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Can I Help a Sticker Coach Build a $3,000,000 Business? — Transcript

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0:00This week on Scale or Fail.
0:02>> I help people [music] make stickers.
0:04>> Stickers.
0:05>> Doing stickers, it's so unique.
0:06>> It's a funny niche that I didn't know
0:08existed.
0:09>> The question is,
0:11do I want to spend a year working with
0:12you to scale this?
0:13>> You already have a model that works
0:14well.
0:15>> The last thing I want to do is break it.
0:16>> I think that'll do well.
0:17>> Or do I think there's something that's
0:18going to get in the way that's going to
0:19prevent us from scaling?
0:20>> We won't be talking hundreds.
0:22>> We have to.
0:22>> I'm up for a challenge, but that feels
0:24>> That's my challenge.
0:24>> I don't feel like I have the runway to
0:26be able to do that.
0:27>> She's killing it already. She's already
0:29with a bigger business than I am.
0:30>> That's good for her.
0:31>> That's the biggest [music] in terms of
0:32competition.
0:33>> This is Scale or Fail.
0:34>> This is a competition at the end of the
0:35day.
0:37>> So, the verdict is,
0:51>> I'm Mim Jenkinson, and I teach crafters
0:54how to make stickers.
0:56>> I like Mim a lot. She's super cool.
0:57Because of her situation, she has that
0:59perspective on life.
1:00>> I got started 10 years ago. I'd been
1:02diagnosed with breast cancer.
1:05And while going through chemotherapy and
1:07radiation, I still needed something to
1:09take my mind off everything I was going
1:11through. So, a creative project that
1:13came to mind was teaching myself to make
1:15stickers. And so, during chemo, that's
1:18what I did.
1:22Now, little did I know that 10 years on
1:24from that, I've now turned this into a
1:26business where I've taught over 20,000
1:29crafters from all over the world to make
1:31stickers.
1:32Hi.
1:33>> Mim, what's up? You ready? So, tell me
1:34about the business.
1:35>> I help people make stickers. For the
1:37last 12 months, I made 1.1 million
1:40Australian, which roughly works out to
1:41be about 800K. Um so, I've made multiple
1:45seven figures over the past 10 years
1:46altogether, but hit my first
1:48seven-figure year, which is very
1:49exciting. So, profit is around the 30 to
1:5235% mark, and my goal for the next 3
1:56years is to reach 3 million USD [music]
2:00per year.
2:01>> How do you make money?
2:02>> [laughter]
2:02>> I make money with low ticket digital
2:04products. So, all of my teaching is
2:06online and my main membership is secret
2:08sticker society. Currently, the rates
2:10are 27 US dollars per month or 270 per
2:14year. And then loads of other low ticket
2:17digital products that can be
2:18interchanged for upsells. I have really
2:21good upsell game. So, that's great.
2:23>> Okay, this is a lot of stuff though. So,
2:26yeah.
2:27How many funnels is this?
2:29>> Over the last 10 years, um I would be
2:31embarrassed to tell you how many funnels
2:33I have.
2:33>> funnels are you running right now?
2:34>> So, right now with the main membership,
2:36with secret sticker society, the main
2:37funnel is a live paid boot camp that I
2:40launch three times per year.
2:42>> But the main thing is it's secret
2:44sticker society. You've got a bunch of
2:45upsells in the funnel that I've set up
2:47to the greatest degree possible.
2:48>> Yeah.
2:49>> You go to the launch and then you sell
2:51secret sticker society at the back.
2:52>> That's right.
2:52>> Okay, got it.
2:53>> Yeah.
2:54>> What are the numbers you have for
2:55acquisition?
2:56Okay, the live paid launch is 10 Is it
2:59the ticket 10 bucks?
3:00>> That's right.
3:00>> no free.
3:01>> No free.
3:02>> paid Okay, paid challenges.
3:04Cost you $37 to get it.
3:06>> Yes.
3:06>> You have a 22% conversion rate on
3:09>> into the membership.
3:10>> Of people who buy a ticket.
3:12>> That's right.
3:12>> That's huge.
3:13>> Yeah, I'm really happy with that.
3:15>> What's AOV?
3:15>> It would be
3:17about $36.
3:20>> almost breaking even.
3:22>> Some of the events I am slightly in the
3:24red, but by the end of the event, I'm
3:26always profitable. And then two of the
3:28boot camps that I've run have been
3:29profitable from day [music] one. So,
3:30I've been up.
3:32They're my favorite ones.
3:34>> [laughter]
3:35>> Okay.
3:37All right, what do you think stopping
3:37you right now?
3:38>> I feel that if I could get more people
3:40into the challenge, I feel so strong now
3:43that I have that strong conversion of
3:45bringing people in. I know what to do.
3:47It's really quite tried and tested. If I
3:49could get a high volume of people into
3:51the boot camp, I'm safe to convert them.
3:54>> Yeah.
3:54>> Um so that has been something that has
3:56definitely held me back. And then as,
3:58you know, I I know that I have not
4:00reached the cap in any way of being able
4:02to lower that CPA, so
4:05I I think that even just making the
4:07switch with the past launch of pushing
4:10the annual membership
4:12doubled the average order value, so that
4:15made a huge difference, way bigger than
4:17I thought it would. And then instant
4:19difference.
4:20>> So
4:20>> Step one, add the annual, make that the
4:22only offer available. I want to be
4:24clear, the only offer available is the
4:25annual with the bonuses.
4:27>> Okay, so annual only at the next launch.
4:29>> Yes.
4:30>> Someone wise told me to do that, and I
4:32did it, and it worked. Okay, yeah.
4:34>> Yeah, we'll probably do some more stuff
4:35there, too.
4:35>> Yeah, I agree.
4:36>> Um
4:37Okay, so why is scaling so important to
4:38you?
4:39Why not just make money and just chill
4:41where you're at?
4:42>> Well
4:43I really want to be able to pay off my
4:45home loan. I'm married, I've got two
4:47kids. Um 10 years ago when I set the
4:49business up, I was diagnosed with breast
4:51cancer. Um thankfully, 10 years on, all
4:54is really well now, which is great, but
4:56at the time, which was obviously a very
4:58dark period of my life, I set the
5:00business up really as a creative project
5:02to do something just for me to take my
5:04mind off it, and little did I know that
5:0510 years on, I'd be teaching 20,000 plus
5:08crafters to make stickers. I'm
5:10ex-corporate, so it's completely
5:12different to what I've done before. Um
5:14but what this has left me with is a
5:15really strong desire to be able to set
5:18my family up financially. I really want
5:21to set up my family in a way that if I'm
5:23no longer around, they are looked after.
5:26I know I can absolutely still help my
5:29mom and help my family.
5:31And having lost so many friends to
5:33cancer, and so many who were moms as
5:35well,
5:37it just has become more and more
5:39important to me to appreciate how
5:43my income and how money can really
5:45change our lives. Um
5:48And I want to know that I've done as
5:50much as possible and I've been able to
5:51support my family
5:54even without me.
5:56I'm here to to be open and to learn and
5:59I will implement on everything that I'm
6:02told to do. I'm a really good student
6:04verging on being a bit of a teacher's
6:06pet. Like I will just do anything that
6:09um you know that you know more than me
6:11on this and I constantly tell myself
6:13that I only know what I
6:14>> You know more about stickers than I do.
6:15That's for sure.
6:16>> Well, not for long because
6:18>> [laughter]
6:19>> Can you pull the
6:20the the number slide back up real quick?
6:22So, you're making about over 500 Asian
6:24profit, right? So, you're very
6:25profitable. Correct?
6:27>> Mhm.
6:28>> Why don't you spend up to $100
6:30CPA?
6:31>> See, this is part of the reason I'm here
6:33cuz I often finish a launch thinking
6:36>> I should have spent more.
6:36>> Why didn't I spend more? And then I'll
6:39go into the next launch again with that
6:41same I'll cap my ad spend at a certain
6:43amount for no good reason.
6:44>> So, what do you what do you cap your CPA
6:46at normally?
6:48>> I don't even well, I have capped the CPA
6:50but this the CPA has gone as high as
6:51maybe 50.
6:54I'm not a cautious spender but for some
6:55reason that's what I've done.
6:57>> here.
6:57>> Yeah.
6:58>> Cool. Let's rock. Let's do this.
6:59>> I've known of her. I
7:01you know, knew that she had an amazing
7:03seven-figure business.
7:05Stickers. Doing stickers. It's so unique
7:07and so
7:09to me that that was the biggest in terms
7:11of competition.
7:16>> Just so I'm clear on the delivery side,
7:18if you double the amount of customers
7:19you have, does it break anything?
7:21>> No.
7:21>> Okay. So, this is a pure demand issue,
7:24which is nice. I think I'm going to go
7:26and kind of break this into
7:28I'll offer and then we'll go
7:31traffic. Cuz I don't think there's
7:32really much else for your specific
7:34business that we need to talk about.
7:35>> Yeah.
7:36>> Okay.
7:37So, number one, I guess on the traffic
7:39side from the spend, is how much did you
7:41spend last last launch?
7:43>> I only spent about 16k. The event went
7:47really well. It was not my biggest
7:48event, but it was still profitable. So,
7:50yeah, happy. Just didn't have enough
7:52time to be able to
7:53>> You just needed more runway.
7:54>> Yeah.
7:55>> So,
7:58when you say you didn't have enough time
7:59to spend more, what do you mean by that?
8:00Cuz like I spent 500,000 a day at the
8:02end of my launch.
8:03>> You said 500,000 a day?
8:05>> Yeah.
8:07>> For ads?
8:08>> What What What made you
8:10>> This is where my um my own limitation
8:13with meta ads probably comes into play.
8:16So, what the way that I like to normally
8:18do my launches, which I know is much
8:20earlier than many others, I launch 4
8:22weeks out. So, 4 weeks out I'll go with
8:24a like a smaller spend, you know, the
8:26testing, seeing what works, and um I
8:29didn't have I didn't feel like I had the
8:30runway to be able to do that. I guess it
8:32was a bit of mindset stuff, too, of like
8:34being way more conservative than I
8:36normally would. But I remember feeling I
8:38wasn't happy enough with CPA
8:41>> Okay.
8:41>> to keep spending.
8:42>> Okay.
8:43So,
8:44okay, so I'm going to I'm going to walk
8:45through spend cadence.
8:47>> Yeah.
8:47>> Okay. And so, the way that um I do this,
8:51I put about 5% 5 maybe 10% max of my
8:55spend
8:55>> Mhm.
8:56>> goes in that first week.
8:58And the only purpose is to test
8:59creative.
9:00>> Right. Yeah.
9:01>> Then, once we have our creative, the
9:03next 2 weeks are pretty much flat. Now,
9:05we scale it up, obviously,
9:06>> Mhm.
9:07>> but then we try and spend as much as
9:08possible, like
9:09>> I mean
9:10>> if we could spend 75% I would. It just
9:12It's just challenging.
9:13>> [laughter]
9:13>> Yeah, yeah.
9:14>> Right? Like call it 60 to 70% is in this
9:17week.
9:18>> Totally.
9:18>> And then we're we're in this call it,
9:20you know, 15% you know, maybe 10% here
9:21and then 15% here. And so, even here,
9:24this is where you're probably going to
9:25be at 50% is like literally in the last
9:273 days, right? Now, that's the cadence
9:30of spending. Now, from an amount of
9:32spending perspective, we do have a
9:34decision, which is like let's obviously
9:35be willing to spend more, all right? But
9:37in order to do that, I think there's two
9:39things we have to do before we launch.
9:40One is we have to fix offer, but I also
9:43want to
9:45approach this from a creative
9:46perspective. So, how many pieces of
9:47creative are you making right now for a
9:48launch?
9:49>> This is my weak spot for sure,
9:51creatives. Last launch, I think I
9:53started with a whole test in that first
9:54week with um two images and two videos.
9:59This time, it's going to be a few more.
10:01So, I want you to think in hundreds.
10:03Uh we won't be talking in hundreds.
10:05>> to. How many stickers do people make?
10:07>> Oh, thousands.
10:08>> Right, so let's just think in stickers,
10:09right?
10:10>> previously it's not been anywhere near
10:11hundreds.
10:12>> Okay. So, so let's just just to make
10:14this easier for you. Okay, are you
10:16familiar with the AI stuff or are you
10:17like more of versed in it? Okay. So,
10:19there's no reason why you shouldn't have
10:21a ton of static ads cuz these take 2
10:24seconds to make. So, from a static's
10:26perspective, um I would look at a couple
10:28different sources because I want for
10:30sure we can make some and we're going to
10:32make a bunch of them with AI and all
10:32that kind of stuff. But, I think if you
10:34can
10:35take it from your group, how many
10:37screenshots can I take from the group?
10:38>> Oh, so many. Yeah.
10:40>> These are all ads, right? And then you
10:42add your little highlights to them.
10:45To your to the people in your group.
10:47>> Mhm.
10:47>> Do you have the people who post videos
10:48inside the group of them like making
10:50them first? Okay. So, no one does?
10:51>> No video UGC.
10:53>> Interesting.
10:54>> Yeah.
10:55>> You want to incentivize people to?
10:56>> I've tried before and um I don't know
10:59whether it's the demographic or perhaps
11:01I didn't set them up for success.
11:02>> Okay.
11:03>> Might probably both.
11:04>> Okay. Well, they know how to use a
11:06phone.
11:06>> For sure, yeah, yeah.
11:07>> Right. So, I would I would have a super
11:09secret sticker
11:11set
11:13SSSS set.
11:14>> Stop it.
11:14>> Right, which they can unlock if they
11:17show themselves making a sticker.
11:19>> Right. Okay, I love that. Yeah, I love
11:21it.
11:22>> That's it. And then I would use that as
11:23my activation for everyone.
11:25>> Yeah.
11:25>> Which is that everyone in your first 7
11:26days I need you to make a sticker.
11:28>> I really like that cuz that's great for
11:30onboarding too.
11:31>> Yeah, exactly.
11:31>> Quick wins. [music]
11:32>> So, it's a quick win, but then every
11:33single customer makes you an ad.
11:37Then around and around we go. And so, if
11:38you have 200 customers for every launch
11:39on the low side, there's 200 ads.
11:40>> I was thinking about that.
11:42>> Well, there you go. We're here. And
11:43then, do people post images of the
11:45stickers they make?
11:45>> Oh, yeah. There's no stopping them.
11:47>> Right. So, then sticker images, I think
11:49you'll be surprised that some of these
11:51will will actually turn into like what
11:52kind of sticker like that's the weirdest
11:53sticker I've ever seen. It's like great.
11:55And then it um so, I think sticker ads
11:57will lend themselves really well. So, we
11:58have our static ads, we have our videos.
12:00Um
12:01this will get more people to do it. We
12:02can put that in the activation sequence
12:03in the first 7 days. Great. Love that.
12:06What touch points do you have with your
12:08customers?
12:09>> The only live delivery that I do where I
12:11am connected in is during these boot
12:13camps cuz they're
12:15the classes are pre-recorded, but I go
12:16live every day. And I also invite my
12:18>> lives. I just want you to cliff
12:21because you're already doing it.
12:22>> I've got so many previous
12:23>> Yeah. So, just cliff them and these can
12:25both go as organic
12:27>> Mhm.
12:28>> and paid.
12:30>> Like Q&A or quick
12:32>> the small exactly. Quick tips, exactly.
12:34And then for you specifically, so all of
12:36this is just stuff that's happening that
12:38we should need to capture.
12:38>> Yeah.
12:39>> But you specifically, I would say like I
12:41would want you to make
12:4320 ads times four.
12:45>> Yeah.
12:46>> So, like 80 ads
12:48that are just you, but I want the four
12:49to be different backgrounds and
12:50settings. So, take your highest
12:52converting ads of all time
12:53>> Mhm.
12:53>> over the last how many campaigns you've
12:55done. Put all 20 in here.
12:57>> Yeah.
12:58>> Do you want of each of them in four
12:59different settings? Different t-shirt,
13:01different background, different
13:01whatever.
13:02>> Right.
13:02>> And that'll get you your kind of 80. So,
13:04it's like if we're going from four ads
13:05to 80 ads and that's just from this and
13:07we still have all of these.
13:08The last thing that I would I would have
13:10to think about before you're you've um
13:14I know you have my
13:15my ads playbook, correct?
13:18>> I do.
13:18>> My hooks playbook, yes, exactly. So, on
13:20the levels of awareness piece,
13:22the five levels of awareness is a
13:23framework by Eugene Schwartz where every
13:25person in a market falls into five
13:27categories. [music] So, your advertising
13:29should speak to them differently. He
13:31contends that audiences go from the
13:32bottom, which is the warmest and
13:34smallest group, to the top, which is the
13:36coldest and largest. For Mim's business,
13:39in order to continue to scale her ads,
13:41she needs to target more pain or problem
13:43aware audiences rather than product or
13:46offer aware audiences. To make sure that
13:48you don't get caught in like when you
13:50scale it up, you scale up your ads, they
13:52don't perform. Like, they'll stop
13:54performing as well.
13:55>> No, there's always going to be some rise
13:56that goes up when you spend more, that's
13:57normal. But, if it all of a sudden it
13:58triples or something like that,
13:59typically it's because you have ads that
14:01are only really targeted at a very
14:03specific audience. Basically, it's like
14:05they're product aware uh or offer aware.
14:07But, we need to be have people who are
14:08like more pain aware. So, some hooks
14:11that you want to experiment with are
14:12going to be more pain driven.
14:14>> Mhm.
14:14>> So, like, are you bored? Do you not know
14:16what to do? Like, you would know the
14:17pains better than me. But, like
14:19>> inside and out.
14:19>> Those are the pains that I would use as
14:21my hooks more than some of these bottom
14:22funnel. It's good to have offers and
14:24talk about the bootcamp and all that
14:24stuff. Like, that's that's here, right?
14:26That's going to be here. But, if we want
14:28them to scale, you're going to you'll
14:30probably need to have some hooks that
14:31are up here.
14:31>> Yeah, okay.
14:32>> And that will allow you to really open
14:33up the the targeting.
14:35>> I love that.
14:36>> Okay. Now,
14:38this is the cadence side. And so, let's
14:40call this is number three, which is the
14:42hooks. All right? And also, number four
14:45is the decision, which is that I want to
14:47challenge you to be willing to do a $100
14:49check.
14:50All right? That's my challenge.
14:51>> Honestly, I feel like there's no
14:53challenge cuz I'll just do it now. I
14:55never go into my launch capping my total
14:58ad spend if the ads are performing as I
15:00want them to. And I just think I haven't
15:02been anywhere near enough aware of this
15:04before preparing for, you know. So, now
15:07I know my numbers more than before.
15:08>> In the first month, you will get it
15:09back.
15:10No big deal.
15:10>> And I'll stop kicking myself every time
15:13>> Yes.
15:13>> I launch my business.
15:14>> Yes. She's killing it already. I think
15:16she's an amazing human being. I spoke to
15:18her and she's she's amazing, period.
15:24>> [music]
15:29>> I have two two things.
15:32Cuz you already have a model that works
15:33on. The last thing I want to do is break
15:34everything. All right?
15:36But, you got this last time. What was
15:38the painful offer specifically that you
15:41added?
15:41>> Oh, when we spoke before, you'd said
15:44>> Sell them the
15:45>> the annual. Yeah, and we really don't
15:47sell monthly at all.
15:48>> So, then what percentage of people hook
15:50hands over 10?
15:51>> from being um normally it's like a 5 to
15:5315% so 10% normally take annual. And
15:56then previously, when I switched to
15:58pitching really annual, it went to 30%.
16:00That's why we had that 91 bucks.
16:02>> So, you got 30%.
16:05Um
16:06Okay, I think that on your
16:08launch checkout page, let's say you've
16:11got your
16:12you got your annual and you've got your
16:14monthly, right? These are the two
16:16options.
16:17I still think that there should be a
16:18bump here.
16:20Like after they select
16:21>> There was a bump right now, but it's
16:23only to my $47 course, which is a little
16:25bit like you like this stuff here some
16:27more.
16:27>> Mhm. How does that do?
16:29>> That does 30%.
16:30>> It's pretty good. So, the sticker paper
16:32is one that I would put because if they
16:34need this to do the thing, then it's
16:36like we might as well just
16:37>> Give it to them.
16:38>> Give it to them, right?
16:39>> exact stuff.
16:40>> Yeah, this is my this is my whole kit.
16:42So, just let's just call this the
16:43bundle, right?
16:45If we can make this the physical bundle,
16:46>> Yeah.
16:47>> you might be able to get get away with
16:48like $99 or something like this.
16:50>> Mhm.
16:51>> And it's going to super high margin,
16:52right? It's big. Right. No, no, but in
16:55the US though, it'll be much slower,
16:56right?
16:57>> it's way better so for sure.
16:58>> Yeah, which if you wanted to be wild
17:00with it, you just put this in here.
17:04>> Mhm.
17:05>> So, if you buy the monthly, and so then
17:06what happens is we can actually make
17:07this a bit of a false offer. Meaning
17:09>> Like a decoy.
17:10>> Kind of. So, it's like if we make this
17:12$149 or let's just let's just go crazy,
17:14all right? Let's say this is $149 for my
17:16full physical bundle.
17:17>> Mhm.
17:18>> You can say, "But hey guys, if you're
17:19going to if you do the annual, I'll
17:20throw the 149 in."
17:21>> I like that. Loads. Yeah, yeah.
17:23>> Yeah, this is what I'm saying with the I
17:25want a physical product premium for
17:26annual cuz we your your LTDs are already
17:28around 300. So, I don't I was thinking
17:30cuz if it was much lower, I'd say,
17:31"Okay, maybe we can lower the annual and
17:32then we'll get more takers." But if
17:34that's not the case, and we know that
17:36they have to have this
17:37>> Yeah.
17:38>> in order to do the thing.
17:39>> Definitely.
17:40>> So, if they're like, "Well, I might have
17:40to buy this either way,
17:42I might as well get all the bonuses and
17:43get the stuff I need to do the thing."
17:45>> And they're committing to annual, it's
17:46like they're making a decision to commit
17:47to the hobby for a year.
17:48>> Yeah, cuz you're constantly assuming
17:49like $10, maybe plus another $10 in
17:52shipping. Who cares? But that might all
17:53of a sudden take you to 50% here.
17:57And that'd be big, right?
17:58>> Wonderful.
17:59>> Yes. Okay. So, the big decision that I
18:01have is this.
18:04This would be a a higher risk test, but
18:07this is like
18:08one that I would strongly consider.
18:10>> I'm not risking this.
18:11>> Okay, which is I would rather just not
18:15mention the monthly at all,
18:17>> Yeah.
18:17>> sell the annual, put the offer in there,
18:19>> Yeah.
18:20>> and then after the launch is over,
18:22when you close your cart, then run
18:24everyone else to your monthly that
18:26doesn't have the bonuses. Cuz then you
18:28can do a monthly pop-up kit.
18:29>> Yeah.
18:30>> Cuz you'll still get plenty on that, but
18:31this will because like if you're doing
18:33you're doing a full 5-day thing, you can
18:34sell a $300 ticket.
18:36>> Mhm.
18:36>> And so, people are just taking the
18:38cheaper one because you're offering the
18:39cheaper one. Right, my goal here was how
18:41can I get that spend number? How do you
18:43feel comfortable?
18:44>> Mhm.
18:45>> If you knew all of a sudden the AOV uh
18:46is $300, so maybe conversion cuts in
18:49half,
18:50but you are at a $300 sale.
18:53>> level of confidence you have.
18:54>> Yeah.
18:55Cuz now you're Now if you're at 150 in
18:56the first 30 days, and you're like, "I'm
18:57fine. I can spend more aggressively."
18:59>> Spending, yeah. Cool.
19:01>> So, I had a wild So, I had I two wild
19:03ideas, right? Wild idea number one is
19:05let's just sell the annual, put this in
19:06there, and I think if we add this to
19:08that,
19:09and make that the the offer,
19:10>> Yeah.
19:11>> I think that'll do well.
19:12>> Mhm.
19:13>> The second wild idea that I had,
19:15um
19:17and again, this is wild.
19:19This is wild.
19:20Is that we position
19:22the boot camp
19:24as
19:25a 7-day trial
19:27of your $27 membership.
19:29>> That goes even without you saying
19:30anymore. It goes so well because the
19:31whole point of it is supposed to be like
19:33a teaser, a taste of this is what you
19:35get if you're a member.
19:36>> Yeah.
19:37Because then you've automatically
19:38converted 100% of your traffic instead
19:40of 22.
19:41>> So they're signing up for the continuity
19:43and they have to cancel after the
19:45>> Yeah, and then you're running a a 7-day
19:46or a 5-day, whatever that, you know,
19:47whatever you want. But then your whole
19:49thing is pushing to annual.
19:51>> Yes. Yeah.
19:52>> So you have 100% conversion.
19:54And then you push everybody to annual.
19:56>> Yeah.
19:58>> That's my That's my wild test.
20:00>> I I really like it. I guess my
20:03I'm worried that that I'm going to get
20:04to the the challenge ends after a couple
20:06of weeks then the 30 days ends and I've
20:08and people
20:10leave.
20:11>> Well, they won't, but this is such a
20:12good onboarding, too.
20:14Like the 7-day challenge is also just
20:16onboarding for all the members.
20:17>> Yeah.
20:19I love I love a test.
20:21>> You can arguably test both at the same
20:24time, which I'm not always the biggest
20:25fan of. Because if we look at the math,
20:26right? Let's just do the math.
20:28So let's say you've got 100 people who
20:30who buy your thing, right? Yeah, they
20:32buy the boot camp, right? We know that
20:34we're we're going to have 22 of them who
20:37are going to have a lifetime gross
20:38profit of 300, right?
20:41So we have, whatever that is, 6,600.
20:45That's coming in from these people,
20:47right? Now, on the front end, it's
20:49costing you $3,700,
20:52right?
20:52>> Yeah.
20:53>> So you get these people.
20:54>> Right. Yeah.
20:55>> And this is the issue from a cash
20:56perspective, correct? That's the
20:58problem.
20:59>> Yeah.
20:59>> Now, you said that you get $91
21:03uh
21:03>> Now, yeah.
21:03>> Yeah. That $91 is only on the buyers,
21:06correct? It's not on these people.
21:08>> Yeah.
21:09>> Okay, that's
21:09>> It's only on the 22 people.
21:10>> That's the issue.
21:11>> Yeah.
21:11>> So this is the real problem.
21:12>> Yeah.
21:13>> Yeah, so where this where where it gets
21:14more interesting is like let's say that
21:16you spend $3,700 to get 100 and
21:19you make
21:20$3,500.
21:22>> Yeah.
21:22>> Whatever, right?
21:23>> Like we could do that.
21:24>> So then that would mean you have $200
21:26to acquire 22 customers is what the net
21:28net actually works out to.
21:29>> Yeah.
21:30>> So that helps you to CAC is crazy.
21:31>> It's not how I built my list for free.
21:33>> Yeah, you spent $200 to make $6,600.
21:35>> Mhm.
21:35>> That's great.
21:36So the idea with the trial would be
21:40if we had the same 100 people, but let's
21:42say the trial conversion at the end was
21:44it'll probably be closer like 55%. Like
21:46especially if you do like a a 5-day
21:47thing like this and all of a sudden
21:49you're at 55 people and they have the
21:51same $300 LTV. Now that doesn't include
21:53the fact that we're going to get
21:54annuals, but even if no one bought
21:56annual and we just had the 300, now
21:58we're at, you know, 15 or 16.5.
22:03And so we would you'd actually make up
22:06for
22:07the money that you didn't make on the
22:09front. Now obviously we still have
22:10upsells. We should still do that.
22:11>> Yeah.
22:11>> But I'm saying even if you had no
22:12upsells
22:13>> Yes.
22:14>> and you just had this
22:15>> Yeah.
22:16>> you would make more cuz here all in
22:17you're at, you know, 90 whatever that
22:19is, you know, 11 or 10,000
22:21is what you're making here versus 16, so
22:23you get like a 50-60% lift.
22:25>> Mhm.
22:26>> So that would be like that would be the
22:27play if it was trial.
22:29>> Mhm.
22:29>> But I think you can go trial
22:33and then
22:34upsell tools.
22:36Like upsell the stuff they're going to
22:37need for the challenge.
22:37>> Mhm.
22:38>> Right? And then you'll still be able to
22:39get some cash
22:40from all those people and you can make
22:42it a $1 trial.
22:44So you wouldn't so you have a working
22:45card or whatever. I would not introduce
22:47this. I would do this first.
22:48>> Yeah, I think so, too. Okay, cool.
22:50>> Do this first.
22:51>> for a challenge, but that feels
22:52>> Yeah.
22:53>> Yeah.
22:53>> That's very manageable.
22:54>> Yeah.
22:55>> Yeah, so this [music] is I'll say test
22:56B.
22:56>> I see that.
22:57>> And this is test A.
22:58>> I have so much confidence that doing
23:00this alone is going to hugely change the
23:02outcome of the event in terms of members
23:04and [music] profit and then I feel like
23:06that's like the explode step.
23:08>> Yes, and you can say this, you only get
23:10all the tools if you buy the annual
23:11during the event.
23:11>> Right. Yeah.
23:12>> Cuz it costs a lot of money and I got to
23:14ship it and I got to pay for all this
23:14stuff out so I can only do it for people
23:16now.
23:16>> Yeah. I really like that.
23:19>> I feel good about it.
23:20>> I feel good about it, too.
23:21So, when Alex talked to me about the
23:23trial, offering a trial and having that
23:26be a way to really help my members get a
23:27really good experience during a launch,
23:30that has really helped me think about
23:32the way I've been looking at bringing
23:33new members in in a completely different
23:35way that that I'd never considered. I've
23:37definitely considered doing a free trial
23:39before, but not during a launch in that
23:42way. So, that blew my mind and it def As
23:44Alex said, it's a bigger, bolder move,
23:46but one that I'm really excited to take.
23:49>> We have a simple plan, a simple plan.
23:53This is the spin cadence we follow. I
23:55know it works very well.
23:56We're going to do way more creative this
23:58next round.
23:59>> are.
23:59>> Right.
24:00You're going to create more organic as
24:02well, which is going to feed the list,
24:04too.
24:05We're going to have more pain-based
24:07hooks so we can go a little bit up
24:08funnel.
24:08>> Yeah.
24:09>> We're going to increase our spending
24:10capacity from a CAC perspective.
24:12>> Right. Yeah.
24:14>> And the test that we're going to run on
24:15the next one is this one.
24:17>> Yeah.
24:17>> And if that works, [music] then all the
24:19game is going to be is how do I make 800
24:21ads
24:22and spend $100,000 on my next launch.
24:25>> Done.
24:27>> [music]
24:30>> All right, let's see where we're at with
24:31the scaling, Reb.
24:33Okay. Yes, thank you. Thank you. Thank
24:36you. So,
24:37how many people do you have right now?
24:39Like two?
24:39>> Yeah. One is my husband.
24:41>> [laughter]
24:43>> Let's see here.
24:44Your revenue is a little bit higher than
24:47your head count would suggest so you're
24:49probably more on this side
24:51>> Yeah.
24:51>> uh than you are here.
24:52>> Mhm.
24:53>> And so,
24:55what we're doing is if we're walking
24:57through this,
24:58we're going annual, we're adding the
24:59stuff to price to a better person. We're
25:02making all this extra content to make
25:04better free stuff and also V2 of this
25:06test is actually just running the trial
25:08>> Yeah.
25:08>> as the the front-end offer. We're making
25:11more creative to boost the volume.
25:12>> Mhm. A little bit more.
25:14>> Yeah. Also, as a side note, I don't know
25:16if you're already doing this, but I
25:17would make sure that you optimize your
25:18campaigns around purchases if you're not
25:20already doing
25:21>> I already do. Just in case. I have to.
25:23>> Yeah. And then
25:25the one thing that I didn't see on your
25:26numbers, but I would like to get to is
25:27just EPCs.
25:29>> Mhm.
25:29>> So, earnings per click. And I think
25:31you'll sleep better knowing that you are
25:32doing fine.
25:33>> That's it. You just say giving me this
25:35is enough. And so, the more I know, the
25:37the better I'll be with that. Yeah.
25:39>> One thing that I did I did miss is um
25:42I think we should consider
25:45when you're making these ads, you should
25:46use hook variations.
25:48>> Yes.
25:48>> I would experiment with different
25:49callouts for avatars. So, like in the
25:51lead book we talked about callouts.
25:53>> I've done that only to only in the
25:55limited way, literally separating
25:57mothers and grandmothers, but I haven't
25:59really done a great deal of
26:00>> go underneath of I would go more
26:02sub-specific. But like the game is now a
26:04game of 100 ponds and no oceans. Like
26:07you're you're draining 100 ponds of
26:09audiences
26:10>> Right.
26:10>> to get your scale more than trying to
26:12advertise to the oceans.
26:13>> To the world. Right.
26:14>> Right. Like you're running two ads and
26:15trying to convert you're trying to
26:16convert everyone with the same
26:17messaging.
26:18>> It's it's true.
26:19>> Right. And so, if you want to get the
26:20scale, you have to go down, which is
26:21counterintuitive.
26:22>> No, I like that. It's easily done, too.
26:25>> All right. Rock and roll.
26:27>> I know that despite anyone getting a
26:29scale or a fail, there'll be nothing
26:31stopping the people that I met today.
26:33I'm so inspired by them. As much as we
26:35know that we are contestants and
26:37competitors, and I'm certainly not
26:38glossing over the fact that this is a
26:40competition at the end of the day, we
26:42really came here to just represent
26:43ourselves and be the best version of
26:45ourselves that we could be. And I think
26:47that everyone shared that goal.
26:50>> [music]
26:57>> So, this is scale or fail.
27:02To be clear, I think that
27:04all of this will literally just get you
27:05more of what's already working.
27:07There's very few universes where I think
27:09that you
27:10adding the physical product premium and
27:13only presenting the annual offer doesn't
27:14generate more revenue up front. And
27:18we've de-risked this test by being able
27:19to just run it as a split test with the
27:21exact same price point, $10 $10 on both.
27:23That way the ads can be the same. One
27:24just includes a trial and one doesn't.
27:26Everything else in the funnel will still
27:27be the same.
27:29So,
27:34the question is,
27:35do I want to spend a year working with
27:37you to scale this?
27:40Or
27:41do I think there's something that's
27:42going to get in the way that's going to
27:43prevent us from scaling?
27:48So, the verdict is,
27:55you will be scaling with me. All right?
27:57So, you're moving on to the next thing.
27:59All right? This is a very simple plan.
28:01>> Mhm.
28:02>> I just want you to not be afraid to
28:04spend more. You can't be afraid. And
28:06you've gone through enough stuff.
28:07>> This is true.
28:08>> you should be afraid. Right? It's like,
28:10you know how to make money.
28:11>> Yeah.
28:12>> You can always go back to what you did
28:14before.
28:14>> Mhm.
28:15>> But this has the potential
28:17to 5x or 10x the business.
28:19>> Right.
28:19>> I think
28:21I think this will work.
28:22>> Thank you.
28:23>> All right, we'll rock and roll.
28:24>> Thanks, everyone.
28:25>> Yeah.
28:26>> Alex just told me that I am a scale and
28:29I'm so excited. I'm so happy. I have so
28:32much faith in my business, in my ability
28:35to implement everything that he said,
28:37and it just feels like so much has just
28:39opened up for me. So, it was a
28:40combination of him validating some of
28:42the things that I was worried about, and
28:44he gave me a really good solution for
28:46them that I hadn't been able to reach by
28:47myself. Um and then a few other tests
28:50that I can do, too. But there was
28:51nothing that I'm not really excited to
28:53try. And I can't wait to see how things
28:55go.
28:56>> I felt no resistance on any of the the
28:58things I was recommending. And also, the
29:00last thing that I told her to do, she
29:01partially did it and it doubled her
29:03average cart value. And so,
29:05I am pretty confident that both of these
29:08things
29:09will dramatically increase her cart
29:10value. And in the business that she's
29:12in, she's in a media arbitrage business,
29:14which is fundamentally she buys clicks
29:15for less than she can make on them,
29:16because it's a very scalable business.
29:18And so, like honestly, once just the
29:19math gets right, she can just do this.
29:21And from a product perspective, she had
29:235% churn, which is really good.
29:25>> Hearing from Alex that there was so much
29:26potential to scale has not only
29:28validated what my hopes were and what a
29:30lot of the data was pointing [music] to.
29:32To me, it's simple. If I follow the
29:34process that I've been given and I trust
29:36in that [music] and I do the things I
29:37say I'm going to do, then the success is
29:40inevitable.
29:42The next 90 days are going to be
29:44incredible.
29:50>> The business I felt like it could scale.
29:51It was a good product, very wholesome.
29:54And I didn't think [music] she would be
29:55afraid. And since she'd been marketing
29:57for 10 years, she had the technical
29:59chops to do all of these things. So,
30:00there's really nothing that was really
30:01stopping her besides the decision and
30:03the strategy, which she just got both
30:05and she made the ad. So, this was Scale
30:07or Fail. See you next time.
30:08>> Okay, let's do an update. One thing that
30:10Alex really encouraged me to do was go
30:12much bigger on ads in terms of
30:14creatives, angles, testing, volume. And
30:18I've been using one of Alex's playbooks
30:20to um come up with ads and a way to test
30:22them in a really strategic way. I'm
30:24already seeing with early stages of
30:26promotion,
30:28everything going in the right direction,
30:29exactly as Alex said it would. What a
30:31shocker. So, yeah, that's my update.
30:34Let's see what happens.
30:37>> Next time on Scale or Fail.
30:39>> My My is Tina Seu, and I help parents
30:42[music] of children with autism, ADHD,
30:45and speech delay.
30:46>> You have a responsibility to the
30:47business and the business has a
30:48responsibility to the customers. But
30:49your responsibility is to make sure the
30:50business survives and grows. So, if
30:53you're going to do that, you need to
30:54make it like five times as expensive.
30:55>> Oh.
30:56>> So it's like think like 8,000, 8,000,
30:5810,000 is what it would be if I wanted
31:00to have. So I have to decide whether you
31:01scale or fail.
31:02>> I can execute.
31:03>> No.
31:04And so I'm very torn on this one of
31:06whether or not you can draw the line.

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