in agreement, getting warmer.
5:11:47Okay, so the issue is hiring. I said, so
5:11:51what's the hiring situation look like?
5:11:53We hire one out of every four candidates
5:11:56HR pushes to us. So if they turn out as
5:11:59fast as we hire them, and you only hire
5:12:02one out of every four, that means you
5:12:04only get like one candidate a week.
5:12:06Yeah, about that. Almost there. Gotcha.
5:12:09Now, I looked at the HR director. What's
5:12:11the screening situation look like? We
5:12:14get one qualified candidate per 10
5:12:16screening interviews. Give or take? She
5:12:19said, "So, if it takes 40 interviews to
5:12:22get a single low skill frontline worker,
5:12:25I guess so. Bingo. All right. We need to
5:12:28change things up." I said, "We're
5:12:30bottlenecked at the one-on-one
5:12:32screening. Start interviewing in groups
5:12:34and look for crazies there. Push
5:12:37everyone else with a good work ethic and
5:12:39basic social skills over to sales. We
5:12:41can teach the rest. Agree? The team
5:12:44nodded. Within 6 weeks, hiring outpace
5:12:47churn. Our cold outreach sales increased
5:12:49in lock step. By the end of the quarter,
5:12:52cold outreach sales had doubled and made
5:12:54up more than half our total sales. The
5:12:57issue wasn't our cold outreach method.
5:12:59Skills are offered all. We just didn't
5:13:02have enough people doing cold outreach.
5:13:04If you use the methods in this book, you
5:13:06will see more engaged leads flow into
5:13:09your business. More engaged leads means
5:13:12more customers. But as you grow, so does
5:13:14your workload. In due time, it will take
5:13:17more work than any single person can
5:13:19handle. And you can solve the problem of
5:13:21too much work for one person by having
5:13:24more people work. In short, to advertise
5:13:26more, you'll need more workers. In this
5:13:29chapter, we'll show you how employees
5:13:30work, why they make you wealthy, how to
5:13:33get them, and the method I use to turn
5:13:35them into lead getters. How employees
5:13:38work. Lead getting employees are people
5:13:40working in your business that you train
5:13:42to get you leads. They get you lead the
5:13:44exact same way you got your own leads in
5:13:46the beginning. They can run ads, they
5:13:48can make and post content, and they can
5:13:50do outreach. They can do any advertising
5:13:53you train them to do. So more lead
5:13:55getting employees means more engaged
5:13:57leads for your business. It also means
5:14:00less work you have to do to get the
5:14:02leads. More leads and less work. Sign me
5:14:05up. But wait, not so fast. Don't get me
5:14:08wrong, employees take work. They just
5:14:11take less time and work than doing
5:14:13everything on your own. In my
5:14:15experience, if you trade 40 hours of
5:14:17doing for 4 hours of managing, you work
5:14:2036 hours less. Brilliant. And the best
5:14:23part is you can make that trade over and
5:14:25over. You can swap 200 hours of work per
5:14:28week for 20 hours of management. Then
5:14:31you trade the 20 hours of managing for a
5:14:33manager who costs you 4 hours per week
5:14:36to lead. What remains is 4 hours of work
5:14:38for 200 hours of lead getting. Boom.
5:14:41Bottom line. Employees make a fully
5:14:44functioning enterprise that grows
5:14:46without you. Why employees make you
5:14:48wealthy? For your business to run
5:14:50without you, other people need to run
5:14:52it. Scenario number one. Imagine you
5:14:54have a business that makes $5 million
5:14:56per year in revenue and $2 million in
5:14:59profit. And to make that profit, you
5:15:02have to work around the clock. In this
5:15:04situation, you basically have a
5:15:06highpaying job. But let's say you're
5:15:08okay with working all hours and knowing
5:15:11your business would burn down if you
5:15:13took a vacation. Vacations are for
5:15:15losers anyways. Kitting cough sort of.
5:15:17We still have another important thing to
5:15:19look at. Sure, you make a bit of money,
5:15:22but your business isn't worth much. If
5:15:24the business only makes money with you
5:15:26in it, then it's a bad investment for
5:15:28anyone else. That may not sound like a
5:15:30big deal right now, but let's consider
5:15:32an alternative. Scenario number two.
5:15:35Your business makes the same $5 million
5:15:38in revenue and $2 million in profit. But
5:15:41there's one big difference. The business
5:15:43runs without you. This does two very
5:15:45cool things. One, it turns what used to
5:15:48be a risky job into a valuable asset.
5:15:51And two, it makes you much wealthier.
5:15:54Here's how. First, you get your time
5:15:56back so you can use that time to invest
5:15:58in your business, buy other businesses,
5:16:00or take your stinking vacations. Second,
5:16:03you become much wealthier because your
5:16:05business is now worth something to
5:16:07someone else. You turn a liability that
5:16:10relied on you into an asset you can rely
5:16:12on. If you have an asset that makes
5:16:15millions of dollars without you, then
5:16:17that means somebody else could use it to
5:16:19make millions of dollars without them.
5:16:21In other words, your business is now a
5:16:23good investment. Then investors looking
5:16:25for assets like Acquisition.com, for
5:16:28instance, would buy some or all of it
5:16:30from you. And your $2 million in profit
5:16:32per year, especially if it's climbing,
5:16:35could easily be worth $10 million plus
5:16:37right now. So, your business went from
5:16:39having almost zero value to having $10
5:16:42million of value. So, learning how to
5:16:45get other people to do it for you makes
5:16:47a $10 million difference to your net
5:16:49worth. I'd say it's worth learning how
5:16:51to do it. Reminder, you get rich from
5:16:54what you make. You become wealthy from
5:16:56what you own. And it took me years to
5:16:58realize this because not that long ago,
5:17:01everything I thought I knew about
5:17:02employees was wrong. Have you ever heard
5:17:05if you want it done right, you got to do
5:17:06it yourself? No one can do it like I do
5:17:08it. Nobody can replace me. I have. I
5:17:11said all that stuff. I lived all that
5:17:13stuff for years. Every time I hired
5:17:16somebody, I would compare what they
5:17:18could to what I could do. In my head, I
5:17:20felt like it was me against them to
5:17:22somehow prove I it was the more able one
5:17:25with my own team. And this belief, this
5:17:28way of leading people never made me more
5:17:31money. For business, nobody can do it
5:17:34but me. And if you want something done
5:17:36right, you got to do it yourself. Aren't
5:17:38facts, they're false. Somebody did
5:17:40similar stuff before you were around.
5:17:43And somebody will continue doing some
5:17:45version of it after you're gone in one
5:17:47way or another. Everyone is replaceable.
5:17:50It might be by multiple people,
5:17:52technology, or later in time, but
5:17:54everyone can be replaced. My suggestion,
5:17:57replace yourself as soon as you can.
5:18:00Then you can make yourself useful
5:18:02somewhere else. Many other people
5:18:04figured this out, and so can you. In the
5:18:06early days, whenever I started a
5:18:08business, I could do stuff better than
5:18:10the people I hired. My entire workforce
5:18:13always ended up looking like a ragtag
5:18:15group of misfits who could kind of do
5:18:17one of the many things I could do. This
5:18:19got me up and running at first, but I
5:18:21fell into the trap of believing I was
5:18:23better than everyone else. I would go
5:18:26back and forth between gloating because
5:18:28I was better than them and complaining
5:18:30because they weren't as good as me. And
5:18:32for whatever reason, it never occurred
5:18:34to me I was the one who hired and
5:18:36trained them. Who was I kidding? The
5:18:38reality was twofold. First, I didn't
5:18:41have the skills to train or lead a team
5:18:43properly. Second, I was too poor. And
5:18:46then, when I had a little money, too
5:18:48cheap to hire anyone better. In other
5:18:50words, it was my fault they sucked.
5:18:52Oops. The more I tried to out compete my
5:18:55employees, the more distracted I became
5:18:58and the worse my business got. Sure, at
5:19:00the time maybe I could do anything
5:19:02better than any of my employees, but I
5:19:05couldn't do everything better than all
5:19:07my employees. And when I finally
5:19:09realized this, I started adopting better
5:19:11beliefs about talent. If you want it
5:19:13done right, get someone to spend all
5:19:15their time doing it. If I can do it,
5:19:18someone else can do it better. Everyone
5:19:20is replaceable, especially me. These new
5:19:23beliefs about talent not only made a
5:19:26much healthier culture in my businesses,
5:19:28but also came with very profitable side
5:19:30effects. Trusting my employees to
5:19:33succeed made my time and attention far
5:19:36more valuable. If somebody else could do
5:19:38it, why would I? If somebody else could
5:19:39train them, why would I? If I could
5:19:41learn other stuff to grow the business
5:19:43while my team held the four down, it
5:19:45makes way more sense to do that. So,
5:19:47let's do that. How to get employee
5:19:49leads. The internal core four. Remember
5:19:52the core four? Well, they work for
5:19:54getting employees, too. Imagine that. By
5:19:56changing the frame from letting
5:19:58potential customers know about your
5:20:00stuff to letting potential employees
5:20:02know about your stuff, it immediately
5:20:05turns into something you already know
5:20:07how to do. But some people also have the
5:20:09opposite problem. They already know how
5:20:11to get employees just fine, but still
5:20:13struggle to get customers. Employees are
5:20:16just other people you let know about
5:20:18your stuff. So, you do the same thing.
5:20:20Line up the actions to get employees
5:20:22with the actions to get customers. It's
5:20:25the same stuff. Customers, employees,
5:20:28warm outreach, asking your network, cold
5:20:30outreach, recruiting, post content,
5:20:32posting, job openings, paid ads,
5:20:35promoting job postings, customer
5:20:38referrals, employee referrals,
5:20:40affiliations, guilds, list serves, etc.
5:20:44Agencies, staffing firms, etc.
5:20:46Employees, employees, unchanged. The
5:20:49ways you get employee leads and their
5:20:51lead getters have equivalents to the
5:20:53ways you get customer leads and their
5:20:55lead getters. So when you need to get
5:20:57new talent, you just advertise to get
5:20:59it. And when you need more, you do more.
5:21:02And like creating a reliable process to
5:21:04get customers, you can also create a
5:21:07reliable process of getting employees.
5:21:09And you'll need both to scale. How to
5:21:11get employees to get you leads. Now you
5:21:14hire someone who costs you money every
5:21:16month. Great. Let's make sure you make
5:21:18it back and some ASAP. Note, some people
5:21:22looking for work will already know how
5:21:24to get leads. Those people are awesome.
5:21:26You can also count on them to cost more.
5:21:28And if you're starting out, you may not
5:21:30be able to afford them. So, your next
5:21:33best option is to train them.
5:21:35Thankfully, you have an entire book of
5:21:37lead getting at your fingertips. So, the
5:21:39next step is training your employees on
5:21:41how you do those leadetting activities.
5:21:44I think about and actually approach
5:21:46training with this 3DS mental model.
5:21:49Document, demonstrate, duplicate. Here's
5:21:51how it works. Step one, document. You
5:21:54make a checklist. You already know how
5:21:56to do the thing. Now you just need to
5:21:58write down the steps exactly as you do
5:22:00it. You can also have other trusted
5:22:02observers watch you and document what
5:22:04you do. Bonus points if you record
5:22:06yourself doing the thing multiple ways
5:22:09and in multiple shifts. This way, you
5:22:11can watch yourself as an observer rather
5:22:14than breaking your flow by pausing to
5:22:16take notes while you go. Once you've got
5:22:18everything put into the checklist, bust
5:22:19it out on your next work block, and only
5:22:22follow those steps. Can you do an A+ job
5:22:25only following your directions exactly?
5:22:28If you can, you have the first draft of
5:22:30your checklist for the job. Step two,
5:22:32demonstrate. You do it in front of them,
5:22:34just like your parents taught you how to
5:22:36tie your shoes. You sit down and walk
5:22:38them through the checklist step by step.
5:22:41This may take a while depending on how
5:22:43many steps it takes to complete the
5:22:44thing. If they stop you or slow you down
5:22:47to understand something, adjust your
5:22:49checklist for that. Now you have the
5:22:51second draft ready for them to try. Step
5:22:54three, duplicate. They do it in front of
5:22:56you. Now it's their turn. They follow
5:22:58the same checklist you followed, except
5:23:01this time they're the one doing and
5:23:03you're the one observing. We just want
5:23:05them to duplicate what we did. So, if
5:23:07the checklist is right, the outcome will
5:23:09be the same. And if the checklist is
5:23:11off, you'll find out fast. Fix your
5:23:14checklist until it's right. Then have
5:23:16them follow it until they get it right.
5:23:18And once they nail it, you now have a
5:23:20bonafide lead getter on your payroll.
5:23:23Congratulations. Pro tip, give short
5:23:26windows for people to prove themselves.
5:23:28Most entry-level advertising jobs aren't
5:23:31complex. It takes grit more than skill.
5:23:34If you train someone properly and
5:23:36they're still below expectations three
5:23:38weeks in, cut them. After you train your
5:23:40first few employees this way, you'll
5:23:43have worked out the kinks for that job.
5:23:45And it's pretty smooth sailing from
5:23:47there. At least the training part
5:23:48anyways. Think about it this way. If you
5:23:51vanish tomorrow, could a stranger get
5:23:53the results you get if they only
5:23:55followed your checklist? That's the
5:23:57level of clarity to shoot for. Some
5:23:59helpful notes on training. A helpful way
5:24:01to look at this training style is if
5:24:04they get it wrong or get confused, then
5:24:06we got it wrong or made it confusing. If
5:24:09we have to explain what a step means,
5:24:11then the step is too complicated. Or
5:24:14more likely, we try to put multiple
5:24:17steps into one. If they only appear to
5:24:19get it after a longish explanation or
5:24:22multiple demonstrations, then again,
5:24:24we've got some work to do. Business
5:24:26owners that ignore this run into chronic
5:24:29training problems. And word to the wise,
5:24:32you can probably force an inferior
5:24:34checklist of work, but this turns into a
5:24:36nightmare when somebody else takes over
5:24:38your training for you. There is a
5:24:40difference between competence and
5:24:42performance. In other words, they can
5:24:44know exactly what to do and not be that
5:24:46good at it yet. If that's the case, then
5:24:49your instructions are fine and they just
5:24:51need practice. Using an analogy from the
5:24:53fitness world, think slow then smooth
5:24:56then fast. You don't need to change
5:24:59anything. They just need more reps.
5:25:01Focus on your employees ability to
5:25:03follow directions more than whether they
5:25:05get the right result. This is super
5:25:07important because if you train your
5:25:10employees to follow directions, then
5:25:12they will follow directions. And if they
5:25:15follow directions and get the wrong
5:25:17result, then you know it's the
5:25:18directions. That's good. You have a lot
5:25:21more control over that. Every time they
5:25:23do a step successfully, let them know
5:25:25they did it right. And if they respond
5:25:27to praise, praise them. And if they
5:25:29goof, that's okay, too. That's what
5:25:32training is for. Don't take over for
5:25:34them when they mess up. Simply pause,
5:25:36take a step back, and let them try it
5:25:38again. Fast feedback cycles to get
5:25:41people to learn faster. If they follow
5:25:43your directions exactly and get the
5:25:46wrong result, still praise them for
5:25:48following the directions. Praise them.
5:25:50Then make the corrections to your
5:25:51checklist on the spot. Avoid punishment
5:25:54or penalties of any type for doing stuff
5:25:56wrong during training. As a rule of
5:25:59thumb, reward the good stuff you want
5:26:01them to do more of and they'll do more
5:26:02of it. Learning a new skill is punishing
5:26:05enough. We don't need to add to it. It's
5:26:07hard to fix multiple things when you've
5:26:09never done something before. Give
5:26:11feedback one step at a time. Give one
5:26:14piece of feedback at a time. Practice
5:26:16until they get it right. Then move to
5:26:18the next step. Whenever there is a major
5:26:20dip from normal performance, retrain the
5:26:23team. They stop doing an important step
5:26:25in the process, often because they
5:26:27didn't know it was important. Once you
5:26:29figure out the step, reward people for
5:26:31following it going forward. How to
5:26:33calculate returns from lead getting
5:26:35employees. Excluding the cost of running
5:26:38paid ads, the cost of advertising,
5:26:40outreach, content, etc. with employees
5:26:44is almost entirely based on the amount
5:26:46of money you pay them to do it. We
5:26:48simplify this by just comparing how much
5:26:50money we spend on payroll to how much
5:26:52money the engaged leads they get bring
5:26:55in. Total payroll/total
5:26:57engaged leads equals cost per engaged
5:27:00lead. X $100,000/1,000
5:27:04leads equals $100 per engaged lead. If
5:27:07one out of 10 of the engaged leads
5:27:09become customers, then our CAC is
5:27:12$1,000.
5:27:14$100 per engaged lead X 10 engaged leads
5:27:17per customer equals $1,000 CAC. If each
5:27:21customer has an LTGP of $4,000, then you
5:27:25have an LTGP to CAC of 4:1 ratio. $4,000
5:27:29LTGP/
5:27:31$1,000 CAC equals to 4:1 ratio. For
5:27:36example, at the time of this writing, I
5:27:38get about 30,000 engaged leads per month
5:27:41at aqu.com. I run no paid ads and do no
5:27:45outreach. But the team responsible for
5:27:47creating the content that generates that
5:27:49interest is about $100,000 per month.
5:27:53This means it costs me roughly $3.33
5:27:56per engaged lead, $100,000/30,000
5:28:00leads in payroll to generate them. We
5:28:03make much more than $3.33
5:28:06per lead, so we're profitable. You can
5:28:09apply the same math to whatever
5:28:10advertising method you use. How to know
5:28:13which employees to focus on to maximize
5:28:15returns. Like we learned in run paid ads
5:28:18part two, if your cost to get a customer
5:28:20is within 3x industry average, then
5:28:23you're doing good enough. From there,
5:28:25you focus on bumping up your LTGP. If
5:28:28your CAC is more than 3x industry
5:28:30average, then you have a sales problem
5:28:32or an advertising problem. We diagnose
5:28:35this with a single question. Do my
5:28:37engaged leads have the problem I solve
5:28:39and the money to spend? If no, then
5:28:41they're not qualified. That's an
5:28:43advertising problem. If yes, then
5:28:45they're qualified and they're buying,
5:28:48but you don't have enough of them.
5:28:50Advertising problem. They're qualified,
5:28:52but not buying. Sales problem. Don't
5:28:55fire your sales guy if you got
5:28:56advertising problems. And equally, don't
5:28:59fire your advertising employees if you
5:29:01got a sales problem. That little
5:29:03question can help you identify which
5:29:06employees to focus on. But
5:29:08fundamentally, you just need to figure
5:29:09out all your costs of getting a customer
5:29:11put together. And as long as they're at
5:29:13least onethird of the profit you make
5:29:15over the lifetime, you're in good shape.
5:29:18Conclusion. The goal of this chapter was
5:29:20to shift your perspective. It's your job
5:29:23to advertise and sell the vision of your
5:29:25company. You advertise it publicly and
5:29:28privately to employees and customers
5:29:30alike. That's the job. And once you get
5:29:32good at it, you become unstoppable. I
5:29:36say this because I believe anyone can be
5:29:38taught to do ground level jobs for any
5:29:41business, advertising or otherwise. So,
5:29:44who you pick is not as important as how
5:29:46you train the ones you do. Like I've
5:29:48said throughout the book and we'll say
5:29:49again here, it doesn't take a genius to
5:29:52advertise. I'd even say hurts. We've got
5:29:55plenty more iron wills than brainiacs
5:29:57anyways. Remember, this isn't about
5:29:59brains. It's about guts. And although
5:30:02some people might be born geniuses,
5:30:04nobody is born with an iron will. After
5:30:06all, we all come out crybab. All this to
5:30:09say, having guts is a skill. And that
5:30:12means anyone can have the guts if they
5:30:14learn how. So, if you have an iron will,
5:30:17and as an entrepreneur, you probably do,
5:30:19it won't take long for you to figure out
5:30:21that you got it from your life
5:30:22experiences, you can pass those
5:30:24experiences on as lessons to anyone who
5:30:27cares enough to listen. Then, they can
5:30:30stand on your shoulders and have a
5:30:31better chance at succeeding in life. And
5:30:35you can't really know anything anyway
5:30:36until you train them well and give them
5:30:38a fighting chance to succeed out in the
5:30:40field. Plus, for low-level jobs, you'll
5:30:43never have a shortage of labor. Get
5:30:45picky when you have to make massive
5:30:47investments in hyperspecific multiple
5:30:50six-f figureure seuite employees, aka
5:30:53fancy employees. I find at this current
5:30:56stage, it's actually a better use of
5:30:57time to hire and train anyone willing.
5:31:01Then, when you find winners, and with
5:31:03this method, you will treat them well.
5:31:05Don't burn them out and give them what
5:31:07they deserve. In a land of overflowing
5:31:10leads, you'll need allies. Employees are
5:31:13among the most powerful of these allies.
5:31:16We talked about how they make you
5:31:18wealthy, how they work, how getting them
5:31:20works, how to get them, how to get them
5:31:22getting you leads, how to keep them
5:31:24getting you leads, and how to know
5:31:26you're doing a good job. And once you've
5:31:28built a system for getting people who
5:31:29get you leads, doing the core for on
5:31:32your behalf, you just need to do more.
5:31:34Author note, a word on fancy employees.
5:31:37I explicitly left out recruiting
5:31:39director level and up employees because
5:31:42you can easily qualify for
5:31:44acquisition.com without them. And once
5:31:46you do become a portfolio company, we do
5:31:48it for you. The next lead getter, the
5:31:51next stop on our advertising journey
5:31:53leads us to agencies. Yes, you can pay
5:31:56people to shortcut your path. I have
5:31:58paid zillions of dollars to agencies and
5:32:01I believe I've finally cracked the code
5:32:03on how to create a win for all parties
5:32:06for us. so we're not dependent on them
5:32:08forever for them so they can make more
5:32:10profit and provide more value to their
5:32:13customers. They've been key to many
5:32:15breakthroughs I've had. So you won't
5:32:17want to skip this next one. Number
5:32:19three, agencies. Everything is for sale.
5:32:22Summer 2016. I wasn't a tech guy. I was
5:32:26a fitness guy who had learned a few
5:32:28marketing and sales tricks building my
5:32:30gyms. But now I had five and was
5:32:33launching my sixth. It was time to level
5:32:35up. Facebook had just released some new
5:32:37features, retargeting, interest groups,
5:32:40pixels, etc., and I didn't understand
5:32:42any of it. I bought a few courses, but
5:32:45ended up more confused than when I
5:32:47started. I asked a few friends if they
5:32:49knew anyone who could help. I got two
5:32:51referrals. Both were agencies. I was
5:32:54scared. I had never used one before. I
5:32:57had only ever heard horror stories about
5:32:59advertising agencies, mostly that they
5:33:01cost a ton and never work. But then I
5:33:04realized that even if they did work, I'd
5:33:06need them forever. They'd have my
5:33:08business by the balls. It turns out my
5:33:11expectations weren't far off. They
5:33:13offered to run my ads all right for an
5:33:15arm and a leg. Money I couldn't justify
5:33:17spending with my low margins. But then
5:33:20again, my advertising costs were killing
5:33:22me. And at this rate, in a few months, I
5:33:25wouldn't be able to keep my doors open.
5:33:27Stressful. I refused the first agency
5:33:30because I couldn't afford it at the
5:33:32time. The second call started going the
5:33:34same way. I began to panic. How am I
5:33:36going to fix this? In what felt like a
5:33:38lastditch effort to stay in business, I
5:33:41asked the second agency owner for what I
5:33:43really wanted. Can you just show me in a
5:33:45few hours how you would run ads on my
5:33:47account? No. He fired back. My time's
5:33:50not for sale. Worried but still hopeful.
5:33:53What sort of arrangement could we come
5:33:55to? He thought for a moment. Then his
5:33:57eyebrow shot up and a smirk appeared.
5:34:00Fine. $750 an hour. Gulp. His
5:34:04intimidation tactic worked, but at least
5:34:06I knew his time was for sale, so I
5:34:08wanted to find out more. And for $750
5:34:11per hour, you will sit down with me and
5:34:13show me how you would run my ads. Yes.
5:34:16And I'd be the one doing everything.
5:34:19Like, you'll walk me through what to do
5:34:20and look over my shoulder as I do it.
5:34:22Then you'll explain why you do it that
5:34:24way. Yeah. And you're confident you can
5:34:26make my ads more profitable. and show me
5:34:29the more advanced stuff, too, right?
5:34:31Yeah. I mean, if you want to pay me $750
5:34:35an hour, we can do whatever you want.
5:34:37It's your money, he said, half laughing.
5:34:40It sounded more like it's your funeral.
5:34:42I paused. All right, I'll do it. We'll
5:34:45meet 1 hour a week. You give me homework
5:34:47and I'll study between calls. Fair
5:34:50enough. Worked for me, but you got to
5:34:52pay for the first 4 hours up front. So,
5:34:54that's what I did. I placed a $3,000 bet
5:34:57on this guy's word that he knew what he
5:34:58was doing. Yikes. But every week
5:35:01thereafter, I showed up and like a good
5:35:03student, I came with notes and questions
5:35:05ready. I also recorded and re-watched
5:35:08every call because I didn't want to miss
5:35:10anything. The first two calls, he took
5:35:12the wheel and I watched calls three and
5:35:15four, he put me in the driver's seat. By
5:35:18calls five and six, it clicked. I got
5:35:20how he made decisions and what data he
5:35:22tracked. At seven and eight, I realized
5:35:24I didn't need his help anymore. I had
5:35:26learned how to run paid ads, at least on
5:35:28Facebook, like a pro. And if I had to
5:35:31make a guess, it was because I learned
5:35:32it from a pro. In this chapter, we
5:35:35explore a not so obvious but much better
5:35:38way to use agencies to get more leads.
5:35:40Let's get cranking. How agencies want
5:35:43you to think they work. Advertising
5:35:45agencies are lead getting service
5:35:47businesses. You pay them to run paid
5:35:49ads, do outreach, or package and
5:35:52distribute content. For example, let's
5:35:55say you want to post free video content,
5:35:57but you know nothing about making video
5:35:59content or how to distribute it. You
5:36:01need to learn how to pick video topics,
5:36:03record videos, edit videos, make
5:36:05thumbnail images, and write headlines.
5:36:08Or you need to hire the people who do.
5:36:10Enter the agency. They say they've hired
5:36:13and trained people to do that stuff
5:36:14already. So they promised faster,
5:36:17better, and more costefficient results
5:36:19than you could get on your own. And as
5:36:21soon as I had enough money, it felt
5:36:23compelling enough. After my first
5:36:25experience with an agency that I
5:36:27mentioned earlier and went quite well, I
5:36:30decided to use more. But my experience
5:36:32with the next 10 plus agencies was
5:36:34different because I used them the right
5:36:36way. Each one something like this. Step
5:36:39one, they got me excited about all the
5:36:41new leads they would bring. Step two, I
5:36:44go through an onboarding process that
5:36:46felt valuable and sometimes was. Step
5:36:50three, they assigned their best senior
5:36:52rep to my account. Step four, I saw some
5:36:55results. Step five, they move my senior
5:36:58rep to the newest customer. Step six, a
5:37:01junior rep starts managing my account.
5:37:03My results suffered. Step seven, I
5:37:06complained. Step eight, the senior rep
5:37:09would come back once in a while to make
5:37:10me feel better. Step nine, results still
5:37:13suffered and I'd eventually cancel. Step
5:37:1610, I'd search for another agency and
5:37:19repeat the cycle of insanity. Step 11,
5:37:22for the zillionth time, start wondering
5:37:24why I wasn't getting results like the
5:37:26first time. To be clear, like the
5:37:28introduction to this chapter shows,
5:37:30agencies can play a valuable role in
5:37:33business growth, but not the way they
5:37:34want you to. I don't want anyone else
5:37:37falling into the same trap. In fact, I
5:37:39hope all the money I wasted goes towards
5:37:41paying down your ignorance tax, too. So,
5:37:44keep reading. It's frankly ridiculous
5:37:46that it took me so many years to figure
5:37:48out that I actually use an agency the
5:37:50right way the first time, but now after
5:37:54playing their game so many times, I feel
5:37:57I cracked the how to use an agency code.
5:37:59And it doesn't come from playing their
5:38:00game at all. It comes from playing a
5:38:02different one. And this chapter breaks
5:38:04it all down in three steps. Hiring an
5:38:07agency versus doing it yourself. How I
5:38:10use agencies now and how you can too.
5:38:13How to pick the right agency. Hiring an
5:38:16agency versus doing it yourself. First,
5:38:20let's get this out of the way. Good
5:38:21agencies cost money. So, if you have no
5:38:24money, then agencies are out of the
5:38:26question. You've got to learn through
5:38:28trial and error, and that's no big deal.
5:38:30We all start that way. But if you do
5:38:32have some money, I suggest using
5:38:35agencies for two things. Learning new
5:38:37methods and learning new platforms. If I
5:38:40want to learn new ways to do content,
5:38:42outreach or paid ads, then I hire
5:38:45agencies offering new ways to do them.
5:38:48They've already made the big mistakes.
5:38:50So instead of wasting time figuring it
5:38:52out myself, I skip straight to the make
5:38:54money part. I like the make money part.
5:38:56I also use agencies when I want to start
5:38:59advertising on a platform I don't
5:39:01understand. I make money faster because
5:39:03they do the early setup and maintenance
5:39:05for me and because I get them to teach
5:39:06me how to do it. Hiring an agency is all
5:39:10about investing in important skills you
5:39:12can't really learn anywhere else. That
5:39:14is unless you go through all the trial
5:39:17and error to learn it yourself. And if
5:39:19you did, you lose the time and attention
5:39:22you could have used to learn the other
5:39:23important stuff that scales your
5:39:25business. And scaling your business is
5:39:27the whole point. Action step. As soon as
5:39:30you have enough money for a good agency,
5:39:32start poking around. If you follow the
5:39:34rest of the steps in this chapter,
5:39:36you'll make it all back and then some.
5:39:39How I use agencies now and how you can,
5:39:41too. I've become a little more
5:39:43sophisticated than the story I told at
5:39:45the beginning. Here's how I use
5:39:47agencies. Now, rather than believe the
5:39:49lie that I'll never have to learn this
5:39:51stuff because they can do it, I start
5:39:53every agency relationship with a purpose
5:39:56and a deadline to fulfill it. I open by
5:39:59saying, "I want to do what you do in my
5:40:01business, but I don't know how. I like
5:40:03to work with you for 6 months so I can
5:40:05learn how you do it. Plus, I'll pay
5:40:07extra for you to break down why you make
5:40:09the decisions you do and the steps you
5:40:11take to make them. Then after I get a
5:40:13good idea of how it all works, I'll
5:40:15start training my team on it. And once
5:40:17they can do it well enough, I'd like to
5:40:19change to a lowerc cost consulting
5:40:21arrangement. This way, you can still
5:40:23help us if we run into problems. Are you
5:40:25opposed to this? In my experience, most
5:40:28agencies are not opposed to this. And if
5:40:31it doesn't work for them, that's
5:40:32perfectly fine. Just move on to the next
5:40:35agency. But before you start kicking
5:40:37everyone to the curb, be willing to
5:40:39negotiate. at some price. It's worth it
5:40:42for both of you. Viva Capitalism. This
5:40:44is how I use agencies now. Like when I
5:40:47wanted to learn YouTube, I actually
5:40:49hired two agencies. The first I hired to
5:40:52keep me committed to making videos while
5:40:54they did some leg work on the platform
5:40:56itself. The second I hired at 4x the
5:40:59price to really teach us the in-depth
5:41:01ideas behind making the best content
5:41:03possible. And once our videos beat their
5:41:06videos, we drop down to consulting only.
5:41:09I've used this method again and again. I
5:41:12hire one good enough agency to learn the
5:41:14ropes of a new platform. Then I hire a
5:41:17more elite agency to learn how to
5:41:19maximize it. And I cannot recommend the
5:41:22strategy enough. If you're upfront about
5:41:24your intentions and the agency agrees,
5:41:27you get the best of both worlds. You get
5:41:29better short-term results because they
5:41:31probably know more than you. And you get
5:41:34better long-term results because you
5:41:36learn how to do it yourself where your
5:41:38team learns to do it for you. You also
5:41:40spend the maximum amount of time with
5:41:42their best reps. Remember, you only get
5:41:45a fraction of the agency's attention, so
5:41:48results get worse whenever they get new
5:41:49clients. Meanwhile, your team gets
5:41:52better and better because they stay
5:41:54focused on you full-time. So, compare
5:41:56your team's results to the agencies
5:41:58until you beat them. Then cancel the
5:42:01relationship and put the money into
5:42:03scaling everything you just learned.
5:42:06Action step. When you find an agency to
5:42:08work with, next step, set terms with
5:42:11them and deadlines for yourself. Use the
5:42:13template above as your guide and feel
5:42:15okay with negotiating a bit to make it
5:42:17work. Author note, yes, there's a place
5:42:20for agencies. To be clear, I still own
5:42:23equity in an agency software, Allan. So,
5:42:26I'm not against agencies. I just share
5:42:28how I've had success with them. Are
5:42:30there massive companies that use huge ad
5:42:33agencies? Sure. But they're not who I'm
5:42:36writing for. For most people, spending
5:42:39$10,000, $50,000, or $100,000 on an
5:42:43agency is a significant cost. So, this
5:42:46is how I've gotten the best return from
5:42:48working with them. Also, some people
5:42:50never want to learn, and for those
5:42:52people, agencies are great. I personally
5:42:55always want to learn, which is why I use
5:42:57agencies this way. How to pick the right
5:43:00agency. After working with tons of bad
5:43:02agencies and a handful of good ones, I
5:43:05created a list of what all the good ones
5:43:07had in common. Now, it isn't the last
5:43:09word on what makes a good agency, but it
5:43:11is useful stuff that's worked for me.
5:43:13Here's what I look for. One, somebody
5:43:16know got good results working with them.
5:43:18If you only know about an agency from
5:43:20their paid ads or cold outreach, they
5:43:22probably aren't as good as the ones who
5:43:24rely solely on word of mouth, and the
5:43:26best ones do. Two, prominent companies
5:43:29got good results working with them. I
5:43:31may not know the companies personally,
5:43:32but if I recognize them, it's a good
5:43:35sign. Three, a waiting list. When demand
5:43:38for a service exceeds the supply, they
5:43:40are probably pretty good. Four, a clear
5:43:43sales process that makes a point to set
5:43:45realistic expectations. No funny
5:43:48business. Five, no short-term hacks.
5:43:51They keep the talk on long-term
5:43:52strategy. They also give clear timelines
5:43:54for setup, scaling, and results. Six,
5:43:58they tell me exactly what they need from
5:44:00me, when they need it, and how they use
5:44:02it. Seven, they suggest a regular
5:44:05schedule of meetings and offer several
5:44:07ways to update me on their progress.
5:44:09Eight, they give updates in simple terms
5:44:12and have clear ways to track so I know
5:44:14how costs compare with results. Nine,
5:44:17they make a good offer. Dream outcome is
5:44:20what they promise what I want. Perceived
5:44:22likelihood of achievement. How many
5:44:24other people like me have they gotten
5:44:25there? Time delay. How long will it
5:44:28take? Effort and sacrifice. What do they
5:44:31require me to do when working with them?
5:44:33What will I have to give up? Can I stick
5:44:35with those for a long time? 10. They're
5:44:38expensive. All good agencies are
5:44:40expensive, but not all expensive
5:44:42agencies are good. So talk with as many
5:44:44as it takes and use this list as a guide
5:44:47to find the good ones. If an agency
5:44:49checks those boxes, they're worth
5:44:51considering. Pro tip, talk to more
5:44:53agencies to be a better customer. Being
5:44:55an informed customer helps everyone. So
5:44:59before you buy, get informed. Talk to
5:45:01five or 10 agencies to learn how they
5:45:04work. At first, you'll learn a bunch of
5:45:06new stuff, but over time, the difference
5:45:09between the better ones and the worst
5:45:11ones becomes obvious. Now you can make
5:45:14an informed decision. If the agency
5:45:16doesn't meet my needs, but I like the
5:45:18people, I'll ask them to refer me to
5:45:20another agency. A good agency offering a
5:45:23one specialty will send you to other
5:45:25good agencies who offer the one you
5:45:27want. Those are some of my favorite
5:45:29referrals. Action step. Even if an
5:45:32agency agrees to your terms, talk with a
5:45:34few more before you make a decision.
5:45:36Compare them using the checklist above
5:45:38and then pick the best one for you.
5:45:40Conclusion. Even though this isn't the
5:45:43traditional agency model, both
5:45:45businesses benefit. They get a customer
5:45:47they otherwise wouldn't have, and we get
5:45:49a money-making skill for life. In the
5:45:52story at the beginning of the chapter,
5:45:54it cost me 8 hours and $6,000 to learn a
5:45:57skill that's made me millions. Does that
5:46:00seem worth it to you? It better. And to
5:46:02make this agency method work at scale,
5:46:04you have to count on a good amount of
5:46:06time where you pay the agency and your
5:46:08team to do the same stuff. You got to
5:46:11give yourself some breathing room to get
5:46:12results from the agency, learn what they
5:46:15do, and train your team on it all at
5:46:17once. Yes, it costs a lot of money. And
5:46:20yes, it's totally worth it when you get
5:46:22it right. And get it right you can.
5:46:24After agencies put a low-level employee
5:46:27on my account for the millionth time, it
5:46:29finally clicked. This can't be that
5:46:31hard. At first, it took about a year to
5:46:34get my team better than an agency. As I
5:46:36got better, it went down to 10 months,
5:46:38then eight. And now I got it down. I can
5:46:41get my team as good or better than the
5:46:43agency in less than 6 months or less.
5:46:46And every time I want to learn a new
5:46:48method or platform, I repeat the
5:46:50process. The better you get, the cheaper
5:46:52it becomes and the more money you make.
5:46:55Funny, that sound a lot like
5:46:57advertising. Next steps. One, decide if
5:47:00using an agency makes sense for you
5:47:02right now. Two, talk to a lot of
5:47:04agencies to get a feel for the market.
5:47:06Don't be cheap. Three, use the agreement
5:47:09framework I outlined. Four, set a clear
5:47:12deadline to force you and your team to
5:47:14learn skills. Five, use both teams until
5:47:18yours beats theirs regularly. Six,
5:47:21switch to discount to consulting until
5:47:23you feel like you're teaching them
5:47:24instead of them teaching you. Then cut
5:47:27him loose. Now that we know how to
5:47:29profit from the high-risisk world of
5:47:30agencies, we explore the lead getter
5:47:33that's made me the most money. We
5:47:35recruit an army of businesses who can
5:47:37get us even more leads. Affiliates.
5:47:40Number four, affiliates and partners.
5:47:42Nothing makes friends like money.
5:47:45December 1st, 2018. I had no idea how
5:47:48the Prestige Labs launch would go. I had
5:47:51no idea if our clients would like it. I
5:47:53had no idea if the technology we built
5:47:56would work. I had no idea if payouts
5:47:58would happen on time. I had no idea if
5:48:01our warehouse would mess up orders. But
5:48:03I did know over a year of preparation
5:48:05went into this launch. We put everything
5:48:07we had into creating a top tier product.
5:48:10We spent over $1 million custom building
5:48:13affiliate software and training. And we
5:48:16bought $3 million in inventory for sales
5:48:19that may never happen. It took every
5:48:21business skill I had to make Prestige
5:48:23Labs real. And in just a few hours, we
5:48:26would roll it out to our gym owner
5:48:28affiliates. I felt like a kid on
5:48:30Christmas Eve. And if it didn't work, it
5:48:33wouldn't be for lack of effort. Author
5:48:35note, the game podcast episode 98, I
5:48:38remember. If you want to go back in
5:48:40time, you can hear Young Me talk about
5:48:42my thoughts/ concerns the night before
5:48:44the launch. You can be right there with
5:48:46me. It's episode 98 on my podcast again
5:48:50with Alex Hormoszi titled I remember.
5:48:53This is before I knew the success it
5:48:55would become. To find it, just go
5:48:57wherever you listen to podcasts and
5:48:59search Alex Hormoszi and it'll come up.
5:49:02Launch day. I finished the two-hour
5:49:04presentation soaked in sweat. It's done.
5:49:08I sold the opportunity to sell my
5:49:10supplement line at their gyms. I would
5:49:12train the new affiliates to promote
5:49:14Prestige Labs at their gyms. So, for
5:49:17this to work, they would have to go
5:49:19through the training and use it. But if
5:49:22they did, everyone would profit. I had
5:49:24no idea if it would work. 3 weeks later,
5:49:27we made $150,000 in total sales.
5:49:31Meanwhile, $3 million worth of product
5:49:34sat in an aironditioned warehouse. It
5:49:36didn't work. At this rate, including
5:49:39operating costs and affiliate payouts,
5:49:41it would take 5 years to break even.
5:49:43Even if we could stick it out, our
5:49:45premium product would expire well before
5:49:47then. We were all but screwed. I felt
5:49:50miserable. It was terrible. Who am I to
5:49:52think we would sell all that stuff? I
5:49:54just wasted millions. How could I be so
5:49:57stupid? But on the fourth week,
5:50:00something wild happened. Boom. $100,000
5:50:03on Monday. Boom. $110,000 on Tuesday.
5:50:07Boom. $92,000. On Wednesday, we did over
5:50:11$450,000
5:50:13in sales. The fourth week alone. The
5:50:15trend continued. We average more than
5:50:18300 orders per day across 400 plus
5:50:21active affiliates. Orders just kept
5:50:23coming in. Check out the snapshot of our
5:50:26internal report below. It shows from
5:50:28left to right revenue by week. I
5:50:30couldn't believe the results. Sometimes
5:50:33I still can't. The best part is I didn't
5:50:35advertise or sell any of the products at
5:50:37all. No paid ads, no sales team,
5:50:40nothing. The affiliates did everything.
5:50:43And the affiliate machine I built still
5:50:46prints money to this day. So, if that
5:50:48sounds like something you're interested
5:50:49in, hang tight because I'm going to show
5:50:51you exactly how I built it. How
5:50:53affiliates work. An affiliate is a lead
5:50:56getter. They're an independent business
5:50:58that tells their audience to buy your
5:51:00stuff. Affiliates seem like referrals on
5:51:02the outside, but are much different
5:51:04under the hood. First, they have their
5:51:06own businesses and do their own
5:51:08advertising. Second, they agree to offer
5:51:11your stuff to their engaged leads in
5:51:13exchange for money, free stuff, or both.
5:51:16Now, you get affiliates by advertising
5:51:19and then making them offers just like
5:51:20you would customers. But affiliates
5:51:23demand a unique type of offer. Instead
5:51:25of offering your product, you offer a
5:51:27fast, simple, and easy way to make
5:51:30commissions promoting it. And that can
5:51:32mean literally millions of engaged leads
5:51:35to your business. So this makes
5:51:36affiliates one of the highest leverage
5:51:38lead getters out there. Why you want an
5:51:40affiliate army? Each affiliate you get
5:51:43adds another stream of leads and
5:51:45customers. So recruiting, activating,
5:51:48then integrating with an army of
5:51:50affiliates causes crazy scaling fast.
5:51:53That's good. We want that. Compare these
5:51:56two scenarios. Scenario number one. You
5:51:59sell 10 customers per month worth
5:52:02$10,000 each. Your business caps at
5:52:05$100,000 per month. In 12 months, you've
5:52:08made 1.2 million. Assuming no other
5:52:11advertising, your business plateaus. Low
5:52:14leverage. Scenario number two. For the
5:52:17same effort, you sell 10 affiliates per
5:52:19month. Each month, those affiliates
5:52:22bring you one of those $10,000
5:52:24customers. Now, every single month, you
5:52:27add an extra $100,000 in revenue. In 12
5:52:31months, you've made 7.8 8 million and it
5:52:34grows every month thereafter. Same work,
5:52:37more money, high leverage. Let's use
5:52:39Allen, my software company I grew with
5:52:42affiliates to show how this works in the
5:52:44real world. Allen grew with three levels
5:52:47of affiliates. One, agency super
5:52:50affiliates who brought agency leads.
5:52:53Two, agencies who brought local business
5:52:55leads. Three, local businesses who
5:52:58brought end consumer leads. One super
5:53:01affiliate added 10 agencies per month.
5:53:04The 10 agencies brought in a combined 50
5:53:07or so local businesses per month. Those
5:53:10local businesses brought in a combined
5:53:122,500 leads per month. Allan worked
5:53:15those leads for about $5 a pop. A cool
5:53:18$12,500
5:53:20per month, but didn't stop there. Each
5:53:23super affiliate brought in more agencies
5:53:25who brought in more local businesses who
5:53:27brought more leads every month after
5:53:29that. So every super affiliate we signed
5:53:32on brought in $12,500
5:53:35the first month, $25,000 the second,
5:53:38$37,500
5:53:40the third, and so on. With only a few
5:53:43agency super affiliates, we scaled to
5:53:45$1,700,000
5:53:47per month within 6 months of launching.
5:53:49That's why you want an affiliate army.
5:53:51So, let's build one. How to build an
5:53:53affiliate army in six steps. Affiliates
5:53:56are among the most advanced ways to get
5:53:58engaged leads. First, you have to
5:54:01convince them to advertise someone
5:54:02else's stuff. Second, you have to
5:54:04convince them to advertise your stuff.
5:54:07Third, you have to keep them advertising
5:54:09to make them a long-term lead source. It
5:54:11seems like a lot, and it is, but I have
5:54:14good news. I've built two companies with
5:54:16affiliates, Allen and Prestige Labs.
5:54:19Together, they have done more than $75
5:54:22million in revenue from over 5,000 plus
5:54:25affiliates. And the affiliate strategies
5:54:28I share worked for me, so they can work
5:54:30for you. I'll break down each step. Step
5:54:33one, find your ideal affiliates. Step
5:54:36two, make them an offer. Step three,
5:54:39qualify them. Step four, figure out what
5:54:41to pay them. Step five, get them
5:54:43advertising. Step six, keep them
5:54:46advertising. That's it. Let's dive in.
5:54:49Step one, find your ideal affiliate. The
5:54:51ideal affiliate has a business with a
5:54:54warm audience full of people like your
5:54:56customers. Start making a list of those
5:54:58businesses. If none come to mind, answer
5:55:01these questions about your best
5:55:02customers. What do they buy? Who
5:55:04provides that stuff? Where do they go?
5:55:07What businesses are in those surrounding
5:55:08areas? What do they like to do? Who
5:55:10provides those services? If direct to
5:55:13consumer, the employers of your
5:55:15consumers could make great affiliates.
5:55:18What types of businesses do they work
5:55:19for? What kind of jobs do they have? In
5:55:22a nutshell, who's got my leads? For
5:55:24example, when I started Allen, agency
5:55:27owners were my ideal affiliate. So, I
5:55:30made a list of 200 products and services
5:55:32for agencies and the businesses that
5:55:35delivered them. After a little bit of
5:55:36work, I realized they fit pretty neatly
5:55:39into categories: softwares, products,
5:55:42equipment, services, groups they belong
5:55:44to, and events they attended. Every time
5:55:46I create a new affiliate hit list, I
5:55:49start with these categories. Note, if
5:55:51you find a business that falls into
5:55:53multiple categories, there's a high
5:55:55chance they've got lots of good leads
5:55:56for you and that they'd make a great
5:55:58affiliate. Now that I knew the
5:56:00businesses that had my leads, I knew
5:56:02exactly where to put my advertising
5:56:04efforts. It wasn't fancy, so don't
5:56:07overthink it. Action step. Make a sheet
5:56:10with each of these questions and
5:56:12categories. Search online to fill it in.
5:56:14If you struggle, call up your customers
5:56:17and ask them. End result, create a lead
5:56:20list of your highest potential
5:56:21affiliates. Step two, make them an
5:56:24offer. We make the affiliate offer and
5:56:27advertise it the same way we would any
5:56:29other offer. We call out our audience,
5:56:32show our value elements, and then call
5:56:34them to action. But affiliates will only
5:56:37sign up with us if we give them a strong
5:56:39reason. Thankfully, it's pretty simple.
5:56:41Since affiliates are businesses or start
5:56:44a business by signing up, you offer them
5:56:46a new way to make money. We'll start
5:56:48with a call out. Call out. Call outs for
5:56:51potential affiliates often include the
5:56:54affiliate business owners themselves.
5:56:56Attention SBA owners, the affiliates,
5:56:59customers. Do you work with busy
5:57:01professionals who spend all day in
5:57:03meetings? Results. The affiliate
5:57:05businesses promise to the heroes who
5:57:08heal the stress of others. products and
5:57:11services the affiliates deliver. If you
5:57:13sell lotions or scented oils, this is
5:57:16for you to our own customers. Do you
5:57:18know anyone who owns a spa? Now that we
5:57:20can grab a potential affiliate's
5:57:22attention, let's make it worth their
5:57:24while. Elements of value. There's an
5:57:26unlimited number of ways to show value,
5:57:29but all money-making offers follow a
5:57:31similar structure. That's good news. We
5:57:34don't need to reinvent the wheel. Most
5:57:36affiliate money making offers show value
5:57:38like this. Make more money from your
5:57:41current customers and get more leads
5:57:42than your current offer. Dream outcome
5:57:45with a high chance of working since your
5:57:46customers already want the product.
5:57:48Perceived likelihood of achievement
5:57:50without needing to build, deliver, or
5:57:52provide customer support for the product
5:57:54yourself. Effort and sacrifice so you
5:57:57can start selling it tomorrow. Time
5:57:58delay. Action step. Explore the
5:58:01different value elements and fill in the
5:58:03blanks. I won't go deeper on this since
5:58:05we've covered it already. You simply
5:58:07need to make affiliates the customer
5:58:09you're advertising to. Now that we've
5:58:11got the potential affiliate interested
5:58:12in our offer, let's qualify them. Step
5:58:15three, qualify them. Potential
5:58:17affiliates become actual affiliates when
5:58:20they understand and agree to your terms.
5:58:23And just like customers, we want to get
5:58:25them their first win as fast as
5:58:28possible. So, we set up our terms to
5:58:30force them to win as fast as possible. I
5:58:33do that by getting them to invest. I
5:58:35prefer they invest their time, their
5:58:37money, and in the product itself. Any
5:58:40can work, but nine times out of 10, if
5:58:43they pay, they'll pay attention. Here
5:58:45are the two ways I get my affiliates
5:58:46invested in winning. Make them a
5:58:48customer and make them an expert. Let's
5:58:50dive into each way. Number one, make
5:58:53them a customer, make them buy, and
5:58:55preferably use the product to keep
5:58:57affiliate status. This is the lowest
5:58:59barrier investment that's worked for me.
5:59:02I found the more money an affiliate
5:59:03invests in your product, the more money
5:59:05they make. This should make sense. If
5:59:08they don't believe in your stuff enough
5:59:09to buy it, they probably shouldn't sell
5:59:11it. You can tell them I said so. Pro
5:59:14tip, bulk purchases. If you need to make
5:59:16more money per affiliate, you can
5:59:18require them to buy in bulk. This was
5:59:20huge for Prestige Labs affiliate
5:59:23success. Once they bought a big package
5:59:25up front, they started following through
5:59:28in winning. the bigger investment
5:59:30ultimately made them and us more money.
5:59:33If you have physical products, then try
5:59:35bulk purchases. If your company has a
5:59:37line of products like Prestige Labs
5:59:40does, then toy around with big bundles.
5:59:42Here's how you phrase the offer. So, you
5:59:44want anything extra or just go with the
5:59:46minimum order. By presenting a minimum
5:59:49purchase, they will at least buy that.
5:59:51And more often than you think, they'll
5:59:53buy more than the minimum. Bada boom.
5:59:56Way number two, make them an expert. I
5:59:58make them pay for the onboarding and
6:00:00training that certifies them as a
6:00:02product expert. If you have them buy a
6:00:05product to become an affiliate, you can
6:00:07have them use that as credit towards
6:00:09certification. As in the certification
6:00:11comes with the products they bought.
6:00:13Now, aside from actually making the
6:00:15affiliate useful, certifying them does
6:00:17two things. First, it covers some of the
6:00:20costs of advertising. Second, it means I
6:00:23can afford proper onboarding and
6:00:25training of every single affiliate. How
6:00:28much do I charge? I recommend 10 to 20%
6:00:31of what the average active affiliate
6:00:33makes in the first 12 months. So, if
6:00:36your average affiliate makes $40,000 per
6:00:38year selling your stuff, then charge
6:00:40$4,000 to $8,000 to onboard and train
6:00:44them. Too low and you won't get them
6:00:46invested. Too high and you won't get
6:00:48enough affiliates. I found 10 to 20%
6:00:51maximizes the number of people who
6:00:53become active affiliates. If you're just
6:00:56getting started and have physical
6:00:57products, then use the bulk purchasing
6:01:00strategy from the pro tip. Otherwise,
6:01:02you can use the strategy from the warm
6:01:04reachout chapter and raise the minimum
6:01:07investment every five signups until you
6:01:09hit the sweet spot action step. Make
6:01:12your affiliates customers experts or
6:01:14both. My favorite way. If you don't get
6:01:17enough people to start, lower the
6:01:18commitment. If you don't get enough
6:01:20people to follow through, raise it. Step
6:01:23four, figure out what to pay them. The
6:01:25first biggest problem to solve with
6:01:26affiliates is getting them bought in.
6:01:29But the second biggest problem is how to
6:01:31keep them bought in. And no matter how
6:01:33you slice it, keeping your affiliates
6:01:34bought in depends on how you reward them
6:01:36for advertising your stuff. I prefer to
6:01:39reward people that do things I like with
6:01:41money and free stuff, especially if they
6:01:44make me money first. So, let's talk
6:01:46about that. When I figure out ways to
6:01:48pay affiliates, I look at two basic
6:01:50things. What they get paid for, how much
6:01:52they get paid. One, what they get paid
6:01:54for. Before I do any affiliate payout
6:01:57money math, I ask myself a simple
6:01:59question. What exactly do I want the
6:02:01affiliate to do? Once I figure that out,
6:02:04that is what I pay them for. Then, more
6:02:06often than not, how much they get paid
6:02:08and how often they get paid nearly solve
6:02:11themselves. I pay affiliates for two
6:02:13basic things. new customers and repeat
6:02:16customers. Over time, if you track your
6:02:19metrics better, you can pay them for
6:02:21steps before someone becomes a customer,
6:02:23like for the lead magnets, downloaded,
6:02:26appointment set, or anything else you
6:02:28know reliably turns into sales for you.
6:02:31Two, how much they get paid. I suggest
6:02:33paying affiliates based on your maximum
6:02:36allowable cost to acquire a customer,
6:02:38CAC. Example, choosing your maximum
6:02:41allowable CAC. Let's say we sell a
6:02:43single used product for $200 and it
6:02:46costs $40 to fulfill. This gives us $160
6:02:50to pay the affiliate and run the
6:02:52business. If we want an LTGP CAC ratio
6:02:55of 3 to1, then three parts goes to the
6:02:58business, $1120, and one part $40 goes
6:03:03to the affiliate. This means we will pay
6:03:05up to $40 for an affiliate to get a new
6:03:08customer. But here's where things get
6:03:09interesting. I used to give away the
6:03:11farm, the whole CAC. I suppose I still
6:03:14do, but I've gotten pickier about who I
6:03:16give it to. Not all affiliates are
6:03:19created equal. So, I suggest having a
6:03:22three- tier payout structure. Using the
6:03:24example above, with a $40 maximum
6:03:27allowable CAC, a three- tier payout
6:03:29structure might look something like
6:03:31this. Tier one, 25% CAC equals $10
6:03:35payout. Anyone who agrees to my initial
6:03:38terms qualifies. Example, they sign up
6:03:41and buy products or certification. Tier
6:03:44two, 50% CAC equals $20 payout once they
6:03:48activate. Example, actually finishing
6:03:51the certification they bought, doing a
6:03:53specific number of posts and outreach,
6:03:55doing a launch, etc. This give them a
6:03:58nice reward, twice the pay for
6:04:00activating. Tier three, 100% CAC equals
6:04:04a $40 payout once they sustain a level
6:04:07of performance. Example, they maintain
6:04:10five customers per month on
6:04:12subscription. This tiered method also
6:04:14has a hidden and very profitable side
6:04:17effect. The average payout is much less
6:04:20than your maximum allowable CAC. This
6:04:22means if we leave the maximum payouts
6:04:25for top affiliates, then we get to keep
6:04:27the leftover profit. We can use the
6:04:29leftover money to run huge contests,
6:04:32advertise to get more affiliates,
6:04:34incentivize rising stars, etc. Or I
6:04:38suppose we could just plain pocket it.
6:04:40For example, if 20% of sales come from
6:04:43tier 1, 20% from tier 2, and 60% from
6:04:47tier 3, your blended payout is $30
6:04:50instead of your maximum allowable CAC of
6:04:52$40. This means your LTGP CAC ratio just
6:04:56improved from 3:1 to 4:1. And often
6:05:00cutting marketing costs by 33% can
6:05:03translate into 10% to 20% more net
6:05:06profit at the end of the year. A massive
6:05:08jump. Pro tip: Pay with product if
6:05:11possible. Sell three, get it free.
6:05:14Everyone likes free stuff. Often more
6:05:17than what it would cost them to get it.
6:05:18Rewarding performance with product is a
6:05:20cheap and effective way to keep them
6:05:22winning. They value it at retail, but it
6:05:25only costs you your cost. a nice
6:05:27arbitrage of value. Set sales tiers and
6:05:30bonus your affiliates with product or
6:05:32credit toward the retail cost. At lower
6:05:35tiers, you can even compensate
6:05:37exclusively with free stuff. For
6:05:39example, if your affiliates send you
6:05:42tons of massage clients, it's totally
6:05:44acceptable to reward your affiliates
6:05:46with free massages at low volume. A
6:05:49massage is often worth more to them than
6:05:51sending them a check for $30 your cost.
6:05:54But as affiliates send you more
6:05:56customers, they'll usually opt for more
6:05:58money. After all, cashing in 100
6:06:01massages becomes unrealistic. At
6:06:04Prestige Labs, I offered anyone who sold
6:06:06more than three packages per month a
6:06:09free $200 bundle of their choosing. This
6:06:11also made every affiliate a sponsored
6:06:14athlete. They got free products for life
6:06:16as long as they kept three clients per
6:06:19month buying. I called it sell three to
6:06:21get it free. Action step. Figure out
6:06:24what you want to pay your affiliates for
6:06:25so that you can plan out how much to pay
6:06:27them with what and how often. Step five,
6:06:31get them advertising launch like
6:06:33referers. How much value affiliates get
6:06:35from you determines how much they
6:06:37advertise your stuff. So treat them like
6:06:39customers. Give them something good
6:06:41fast. And nothing does that for
6:06:44affiliates like big launches and lots of
6:06:46cash. Here's how launches work.
6:06:48Affiliates advertise your lead magnet or
6:06:52core offer to their audience before they
6:06:54can buy it. They post. They do warm
6:06:56outreach. They run paid ads. They may
6:06:59even do cold outreach. They do as much
6:07:02advertising as they can until the day of
6:07:05launch. When the product is available,
6:07:07they sell it to all the engaged leads
6:07:09they assembled. Some sell one-on-one,
6:07:12some pitch to the whole group, and
6:07:14others simply make the product
6:07:16available. So, if you're going to do
6:07:17launches to activate your affiliates,
6:07:20which you should, you may as well do
6:07:21them right. I use the whisper tea shout
6:07:24method. I can't remember where I first
6:07:26heard this, but the name stuck. Let's
6:07:28launch. Before we get launching,
6:07:30remember, good launches have the work
6:07:32done ahead of time. So, do all the work
6:07:34for them. Then, they can plug and play.
6:07:37Let's break down each launch phase. And
6:07:40I'll give an example of my book launch
6:07:42to drive each point home. Note, this is
6:07:45how you launch anything, not just
6:07:47affiliates. I put in the affiliate
6:07:49section because I haven't found a better
6:07:51way to activate affiliates than
6:07:52launches. Whisper, think call outs, like
6:07:56an ad. The key to the whisper phase is
6:07:59curiosity. Keep the product itself
6:08:01mysterious and hint at how big of a deal
6:08:04it is. Keep whispers short. And bonus
6:08:07points, if you show behind the scenes of
6:08:09making your product, if you have
6:08:10something in the works, you can start
6:08:12the whisper phase a few years out. The
6:08:14further out you start whispering, the
6:08:16bigger deal it becomes to your audience.
6:08:19We start this early because the longer
6:08:21something appears to take, the more an
6:08:24audience will value it. For example, all
6:08:26other things being equal, an audience
6:08:29will value a product that took 10 years
6:08:31to make more than one that took 10 days.
6:08:34So show your work. Remember curiosity
6:08:38comes from wanting to know what happens
6:08:40next. So embed questions about the
6:08:42product in their minds. We need to tell
6:08:44them about something they want to know
6:08:45more about. Then say not yet. For
6:08:48example, during the whisper phase of my
6:08:49book launch, I posted content, reached
6:08:52out to friends, emailed my list, and
6:08:54told potential affiliates about major
6:08:56updates to the book. I showed what draft
6:08:58I was on. I took pictures behind the
6:09:00scenes of me printing out drafts. I
6:09:03showed them many versions of the
6:09:04frameworks I drew. I shared videos of
6:09:06myself editing the book early in the
6:09:08morning and late at night, etc. All of
6:09:11it made people who want leads get
6:09:13curious and pay attention. Action step.
6:09:16Start whispering every 4 to 6 weeks
6:09:18until you get 60 days out. Then whisper
6:09:21every 2 to 3 weeks until you get 30 days
6:09:24out. Then start teasing. Tease. Think
6:09:27elements of value. It's time to start
6:09:29satisfying all the curiosity you created
6:09:32during the whisper phase. Reveal your
6:09:34product. Make the date of the launch
6:09:36public and start showing the elements of
6:09:38value. Use the what who win framework
6:09:40from the paid ads chapter. For example,
6:09:43during my book launch, the tease phase,
6:09:45I was more specific and revealed more
6:09:48hard information about the book. I
6:09:50started advertising how the book
6:09:52satisfied the dream outcome of limitless
6:09:55leads of doing less work and getting it
6:09:58done faster than they could imagine. I
6:10:00also showed dozens of examples using the
6:10:03book to its potential. Action step.
6:10:06Start teasing once per week until 14
6:10:08days out. Then tease twice per week
6:10:11until 3 days out. 3 days out, it's time
6:10:13to shout from the rooftops. Shout. Think
6:10:16call to action. Give specific actions
6:10:19for the audience to take when the
6:10:20product launches. Now you start pounding
6:10:23the audience with bonuses, scarcity,
6:10:25urgency, and guarantees around being the
6:10:28first ones. You shout to get as many
6:10:30people exposed to your offer as you can.
6:10:32For example, during my book launch, the
6:10:34shout phase, I gave specific calls to
6:10:37action, short, sweet, clear reminders to
6:10:40register for the book launch. I reminded
6:10:42everyone of the exclusive bonuses only
6:10:45for people who bought during the launch.
6:10:47Action step. Shout at least twice a day
6:10:50starting 3 days out. On the day of,
6:10:53start shouting every few hours until 2
6:10:56hours out. Then shout every 30 minutes
6:10:58until you launch the product. Pro tip:
6:11:01movie releases. The best real world
6:11:03example of whisper te shout is movie
6:11:06releases. They do 5-second trailers a
6:11:08year out, then a 30-se secondond 90 days
6:11:11out, then longer trailers as the date
6:11:14approaches. They drive curiosity, then
6:11:17interest, then action. Action step. Get
6:11:20your affiliates to launch. Set them up
6:11:22with everything they need to do the
6:11:24whisper tea shout, right? They do the
6:11:26advertising. You get the engaged leads.
6:11:29Everyone gets paid. Step six, keep them
6:11:32advertising. The strategy we use to
6:11:34start them advertising differs from the
6:11:36one we use to keep them advertising. In
6:11:39an ideal world, you sell an affiliate
6:11:41once and they send engaged leads for
6:11:44life. Integration gets us there. I've
6:11:46got three ways you can integrate your
6:11:48product into their offer. I order these
6:11:50from easiest to hardest. First, you can
6:11:53get them to give away your lead magnet
6:11:55with every purchase of their stuff.
6:11:57Second, you can get them to sell your
6:11:59lead magnet separately to their
6:12:01audience. Third, you can get them to
6:12:03directly sell your core offer. They give
6:12:06away your lead magnet for free, which
6:12:08makes their core offer more valuable for
6:12:11no extra cost. Then you upsell your core
6:12:14offer and every offer thereafter. One,
6:12:17affiliates give your lead magnet away
6:12:19when somebody buys their stuff. The idea
6:12:22here is for your lead magnet to make the
6:12:25affiliates offer more valuable. This
6:12:27allows them to charge more for it and
6:12:29get more leads than they could without
6:12:31it. Remember, the best lead magnets give
6:12:34away a free trial or sample of your
6:12:36thing, reveal a problem, or offer a
6:12:38single step of a multi-step solution.
6:12:41Here are examples of each samples and
6:12:43trials. Say, I sell massages and recruit
6:12:47the personal training studio next door
6:12:49as an affiliate. Now, everyone who buys
6:12:52personal training from them gets a free
6:12:54massage from me. The personal training
6:12:56studio now has a stronger offer they can
6:12:59charge more for and we get more massage
6:13:01leads. Everybody wins. Reveal a problem.
6:13:05Instead of giving a free massage, we
6:13:07offer a free or discounted posture
6:13:09assessment with every training package
6:13:11they sell. Assessments and discounts add
6:13:14less value to the affiliate offer, but
6:13:16some people will still do it. And to be
6:13:18clear, after assessing the customer, you
6:13:21make them an offer to solve the problems
6:13:23you revealed. One step in a multi-step
6:13:26process. Say you have a three-part
6:13:28treatment plan. Massage, stretching, and
6:13:30adjustments. People getting enough value
6:13:33from one step will fear missing out on
6:13:35the rest of the steps. So, the more they
6:13:37think the other steps will help solve
6:13:39their larger problem, the more likely
6:13:41they are to buy them. Your affiliate
6:13:43would give away step one of your
6:13:44multi-step process for free. You'd
6:13:47upsell the leads from there. What I did,
6:13:49we'd get gym affiliates to give away a
6:13:51free nutrition consult to every new
6:13:54member. Then we'd upsell our products at
6:13:56the consult. They can market that they
6:13:58have nutrition consults included to get
6:14:01more leads and they could charge more
6:14:03for the added value. And we get the
6:14:05opportunity to sell those leads.
6:14:07Everybody wins. Pro tip: white label
6:14:10lead magnets. One of my favorite
6:14:12strategies is to let them use the lead
6:14:14magnets I've already made for my
6:14:16audience. For theirs, just make sure
6:14:18your affiliates agree with how you give
6:14:21value and understand your call to
6:14:23action. At most, a few tweaks in the
6:14:25copy will make your lead magnet work for
6:14:27them. For example, for gyms, I made
6:14:30white labeled no logo meal plans,
6:14:33grocery lists, and food prep
6:14:35instructions. I gave them to the gyms to
6:14:37use as lead magnets for their customers.
6:14:40All they had to do was slap their logo
6:14:42on it and boom, their audience got a
6:14:45benefit from all my work instantly and
6:14:47we both got more leads. They sell their
6:14:49core offer. Then they upsell your lead
6:14:52magnet. Then you upsell your core offer
6:14:55and every offer thereafter. Two,
6:14:58affiliates sell your lead magnet.
6:15:00Basically, the affiliate can sell
6:15:02anything of yours that turns their
6:15:04customers into your customers. It could
6:15:06be a book, an event, a service,
6:15:09software, a sample product, etc. Also,
6:15:12giving affiliates all the cash from
6:15:14selling a lead magnet you fulfill
6:15:16becomes all profit and no work for them.
6:15:19An attractive proposition for any
6:15:21business. Your money comes by selling
6:15:23your main thing for more than it cost
6:15:25you to deliver your lead magnet. And if
6:15:27you do it this way, you don't need to
6:15:29split any money with them on your core
6:15:31offer. Another win-win example, they
6:15:34sell each of those things we gave away
6:15:36for free in the step above. They sell
6:15:38your massage at a discounted price. They
6:15:41sell your assessment, which you could do
6:15:43onetoone or in a group format like a
6:15:45workshop. They sell part one of your
6:15:47multi-step solution. What I did, the
6:15:50gyms would sell a nutrition consult with
6:15:52us and keep the money. They'd maybe
6:15:54charge $99,
6:15:56$199 to sell an hour of our time. If we
6:15:59were clever, we'd let them keep all the
6:16:01money. If we do, they'll send us even
6:16:04more leads. Then we'd upsell our
6:16:06products during the consult. Then you
6:16:08split the money. Either you split the
6:16:10upfront cash, all cash for a certain
6:16:13period of time, or all cash forever. I
6:16:16prefer to pay forever so my affiliates
6:16:18stay motivated to keep my customers
6:16:21forever. And I never cap payouts. Three,
6:16:25affiliate sell your core offer. An
6:16:27affiliate sells your core offer directly
6:16:30to their customers and adds another
6:16:32source of income without extra work. For
6:16:34some affiliates, this is their entire
6:16:37source of income. Many companies offer
6:16:39this structure as either a new business
6:16:41opportunity or a bolt-on to the
6:16:43affiliates existing business. Either
6:16:46way, anything you sell, they can sell.
6:16:48When you do it this way, the affiliate
6:16:50will get a higher percentage of a
6:16:52lifetime gross profit, but you won't
6:16:54have to do anything but deliver.
6:16:57Example, they sell your entire massage
6:16:59package. They sell your entire program
6:17:02or services. They bundle their services
6:17:04with your paid services and charge an
6:17:07even higher price. What I did, we taught
6:17:09gyms to hold nutrition consultations
6:17:12with white label products. Then we
6:17:14taught them to upsell our supplements
6:17:15right to their members and we split the
6:17:18money. All three strategies work.
6:17:20They're just different. After testing,
6:17:22we continue to do strategy one twice per
6:17:26year as a big event and strategy three
6:17:28on an ongoing basis. That being said,
6:17:31many similar businesses in our portfolio
6:17:33use strategy 2. I'm just sharing what
6:17:36work for us. Bottom line, integration is
6:17:39the long-term strategy for using
6:17:40affiliates to get enduring lead flow.
6:17:43Treat affiliates like customers. Make
6:17:46your offer make sense for their
6:17:47business. Make it so good they feel
6:17:49stupid saying no. Action step. Integrate
6:17:52with your affiliates by choosing whether
6:17:54you want them to give your lead magnet
6:17:56away, to sell your lead magnet, or to
6:17:59sell your core offer directly. Those are
6:18:01the six steps to recruiting an affiliate
6:18:03army. Now that we covered that, let me
6:18:06give you three real life case studies to
6:18:08drive this home. Three case studies you
6:18:11can model. Service business case study
6:18:13number one, national tax preparation
6:18:16services. My friend's $50 million
6:18:18business prepares LLC's, bank accounts,
6:18:22and articles of incorporation. He
6:18:24focuses on people starting businesses
6:18:26for the first time. But he doesn't try
6:18:28to compete with Legal Zoom. Instead, he
6:18:31built it partnering with people who
6:18:33train new entrepreneurs. His strategy is
6:18:36simple. Help those people sell more of
6:18:38their stuff by also selling his stuff.
6:18:41So, he offers every affiliate customer a
6:18:44free LLC setup. Remember learning about
6:18:46the highost lead magnet from section 2?
6:18:50This is one of those launch. He does a
6:18:52big blastoff seminar to his affiliates
6:18:54audiences to kick things off. People
6:18:57happily take him up on his free LLC
6:19:00offer. That's his lead magnet.
6:19:02Integrate. Once affiliates see the
6:19:04success of a launch, they integrate his
6:19:06lead magnet into their core offer. Then
6:19:09my friend's team gets on the phone with
6:19:11the customers his affiliates bring him
6:19:13for free. Here's how he makes his money.
6:19:15He sells them what they'll need next.
6:19:17The services they'll need to start their
6:19:19business. Bookkeeping, tax preparation,
6:19:22etc. He hasn't spent a dollar on paid
6:19:24ads. His true advertising costs are two
6:19:28things. One, delivering his free lead
6:19:30magnet, the LLC setup, and two, paying a
6:19:35percentage of every first sale to the
6:19:37affiliates that sent them. That's it.
6:19:39And everybody wins. Physical products
6:19:42case study number two, Prestige Labs, my
6:19:45supplement company. We sell gym owners
6:19:47at gym launch and train them how to
6:19:49advertise and sell their gym
6:19:51memberships. Prestige Labs has a line of
6:19:53supplements for active adults. This
6:19:56makes Gym Launch a perfect affiliate for
6:19:58Prestige Labs. It has a community of gym
6:20:01owners that also have active adult
6:20:03customers. So when Gym Launch sells a
6:20:06new gym owner, they introduce the new
6:20:08gym owners to Prestige Labs. Then the
6:20:11Prestige Labs team follows the launch
6:20:13then integrate strategy above. We really
6:20:16do this launch. We give the gym owners
6:20:19advertising materials so they can
6:20:21re-engage their current and former
6:20:23customers. We focus on warm outreach and
6:20:26posting free content for a free 28-day
6:20:28challenge. When they come in for the
6:20:30free challenge, gym owners sell them
6:20:33supplements to use with the program. The
6:20:35gym owner gets more customers. They make
6:20:38money. We make money. Everyone wins.
6:20:41Integrate. After the launch, we teach
6:20:43them to sell supplements to every new
6:20:46gym member. So, when new clients buy a
6:20:48membership package, the gym owner sets
6:20:50up a nutrition orientation. At the
6:20:52nutrition orientation, the gym owner
6:20:55sells them 50 to $1,000 of supplements.
6:20:59So, if a gym signs up 20 clients per
6:21:01month and gets 70% of them to buy
6:21:03supplements, we get 14 new customers per
6:21:06month per gym. It doesn't sound like
6:21:08much, but when you multiply 4,000 gyms
6:21:12x14 new sales per month x $200 average
6:21:15order equals a lot of money every month.
6:21:18Local business case study number three,
6:21:21chiropractors. Chiropractors want new
6:21:23patients and a portfolio company of ours
6:21:26teaches them to use an affiliate
6:21:29strategy to get them. Their model is
6:21:31simple. Go to high volume businesses
6:21:33that have people that are in need of
6:21:35adjustments. A gym fits the bill nicely.
6:21:38Here's what they do. Launch. They get
6:21:40the gym owner to promote a three-hour
6:21:42workshop where they show correct
6:21:44exercises and posture to get more from
6:21:47their workouts. The gym owner promotes
6:21:49the workshop for free or sells the
6:21:51workshop for $29 to $99 per person. The
6:21:54chiropractor splits the money with the
6:21:57gym owner. Hint, if you give the
6:21:59affiliate gym owner, in this case 100%
6:22:02of the money, they'll want to do it
6:22:03more. So, if a gym gets 30 people to
6:22:05show up for $99, they make $2,970 profit
6:22:10for zero work besides a few emails and
6:22:12posts. At the workshop, the chiropractor
6:22:15soft pitches their services and gets a
6:22:17bucket of new patients. Easy peasy lemon
6:22:20squeezy. Integrate. Long-term. The
6:22:23chiropractor convinces the gym owner to
6:22:25include one to two adjustments with
6:22:27every new membership the gym signs up.
6:22:30This increases the value of the gym
6:22:32membership compared to the guy down the
6:22:34street. And it shows the gym prioritizes
6:22:37its member's health and safety, a big
6:22:39concern for beginners. Win-win. Now,
6:22:43every new gym member becomes a lead for
6:22:45the chiropractor to follow up with. They
6:22:47repeat this process with 30 gyms and get
6:22:50more patients than they can handle. Pro
6:22:53tip, employees are leads, too. Companies
6:22:55that hire a lot of people make great
6:22:57affiliates. This is huge for direct to
6:23:00consumer businesses and wildly
6:23:03underused. Example, every new hire at a
6:23:06company gets a free massage in their new
6:23:08employee packet. Or you can give free
6:23:10massages to their employees at lunch.
6:23:13It's free. It's easy. And lots of
6:23:15companies want to provide more value to
6:23:18their teams. They get free value. You
6:23:20get free leads. And since they're
6:23:22probably not in the same business as
6:23:24you, there's no risk of you competing
6:23:26with theirs. So employers, it can be
6:23:28among the easiest affiliates to
6:23:30integrate with. Costs and returns.
6:23:33Affiliates can't work for my business.
6:23:35The loser said, "I have to make
6:23:37affiliates work for my business," the
6:23:39winner said. Be a winner. When
6:23:41calculating returns with other methods,
6:23:43we compared lifetime gross profit, LTGP,
6:23:47with cost to acquire a customer, CAC. So
6:23:49we spend money to get customers and the
6:23:52customers in a profitable business give
6:23:54us more money back. Affiliates work
6:23:57differently. We spend money to get
6:23:58affiliates, sure, but we don't really
6:24:00make much back from affiliates
6:24:02themselves. Instead, the money we spend
6:24:05to get an affiliate comes back from the
6:24:07customers they bring us. So, to
6:24:08calculate returns, we compare how much
6:24:10it costs us to get an affiliate with the
6:24:13gross profit of all the customers they
6:24:15send to our business. Example, let's say
6:24:17we own a widget company that grows with
6:24:20affiliates. It costs us $4,000 in
6:24:23advertising to get an affiliate. Our
6:24:25average affiliate sells $10,000 in
6:24:28widgets per month and stays for 12
6:24:30months. $10,000 per month x 12 months
6:24:35equals $120,000 total sales. The widgets
6:24:39have 75% gross margins. In other words,
6:24:43they cost 25% of retail price to make.
6:24:46$120,000 total sales. X 25% cost of
6:24:51goods equals $30,000 total cost of
6:24:54goods. $120,000 total sales, $30,000
6:24:59total cost of goods equals $90,000 in
6:25:02gross profit from all the customers the
6:25:05affiliate brings. We pay affiliates 40%
6:25:08of the gross profit. $90,000 gross
6:25:11profit x 40% payout equals $36,000 to
6:25:16the affiliate as payment. Here's the
6:25:18gross profit we have left after cost of
6:25:20goods and payouts. $120,000 total,
6:25:24$30,000 costs, $36,000 payouts equals
6:25:28$54,000 left over. Let's find our
6:25:31affiliate LTGP to CAC ratio. $54,000
6:25:36gross profit left/ $4,000 to gain
6:25:39affiliate equals 12.51.
6:25:43Not too shabby. If you recall from
6:25:45earlier, we need to be at least at 3 col
6:25:471 to have a decent business. Like the
6:25:50example, we want the ratio even higher
6:25:52than that. 5:1 10 to 1 plus. Now, if we
6:25:56had these numbers, we just do more. But
6:25:59if your actual LTGP CAC is less than
6:26:02three, here are the three ways to
6:26:04improve it. One, lower CAC. We get
6:26:07affiliates for less by improving our
6:26:09ads, offer, and sales process. Two,
6:26:13increase LTGP and decrease CAC. Get more
6:26:17to activate by creating a launch
6:26:19process. Three, increase LTGP. We make
6:26:23them worth more by improving our
6:26:25integration process. With affiliates,
6:26:28you now have at least two layers of
6:26:30customers. Your customers and the people
6:26:33who get you customers. And if you've got
6:26:35super affiliates, you add a third. The
6:26:38people who get you, the people who get
6:26:39you customers. This adds complexity, but
6:26:42if you can manage it, it's worth it. Now
6:26:44that you understand how to use
6:26:46affiliates to advertise and how to make
6:26:48them more profitable, let's bring it all
6:26:50home. Conclusion: Like referrals,
6:26:53affiliates aren't an advertising method
6:26:55you can do. There are people who
6:26:57advertise your stuff to benefit you
6:26:59both. You do the core for to get them.
6:27:01And if you want them to love you, then
6:27:03you treat them like customers. Because
6:27:05in a lot of ways, they are. And if you
6:27:07deliver more value to them than it costs
6:27:09them to get it, especially hidden costs,
6:27:12they'll get you more leads than you can
6:27:14handle. And like we learned earlier,
6:27:16there are two ways to create a
6:27:17compounding business. You can find more
6:27:19people that never stop buying your
6:27:21stuff, or you can find more people who
6:27:23never stop selling it for you. Referrals
6:27:25are the former, affiliates are the
6:27:27latter. In theory, once you build an
6:27:30affiliate army, you never need to
6:27:32advertise again. They keep getting you
6:27:34leads month after month. The main reason
6:27:37it makes sense for them, the way you do
6:27:39business, your leadership, and the value
6:27:41of your product all come into play.
6:27:43You're only as good as the goodwill you
6:27:46have with your affiliate partners.
6:27:48Arrange it right. And you should both be
6:27:50better off in a relationship. They
6:27:52should be able to spend more to acquire
6:27:54customers through a more compelling
6:27:56offer, higher profits, or both. And in
6:27:59return, you get more engaged leads. So
6:28:02why doesn't everyone do this? They don't
6:28:04know it's possible. They don't know how
6:28:06or they don't want to. Simple as that.
6:28:09Hopefully, we solved all three of those
6:28:11issues at once. Remember, advertising
6:28:14always works. It's only a matter of
6:28:16efficiency. So, once you start, keep
6:28:19going until it works. Action steps.
6:28:21Advertise your affiliate offer until you
6:28:24get 10 to 20 affiliates. Get results
6:28:26with those affiliates and use their
6:28:28feedback to work the kinks out of your
6:28:30offer, terms, launches, and integration
6:28:34strategy. Then scale like crazy by
6:28:36turning their results into your first
6:28:38batch of affiliate lead magnets. Section
6:28:41four, conclusion. Get lead getters. The
6:28:44last skill you ever need to learn is how
6:28:46to get other people to do everything you
6:28:48need for you. We do the core four to get
6:28:51engaged leads. warm outreach, post
6:28:53content, cold outreach, and paid ads.
6:28:56And we use them to get two types of
6:28:58engaged leads. The ones that become
6:29:01customers or the ones we turn into lead
6:29:04getters. Lead getters come in four
6:29:06flavors. Refer, employees, agencies, and
6:29:10affiliates. Each have key strengths.
6:29:13Customer referrals have the biggest
6:29:15potential for lowcost exponential
6:29:17growth. Employees have your direct
6:29:19influence and run your business on your
6:29:22behalf. Agencies teach skills you keep
6:29:24forever and can transfer to your team.
6:29:27Affiliates, once you get them going, can
6:29:29operate entirely on their own. You can
6:29:32either do the advertising or other
6:29:34people can. And there are more other
6:29:36people than there are of you. You get
6:29:38more leads for the work you do when you
6:29:40have help. So, if you want to get a ton
6:29:41of leads, this is the way. Maybe your
6:29:44head is officially spinning now that you
6:29:46understand these advertising methods.
6:29:48You see leads everywhere you look. We
6:29:51have so many ways to grow and you'd be
6:29:53right. But you don't know which one to
6:29:55focus on. Any or all of these lead
6:29:57methods can underpin a successful lead
6:30:00getting strategy. And I put them in the
6:30:02order of what happens naturally. If you
6:30:05start on your own, you tend to get your
6:30:07first referrals before you start
6:30:09building a big team. And when you start
6:30:10building a big team, employees, you'll
6:30:13probably start looking for professional
6:30:15help, agencies. And only when a business
6:30:17owner has a handle on managing people
6:30:19inside of their business do they tend to
6:30:21get the guts to try and manage people
6:30:23outside their business, affiliates. In
6:30:26any case, you have to forget the idea
6:30:28that everything is going to work out the
6:30:30first time. If you think you're going to
6:30:31become a millionaire the first year you
6:30:33go out on your own, you're probably
6:30:35wrong. It's very unlikely. And an
6:30:38obsession with getting rich quick will
6:30:40likely ensure it never happens. People
6:30:42try shortcuts for a decade until they
6:30:44realize they should have picked a
6:30:46strategy and stuck with it for a decade.
6:30:48If you do that, success is inevitable.
6:30:52Once you find something that works for
6:30:53you, stick to what you pick. Those are
6:30:55the best words of encouragement I can
6:30:57offer. The longer you play the game, the
6:30:59better you will get and the more success
6:31:01you will have. Just don't quit or switch
6:31:04methods after seeing a few losses. It's
6:31:07normal to lose in the beginning. In
6:31:09fact, I expect to crack a new lead
6:31:11source in 3 to 6 months, and this isn't
6:31:14my first rodeo. So, if your expectations
6:31:16are faster than that, do you think your
6:31:19expectations are reasonable? We covered
6:31:21a lot here. This section was how you
6:31:23scale, you get other people to help you.
6:31:25They're the missing link. Each has their
6:31:27own strategy and best practices. Use
6:31:30what applies to you. Now, this leads us
6:31:32to section five, get started. I want to
6:31:35put everything together for you in a
6:31:36nice bow so you know exactly what to do
6:31:39next. Together, we'll eliminate leads as
6:31:42the bottleneck in your business forever.
6:31:44Onwards. Section five. Get started. It's
6:31:48not the end. It's not even the beginning
6:31:50of the end, but it is perhaps the end of
6:31:53the beginning. Winston Churchill. June
6:31:562017. 3 months after we lost it all
6:31:59again and switch gym launch to
6:32:02licensing. Hey, what do you make of
6:32:04this? I asked, "What's up?" I gave her
6:32:07my phone. "Mr. and Mrs. Hormoszi, we
6:32:10cordially invite you to a private event
6:32:12for entrepreneurs earning 8 figures and
6:32:15up. Let me know if you're interested.
6:32:17Seems cool," she said. "But we're not
6:32:19making 8 figures." I pretended not to
6:32:22hear her. "You want to go?" "Sure. Is it
6:32:25included in our mentorship dues?" One
6:32:27sec, I'll ask. An email response came a
6:32:30moment later. No, this is an additional
6:32:32fee. It is a two-day event limited to 10
6:32:35people at a private resort. Nope, I
6:32:38said. Huh? Can we afford to go? Ouch.
6:32:41Who cares? We can't afford not to go. 10
6:32:44days, a long flight, and a short drive
6:32:47later. We made it. The cool kids meet
6:32:50up. I had one goal, to add as much value
6:32:53as I could to everyone else in the room.
6:32:55But the moment I walked in, I knew I was
6:32:57out of my league. I recognized almost
6:32:59everyone there. They were famous in the
6:33:02advertising world. They all spoke at
6:33:04huge events, signed autographs, made
6:33:07millions. Then there was me. I wasn't an
6:33:108 figureure entrepreneur. I was a kid
6:33:12from Baltimore just paying to breathe
6:33:14everyone else's air. Once everyone
6:33:16settled, we had a short housekeeping
6:33:18discussion and then got down to
6:33:20business. This way of doing things was a
6:33:22sharp contrast to the big stages.
6:33:24booming sound systems, flashing lights,
6:33:27and other theatrics that real events
6:33:29have. The first speaker was ready to go.
6:33:32He had a man bun and loose yo-yish
6:33:34clothing. He looked like a hippie, but
6:33:36then he opened with how he was only
6:33:38doing $3 million per month. Is this for
6:33:41real? I felt like a fraud. The numbers
6:33:44he shared with such a casual attitude
6:33:46blew my mind. How is this possible? He
6:33:49continued on with his talk using all
6:33:51sorts of business advertising and tech
6:33:53jargon. He pointed to dizzying charts
6:33:56and graphs. I came here to learn more
6:33:58about advertising but felt dumber by the
6:34:00second. I recognized enough of the words
6:34:03to realize I knew nothing useful about
6:34:05them. His presentation went way over my
6:34:08head. I started sweating bullets. Ila
6:34:10grabbed my hand. We both felt stressed
6:34:13and out of our depths. He finished and
6:34:15finally opened up for a Q&A. Excellent.
6:34:18But the questions were still at the same
6:34:21level as his presentation. Nope. I'm
6:34:23still doomed. Then an awkward voice
6:34:26cracked. So, uh, what courses are you
6:34:28taking to learn all this stuff? Now
6:34:30we're talking. I leaned in, pen in hand.
6:34:33His answer changed my life. At this
6:34:36point, I don't expect to learn anything
6:34:38new from courses. I have to learn by
6:34:40doing. And I do by spending a percentage
6:34:42of my revenue to test new campaigns, new
6:34:45channels, new pages, or just plain crazy
6:34:49ideas. And I learn something every time
6:34:51I test. So, the money is well spent.
6:34:54Whenever one of these tests is a winner,
6:34:56and some are, it's a big deal. I learn
6:34:58something amazing and make far more
6:35:00money than I spent. It raises the bar
6:35:03for my business and more importantly
6:35:06myself. So whether it's 1%, 5% or 10%,
6:35:11set some percentage of your advertising
6:35:13budget aside to try new things without
6:35:15expecting a return. Consider it an
6:35:17investment in your education. I felt
6:35:19chills go through me like some judgment
6:35:22demon left my body. He gave me
6:35:24permission to fail. None of this is
6:35:26magic. If he can do this, so can I. The
6:35:29next week, I tripled my advertising
6:35:31budget. Yes, it was a bit aggressive,
6:35:33but my mindset had completely changed.
6:35:36I'd either make more or get better. Our
6:35:39business went from $400,000 in June to
6:35:42$780,000
6:35:44in July. From there, my cost to get
6:35:46customers went up too high. So, I tried
6:35:48new audiences. Most failed. Then I hit
6:35:51boom. We cruised past $1 million to $1.2
6:35:55million to $1.5 million per month. Then
6:35:59I realized we didn't follow up with our
6:36:01engaged leads at all. We tested email,
6:36:04didn't work. We tested phone calls,
6:36:07nothing. Then I tried text blasts. Wham!
6:36:10We zoomed to $1.8 million the next
6:36:13month. From there, we tested paid ads
6:36:15like crazy. We made way more of them and
6:36:18put more focus on their production
6:36:20value. Boom. We cruised past $2.5
6:36:23million per month. Then we launched our
6:36:26affiliate program and stacked another
6:36:28$1.5 million per month on top. That took
6:36:31us past $4 million per month. Years
6:36:34later, our portfolio now does more than
6:36:37$16 million per month. So, test until
6:36:40you find something that works. Take
6:36:42massive action. Stay focused. Double
6:36:45down on it until it breaks. Then test
6:36:47until you find a next thing that works
6:36:49and double down on that. Taking these
6:36:51leaps are the only way to unlock the
6:36:54business you want and the life that
6:36:55comes with it. And maybe slay your
6:36:58judgment demon, too. So, from now on,
6:37:01you either win or you learn. the end of
6:37:03the beginning. Your speed to making big
6:37:05money depends on how fast you learn the
6:37:07skills to making big money. Getting more
6:37:10engaged leads with the skills of
6:37:11advertising is a great start to making
6:37:14more money. In fact, if you make any
6:37:16amount of money, more engaged leads will
6:37:18make you even more. And sadly, those
6:37:22skills take time to learn. So, I share
6:37:24my experiences to shave years off your
6:37:26time. To shorten the gap between no
6:37:28money and mo money, it's time to make it
6:37:31happen. Outline of the get started
6:37:33section. This final section has three
6:37:36chapters. They are short and sweet, just
6:37:39like our time together. In the first
6:37:41chapter, advertising in real life. I'll
6:37:44lay out my one big advertising rule.
6:37:47Then I'll give you my personal one-page
6:37:49advertising plan you can use to get more
6:37:52engaged leads today. In the next
6:37:54chapter, putting it all together, I'll
6:37:56lay out the road map to scale from your
6:37:58first few leads all the way to your $100
6:38:01million leads machine. Finally, a decade
6:38:04in page, I'll distill everything we
6:38:07learned in a bullets to show how far
6:38:08we've come in our time together. Then,
6:38:11to send you on your way, I'll share a
6:38:13parable that has gotten me through even
6:38:15my hardest times. Advertising in real
6:38:18life, open to goal. If some is good,
6:38:21more is better. June 2014 when I
6:38:24launched my first gym. I used the same
6:38:26paid ads I used at Sam's gym for way
6:38:28back and they worked for a while. Over
6:38:30time, the cost started creeping up. I
6:38:33got less leads for the same money, but I
6:38:36still needed more customers. I wasn't
6:38:38sure what to do. I talked to a mentor
6:38:40who ran a chain of tanning salons for
6:38:42some advice. He said, "Before all this
6:38:44fancy internet stuff, flyers crushed for
6:38:47us. You should try those. So, try them."
6:38:49We did. We printed 300. Over the next
6:38:52day, we put them on cars in areas close
6:38:55to the gym. A day passed. Nothing. The
6:38:58next day, the phone rang. Finally. Hey,
6:39:01you put a flyer on my car. My heart
6:39:03raced. It worked. Yes. Yes, I did. How
6:39:06can I? But before I could finish, he
6:39:09interrupted right back. Yeah, you
6:39:11scratched my Mercedes crap. You're going
6:39:13to need to pay for I panicked and hung
6:39:15up the phone. He called back. I let it
6:39:17ring. He never called again. That was
6:39:19the only call I got from the Flyers. No
6:39:22leads, nothing. Universe one, Alex zero.
6:39:27A few weeks later, I sat in the lobby of
6:39:29my gym waiting for customers to fall
6:39:32into my lap. Feeling bored and a bit
6:39:35frustrated, I called the mentor with the
6:39:37bright idea to put out flyers. Hey,
6:39:39Alex. How's it going? Not too good. Why?
6:39:42What's up? We put out the flyers like
6:39:44you said. Oh, yeah. How many leads you
6:39:47get from him? None. Hm, that's odd. He
6:39:50paused. What was your test size? What do
6:39:52you mean? You know how many did you put
6:39:54out? I put out 300, I said in a
6:39:57resentful tone. Shoot. You only put out
6:40:00300? Hard to know if anything works with
6:40:02such a small number. I test with 5,000.
6:40:05Then when we find a winner, we put out
6:40:075,000 per day, every day for a month.
6:40:105,000? He tests with almost 17 times
6:40:14more than my entire campaign. And he
6:40:16does it in a single day. I felt like the
6:40:19person who says exercise doesn't work
6:40:21after going to the gym one time. And I
6:40:23hate that person. I mean, what kind of
6:40:25response did you think you're going to
6:40:26get? He chuckled. If we get half a
6:40:28percent, that's decent. If we get 1%,
6:40:31that's a winner. With 300 flyers, half a
6:40:34percent would be like one and a half
6:40:36people. That makes it pretty hard to
6:40:37know if you got a winner or not. I had
6:40:40nothing to say. He was right. I felt
6:40:42like a fool. I doubt he remembers the
6:40:44call, but it stuck with me. I promised
6:40:46myself I would never let effort be the
6:40:49reason anything didn't work for me. It
6:40:51could be something else. The offer, the
6:40:54copy, the image, the targeting, the
6:40:57media, the platform, the position of the
6:40:59moon, but not my effort. Those 300
6:41:03measly flyers taught me a mondo lesson.
6:41:06I did the right stuff, but I didn't do
6:41:08it enough times. I lacked what could be
6:41:10described in a single word, volume. Neil
6:41:13Strauss once said, "Success comes down
6:41:15to doing the obvious thing for an
6:41:17uncommonly long period of time without
6:41:20convincing yourself you're smarter than
6:41:21you are." The right action in the wrong
6:41:24amount still fails. Most people, myself
6:41:27included, stop too soon. We don't do
6:41:29enough. Most people dramatically
6:41:31underestimate the volume it takes to
6:41:34make advertising work. They're not doing
6:41:36half as much or a third as much as is
6:41:39required. In fact, they're doing
6:41:41dramatically less. I was doing 1,500th
6:41:45the level of effort required to make a
6:41:47flyer campaign work. I just didn't know
6:41:49it. I hear this all the time. Alex, I
6:41:52reached out to 100 people over the last
6:41:546 weeks. I only got one customer. It
6:41:56doesn't work. Response: You did 1/42 of
6:42:00the amount of work required. It was 100
6:42:02per day, not 100 over time. Most people
6:42:05do not get that advertising is an inputs
6:42:08and outputs game. To them, outputs
6:42:11appear out of their control. Their
6:42:12loweffort inputs get them their low and
6:42:15unreliable output of engaged leads.
6:42:18We're in that now. You input advertising
6:42:21effort. Your output is engaged leads.
6:42:24Period. Now, we are crystal clear on the
6:42:26stuff you do, the core four. And like we
6:42:29learned when maximizing the core four,
6:42:31you just got to put in more and do it
6:42:33better than before. We started with the
6:42:35rule of 100, but when you make that the
6:42:37norm, you're ready to take it to the
6:42:39next level with rule of 100 on steroids.
6:42:42Open to goal. A very successful gym
6:42:45chain allowed their sales managers to
6:42:48make their own schedules. But there was
6:42:50a catch. They had to sign up five new
6:42:52members per day no matter what. So if
6:42:54they did it by lunch, they could cut out
6:42:56early. But if it took 18 hours, so be
6:42:59it. They called this type of work
6:43:01schedule open to goal. I found that
6:43:03elite entrepreneurs and salespeople
6:43:05across industries do some variation of
6:43:08open to goal. This is because it's like
6:43:10the rule of 100 but for the big kids.
6:43:13You don't just commit to doing something
6:43:15a specific number of times. You commit
6:43:17to the work until you hit a specific
6:43:20number of outcomes, no matter what. So
6:43:22it means you unlock a whole new level of
6:43:25effort you never even realized you had.
6:43:27It might mean only doing something 50
6:43:29times to get the desired result or like
6:43:32the flyers 5,000 times every day for
6:43:35years. If you want to take your
6:43:36advertising to the next level, work
6:43:39until the job is done. Give up the idea
6:43:41of doing your best. Instead, do what is
6:43:44required and sometimes it means your
6:43:46best just needs to get better. How I
6:43:49make open to goal work for myself. If I
6:43:51had to pick the three habits that best
6:43:53serve me in my life, they would be one,
6:43:57waking up early, 4 to 5:00 a.m. Pro tip,
6:44:00this actually means going to bed early.
6:44:02Two, getting right to work. No rituals,
6:44:05no doines. I drink coffee and get to
6:44:08work. Three, no meetings until noon. No
6:44:12interruptions, nothing. Fully focused
6:44:14work time. To be clear, I don't think
6:44:17there's any magic to waking up early.
6:44:19But I do think there's magic in a long
6:44:21stretch of uninterrupted work
6:44:24immediately after a long stretch
6:44:26uninterrupted sleep. After all, it's the
6:44:29most productive hours in a row of the
6:44:31most productive work I can do with
6:44:33nothing getting in my way every single
6:44:37day. How can you lose? And since I have
6:44:39a good idea of what I can do in a day, I
6:44:42set my daily goal accordingly. Then only
6:44:44after my dedicated block of work do I go
6:44:47put out fires, talk to humans, and deal
6:44:49with the other dayto-day stuff. Waking
6:44:51up early, getting right to work, and
6:44:54working 8 hours straight has been my
6:44:56highest ROI habit stack. By a long shot,
6:44:59if you choose to try it, I hope it
6:45:01serves you as well as it has served me
6:45:03or better. And for those of you
6:45:05thinking, wait, that's more than 12
6:45:07hours of work a day. You're right. I'm
6:45:10playing to win. But if it overwhelms you
6:45:12at first, I get it. Just throttle it
6:45:14back a few hours and then work your way
6:45:16up. Some days it's tough, but I always
6:45:18like to remind myself. Do more than they
6:45:20do and you will have more than they
6:45:22have. Since my job is usually to get
6:45:25more customers in most of my companies,
6:45:28advertising is what I focus on. This
6:45:30book, for example, was written
6:45:32exclusively in that open a goal time
6:45:34block. Why? Because it's an asset that
6:45:36can bring me more companies. So, if
6:45:38you're going to follow my high ROI habit
6:45:40stack, then you're going to want a clear
6:45:42action plan for that time. This is the
6:45:45simplest advertising plan I can give
6:45:46you. One-page advertising checklist.
6:45:49Step number one, pick the type of
6:45:51engaged lead to get customers,
6:45:54affiliates, employees, or agencies. Step
6:45:57number two, pick rule of 100 or open to
6:46:00goal. Commit to your daily advertising
6:46:02actions. Step number three, fill out the
6:46:05advertising checklist for that daily
6:46:07action. Advertising daily checklist. Who
6:46:10you, what, your offer or lead magnet.
6:46:13Where platform to whom? Audience/list
6:46:17when first 8 hours. Why? Get X engaged
6:46:21leads or lead getters. How? Warm/cold
6:46:25outreach content ads. How much? 100 or
6:46:29until you hit your goal. How many
6:46:31hashtag of followups slashtimes
6:46:34retarget? How long? 100 days or until
6:46:37you hit your goal. Step number four, do
6:46:40this daily action until you have enough
6:46:42money to afford paying someone else to
6:46:44do it. Step number five, when you do, go
6:46:47back to step one. Make employees your
6:46:49new target lead type and repeat steps
6:46:52one to four until you have the help you
6:46:54need. Then scale again. Conclusion. Lots
6:46:57of pages. So many ideas. We're almost at
6:47:00the end, but you don't have any more
6:47:02leads. What gives? Answer: Reading
6:47:06doesn't get people interested in the
6:47:07stuff you sell. Advertising does. If
6:47:10you're not telling anyone about the
6:47:11stuff you sell, then you aren't getting
6:47:13anyone interested in the stuff you sell.
6:47:16Period. This chapter laid out the plan
6:47:18to advertise in the simplest way I
6:47:20could. Work, open a goal. Structure your
6:47:23day to make open to goal possible.
6:47:25create and commit to that goal with a
6:47:28one-page advertising checklist. Many
6:47:30skip planning or worse, they write a
6:47:33100page plan that never gets used. So,
6:47:36skip the atrocious waste of time that is
6:47:38writing pages of baloney. Harness the
6:47:41power of laying out your action steps on
6:47:43a single page. It leaves little room for
6:47:46excuses, distractions, and delusions.
6:47:49You either did the stuff or you didn't.
6:47:51You can fill out your one-page
6:47:53advertising checklist in about five
6:47:55minutes. And once the naked truth stares
6:47:58back at you, all you have left is to do
6:48:00it. The road map. Putting it all
6:48:02together. 0 to 100 million. A leader
6:48:06must aim high, see big, judge widely,
6:48:10thus setting himself apart from the
6:48:12ordinary people who debate in narrow
6:48:14confines. Charlie, French president
6:48:17during World War II. To get to where you
6:48:20want to go, it pays to know what lies
6:48:22ahead. So, in this chapter, I describe
6:48:25the phases you will go through as you
6:48:26scale your advertising. Acquisition.com
6:48:29uses this road map to scale our
6:48:32portfolio companies from a few million a
6:48:34year all the way to $100 million plus.
6:48:37These levels will help you identify
6:48:39where you are on the advertising totem
6:48:41pole, so you know what to do to get to
6:48:43the next level. Level one, your friends
6:48:46know about the stuff you sell. to start
6:48:48getting engaged leads. You make one
6:48:50offer to one avatar on one platform. The
6:48:53moment you get engaged leads is the
6:48:56moment you can start making money. For
6:48:58me, this started with reaching out to
6:49:00everyone I knew. Primary action, warm
6:49:03outreach. Level two, you consistently
6:49:06let everyone you know about the stuff
6:49:08you sell. You know the exact inputs to
6:49:10get an engaged lead with your chosen
6:49:13advertising method. And by scaling those
6:49:16inputs, you get consistent customers
6:49:18with it. But the consistent customers
6:49:20come from maximizing your personal work
6:49:22capacity. For me, on top of warm
6:49:25reachouts, I maximized my personal work
6:49:28capacity with paid aids using a case
6:49:30study as my lead magnet. But looking
6:49:33back, I wish I would have started with
6:49:35posting free content. So, I suggest that
6:49:38primary actions, do as much warm
6:49:40outreach and post as much content as you
6:49:42can consistently. Level three, you get
6:49:45employees to help you do more
6:49:46advertising. You've maxed your personal
6:49:49advertising inputs, but not the
6:49:51platform. And if you want more engaged
6:49:53leads, that can only mean one thing,
6:49:55doing more. For me, I hired a
6:49:57videographer and a media buyer to take
6:49:59most of the paid ads work off my plate.
6:50:02Primary action, you hire people to
6:50:04advertise profitably on your behalf.
6:50:07Level four, your product is good enough
6:50:10to get consistent referrals. You
6:50:12continue building goodwill and you shoot
6:50:15for getting 25% or more of your
6:50:17customers from referrals. Now you set
6:50:20yourself up to ramp your advertising
6:50:21again. But to make that work, you have
6:50:23to get more serious about hiring a team
6:50:26to make it happen. This is when I
6:50:28realized that my ads were shut off, but
6:50:30I was still getting referrals every
6:50:32week. So I doubled down on referrals. I
6:50:36built Goodwill using customer feedback
6:50:38to update my product every two weeks. I
6:50:41also started a strong referral program
6:50:43with big incentives at the same time.
6:50:46Primary actions. Focus on your product
6:50:48until you get consistent referrals, then
6:50:51go back to scaling your advertising with
6:50:53a bigger team. This is where most people
6:50:55mess up. They let their products slip
6:50:57and never recover. Level five, you
6:51:00advertise in more places in more ways
6:51:02with more people. First, you expand to
6:51:05new audiences on your best platform.
6:51:08Then you make ads with all placements
6:51:10and media types the platform supports.
6:51:12And after your team can get consistent
6:51:14results, you expand your team again to
6:51:17add another platform lead getter or core
6:51:20for activity. For me, I hit two birds
6:51:23with one stone. I expanded my paid ads
6:51:26to include potential affiliates and this
6:51:29paved the way for my affiliate programs.
6:51:31Primary action, advertise profitably
6:51:34using at least two methods on multiple
6:51:36platforms. Level six, you hire killers.
6:51:40Your executives grow departments
6:51:42specific to an advertising method or
6:51:44platform without you. And you're not
6:51:46looking for potential. You're looking
6:51:48for experienced leaders specializing in
6:51:51exactly what you want. We capped here.
6:51:53It took me 3 years to figure out two
6:51:56things. one that I needed veteran
6:51:58executives with experience suited to my
6:52:01problems and two that they needed
6:52:04stronger incentives. But by the time I
6:52:06realized this, I sold those companies.
6:52:08Once I started acquisition.com, I
6:52:11realized the power of expanding the pie
6:52:13to get more of the right people invested
6:52:15in winning. This is how we crossed $100
6:52:17million plus, then $200 million plus in
6:52:21portfolio revenue and beyond. Primary
6:52:24action, get battleh hardened executives
6:52:26and department heads to take over new
6:52:29advertising activities and channels. Pro
6:52:32tip, hire experience, not potential. I
6:52:35tried cold reachouts twice before it
6:52:37worked the third time. The main
6:52:39difference, the person I hired to run
6:52:41it. First, I tried someone external with
6:52:44experience that failed. Then I tried
6:52:46internally with no experience that
6:52:48failed. Then finally, I hired internally
6:52:51with experience that worked. Since it's
6:52:53a peopleheavy, operationally complex
6:52:56machine, the person you hire to manage
6:52:59the team matters a lot. Pick experience.
6:53:01They should know more than you do. If
6:53:04you're not learning from them in the
6:53:05interview, you've got the wrong person.
6:53:07Level seven. I'll come back and edit
6:53:09this chapter once I cross a billion. I
6:53:12promise I'll send the lessons as soon as
6:53:13I have them. You have my word. Last
6:53:16points. I know this looks clean, but it
6:53:18never is. Real business is messy. It
6:53:21takes a lot to find what audiences, lead
6:53:24magnets, methods, and platforms work
6:53:26best. And you can only find out what
6:53:28works if you try. So, you have to try a
6:53:30lot of different things, a lot of
6:53:32different ways for a long enough time to
6:53:34know for sure. Nobody can ever know the
6:53:36absolute best thing to do. But I do know
6:53:39this. The more you advertise, the more
6:53:42people find out about the stuff you
6:53:43sell. The more people who know about the
6:53:46stuff you sell, the more people will buy
6:53:48it. This is the key to the $100 million
6:53:50leads machine. The $100 million plus
6:53:53lead machine. Let's look into your
6:53:55future. Your business makes $100 million
6:53:59plus annual revenue. It's great to have
6:54:01a clear picture of what the $100 million
6:54:04machine looks like. Let's have a look,
6:54:05shall we? First and foremost, your
6:54:08advertising fires on all cylinders. Your
6:54:11media team scales tons of free content
6:54:14in all media types on many platforms.
6:54:17You regularly make offers to your warm
6:54:20audience to get more customers or
6:54:22affiliates. Your ravenous audience makes
6:54:25anything you launch immediately
6:54:27profitable. You have teams running and
6:54:30scaling profitable paid ads across
6:54:32multiple platforms. Your cold outreach
6:54:35team gets you more customers. You have
6:54:37an affiliate manager launching and
6:54:39integrating all new affiliates. You have
6:54:42recruiters and recruiting agencies
6:54:44bringing in more lead getters. Your
6:54:46product is so good that a third of your
6:54:48customers bring you more customers. Your
6:54:51executive team drives all this growth
6:54:54without you. And you have more engaged
6:54:56leads than you can possibly handle. How
6:54:59long does this take for business owners
6:55:01who know what to do? Anywhere from 5 to
6:55:0410 years. Building something great, even
6:55:06if you know exactly what to do, takes
6:55:09time. And so many like to trumpet
6:55:11overnight success. But looking behind
6:55:13the curtain tells a different story. It
6:55:16took my wife and I more than 10 years of
6:55:18our best effort to cross the first $100
6:55:21million in net worth. So the bigger your
6:55:24goals, the longer your time horizons
6:55:26need to be. You want to play games where
6:55:28if you wait, you win. A decade in a
6:55:30page. Simplicity is the ultimate
6:55:33sophistication. Leonardo da Vinci. We've
6:55:36covered a lot. And I think organizing
6:55:38what we learned into one place helps it
6:55:41sink in. So, I made this back of a
6:55:42napkin list of what we've covered and
6:55:44why. One, how to define a lead from this
6:55:47point forward. Now you know what you're
6:55:49after. Engaged leads, not just leads.
6:55:52Two, how to turn leads into engaged
6:55:55leads with an offer or lead magnet and
6:55:58how to make them. Three, the core four,
6:56:01the only four ways we can let people
6:56:03know about the stuff we sell. A, how to
6:56:05reach out to people who know us, ask
6:56:08them if they know anybody. B. How to
6:56:10post publicly, hook, retain, reward,
6:56:13give until they ask. C. How to reach out
6:56:16to strangers, lists, personalization,
6:56:19big fast value, volume. D. How to run
6:56:22paid ads to strangers. Targeting call
6:56:25outs. What who wins? CTAs, client
6:56:28financed, acquisition. Four, maximizing
6:56:31the core for more better new. Eight.
6:56:34What keeps us from doing what I'm
6:56:35currently doing at 10 times the volume?
6:56:38then solving for that. B, finding the
6:56:41constraint in our advertising. Then
6:56:43testing until it frees the constraint,
6:56:46then doing more until it gets
6:56:47constrained again. Five, the four lead
6:56:50getters, customers, employees, agencies,
6:56:53and affiliates. A, how to get customers
6:56:56to refer other customers. B, how to get
6:56:59employees to scale your advertising
6:57:01without you. C, how to get an agency to
6:57:04teach you new skills. D. How to get
6:57:07affiliates launched and integrated. Six.
6:57:11When advertising in the real world, the
6:57:13rule of 100 and open to goal. A. The
6:57:17five-step one-page advertising plan to
6:57:19get more leads today. Seven. The seven
6:57:22levels of advertisers and the 100
6:57:24million leads machine in action. As I
6:57:27promised in the beginning, the result of
6:57:29these bullets is more better, cheaper,
6:57:32reliable, engaged leads. I hope this
6:57:34book provides a utility. I hope as a
6:57:37result of reading this, you know how to
6:57:38get more leads than you currently are.
6:57:40And I hope I unmask the mystery behind
6:57:43lead getting. Also, since you are one of
6:57:45the few who actually finish what you
6:57:47start, I want to leave you with a
6:57:48parting gift, a fable that has gotten me
6:57:51through my hardest times. The many sided
6:57:53die. Imagine you and a friend play a
6:57:56dice rolling game. You are each given
6:57:58one die. One of the dice has 20 sides.
6:58:01The other has 200. On each die, only one
6:58:05side is green and the rest are red. The
6:58:08point of the game is simple. Roll green
6:58:10as many times as you can. The rules of
6:58:13the game are as follows. You can't see
6:58:15how many sides you have. You can only
6:58:17see if you roll red or green. If you
6:58:20roll green, one of your red sides turns
6:58:22green and you get to roll again. If you
6:58:24roll red, nothing happens and you get to
6:58:27roll again. The game ends when you stop
6:58:29rolling. And if you stop rolling, you
6:58:31lose. What do you do? You roll. When you
6:58:34roll red, you pick up the dye and roll
6:58:36again. When others roll green, you pick
6:58:39up your dye and roll again. When you
6:58:40roll green, you pick up the dye and roll
6:58:42again. You keep telling yourself one
6:58:45thing. The more I roll, the more greens
6:58:47I get. At first, you roll green once in
6:58:50a while. But as more red sides turn
6:58:53green, the greens happen more. With
6:58:55enough rolls, hitting green becomes the
6:58:57rule rather than the exception. What
6:58:59does your friend do? He rolls a few
6:59:01times and hits red each time. He sees
6:59:03you roll a green and complains that you
6:59:06must have a die with fewer sides. He
6:59:08reasons, "It's the only way you could
6:59:10have rolled green before him. And
6:59:12although you did, you also rolled many
6:59:14more times. So, which is it?" In either
6:59:16case, he rolls a few more times in
6:59:19frustration and hits a green. But then
6:59:21he complains about how long it took. He
6:59:23spent more time watching you and
6:59:25complaining than actually playing.
6:59:26Meanwhile, you've hit your green streak.
6:59:29It's so much easier for you, he tells
6:59:31himself. You get greens every time. This
6:59:34game is rigged, so what's the point? He
6:59:36quits. So, who got the die with 20
6:59:38sides? Who got the die with 200 sides?
6:59:42If you get the game, then you see once
6:59:44you roll enough times, the die you're
6:59:46given doesn't matter. Die with fewer
6:59:48sides might roll green sooner. Dye with
6:59:50more sides might roll green later. But a
6:59:53die with a green side always has a
6:59:55chance of rolling green if you roll it.
6:59:58Every die hits its green streak when
7:00:00rolled enough times. All of us get a
7:00:02many-sided die. And looking at the other
7:00:05players, you have no idea if it's their
7:00:07100th roll or their 100,000th. You don't
7:00:10know how good other players are when
7:00:12they start. You can only see how well
7:00:14they do now. But if you understand the
7:00:17game, you also know it doesn't matter. A
7:00:19few begin playing early. Others begin
7:00:22much later. The rest sit on the
7:00:24sidelines complaining about how lucky
7:00:26the players are. I guess so. But they're
7:00:28luckier because they play. And when they
7:00:30hit red, which they do, they didn't
7:00:32quit. They rolled again. Learning to
7:00:35advertise is a lot like the game of the
7:00:37many sided die. You do not know if it
7:00:40will work until you try. And when you
7:00:41start advertising, you will probably hit
7:00:44red on your first rolls. But if you try
7:00:46enough times, you will hit green. And
7:00:48when it works, you have a better chance
7:00:50of getting it to work again. The more
7:00:52you do it, the easier it gets. You begin
7:00:54to understand the game. No matter how
7:00:56many players there are or the number of
7:00:58sides on the die you're given, you start
7:01:00to see the only two guarantees. One, the
7:01:03more times you roll, the better you get.
7:01:06Two, if you quit, you lose. So, here's
7:01:09my final promise. You cannot lose if you
7:01:11do not quit. And there you have it. Alex
7:01:14Hormosy's blueprint for lead generation.
7:01:16The biggest takeaway: leads are
7:01:18everything. Without people to sell to,
7:01:21even the best product won't succeed. If
7:01:23this helped you, hit that like button
7:01:25and subscribe for more self-help
7:01:27classics narrated by Brian. Got a book
7:01:29you want us to cover next? Drop it in
7:01:31the comments below. Remember, the
7:01:34difference between struggling and
7:01:36thriving often comes down to how many
7:01:38quality leads you're getting. Now, go
7:01:40out there and implement what you
7:01:41learned. We'll see you in the next

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