How One Recording Session Can Make 150 Ads — Transcript

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1. 0:00Uh, my name is Chris. I sell data
2. 0:02engineering boot camp to current tech
3. 0:03professionals. We do a million a month.
4. 0:05Would love to be at 10 million a month.
5. 0:07What's stopping me is it's hard for me
6. 0:09to know if it's a marketing, sales, or
7. 0:11sales process issue as I try to reduce
8. 0:14my CAC. My LTV to CAC is 3.2ish. Um, I
9. 0:18think I know how to increase my LTV. We
10. 0:20talked a little bit last night. And, um,
11. 0:22I think Tim was also very, very helpful
12. 0:24in helping me realize things I can do.
13. 0:27But I think it's
14. 0:28>> Are you meta ads or YouTube ads?
15. 0:30>> 70% meta, 20 YouTube, 10. Got it.
16. 0:32>> Tik Tok.
17. 0:33>> What um how much creative are you
18. 0:35putting out um per week
19. 0:37>> at this point? Five or six. Uh I think
20. 0:39Tim blew my mind or someone blew my mind
21. 0:40when they were like, "You got to do five
22. 0:42or six per 10 grand." So I'm like,
23. 0:43"Okay, got to 10x that."
24. 0:45>> So like 500,000 a day is usually 50
25. 0:46pieces a day.
26. 0:47>> Yep.
27. 0:48>> For context.
28. 0:48>> Yep.
29. 0:49>> You spend 100 a day, 100,000 a day, it's
30. 0:51>> Yeah. We spend
31. 0:52>> It's closer to It's less than that.
32. 0:54>> Yeah. We spent 250 a month.
33. 0:55>> Yeah. But I think that you should at
34. 0:57least right now be at 25 a week
35. 1:00>> minimum.
36. 1:01>> Got it. And would you hire actors? Would
37. 1:02you just
38. 1:04winning ads?
39. 1:05>> I would rather you just get it going.
40. 1:07You can kind of like think about
41. 1:08removing yourself. Are you like still
42. 1:09the face of the business?
43. 1:10>> I very much am still shooting ads on a
44. 1:12walk.
45. 1:12>> Yeah. I don't I don't think that's the
46. 1:13issue right now. If you want to get to
47. 1:1410, it's like you got tons of time
48. 1:15before that's going to happen. So like
49. 1:17>> yeah, it's a it's a ton more volume than
50. 1:19you're currently doing. And it's
51. 1:20actually the same answer that we're
52. 1:21talking about earlier from the concept
53. 1:22perspective just on the ads. Um, the
54. 1:24nice thing with ads though is that
55. 1:25because the the nature of testing that
56. 1:27can occur with ads is that if you record
57. 1:30call it 25 um here I'll just walk you
58. 1:33through this. This will apply to
59. 1:34everybody. So
60. 1:54So this is how we make ads.
61. 1:57So you make 50 hooks.
62. 2:00So it's just like, hey, quick question.
63. 2:02Hey, are you been have you ever wondered
64. 2:04about, you know, data engineering? Hey,
65. 2:05look at this crazy AI thing. You know
66. 2:06who makes this? Data engineers. Like
67. 2:09what's that? Like you just you just go
68. 2:11through 50 hooks, right? Then you have
69. 2:13your three to five meats, which is like
70. 2:15this is actually the fastest growing
71. 2:16industry in America right now. And
72. 2:18believe it or not, you know, Goldman
73. 2:21Sachs said that there's a 23% in Kager.
74. 2:23And if you're like, "What's Kager?" It
75. 2:24just means every year by 23% that means
76. 2:26it's going to double in four years. So
77. 2:28think about how many people, you know,
78. 2:29who are data engineers, right? None.
79. 2:32Well, there's going to be even more. And
80. 2:34this is the starting salary. This is
81. 2:36just according to this, you know,
82. 2:37reputable source. And here's the
83. 2:39craziest part. You only need 16 weeks in
84. 2:43order to get certified to get these
85. 2:44types of jobs. And so if you've ever
86. 2:46been kind of tech oriented or you're
87. 2:47good at math, like this is something
88. 2:48that's worth considering. I just have a
89. 2:50free class that'll walk you through step
90. 2:51by step blah blah blah. Right? So that's
91. 2:53the meat. And then you have um call to
92. 2:56actions. I don't do a ton of tests on
93. 2:58this. So usually typically with call to
94. 2:59actions once you know what the call to
95. 3:01action that works best is, I tend to
96. 3:03just run that as as what I say at the
97. 3:05end of the ad, which is if it's like for
98. 3:08are you running to a VSSL or something?
99. 3:09Video sales letter
100. 3:10>> optin VSSL set.
101. 3:12>> Okay. Yeah. So, it's like you might try
102. 3:13web class, you might try master class,
103. 3:15you might try um you could even just try
104. 3:17video salesletter. Uh like I've got a
105. 3:19video training, I've got a training.
106. 3:20Like basically, it sounds small, but
107. 3:21when you're running tons of traffic,
108. 3:22those little little incremental bits
109. 3:24matter. But once you nail what the CTA
110. 3:26is on the backside, just use that. But
111. 3:29fundamentally, 50 even times three is
112. 3:30going to get you 150 ads. And so one one
113. 3:33recording session, if you do that, it's
114. 3:36like you only have to think of three to
115. 3:37five actual like media angles and the
116. 3:39rest is just hooks that you'll take from
117. 3:40the best performing ads. And I would
118. 3:42strongly encourage you if you're running
119. 3:44um one look at obviously people in the
120. 3:45marketplace that are you know kind of
121. 3:47around you or adjacent. But the cool
122. 3:50thing with hooks is that they work they
123. 3:52work across everything.
124. 3:53>> And so I've used one of the same hooks
125. 3:55in four different businesses that are
126. 3:57completely different B2B T B to tech and
127. 3:59service and it still works right and so
128. 4:02like you can reuse hooks. And so this is
129. 4:04by the way why I don't uh pay for any
130. 4:06subscriptions for ad free service is I
131. 4:08I'm always just paying attention to the
132. 4:09hooks like what hooks are coming in my
133. 4:11in my ads and if I see an ad that's been
134. 4:13running a lot I'm like it's probably a
135. 4:14good hook.
136. 4:15>> Yeah that's
137. 4:15>> I just write it down.
138. 4:16>> Yeah I I was looking at the sales
139. 4:18transcripts and trying to get hooks that
140. 4:19way. But that's really helpful.
141. 4:20>> Yeah. Oh no for sure. Just just watch
142. 4:22ads.
143. 4:22>> Cool. Thank you. Appreciate you.
144. 4:24>> Was that helpful? Yes. Okay.
145. 4:27>> Next one. Let's rock and roll.
146. 4:34All right.
147. 4:34>> Cheers.
148. 4:35>> Hey, Alex. Uh, my name is Luke. Um, we
149. 4:38run a firm similar to All Quietite
150. 4:40actually in Sydney where we buy majority
151. 4:42stakes for all the businesses. Um, we
152. 4:44currently operate three of them. We want
153. 4:46to be operating or at least contributing
154. 4:49to operations for about 30. Um, we've
155. 4:51had a lot of success exiting in the
156. 4:52past. So, we we've kind of got it dialed
157. 4:54in, but we can't do more than a couple
158. 4:55at a time. Our constraint is at the sort
159. 4:59of venture studio level uh is the or is
160. 5:02talent really. We don't really know what
161. 5:03our orchart should be and who should be
162. 5:05doing it. Um so I don't know if there's
163. 5:07anyone better place to help with that
164. 5:09than you.
165. 5:10>> So you have a holding company. Yeah.
166. 5:11>> Right now. And what are the three
167. 5:13businesses that you bought?
168. 5:14>> Uh one's a SAS company at the moment,
169. 5:16one's early education, and the other one
170. 5:18is a gourmet food e-commerce business.
171. 5:23The one before that was a, you know,
172. 5:25music industry stuff. We're really
173. 5:27diverse. Um, well, we we just had a lot
174. 5:30of exits, so these three are quite
175. 5:31small. The e-commerce one's doing three
176. 5:33and a half million at the moment.
177. 5:34>> And the other ones are smaller.
178. 5:36>> Yeah. Oh, the Yeah, they just started.
179. 5:38Yeah. So, so do this one. This one's
180. 5:39only a year old.
181. 5:40>> And so, the founder So, so are you are
182. 5:43you
183. 5:44funding them and finding a founder or
184. 5:47are you buying businesses that are
185. 5:49existing and exiting founders? Uh, in
186. 5:53the current case of these current three,
187. 5:54we've just bought them and now we're
188. 5:56we're the only operators of them. Um, in
189. 5:58the past it's been slightly different.
190. 6:00>> So, it's kind of case by case.
191. 6:01>> I I What do you want to do with your
192. 6:03life?
193. 6:05>> Um,
194. 6:06>> no, cuz what I'm about to say is going
195. 6:07to be a dramatic change from what you're
196. 6:09doing.
197. 6:10>> Okay. Um, I want to have [ __ ] money.
198. 6:14>> Okay.
199. 6:14>> Yeah. Yeah. So, um,
200. 6:19so there's a basically you have, how
201. 6:22much do you know about private equity?
202. 6:24>> I've read a couple books.
203. 6:25>> Okay. So, the the problem I can tell you
204. 6:29what the problem with the existing model
205. 6:30is
206. 6:32>> that you don't have enough operating
207. 6:34leverage. And so, it's actually, in my
208. 6:36opinion, a foundational issue with the
209. 6:37business model. Like, I don't think it's
210. 6:38going to work. Now, to be clear, I think
211. 6:40you can make some money. I don't think
212. 6:42it's going to accomplish the goal that
213. 6:43you want. And so if you're trying to
214. 6:45treat this like private equity where you
215. 6:46hope to have exits later and then gain
216. 6:48liquidity versus if you were like I'm
217. 6:50just a holding company and I just want
218. 6:51to continue to buy cash flowing
219. 6:52businesses. I'd have a different a
220. 6:54slightly different answer. Um but the
221. 6:56businesses that you're buying are too
222. 6:57small. And so if you're exiting founders
223. 6:59then the problem that you're having is
224. 7:00like oh my god I have to build this
225. 7:02entire business which is why most
226. 7:04private equity institutions start at 5
227. 7:06million in IBA as their basically
228. 7:08minimum that they're check size that
229. 7:09they're willing to write because of the
230. 7:10problem that you are dealing with right
231. 7:12now. And so I would encourage you to not
232. 7:15try and reinvent the wheel. Um, and I
233. 7:18say this coming from like with arrows in
234. 7:20my back and lots of scars. Um, in the
235. 7:23first 24 months of acquisition.com, I
236. 7:25did 24 deals. I had much many many
237. 7:28smaller deals because I thought, okay,
238. 7:30I'll just do I'll use the brand that I
239. 7:31have. I'll attract, you know,
240. 7:32entrepreneurs that are kind of emerging
241. 7:35and I'll have take a minority stake and
242. 7:37kind of help them grow whatever.
243. 7:40Uh the issue with that is that a lot of
244. 7:43businesses that are small are small for
245. 7:44a reason cuz they don't have good
246. 7:47entrepreneurs who are leading them. And
247. 7:49now you're like, "Okay, well either you
248. 7:50remove the the mediocre entrepreneur and
249. 7:53now you have just a bunch of basically
250. 7:54nothing [laughter]
251. 7:56that you're now like, oh now I I just
252. 7:57bought myself a job, right?" And maybe
253. 7:59you for no money down because they were
254. 8:01willing to leave and you didn't have a
255. 8:02lot of capital that you had to put to
256. 8:03work. Fine. Um, but I would,
257. 8:07in my opinion, you have basically two
258. 8:09paths that you can pursue here from
259. 8:10where you're currently at. I don't think
260. 8:12buying more companies is the answer
261. 8:14unless you raise a lot of money so that
262. 8:16you can buy actual companies and not
263. 8:18like someone's big bucket of risk,
264. 8:20right? Which is what we if we if you
265. 8:22took the companies that you bought
266. 8:23through the the the scorecard, I'll bet
267. 8:25you that they probably fail a lot of
268. 8:27those checkpoints.
269. 8:28>> Two of the three have. Yeah.
270. 8:30>> Yeah. And so, and for that reason, it
271. 8:32they wouldn't be deal like they wouldn't
272. 8:33be deal ready businesses, right? They're
273. 8:35just basically a person with a job that
274. 8:36has a couple people helping them out and
275. 8:38then that person steps away and now
276. 8:41what, right? Um, and now you're just
277. 8:43responsible. Um, so basically two paths.
278. 8:46So, path one is that you raise money or
279. 8:48get enough money to buy legit
280. 8:49businesses. Option two um is that you
281. 8:54decide one of these businesses is the
282. 8:56business that you want to do um as your
283. 8:58main thing and you use your M&A skills
284. 9:01to basically bolt on stuff to using that
285. 9:03as a platform rather than having all
286. 9:05these disparate businesses. Does that
287. 9:06make sense? So it's like the e-commerce
288. 9:08one is the best one. It's like okay can
289. 9:09we acquire some subbrands or some
290. 9:11subproduct lines underneath that fold
291. 9:12them into the brand and then flip that?
292. 9:14That makes sense and that allows you to
293. 9:16not have as much capital um and you can
294. 9:18organically grow it and then you can
295. 9:19keep your focus. But there's a reason
296. 9:20that most private equity firms only take
297. 9:22on call it five to eight um investments
298. 9:25and that's after they raise half a
299. 9:26billion dollars um to make those deals.
300. 9:28If they're in disperate industries if
301. 9:31they're a private equity firm that has a
302. 9:33thesis based around basically uh a
303. 9:35rollup strategy where they're like we're
304. 9:36only buying plumbing and that's our
305. 9:37whole that's our whole thesis. Fine. And
306. 9:39that's more akin to what you were doing
307. 9:41in terms of alpha. A little bit more
308. 9:42boring, more opsheavy. Um, but you have
309. 9:45uh you don't have to have as much
310. 9:47capital and the more entrepreneurial you
311. 9:48are, the more organic growth you're
312. 9:49going to be able to drive in the in the
313. 9:50original platform business.
314. 9:53>> Awesome.
315. 9:53>> Does that help?
316. 9:53>> Thank you. Yeah, makes sense. Thank you.
317. 9:55>> I know that's like
318. 9:57>> Okay,
319. 9:59>> I feel bad. [laughter]
320. 10:03>> Yeah,
321. 10:04>> it's hard for a reason right now because
322. 10:06it's it's it's not it the model doesn't
323. 10:09I I want to save you three years before
324. 10:11you figure it out. like it's it's this
325. 10:12this will not continue.
326. 10:14>> Obviously the charge what you're saying
327. 10:16is like
328. 10:17>> the archer doesn't matter. The strategy
329. 10:18is wrong.
330. 10:21>> Cuz you're trying to build three
331. 10:22businesses at the same time with no one.
332. 10:23Of course you have talent discrepancy.
333. 10:25You you need three entrepreneurs.
334. 10:29>> Hey there. Uh my name is Chris. Uh sell
335. 10:32uh eyeglasses to people that can't see
336. 10:35and specifically
337. 10:37>> nice uh targeting. Yeah. [laughter]
338. 10:40>> Ideally, right? So specifically trying
339. 10:42to uh target a piece of that which is
340. 10:44not just your primary pair which is like
341. 10:46I can't see I need to see but more
342. 10:48specific things like driving office that
343. 10:51kind of stuff a little bit more of those
344. 10:52task specific things.
345. 10:54>> Um so this is going to sound funny here
346. 10:56but basically we do zero dollars in
347. 10:58revenue. We'd love to be at 100 million.
348. 11:00>> You do zero dollars in revenue.
349. 11:01>> Yeah. So I'm going to So basically I
350. 11:04have a business that I'm exiting 10
351. 11:06locations
352. 11:07>> you know like 12 coming out of that. So,
353. 11:10so what I'm here for is to understand
354. 11:11like, well, if I'm going to start this,
355. 11:12let me start it the best way. Totally.
356. 11:14What's the best vehicle? Those kinds of
357. 11:15things. So,
358. 11:16>> that that's why like, yeah, we're
359. 11:17>> So, you're going to bring mortar.
360. 11:19>> Uh, yeah, we have 10 brick and mortar.
361. 11:20>> No, are you for the the glasses
362. 11:21business?
363. 11:22>> So, that's kind of the question is
364. 11:24really is like, do I go brick and
365. 11:25mortar? So, I could either, you know,
366. 11:26use u doctors as affiliates, etc., but
367. 11:30the problem there is that they um their
368. 11:33their sales teams that otherwise don't
369. 11:35tend to sell these glasses well. Um, so,
370. 11:37so am I an eye doctor and so part of
371. 11:38this is coming from knowing these common
372. 11:41like five things that people just
373. 11:43>> My mother and grandfather are of
374. 11:44themologists.
375. 11:45>> Oh, really? Oh, yeah. So, you know this
376. 11:47well then I guess. So, um, and so those
377. 11:49common things are not being addressed
378. 11:50well because it's just not communicated
379. 11:52well, all the things. So, then I have to
380. 11:54like figure out how to get them to sell
381. 11:56the product that I'm making, which is
382. 11:58like a whole challenge in itself, or do
383. 12:00I just
384. 12:01>> sort of go more of the path of like
385. 12:03direct to consumer and and that kind of
386. 12:05thing. and whether it be brick and
387. 12:07mortar, combo of online, etc.
388. 12:09>> I think it depends on your strengths.
389. 12:10>> Yeah.
390. 12:11>> So, um, Leila has a really good frame
391. 12:14for these types of decisions, which is
392. 12:15what problem would you rather have
393. 12:17>> because you're going to have a problem
394. 12:18in either of them, right? The problem
395. 12:20that you described with the first one is
396. 12:21basically the affiliate problem, which
397. 12:23is how do I attract them? How do I keep
398. 12:24them motivated? How do I train them? How
399. 12:26do I keep quality high? How do I make
400. 12:28sure that they're representing the brand
401. 12:29the right way? That is the problem with
402. 12:30affiliates. But the nice thing is that
403. 12:32if you solve that problem, you get paid
404. 12:33like 50 or$undred million. And so like I
405. 12:36feel like there's an appropriate price
406. 12:37tag ascribed to solving it. And that's
407. 12:39what gets me through honestly harder
408. 12:40times when you guys because sometimes
409. 12:42you're like man I just can't figure out
410. 12:43how to get these conferences to work.
411. 12:45It's like yeah and then as soon as you
412. 12:46do you make $10 million so yeah solve it
413. 12:49like like that's how it works. Um when
414. 12:52it comes to uh the direct to consumer
415. 12:53side if you feel like you're more
416. 12:55skilled with call it you know m
417. 12:57basically the business like what
418. 12:59business you're really in. So if you get
419. 13:00into the direct to consumer business,
420. 13:02you're competing against like snow teeth
421. 13:04whitening. And like if you look at the
422. 13:06the the business model there, it's all
423. 13:08media. It's all it's all, you know,
424. 13:11advertising uh driven type business.
425. 13:13This is with glasses likely very
426. 13:15transactional. So it's a super direct
427. 13:17response heavy business. You would
428. 13:19probably be recruiting affiliates for
429. 13:21brand associations. You be able to
430. 13:23whitelist uh for them to be wearing
431. 13:25your, you know, your your glasses and
432. 13:26whatnot. And that's the business that
433. 13:28you're in. So, it's going to be the
434. 13:29problems that you're solving are I have
435. 13:30to be creating shitloads and shitloads
436. 13:32of uh of ads all the time. I have to be
437. 13:35up to date on the best media buying
438. 13:36stuff and having really good at CRO or
439. 13:38conversion optimization. And I should
440. 13:39probably over time develop a strong
441. 13:41influencer affiliate strategy so that I
442. 13:43can actually build a brand rather than
443. 13:44just a rorowaz arbitrage business.
444. 13:47That's that path. The other path is the
445. 13:49brickandmortar affiliate path where you
446. 13:51still are centralized. You're just using
447. 13:53doctors as your distribution base. If I
448. 13:56had to pick which one I would rather
449. 13:57have, I would rather do that one. Um,
450. 13:59that's me personally. And you're also a
451. 14:01physician, which I think gives you a
452. 14:02little bit of leg up or at least foot in
453. 14:04the door figuratively and literally. Um,
454. 14:06and uh, I think that that one actually
455. 14:08if you want to sell a business in the
456. 14:10future would probably be more likely to
457. 14:12be sellable. Uh, just because the direct
458. 14:14response nature of that other business
459. 14:16is so volatile that any kind of like
460. 14:19wrinkle of volatility in a year prior to
461. 14:21a sale, sales done, sales off the table.
462. 14:23And so whereas once you develop a strong
463. 14:25affiliate base of basically referral
464. 14:27network from physicians though it is
465. 14:29complex and challenging literally you
466. 14:31just solve that one problem and you have
467. 14:32the business. Yeah, small followup to
468. 14:35that would be then is so in the vein
469. 14:38that that's the ultimate goal. I I know
470. 14:41that well in order to get there solving
471. 14:43that problem means that I probably need
472. 14:45to
473. 14:47do this XYZ here for that uh practice so
474. 14:50that eventually I'll be able to do what
475. 14:53it is I want.
476. 14:54>> That's I guess okay to sort of take that
477. 14:57approach that longer tail approach of
478. 14:59it.
479. 14:59>> Nothing's fast.
480. 15:00>> Yeah. [laughter] Well, sure. Yeah. No,
481. 15:02I'm just being like super real.
482. 15:03>> Just more from obviously experience of
483. 15:05seeing it and going like, "Oh, that's a
484. 15:06stupid path." Versus
485. 15:08>> No, I think either of those paths would
486. 15:09work. I think given your experience from
487. 15:11just the limited amount that I, you
488. 15:13know, we've interacted right now. If
489. 15:14you'd said, "I'm a hardcore direct
490. 15:16response marketer. I make tons of media.
491. 15:18I really understand that. Well, I'm
492. 15:20really good at building sites and know
493. 15:21people who can, you know, CRO really
494. 15:22well." Then I'd be like, "Okay, maybe
495. 15:24that's the play." But if but you didn't
496. 15:25jump at any of that. And so this one
497. 15:28feels like the right path.
498. 15:29>> All right. Makes sense.
499. 15:29>> Does that help? Yeah.
500. 15:31Rock and roll.
501. 15:33Hello, sir. If you like this video and
502. 15:35you're a business owner who wants to
503. 15:36break through your current revenue
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510. 15:48click here and you can check it out.
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512. 15:51a business owner, appreciate you. And uh
513. 15:53enjoy.