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Building a $3,000,000 Business for a Stranger in 31 Minutes | Scale or Fail — Transcript

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0:00I'm Min Jenkinson, and I teach crafters
0:02how to make stickers. I got started 10
0:05years ago. I'd been diagnosed with
0:07breast cancer.
0:09And while going through chemotherapy and
0:11radiation, I still needed something to
0:13take my mind off everything I was going
0:15through. So, a creative project that
0:17came to mind was teaching myself to make
0:19stickers. And so, during chemo, that's
0:21what I did.
0:26Now, little did I know that 10 years on
0:27from that, [music] I've now turned this
0:29into a business where I've taught over
0:3120,000 crafters from all over the world
0:34to make stickers.
0:35>> Hi.
0:36>> Min, what's up? You ready? So, tell me
0:38about the business.
0:39>> I help people make stickers. For the
0:41last 12 months, I made uh 1.1 million
0:43Australian, which roughly works out to
0:45be about 800k. Um so, [music] I've made
0:48multiple seven figures over the past 10
0:50years altogether, but hit my first
0:51seven-figure year, which is very
0:53exciting. So, profit is around the 30 to
0:5635% mark, and my [music]
0:59goal for the next 3 years is to reach 3
1:01million USD [music]
1:03per year.
1:04>> How do you make money?
1:06>> I make money uh with low-ticket digital
1:08products. So, all of my teaching is
1:10online, and my main membership is Secret
1:12Sticker Society. Currently, the rates
1:14are $27
1:15per month or 217 per year. And then,
1:18loads of other low-ticket digital
1:21products that can be interchanged for
1:23upsells. I have really good upsell game,
1:26so that's great.
1:27>> Okay, there's a lot of stuff, though.
1:29So,
1:30how many funnels is this?
1:32>> Over the last 10 years, um I would be
1:35embarrassed to tell you how many funnels
1:36I have.
1:36>> are you running right now?
1:37>> So, right now with the main membership,
1:39with Secret Sticker Society, the main
1:41funnel is a live paid bootcamp that I
1:44launch three times per year.
1:46>> But, the main thing is it's Secret
1:48Sticker Society. You've got a bunch of
1:49upsells in the funnel to upsell to the
1:51greatest degree possible.
1:52>> Yeah.
1:52>> You go to the launch, and then you sell
1:54Secret Sticker Society in the back.
1:56>> That's right.
1:56>> Okay, got
1:57>> Yeah.
1:58>> What are the numbers you got for
1:58acquisition?
2:00Okay. The live paid launch is $10. Is it
2:02The ticket's 10 bucks?
2:03>> That's right.
2:04>> So, there's no free.
2:05>> No free.
2:06>> So, it's paid Okay. Paid challenges.
2:08Cost you $37 to get it.
2:09>> Yes.
2:10>> You have a 22% conversion rate on
2:12>> into the membership.
2:14>> Of people who buy a ticket.
2:15>> That's right.
2:16>> That's huge.
2:17>> Yeah, I'm really happy with that.
2:18>> What's AOV?
2:19>> It would be about 36
2:23dollars.
2:24>> almost breaking even.
2:25>> Some of the events I slightly in the
2:28red, but by the end of the event I'm
2:29always profitable. And then two of the
2:31boot camps that I've run have been
2:33profitable from day one. So, I've been
2:34up.
2:36They're my favorite ones.
2:39>> Okay.
2:40All right. What do you think is stopping
2:41you right now?
2:42>> I feel that if I could get more people
2:44into the challenge, I feel so strong now
2:47that I have that strong conversion of
2:49bringing people in. I know what to do.
2:50It's really quite tried and tested. If I
2:53could get a high volume of people into
2:54the boot camp, I'm I'm safe to convert
2:57them.
2:57>> Yeah.
2:58>> Um so, that has been something that has
2:59definitely held me back. And then as you
3:02know, I I know that I have not reached
3:04the cap in any way of being able to
3:06lower that CPA. So,
3:09I I think that even just making the
3:11switch with the past launch of pushing
3:14the annual membership
3:16doubled the average order value. So,
3:18that made a huge difference. Way bigger
3:21than I thought it would. And then
3:22instantly so,
3:24>> Step one, add the annual. Make that the
3:26only offer available. I want to be
3:27clear. The only offer available is the
3:29annual with the bonuses.
3:30>> Okay. So, annual only at the next
3:32launch.
3:33>> Yes.
3:33>> Someone wise told me to do that. And I
3:35did it and [laughter] it worked. Okay.
3:37Yeah.
3:37>> Yeah, we'll probably do some more stuff
3:38there, too.
3:39>> Yeah, great.
3:40>> Okay. So, why is scaling so important to
3:42you?
3:43Why don't you just make money and just
3:45chill where you're at?
3:46>> Well,
3:47I really want to be able to pay off my
3:49home loan. I'm married. I've got two
3:51kids. Um 10 years ago when I set the
3:53business up, I was diagnosed with breast
3:55cancer. Um, thankfully, 10 years on, all
3:58is really well now, which is great. But,
4:00at the time, which was obviously a very
4:02dark period of my life, I set the
4:04business up really as a creative project
4:06to do something just for me to take my
4:07mind off it. And little did I know that
4:0910 years on, I'd be teaching 20,000 plus
4:12crafters to make stickers. I'm
4:14ex-corporate, so completely different to
4:16what I've done before. Um, but what this
4:18has left me with is a really strong
4:20desire to be able to set my family up
4:22financially. I really want to set up my
4:25family in a way that if I'm no longer
4:28around, they are looked after. I know I
4:30can absolutely still help my mom and
4:33help my family.
4:34And having lost so many friends to
4:36cancer and so many who are moms as well,
4:41it just just become more and more
4:42important to me to appreciate how
4:46my income and how money can really
4:49change our lives. Um,
4:52and I want to know that I've done as
4:53much as possible and I've been able to
4:55support my family
4:57even without me.
5:00I'm here to to be open and to learn. And
5:02I will implement on everything that I'm
5:05told to do. I'm a really good student
5:07verging on being a bit of a teacher's
5:09pet. Like, I will just do anything that
5:12um, you know, that you know more than me
5:14on this. And I constantly tell myself
5:17that I only know what I don't know.
5:18>> more about stickers than I do, that's
5:19for sure.
5:20>> Well, not for long because [laughter]
5:22>> Can you pull the uh, the the number
5:24slide back up real quick? So, you're
5:26making about over 500 ish in profit,
5:28right? So, you're very profitable.
5:30Correct?
5:30>> Mhm.
5:31>> Why don't you spend up to $100
5:34CPA?
5:35>> See, this is part of the reason I'm here
5:37cuz I often finish a launch thinking,
5:39>> I should have spent more.
5:40>> Why didn't I spend more? And then I'll
5:42go into the next launch again with that
5:44same, I'll cap my ad spend at a certain
5:46amount for no good reason.
5:48>> So, what do you What do you cap your CPA
5:50at normally?
5:51>> I don't even Well, I have capped the
5:53CPA, but this the CPA has gone as high
5:55as maybe 50.
5:57I'm not a cautious spender, but for some
5:59reason that's what I've done.
6:00>> here.
6:01>> Yeah.
6:01>> Cool, let's rock. Let's do this.
6:03>> I've known of her. I,
6:05you know, knew that she had an amazing
6:07seven-figure business.
6:09Stickers. Doing stickers. It's so
6:11unique, and so
6:12to me that that was the biggest in terms
6:14of competition.
6:20>> Just so I'm clear on the delivery side,
6:22if you double the amount of customers
6:23you have, does it break anything?
6:24>> No.
6:25>> Okay.
6:26So, this is a pure demand issue, which
6:28is nice. I think I'm going to go I'm
6:29going to kind of break this into
6:31I don't know, offer, and then we'll go
6:35traffic. Cuz I don't think there's
6:35really much else for your specific
6:37business that we need to talk about.
6:39>> Yeah.
6:39>> Okay.
6:41So, number one, I guess on the traffic
6:43side from the spend, is How much did you
6:45spend last last launch?
6:47>> I I only spent about 16k. The event went
6:50really well. It was not my biggest
6:52event, but it was still profitable. So,
6:54>> Okay.
6:54>> yeah. Happy. Just didn't have enough
6:55time to be able to
6:57>> You just needed more runway.
6:58>> Yeah.
6:59>> So,
7:01when you said you didn't have enough
7:02time to spend more, what do you mean by
7:03that? Cuz like I spent 500,000 a day at
7:06the end of my launch.
7:07>> You said 500,000 a day?
7:09>> Yeah.
7:11>> For ads?
7:12What What What made you
7:14>> This is where my um my own limitation
7:17with Meta ads probably comes into play.
7:20So, what the way that I like to normally
7:22do my launches, which I know is much
7:23earlier than many others, I launch 4
7:25weeks out.
7:26>> That was 4 weeks out?
7:28>> Oh, cool. With a like a smaller spend,
7:29you know, the testing, seeing what
7:31works. And um I didn't have I didn't
7:33feel like I had the runway to be able to
7:35do that. I guess it was a bit of mindset
7:36stuff, too, of like
7:38being way more conservative than I
7:40normally would. But I remember feeling I
7:42wasn't happy enough with CPA
7:44>> Okay.
7:45>> spending.
7:46>> Okay.
7:47So,
7:48Okay, so I'm going to I'm going to walk
7:49through spend cadence.
7:50>> Yeah.
7:51>> Okay. And so, the way that um I do this,
7:55I put about 5% 5 maybe 10% max of my
7:58spend
7:59>> Mhm.
7:59>> goes in that first week.
8:01And the only purpose is to test
8:03creative.
8:03>> Right. Yeah.
8:04>> Then once we have our creative, the next
8:072 weeks are pretty much flat. Now, we
8:09scale it up obviously.
8:10>> Mhm.
8:10>> But, then we try and spend as much as
8:12possible. Like, I mean, if we could
8:14spend 75% I would. It just It's just
8:16challenging.
8:17>> [laughter]
8:17>> Yeah. Yeah.
8:17>> Right? Like, call it 60 to 70% is in
8:21this week.
8:21>> Totally.
8:22>> And then we're we're in this call it,
8:23you know, 15% Yeah, maybe 10% here and
8:25then 15% here. And so, even here,
8:28this is where you're probably going to
8:29be at 50% is like literally in the last
8:313 days, right?
8:32Now, that's the cadence of spending.
8:34Now, from an amount of spending
8:36perspective, we do have a decision which
8:38is like let's obviously be willing to
8:40spend more, all right? But, in order to
8:41do that, I think there's two things we
8:43have to do before we ramp. One is we
8:44have to fix offer. But, I also want to
8:48approach this from a creative
8:49perspective. So, how many pieces of
8:50creative are you making right now for a
8:52launch?
8:52>> This is my weak spot for sure,
8:55creatives. Last launch, I think I
8:56started with a whole test in that first
8:58week with um
9:00two images and two videos.
9:02This time, it'll be a few more. So, I
9:05want you to think in hundreds.
9:07Uh we won't be talking hundreds.
9:09>> We have to.
9:09>> No, I don't think
9:10>> do people make?
9:11>> Oh, thousands.
9:12>> Right. So, let's just think in think in
9:13hundreds, right?
9:13>> Previously, it was not been anywhere
9:15near hundreds.
9:15>> Okay. So, so let's just just to make
9:18this easier for you. Okay, are you
9:20familiar with AI stuff or you like more
9:22versed in it? Okay. So, there's no
9:23reason why you shouldn't have a ton of
9:25static ads cuz these take 2 seconds to
9:28make. So, from a static perspective, um
9:31I would look at a couple different
9:32sources because I want for sure we can
9:34make some and we're going to make a
9:35bunch of them with AI and all that kind
9:36of stuff. But I think if you can
9:39take it from your group, how many
9:40screenshots can I take from the group?
9:42>> Oh, so many.
9:43>> Right? These are all ads, right? And
9:45then you add your little highlights to
9:47them.
9:49To your to the people in your group.
9:50>> Mhm.
9:51>> Do you have the people who post videos
9:52inside the group of them like making
9:53their first, okay?
9:54>> No.
9:54>> So no one does?
9:55>> No video UGC.
9:57>> Interesting.
9:58>> Yeah.
9:58>> You want to incentivize people to?
10:00>> Tried before and um I don't know whether
10:03it's the demographic or perhaps it
10:04didn't set them up for success.
10:06>> Okay.
10:07>> Might probably both.
10:08>> Okay. Well, they know how to use a
10:09phone.
10:10>> For sure. Yeah, yeah.
10:11>> Right. So I would I would have a super
10:13secret sticker
10:15set.
10:16SSSS set. Right? Which they can unlock
10:20if they show themselves making a
10:22sticker.
10:23>> Right. Okay, I love that. Yeah, I love
10:24it.
10:25>> That's it. And then I would use that as
10:27my activation for everyone.
10:28>> Yeah.
10:29>> Which is that everyone in your first 7
10:30days I need you to make a sticker.
10:32>> I really like that cuz that's great for
10:33onboarding, too.
10:34>> Yeah. Yeah.
10:35>> Yeah, so quick win.
10:36>> So it's a quick win, but then every
10:37single customer makes you an ad.
10:40Then around and around we go. And so if
10:41you have 200 customers for every launch
10:43on the low side, that's 200 ads.
10:44>> I wish I thought of that.
10:45>> Well, there you go. We're here. And then
10:47do people post images of the stickers
10:49they make?
10:49>> Oh, yeah. There's no stopping them.
10:51>> Right. So then sticker images I think
10:53you'll be surprised that some of these
10:54will will actually turn into like what
10:56kind of sticker like that's the weirdest
10:57sticker I've ever seen. It's like great.
10:58And then it um so I think sticker ads
11:00will lend themselves really well. So we
11:02have our static ads, we have videos.
11:04Um this will get more people to do it.
11:06We can put that in the activation
11:07sequence in the first 7 days. Great.
11:09Love that. What touchpoints do you have
11:11with your customers?
11:12>> The only live delivery that I do where I
11:15am connected in is during these
11:17bootcamps cuz they're
11:18the classes are pre-recorded, but I go
11:20live every day. And I also invite my
11:22>> All lives, I just want you to clip
11:24because you're already doing it.
11:25>> I've got so many previous ones.
11:27>> Yeah. So just clip them and these can
11:29both go as organic
11:30>> Mhm.
11:32>> and paid.
11:34>> Like
11:34>> Q&A or
11:35>> Just just the small exactly. Quick tips,
11:37exactly. And then for you specifically,
11:40so all of this is just stuff that's
11:41happening that we should be capture.
11:42>> Yeah.
11:43>> But you specifically I would say like I
11:44would want you to make
11:4720 ads times four.
11:48>> Yeah.
11:49>> So like 80 ads
11:51that are just you, but I want the four
11:53to be different backgrounds and
11:54settings. So take your highest
11:56converting ads of all time
11:57>> Mhm.
11:57>> over the last how many campaigns you've
11:58done, put all 20 in here.
12:00>> Yeah.
12:01>> Do you one of each of them in four
12:03different settings, different t-shirt,
12:04different background, different
12:05whatever.
12:05>> Right.
12:06>> And that'll get you your kind of 80. So
12:07it's like if we're going from four ads
12:09to 80 ads and that's just from this and
12:10we still have all of these.
12:12The last thing that I would I would like
12:13to think about before you're you've um
12:17I know you have my
12:19my ads playbook, correct?
12:21>> I believe
12:22>> playbook, yes, exactly. So on the levels
12:24of awareness piece
12:26>> The five levels of awareness is a
12:27framework by Eugene Schwartz where every
12:29person in the market falls into five
12:31categories. So your advertising should
12:33speak to them differently. He contends
12:35that audiences go from the bottom, which
12:37is the warmest and smallest group, to
12:39the top, which is the coldest and
12:41largest. [music] For Mim's business, in
12:43order to continue to scale her ads, she
12:45needs to target more pain or problem
12:47aware audiences rather than product or
12:50offer aware audiences.
12:51>> To make sure that you don't get caught
12:53in like when you scale it up, you scale
12:55up your ads, they don't perform.
12:57>> Yeah.
12:57>> Like they'll stop performing as well.
12:58Now there's always going to be some rise
12:59up because it goes up when you spend
13:00more, that's normal. But if all of a
13:01sudden it triples or something like
13:03that, typically it's because you have
13:04ads that are only really targeted at a
13:06very specific audience. Basically it's
13:08like they're product aware uh or offer
13:11aware, but we need to be have people who
13:12are like more pain aware. So some hooks
13:15that you want to experiment with are
13:16going to be more pain driven.
13:18>> Mhm.
13:18>> So like are you bored? You don't know
13:20what to do? Like you would know the
13:21pains better than me. But like
13:22>> inside and out.
13:23>> Those are the pains that I would use as
13:24my hooks more than some of these bottom
13:26funnel. It's good to have offers and
13:27talk about the bootcamp and all that
13:28stuff. Like that's that's here, right?
13:30That's going to be here. But if we want
13:32them to scale, you're going to you'll
13:33probably need to have some hooks that
13:35are up here.
13:35>> Yeah, okay.
13:36>> And that will allow you to really open
13:37up the the targeting.
13:38>> I love that.
13:39>> Okay. Now,
13:42this is the cadence side. And so let's
13:44call this is number three, which is the
13:45hooks. All right? And also number four
13:48is the decision, which is that I want to
13:50challenge you to be willing to do a $100
13:53check.
13:54All right? That's my challenge.
13:55>> Honestly, I feel like there's no
13:57challenge cuz I'll just do it now. I
13:59never go into my launch capping my total
14:02ad spend if the ads are performing as I
14:04want them to. And I just think I haven't
14:06been anywhere near enough aware of this
14:08before preparing for, you know. So now I
14:11know my numbers more than before.
14:12>> In the first month you get it back.
14:13No big deal.
14:14>> And I'll stop kicking myself every time
14:16>> Yes.
14:17>> for launch versus.
14:18>> Yes.
14:18>> She's killing it already. I think she's
14:20an amazing human being. I spoke to her
14:22and she's she's amazing, period.
14:26>> [music]
14:33>> I have two two things.
14:35Cuz you already have a model that works.
14:37The last thing I want to do is break
14:38everything. All right?
14:40But you got this last time. What was the
14:42painful offer specifically that you
14:44added?
14:45>> Oh, when we spoke before, you'd said
14:48>> Sell the annual.
14:49>> Yeah, yeah. And really don't sell
14:51monthly at all.
14:52>> So then what percentage of people took?
14:54And it was 10?
14:55>> from being um normally it's like a 5 to
14:5715% or 10% normally take annual. And
15:00then previously when I switched to
15:01pitching really annual, it went to 30%.
15:04That's why we had that 91.
15:06>> Okay. So you got 30%.
15:08Um
15:09okay. I think that on your
15:12launch checkout page, let's say you've
15:14got your
15:16you've got your annual and you've got
15:17your monthly, right? These are the two
15:19options.
15:20I I think that there should be a bump
15:22here.
15:23Like after they select
15:25>> There is a bump right now, but it's only
15:27to my $47 course, which is a little bit
15:29like you like this stuff here some more.
15:31>> Mhm. How does that do?
15:32>> That's just 30%.
15:34>> It's pretty good. To the sticker paper
15:35is one that I would put. Because if they
15:37need this to do the thing
15:39>> Yeah.
15:39>> then it's like we might as well just
15:41>> Give it to them.
15:42>> Give it to them, right? They want the
15:43exact stuff.
15:44>> Yeah. This is my This is my whole kit.
15:45So, just let's call this the bundle,
15:47right?
15:48If we can make this the physical bundle
15:50>> Yeah.
15:50>> Do you might be able to get get away
15:52with like $99 or something like this.
15:54>> Mhm.
15:54>> And it's going to super high margin,
15:56right? Big. Right. No, no. But, in the
15:58US though, it'll be much slower, right?
16:00>> it's way better. So, for sure.
16:02>> Yeah. Which if you wanted to be wild
16:04with it, you just put this in here.
16:08>> Mhm.
16:08>> So, if you buy the monthly and so then
16:10what happens is we can actually make
16:11this a bit of a false offer. Meaning
16:13>> decoy.
16:14>> Kind of. So, it's like if we make this
16:15$149 and we'll Let's just
16:17Let's just go crazy, all right? Let's
16:18say this is $149 for my full physical
16:20bundle.
16:21>> Mhm.
16:21>> You say, "But hey guys, if you're going
16:22to If you do the annual, I'll throw the
16:24$149 in."
16:25>> I like that. Loads. Yeah, yeah.
16:27>> Yeah. This is what I'm saying with the I
16:28want a physical product premium for
16:30annual cuz we Your Your LTVs are already
16:32around 300, so I don't I was thinking
16:34cuz if it was much lower, I'd say,
16:35"Okay, maybe we can lower the annual and
16:36then we'd get more takers." But, if
16:37that's not the case and we know that
16:40they have to have this
16:41>> Yeah.
16:41>> in order to do the thing.
16:42>> Definitely.
16:43>> So, if they're like, "Well, I'm going to
16:44have to buy this either way
16:46I might as well get all the bonuses and
16:47get the stuff I need to do the thing."
16:48>> committing to annual. It's like them
16:50making a decision to commit to the hobby
16:52for a year.
16:52>> Yeah, cuz you're on constant assume you
16:53like $10. Maybe plus another $10 in
16:55shipping. Who cares? But, that might all
16:57of a sudden take you to 50% here.
17:00And that'd be big, right?
17:02>> Wonderful.
17:02>> Yes. Okay. So, the big decision that I
17:05have is this.
17:08This would be a a higher risk test, but
17:10this is like
17:12one that I would strongly consider.
17:14>> I'm not risking this.
17:15>> Okay. Which is I would rather just not
17:19mention the monthly at all, sell the
17:21annual, put the offer in there.
17:23>> Yeah.
17:24>> And then after the launch is over, when
17:26you close your cart, then run everyone
17:28else to your monthly that doesn't have
17:30the bonuses. Cuz then you can do a mock
17:32up, okay?
17:33>> Yeah.
17:33>> Cuz you'll still get plenty on that, but
17:34this will because like if you're doing
17:36you're doing a full five-day thing, you
17:38can sell a $300 ticket.
17:40And so people are just taking the
17:42cheaper one because you're offering the
17:43cheaper one.
17:43>> Right.
17:44>> My goal here was how can I get that spin
17:46number? How do you feel comfortable? If
17:48you knew all of a sudden your AOV is
17:50$300, so maybe conversion cuts in half,
17:54but you are at a $300 sale.
17:57>> level of confidence here.
17:58>> Yeah. Cuz now you're now if you're at
17:59150 in the first 30 days, you're like,
18:01"I'm fine. I can spend more of that
18:02money."
18:03>> Spending, yeah. Cool.
18:04>> So I had a wild So I I two wild ideas,
18:07right? Wild idea number one is, let's
18:08just sell the annual, put this in there,
18:10and I think if we add this to that
18:13and make that the full offer,
18:14>> Yeah.
18:15>> I think that'll do well.
18:16>> Mhm.
18:17>> The second wild idea that I had,
18:19um
18:20And again, this is wild.
18:22This is wild.
18:23Is that we position
18:26the boot camp
18:27as
18:29a seven-day trial
18:31of your $27 membership.
18:32>> That goes even without you saying
18:34anymore, it goes so well cuz the whole
18:35point of it is supposed to be like a
18:37teaser, a taster of this is what you get
18:38if you're a member.
18:39>> Yeah.
18:40Because then you automatically convert
18:42it 100% of your traffic instead of 20 to
18:45>> So they're signing up for the continuity
18:47and they have to cancel that.
18:48>> Yeah, and and then you're running a a
18:49seven-day or a five-day, whatever that
18:51you know, whatever you want, but then
18:52your whole thing is pushing the annual.
18:54>> Yes. Yeah.
18:55>> So you have 100% conversion.
18:58And then you push everybody to annual.
19:00>> Yeah.
19:02>> That's my that's my wild test.
19:03>> I I really like it. I guess my
19:07I'm worried that that I'm going to get
19:08to the the challenge ends after a couple
19:10of weeks then the 30 days end and I've
19:12and people
19:14leave.
19:15>> Well, then what but this is such a good
19:16onboarding, too.
19:17Like the 7-day challenge is also just
19:19onboarding for all the members.
19:21>> Yeah.
19:23I love I love a test.
19:25>> Could arguably test both
19:26>> Mhm.
19:27>> at the same time, which I'm not always
19:28the biggest fan of. Cuz if we look at
19:30the math, right? Let's just do the math.
19:32So, let's say you've got 100 people who
19:34who buy your thing, right?
19:36>> I can.
19:36>> Yeah, they buy the book, yeah, right?
19:37Where you know that we're we're going to
19:38have 22 of them who are going to have a
19:41lifetime merch profit of 300, right?
19:45So, we have whatever that is, 6,600
19:49that's coming in from these people,
19:51right? Now, on the front end, it's
19:53costing you $3,700,
19:55right?
19:56>> Yeah.
19:57>> So, you get these people.
19:58>> Right, yeah.
19:59>> And this is the issue from a cash
20:00perspective, correct? That's the
20:02problem.
20:02>> Yeah.
20:03>> Now, you said that you get $91
20:06uh
20:06>> Now, yeah.
20:07>> Yeah, that $91 is only on the buyers,
20:10correct?
20:10>> Mhm.
20:11>> It's not on these people.
20:12>> No.
20:12>> Okay, that's
20:13>> on the 22%.
20:14>> That's the issue.
20:15>> Yeah.
20:15>> So, this is the real problem.
20:16>> Yeah.
20:17>> Yeah, so where this where where it gets
20:18more interesting is like let's say that
20:19you spend $3,700 to get 100 and uh you
20:23make
20:24$3,500
20:25>> Yeah.
20:26>> whatever, right?
20:27>> Which could be yeah.
20:27>> So, then that would mean you have $200
20:30to acquire 22 customers is what the net
20:32net actually works out to.
20:33>> Yeah.
20:33>> So, that helps you to calculate is
20:34crazy.
20:35>> It's not how I built my list for free.
20:36>> Yeah, you spent $200 to make 6,600.
20:39That's great.
20:40So, the idea with the trial would be
20:43if we had those same 100 people, but
20:45let's say the trial conversion at the
20:46end was it'll probably be closer to like
20:4855%. Like especially if you do like a a
20:515-day thing like this. And all of a
20:52sudden you're at 55 people and they have
20:54the same $300 LTV. Now, that doesn't
20:57include the fact that we're going to get
20:58annuals, but even if no one bought
20:59annual, and we just had the 300, now
21:02we're at, you know, 15 or 16 five.
21:07And so, we would you'd actually make up
21:10for
21:11the money that you didn't make on the
21:12front. Now, obviously, we still have
21:13upsells. We should still do that. But,
21:15I'm saying even if you had no upsells
21:17>> Yes.
21:18>> and you just had this
21:19>> Yeah.
21:19>> you would make more cuz here all in
21:21you're at, you know, 90, whatever that
21:22is, you know, 11 or 10,000
21:25uh is what you're making here versus 16.
21:27So, you get like a 50, 60% lift.
21:28>> Mhm. Mhm.
21:29>> So, that would be like that would be the
21:30play if it was trial.
21:32>> Mhm.
21:33>> But, I think you can go trial
21:36and then
21:38upsell tools.
21:39Right? Upsell the stuff they're going to
21:40need for the challenge.
21:41>> Mhm.
21:41>> Right? And then you'll still be able to
21:43get some cash
21:44uh from all those people. And you could
21:46make it a $1 trial.
21:47So, you want So, you have a working card
21:49or whatever. I would not introduce this.
21:51I would do this first.
21:52>> Yeah, I think so, too. Okay, cool.
21:54>> Do this first.
21:54>> know for a challenge, but that feels
21:56>> Yeah.
21:56>> Yeah.
21:57>> That's very manageable.
21:58>> Yeah.
21:58>> Yeah, so this [music] is I'll say test
22:00B.
22:00>> I see that. I
22:01>> And this is test A.
22:02>> have so much confidence that doing this
22:04alone is going to hugely change the
22:06outcome of the event in terms of members
22:08and [music] profit. And then I feel like
22:09that's like the explode step.
22:11>> Yes, and you can say this, you only get
22:13all the tools if you buy at the annual
22:15during the event.
22:15>> Right. Yeah.
22:16>> Cuz it costs a lot of money and I got to
22:17ship it and I got to figure all this
22:18stuff out. So, I can only do it for
22:19people now.
22:20>> Yeah, I really like that.
22:22>> I feel good about it.
22:23>> I feel good about it, too.
22:25So, when Alex talked to me about the
22:27trial, offering a trial and having that
22:29be a way to really help my members get a
22:31really good experience during a launch,
22:33that has really helped me think about
22:36the way I've been looking at bringing
22:37new members in in a completely different
22:39way that that I'd never considered. I've
22:41definitely considered doing a free trial
22:43before, but not during a launch in that
22:45way. So, that blew my mind and it def As
22:48Alex said, it's a bigger, bolder move,
22:50but one that I'm really excited to take.
22:53>> It was a simple plan, a simple plan.
22:56This is the spin cadence we follow. I
22:58know it works very well.
23:00We're going to do it way more creative
23:01this next round.
23:02>> Here we are.
23:03>> Right? You're going to create more
23:05organic as well, which is going to feed
23:07the list, too.
23:09We're going to have more pain-based
23:10hooks, so we can go a little bit up
23:11funnel.
23:12>> Yeah.
23:13>> We're going to increase our spending
23:14capacity from an account perspective.
23:16>> Right. Yeah.
23:18>> And the test that we're going to run on
23:19the next one is this one.
23:20>> Yeah.
23:21>> And if that works, [music] then all the
23:22game is going to be is how do I make 800
23:25ads
23:26and spend $100,000 on my next launch.
23:29>> Done.
23:32>> [music]
23:34>> All right, let's see where we're at with
23:35the scaling revenue.
23:37Okay. Yes, thank you. Thank you. Thank
23:39you. So,
23:41how many employees do you have right
23:42now? Like two?
23:43>> Yeah. One is my husband.
23:45>> [laughter]
23:47>> Let's see here.
23:48Your revenue's a little bit higher than
23:50your head count would suggest, so you're
23:53probably more on this side
23:54>> Yeah.
23:55>> uh than you are here.
23:56>> Mhm.
23:57>> And so,
23:59what we're doing is if we're walking
24:00through this,
24:02we're going annual, we're adding the
24:03stuff to price to a better person. We're
24:06making all this extra content to make
24:07better free stuff, and also V2 of this
24:10test is actually just running the trial
24:12>> Yeah.
24:12>> as the the front-end offer. We're making
24:14more creative to boost the volume.
24:16>> Mhm.
24:17A little bit more.
24:17>> Yeah. Also, as a side note, I don't know
24:20if you're already doing this, but I
24:21would make sure that you optimize your
24:22campaigns around purchases if you're not
24:24already
24:24>> I always do. Just in case.
24:26>> to.
24:26>> Yeah. And then, the one thing that I
24:29didn't see on your numbers, but I would
24:30like to get to is just EPCs.
24:32>> Mhm.
24:33>> So, earnings per click. And I think
24:34you'll sleep better knowing that you are
24:36doing fine.
24:37>> That's it. You just giving me this is
24:39enough, and so the more I know, the the
24:41better I'll be with that. Yeah.
24:43>> One thing that I did I did miss is um
24:45I think we should consider
24:48when you're making these ads, you should
24:50get hook variations.
24:51>> Yes.
24:52>> I would experiment with different
24:53call-outs for avatars. So, like in in
24:55lead book, we talked about call-outs.
24:56>> I've done that only to only a limited
24:59way, literally separating mothers and
25:01grandmothers, but I haven't really done
25:03a great
25:03>> I would go underneath of I would go more
25:06sub-specific, but like the game is now a
25:08game of 100 ponds and no oceans. Like
25:11you're you're draining 100 ponds of
25:12audiences
25:13>> Right.
25:14>> to get your scale more than trying to
25:16advertise to the oceans.
25:17>> To the world.
25:18>> Right. Like you're running two ads and
25:19trying to convert you're trying to
25:20convert everyone with the same
25:21messaging.
25:21>> It's it's true.
25:23>> Right. And so if you want to get the
25:24scale, you have to go down, which is
25:25counterintuitive.
25:26>> No, I like that.
25:27>> Cool.
25:27>> That's easily done, too.
25:28>> All right.
25:29Rock and roll.
25:31>> I know that despite anyone getting a
25:33scale or a fail, there'll be nothing
25:35stopping the people that I met today.
25:36I'm so inspired by them. As much as we
25:39know that we are contestants and
25:40competitors, and I'm certainly not
25:42glossing over the fact that this is a
25:43competition at the end of the day, we
25:45really came here to just represent
25:47ourselves and be the best version of
25:49ourselves that we could be, and [music]
25:51I think that everyone shared that goal.
26:01>> So this is scale or fail.
26:05To be clear, I think that
26:08all of this will literally just get you
26:09more of what's already working.
26:11There's very few universes where I think
26:13that you
26:14adding the physical product premium and
26:16only presenting the annual offer doesn't
26:18generate more revenue up front. And
26:21we've de-risked this test by being able
26:23to just run it as a split test with the
26:24exact same price point. $10, $10 on
26:26both. That way the ads can be the same.
26:28One just includes a trial, one doesn't.
26:29Everything else in the funnel will still
26:31be the same.
26:32So
26:37the question is
26:39do I want to spend a year working with
26:40you to scale this?
26:44Or
26:45do I think there's something that's
26:46going to get in the way that's going to
26:46prevent us from scaling?
26:51So the verdict is
26:59you will be scaling with me. All right.
27:01So, you're moving on to the next thing.
27:02All right. This is a very simple plan.
27:06I just want you to not be afraid to
27:07spend more. You can't be afraid. And
27:09you've gone through enough stuff.
27:11There's no reason you should be afraid.
27:12Right? It's like you know how to make
27:14money.
27:15>> Yeah.
27:16>> You can always go back to what you did
27:17before.
27:18But, this has the potential
27:20to 5x or 10x the business.
27:23>> Right.
27:23>> And I think
27:25I think this will work.
27:26>> Thank you.
27:26>> All right, we'll rock and roll.
27:28>> Thanks, everyone.
27:30Alex just told me that I am a scale and
27:33I'm so excited. I'm so happy. I have so
27:36much faith in my business, in my ability
27:38to implement everything that he said,
27:40and it just feels like so much has just
27:43opened up for me. So, it was a
27:44combination of him validating some of
27:46the things that I was worried about, and
27:47he gave me a really good solution for
27:49them that I hadn't been able to reach by
27:51myself. Um, and then a few other tests
27:53that I can do, too, but there was
27:55nothing that I'm not really excited to
27:56try. And I can't wait to see how things
27:59go.
27:59>> I felt no resistance on any of the the
28:02things he was recommending. And also,
28:03the last thing that I told her to do,
28:05she partially did and it doubled her
28:07average cart value. And so,
28:09I am pretty confident that both of these
28:11things
28:12will dramatically increase her cart
28:14value. And in the business that she's
28:16in, she's in a media arbitrage business,
28:17which is fundamentally can you buy
28:18clicks for less than you can make on
28:20them because it's a very scalable
28:20business. And so, like honestly, once
28:22just the math gets right, she can just
28:24do this. And from a product perspective,
28:26she had 5% churn, which is really good.
28:28>> Hearing from Alex that there was so much
28:30potential to scale has not only
28:32validated what my hopes were and what a
28:34lot of the data was pointing [music] to.
28:36To me, it's simple. If I follow the
28:37process that I've been given and I trust
28:39in that [music] and I do the things I
28:41say I'm going to do, then the success is
28:43inevitable.
28:45The next 90 days are going to be
28:48incredible.
28:53>> The business I felt like it could scale.
28:55It was a good product, very wholesome,
28:58and I didn't think [music] she would be
28:59afraid. And since she'd been marketing
29:01for 10 years, she had the technical
29:03chops to do all of these things. So,
29:04there's really nothing that was really
29:05stopping her besides the decision and
29:07the strategy, which she just got both
29:09and she made the other. So, this was
29:10scale or fail. See you next time.
29:12>> Okay, let's do an update. One thing that
29:14Alex really encouraged me to do was go
29:16much bigger on ads in terms of
29:18creatives, angles, testing, volume, and
29:21I've been using one of Alex's playbooks
29:23to um come up with ads and a way to test
29:26them in a really strategic way. I'm
29:28already seeing with early stages of
29:30promotion everything going in the right
29:32direction, exactly as Alex said it
29:34would. What a shocker. So, yeah, that's
29:36my update. Let's see what happens.
29:40>> Next time on Scale or Fail.
29:43>> My name is Tina Sue, and I help parents
29:46[music] of children with autism, ADHD,
29:48and speech delay.
29:49>> You have a responsibility to the
29:50business, and the business has a
29:52responsibility to the customers. But,
29:53your responsibility is to make sure the
29:54business survives and grows. So, if
29:56you're going to do that, you need to
29:57make it like five times as expensive.
29:59>> Oh.
30:00>> So, it's like think like 8,000, 8,000,
30:0210,000 is what it would be if I wanted
30:03to have. So, I have to decide whether
30:05you scale or fail.
30:06>> I can execute.
30:07>> No.
30:08And so, I'm very torn on this one of
30:09whether or not you can draw the line.

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