How I'd Reach Buyers Who Don't Know Your Product Yet — Transcript

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1. 0:00Hello, hello.
2. 0:00>> Hey Liz, what's up?
3. 0:03>> I'm good. How are you?
4. 0:05>> Excellent. You're on Hermosi Hotline.
5. 0:06So, you've got monthly revenue $600,000
6. 0:09a month. Congratulations. Badass.
7. 0:12>> Thank you.
8. 0:13>> You're welcome. Rich, you got to buy me
9. 0:14some jewelry from from Junior. All
10. 0:16right.
11. 0:17Um okay, ad spend is 150,000 a month.
12. 0:19Okay, little high there. Got it.
13. 0:21Um all right, what are your margins
14. 0:23right now? They didn't ask that, but
15. 0:24what are your margins?
16. 0:27>> Well, before we started so I've been
17. 0:29preparing for a million a month for the
18. 0:31last 3 months. And so I started building
19. 0:34the fulfillment team. Um
20. 0:37and in the last 3 months, my margins
21. 0:40have been 25%.
22. 0:42>> Okay.
23. 0:42>> But before that,
24. 0:44it was 45%.
25. 0:46>> Yeah, got it.
26. 0:46>> So, in the last 3 months, I've been
27. 0:47trying to scale, build up the team, try
28. 0:49to spend more on ads, have them managed.
29. 0:51>> Mhm. Got it.
30. 0:52>> So, that's it.
31. 0:54>> Okay, industry is marketing automation.
32. 0:56Okay. So, who's the uh who's the target
33. 0:59>> ManyChat funnels.
34. 1:00>> Of ManyChat funnels. Okay, got it. So,
35. 1:02thank you.
36. 1:03Makes it easier for me. Okay. ManyChat
37. 1:05funnels. Okay, great. Um and then your
38. 1:08offer is
39. 1:09it's for e-commerce brands. Okay, cool.
40. 1:11And they got to be doing over 10,000
41. 1:13sorry, 25,000 dollars a month
42. 1:15um in spend. That's their requirements.
43. 1:18Okay.
44. 1:19>> Yes.
45. 1:19>> 25K a month. Okay, what's your what's
46. 1:21your price?
47. 1:24>> 6K a month.
48. 1:25>> 6K a month. Okay.
49. 1:276K per month price. What's your churn
50. 1:29right now?
51. 1:33>> Between 5 to 10%.
52. 1:35>> Mhm.
53. 1:36Okay.
54. 1:38Um okay, so 5 to 10% churn. Let's just
55. 1:40use 10% to keep it simple. So, 60K. What
56. 1:43are what's gross profit on the on the
57. 1:44service of 6K a month?
58. 1:49>> Um well, we were breaking even in month
59. 1:52one and then we started to profit in the
60. 1:53middle of month two.
61. 1:55>> No, but that that takes into cost of
62. 1:56acquisition. I'm saying what are gross
63. 1:58profits
64. 1:59on the service? So, how much does it
65. 2:00cost you to deliver for a $6,000
66. 2:02customer?
67. 2:06>> About
68. 2:08two 2K, two to 3K.
69. 2:10>> Okay, two to 3K. Okay.
70. 2:12Okay,
71. 2:13little bit high, but that's fine. Okay.
72. 2:15Um cogs, so cost of goods sold. Okay,
73. 2:18great. So, uh what's the question? How
74. 2:20can I help now that I have context?
75. 2:23>> I've been struggling to double my ad
76. 2:25spend. So, our meta ads break when we
77. 2:28push from 5K a day to 10K a day.
78. 2:31>> Yeah.
79. 2:31>> So, the question is, should we instead
80. 2:34of multiple 1K a day campaigns, which
81. 2:38might be competing with each other?
82. 2:40>> They're not.
83. 2:40>> Or consolidate everything into a
84. 2:42>> They're not. Don't worry about it. Like
85. 2:43that that media buying mumbo jumbo,
86. 2:45don't worry about it. Doesn't matter.
87. 2:47Okay, keep going. So, you want to scale
88. 2:50your ads and they're not scaling. Okay.
89. 2:53>> Correct.
90. 2:54>> Okay.
91. 2:54>> So, is the one master campaign that's
92. 2:56spending 7 to 8K a day with a one single
93. 3:00asset in kind of ads is better than
94. 3:03multiple 1K a day campaigns?
95. 3:06>> I have no idea. I actually don't think
96. 3:07it matters.
97. 3:10>> Okay.
98. 3:12>> I I'm being real. I don't In my whole my
99. 3:14whole life, that has never been the
100. 3:15thing that has limited me.
101. 3:18Said differently, I don't think your
102. 3:19bidding strategy is the limitation for
103. 3:20why your business is not getting to a
104. 3:21million dollars a month.
105. 3:26>> Okay.
106. 3:26>> This is why it's valuable to have
107. 3:27properly identified constraints.
108. 3:29>> Is it the creative then?
109. 3:30>> Yes, I think it's probably the creative.
110. 3:33Um where are you where are you How are
111. 3:35you thinking through the hooks that
112. 3:36you're choosing?
113. 3:40>> Well, I'm researching um using ChatGPT,
114. 3:43whatever ads I see online, what feels
115. 3:46good,
116. 3:47what what sounds interesting
117. 3:50I wrote those those up.
118. 3:51>> Okay. So, I'll tell you I'm going to
119. 3:53guess right now that that's probably the
120. 3:54issue. So, are you familiar with the
121. 3:56five levels of awareness from uh this is
122. 3:58Eugene Schwartz?
123. 4:02>> Yes, I am.
124. 4:03>> Okay. So, you have to translate those
125. 4:06levels of awareness to the types of
126. 4:07hooks that you're that you're making.
127. 4:08So, I'm going to guess so if you have
128. 4:10like a hard ceiling on your advertising
129. 4:12spend like once you get over a certain
130. 4:13level like you can't spend more,
131. 4:15it's typically because the nature of the
132. 4:17hooks and the content that you're
133. 4:18talking about only really relates to the
134. 4:21bottom of the funnel.
135. 4:24>> Mhm.
136. 4:25>> So, you're talking about uh most aware
137. 4:28customers who already know about your
138. 4:30types of offer or you know solution or
139. 4:32product aware customers who know about
140. 4:33they know about ManyChat um or they know
141. 4:36about you or they know about your
142. 4:37offers, right? So, that's it's you're
143. 4:38talking to a very very warm audience and
144. 4:40so Facebook only has a very small amount
145. 4:44of people who are you know, doing
146. 4:46$25,000 a month and know about this
147. 4:48specific type of product offering and so
148. 4:50that's the only people they're showing
149. 4:51the ads to.
150. 4:54>> Okay.
151. 4:55>> And so, we have to start like at the at
152. 4:57the extreme, right?
153. 5:00You would have the unaware customer who
154. 5:02is purely you have to get them purely on
155. 5:04curiosity.
156. 5:08Like your your business is losing, you
157. 5:09know, thousands of dollars a day
158. 5:12because you don't have this one
159. 5:13integration.
160. 5:15That would be something that someone who
161. 5:17has no idea about anything to do with
162. 5:18ManyChat, anything to do with marketing
163. 5:20automation, they might take the next
164. 5:21step. Now, what happens is as you go up
165. 5:23funnel, right? You go to higher or
166. 5:26basically lower levels of awareness when
167. 5:27there's way more people, sometimes the
168. 5:29funnel has to change.
169. 5:31And so does the lead magnet. Are you
170. 5:32just making a straight offer in your
171. 5:34ads?
172. 5:35What's the funnel?
173. 5:37>> I'm make Yeah, I'm making an offer to
174. 5:38book a demo.
175. 5:39>> Yeah, too. You're like you're
176. 5:41you are you are so level on you're so
177. 5:44low on the on the on the awareness
178. 5:46thing. Like that's the issue.
179. 5:47You have to You have to make it easier
180. 5:49for someone to take a step. They don't
181. 5:50know who you are. Like people Like just
182. 5:51saying like, "Hey, book a sales call."
183. 5:53is a tough ask.
184. 5:59>> Okay.
185. 5:59>> Right? And so this is why like lead
186. 6:01magnets and things like that make sense.
187. 6:03It's like you might not have need to
188. 6:04have a longer process of breaking even,
189. 6:07number one.
190. 6:08And a longer process of educating the
191. 6:10prospect, and you need to have wider
192. 6:12hooks. And so one of the big things that
193. 6:14happens in like marketing world is some
194. 6:15people are like, "Oh, lead magnets don't
195. 6:16work." or they do work. If you just say,
196. 6:18"Hey, buy my shit." you will get higher
197. 6:20ROAS than have a lead magnet. But you
198. 6:22will be very quickly capped by the
199. 6:23amount of people who are who are warm.
200. 6:25And so you probably heard the whole like
201. 6:2697% of the audience isn't ready to buy
202. 6:28right now and 3% is.
203. 6:31Have you heard that?
204. 6:33So right now you're spending all your
205. 6:34time on that 3%. If you want to scale
206. 6:36this thing, you got to be able to go up.
207. 6:40>> Makes sense.
208. 6:41>> So you might Right. And so the the hooks
209. 6:43are going to be like, "How to double
210. 6:45AOV, how to decrease you know, your
211. 6:47CPAs?" or whatever the like types of
212. 6:48language um that you can make there. And
213. 6:50it's like, "Here's six ways that you can
214. 6:51decrease CPAs." Now all of them might
215. 6:53include using ManyChat to do it. And
216. 6:55they may be like, "Oh, This is
217. 6:56really good good stuff." And if you're
218. 6:58super hands-on, which it sounds like you
219. 7:00are if you're charging $6,000 a month,
220. 7:02like you can give away all the secrets.
221. 7:04I promise you. Just give away all the
222. 7:05secrets. It will not matter. Give away
223. 7:07all the secrets, all the sexiest stuff.
224. 7:09Put it in your lead magnets, put in your
225. 7:10ads, put in your little video sales
226. 7:11letter that you have, right? And people
227. 7:14are going to be like, "I don't want to
228. 7:15do with that. I'll just have them do
229. 7:16it."
230. 7:19>> Yeah. Yeah, you're right.
231. 7:20>> Cool?
232. 7:22>> Okay.
233. 7:22>> All right, rock and roll. Good stuff.
234. 7:24This was fun.
235. 7:25Let's do this again.
236. 7:27>> [laughter]
237. 7:28>> You bet, Liz. I just want to make sure
238. 7:29that you're not Like here's what's crazy
239. 7:30about this cuz I I think this is good
240. 7:31for for everyone who's watching, too.
241. 7:34People will stay stuck at this level for
242. 7:36like years because you keep thinking
243. 7:37it's like a media buying thing. It
244. 7:39doesn't matter. Like how you're doing
245. 7:40your bidding and campaigns is like we're
246. 7:42talking about like 5% differences. It's
247. 7:43like the things that are going to get
248. 7:45you from you know 600,000 a month to a
249. 7:47million or multiple millions of dollars
250. 7:48a month, it's going to be strategic in
251. 7:49nature.
252. 7:52>> Yeah.
253. 7:54>> But do you feel like you can execute on
254. 7:55that?
255. 7:58>> Yeah, I'll look at
256. 7:59>> Okay. Rock and roll. Thanks Liz.
257. 8:02If you're not getting as many leads as
258. 8:03you want in your business is demand
259. 8:04constrained, [music] meaning you could
260. 8:06service more customers than you
261. 8:07currently have, then this is for you. So
262. 8:09marketing is changing and I think ACQ
263. 8:12tends to be on the bleeding edge of this
264. 8:13stuff. We certainly spend the money
265. 8:15to do it, but we also build custom
266. 8:16software and we pay amazing vendors and
267. 8:18very expensive people to figure out the
268. 8:20system that we have right now and I want
269. 8:21to share it with you kind of open kimono
270. 8:22style. If you're not getting as many
271. 8:23leads as you want,
272. 8:25boy do I have the thing for you. Click
273. 8:26below, book call and
274. 8:28hopefully I'll see you in Vegas.