At 21, He Makes $600K a Month. His Ads Are the Ceiling. — Transcript

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1. 0:00Hi Alex, my name is Arthur. I'm 21 years
2. 0:03old and me and my wife are currently
3. 0:05running a VSL funnel
4. 0:07>> Yeah.
5. 0:07>> selling a subscription program on the
6. 0:09love relationship niche.
7. 0:11>> Okay.
8. 0:11>> And it's regenerating around like
9. 0:14600,000 per month in revenue.
10. 0:16>> Super cool.
11. 0:17>> 3:2:1 ratio.
12. 0:19>> Great.
13. 0:19>> And our goal is to make a million dollar
14. 0:21per month.
15. 0:22>> Sure.
16. 0:23>> However, we are only using Facebook ads
17. 0:26and the revenue tends to fluctuate a lot
18. 0:28on a daily basis.
19. 0:30>> Yeah.
20. 0:30>> And when we put a lot of money on the
21. 0:32CPAs goes up like a lot.
22. 0:35>> Yeah.
23. 0:35>> So my question is on three key points.
24. 0:38The first, how would you solve this to
25. 0:41make like the result as consistent as
26. 0:44possible. Second, how can we scale from
27. 0:47the
28. 0:48500k [snorts] 600k to 1 million per
29. 0:51month. And third, what is the difference
30. 0:54between the mindset between someone who
31. 0:56makes a million dollar per month versus
32. 0:59someone who makes a 500k?
33. 1:05>> So
34. 1:08rather I'm going to put a pin in the
35. 1:10mindset thing for a second.
36. 1:11Um
37. 1:12So big thing number one is that most
38. 1:14people underestimate wildly
39. 1:15underestimate how much more creative and
40. 1:16how how much better the creative needs
41. 1:18to be to continue to scale. And so
42. 1:20where's my Old Spice?
43. 1:23Right? The the level of So that that ad
44. 1:25campaign So you mean the Old Spice ad
45. 1:26which is like one of the legendary ads
46. 1:28of all time.
47. 1:30Um
48. 1:31That ad was so good that it converted
49. 1:33everyone.
50. 1:35And so I just see it as very much you
51. 1:37have the levels of awareness. Uh Eugene
52. 1:39Schwartz talks about this in
53. 1:40breakthrough advertising in terms of
54. 1:41what types of hooks you're using. And so
55. 1:43at the at the highest level you have
56. 1:44unaware people.
57. 1:45Then you have problem aware.
58. 1:47You have solution aware. You have
59. 1:48product aware. And then you have most
60. 1:50aware which is typically your your your
61. 1:51your most recent customers, right? And
62. 1:53so when we think about scaling ads, we
63. 1:57write hooks to those different
64. 1:59audiences. And so if you run and where's
65. 2:02my uh so you guys do your uh
66. 2:04reactivation campaign to uh home
67. 2:06services. So you just go to most aware
68. 2:08people and you just make them an offer.
69. 2:11So they don't have to educate them on
70. 2:13what home services are. They don't need
71. 2:14to explain why it increased the value of
72. 2:16your house. They just make an offer,
73. 2:17period. And that's their advertising.
74. 2:19But the issue there is that that doesn't
75. 2:21work at all for anyone who doesn't
76. 2:22already know who this person is.
77. 2:24And so that's the kind of equal opposite
78. 2:26extremes where on this level there's
79. 2:28just a hilarious ad and when you're
80. 2:30doing at the top level it's based on
81. 2:32curiosity and entertainment.
82. 2:35A level below that when you're uh when
83. 2:37you're at pain based, if you've ever
84. 2:38seen the ads that are like
85. 2:40do you have trouble sleeping at night?
86. 2:41Do you pee six times a day, you know,
87. 2:43whatever like whatever the thing is? Is
88. 2:45that they that hook could lead you to
89. 2:49ashwagandha root, it could also lead you
90. 2:51to a sleep program, it could also lead
91. 2:52you to orthotics. Like it's so broad but
92. 2:55it starts with the pain. Now solution
93. 2:57aware is what you might not have known
94. 2:59about ashwagandha compared to
95. 3:00compared to these orthotics is that
96. 3:01ashwagandha blah blah blah. So now
97. 3:03you're comparing things, right? And so
98. 3:05you the hooks are based on the audience
99. 3:07that you're going after.
100. 3:10And the quality of the creative itself.
101. 3:12So those will be the two variables which
102. 3:13typically most people need to make
103. 3:14significantly more creative
104. 3:17to expand your ads. So like many people
105. 3:19here who run ads have this artificial
106. 3:21limit that you guys have hit.
107. 3:23Who here has run ads and is like I'm
108. 3:24good up to here and after that I can't.
109. 3:25Right.
110. 3:27The difference between here and here is
111. 3:29just the quality of creative.
112. 3:33Number two, CRO, so conversion rate
113. 3:35optimization. And so you have a VSL
114. 3:37funnel, this is what I would test in
115. 3:40order. The first two things is I would
116. 3:42test you probably already tested the
117. 3:43headline on the on the VSL funnel a
118. 3:44bunch. But have you tested the first
119. 3:46five minutes of the VSL?
120. 3:49It will give you one of the biggest
121. 3:50lifts in conversion rates. Basically
122. 3:52just slice out the first 5 minutes,
123. 3:54reintroduce it tighter, package it, put
124. 3:57some more proof up front, make sure they
125. 3:58know they're in the right place,
126. 4:00and run two, three, four, five variants.
127. 4:02You will be able to see 20%, 30% lifts
128. 4:05to
129. 4:06cost to acquire, or decreases, rather,
130. 4:10in CAC just from running the actual VSL,
131. 4:13slicing out the front end, and then
132. 4:15testing the intro.
133. 4:16Um the last piece is that you're in a
134. 4:19bidding war.
135. 4:20And so, these things, these first two
136. 4:22things, will get you lower CAC. That's
137. 4:25what this is, right? Better creative,
138. 4:26CRO that lowers the cost to acquire
139. 4:28customers.
140. 4:29The other one, the back end, is
141. 4:31increasing how much you can spend.
142. 4:32Right? And so, do you have a back end
143. 4:34for the VSL that you have?
144. 4:36You do.
145. 4:37>> I have two upsells. One is 97, and the
146. 4:41other one is 67.
147. 4:42>> Yeah, it's a phone team, though. You
148. 4:43you're doing low-ticket upsells. You
149. 4:45need a high-ticket upsell.
150. 4:47>> Okay.
151. 4:47>> Yeah, you need like a $5,000, $10,000
152. 4:52And so, the big difference between
153. 4:53people like
154. 4:54who can get, you know, and the and the
155. 4:56number of 600k versus a million doesn't
156. 4:58really matter. It's more about uh
157. 5:02just more.
158. 5:03>> [laughter]
159. 5:04>> Fundamentally. So,
160. 5:06whenever you add phones, you always can
161. 5:07get a double or triple in terms of LTV.
162. 5:10And so, it's just like, when do you pull
163. 5:11that lever?
164. 5:12And so, you got to here on 600,000, you
165. 5:14might be able to get to 2 million a
166. 5:15month just from doing these two things.
167. 5:17Does that make sense? If you're not
168. 5:18getting as many leads as you want in
169. 5:19your business is demand constrained,
170. 5:21[music] meaning you could service more
171. 5:23customers than you currently have, then
172. 5:24this is for you. So, marketing is
173. 5:26changing, and [music] I think ACQ tends
174. 5:28to be on the bleeding edge of this
175. 5:29stuff. We certainly spend the money
176. 5:31to do it, but we also build custom
177. 5:32software, and we pay amazing vendors and
178. 5:34very expensive people to figure out the
179. 5:36system that we have right now, and I
180. 5:37want to share it with you kind of open
181. 5:38kimono style. If you're not getting as
182. 5:39many leads as you want,
183. 5:41boy, do I have the thing for you. Click
184. 5:42below, book call, and
185. 5:44hopefully I'll I you in Vegas.