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How to Turn Cold Traffic Into Buyers | 1 Hour on Advertising — Transcript

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0:00I would probably first focus on I mean
0:02this is going to sound boring but
0:03conversion rate optimization and
0:04training the team. If I were to like buy
0:06the business tomorrow, I would do
0:08fundamentals baseball ground zero. I
0:10would literally look we look at every
0:12single conversion point cuz there's a
0:13lot. It's not just like did they pick
0:15up? Did they do a deal? You know,
0:16there's like 20 between there. Exactly.
0:18And so it's like all we do is we
0:20literally just look at every single one
0:22of them and just try and tweak six or
0:24seven things and we get it from you know
0:2728% to you know 38% from like three or
0:30four things and it's like okay our next
0:33one we're at you know whatever it is 50%
0:36we think we can get it to 65 what's a
0:3830% jump and so we literally just add up
0:40every one of these percentage points now
0:42all the funnel stuff for sure I think
0:44you can optimize all that stuff but like
0:46honestly this for everybody like the
0:48thing that advanced businesses do that
0:50beginner businesses, I'm not calling you
0:51a beginner, but I'm saying in general,
0:52miss out on is that like the advanced
0:54businesses just literally don't [ __ ] up
0:57the basics and they just do it at scale.
0:59Like that's really it. Like if you had a
1:01single solarreneur business, they're
1:02always super profitable for the most
1:04part unless you're an idiot. But like
1:05most solarpreneur business, one guy with
1:07two helpers, it's hard not to make money
1:09because you do everything right cuz
1:10you're the guy. And then you hire some
1:13people and you don't teach them well and
1:14they don't do everything right and
1:16they're not incentivized to and then
1:17you're like I need to do all this fancy
1:18[ __ ] It's like if you literally just
1:20did what you were doing at scale, you
1:22would be super advanced. So
1:24realistically, cuz I don't know the
1:25space as well as you do obviously is I
1:28would just ask for like what are all the
1:29things that suck about this process for
1:31you and then look at all the ones that I
1:33could control for and put hard cost for
1:35solving them and wrap it in cuz that's
1:38the thing is like so I'll give you a
1:39simple example like um so like
1:41healthcare as a like great arbitrage for
1:44a business owner like some people are
1:45like I want to keep my job because this
1:47place pays for my healthcare but that
1:49place might pay $400 a month for that
1:52person's healthare and another company's
1:54offering $15,000 more per year but
1:57doesn't have healthare and the person's
1:59like I got to keep my healthare great
2:01retention tool they pay five grand a
2:03year and they save 10 because the
2:05person's like I can't lose that because
2:06they haven't priced it out and so
2:08there's probably things that that that
2:10and this is what no other wholesale is
2:11doing cuz they're all lazy right is you
2:13think what are all the other costs that
2:14you're going to incur well did they and
2:16this is where you sound like the more
2:17educated person on the phone you're like
2:19well did they talk to you about this
2:20cost and this cost and this cost and
2:21this cost and they're like those
2:23bastards. You're like, "Right, we'll
2:25cover all that or whatever." You know
2:27what I mean? And it's like the cleaning
2:28and the blah blah blah all this other
2:30[ __ ] And you're like, and if you know,
2:32if you can hard cost that and look what
2:34it is, then you can wrap that into your
2:35offer and you can make it irresistible
2:37by covering the next problems they're
2:39going to have.
2:40>> That's if I wanted to come in and win
2:42there, I would try and win something
2:43like that. you interview.
2:44>> I do power washing, solar panel
2:47cleaning, window cleaning. Um, we
2:49>> power washing.
2:50>> Solar panel cleaning.
2:51>> Solo panel cleaning.
2:52>> Solar panel.
2:53>> Solar panel clean. Okay. Got it. I was
2:54like, "Wait, are you selling solar and
2:55you're doing?" I was like, "Hold on."
2:57>> Yeah. [laughter] Window cleaning.
2:58[snorts]
2:58>> And, uh, we do like $500,000 in revenue.
3:02Um, I want to be at a million.
3:04>> Supreme, right?
3:05>> Yeah. Supreme power wash. And uh what I
3:08think is stopping me is uh strategies to
3:11attract or reach out to businessto
3:14business uh reoccurring clients and if I
3:16should just focus on doing that
3:18primarily.
3:19>> Okay. So right now you're residential.
3:21>> Yeah. Do a lot of door knocking. Yeah.
3:23>> So what are margins now?
3:25>> Um
3:26>> profit.
3:27>> Oh. Uh yeah. We're making $500,000 a
3:29year.
3:29>> Profit.
3:30>> Yeah.
3:31>> So what's revenue? Uh
3:33>> top line sales, the dollars you collect?
3:37Uh
3:38>> 500,000.
3:40>> What do you take home?
3:41>> Oh, uh 250.
3:43>> Okay. So half.
3:44>> Yeah.
3:44>> Okay. So, and that's all residential
3:46right now.
3:47>> Yeah. There's a little bit of like some
3:49like apartment complexes or
3:51>> Okay. So, what stops you from doing more
3:52of that?
3:54Uh there just people just call us on the
3:56phone by my by luck and we get you know
4:00>> so it's referrals is the primary way of
4:01growing the business right now.
4:03>> Okay. So you don't have an acquisition
4:04channel and so the thought process that
4:07you have is I'm going to start an
4:09acquisition channel and go after
4:10commercial cleaning rather than
4:12residential.
4:13>> What what's an acquisition channel?
4:15Yeah.
4:15>> So how the way you get customers?
4:17>> Okay. So the thought process that you
4:19had was how do I I don't right now my
4:22phone rings and I'm getting referrals
4:24from existing customers who are calling
4:26me up and saying hey can you clean my
4:27stuff you say yes but it's very much
4:29dependent on that phone ringing right
4:32>> okay so then you're thinking or you're
4:35telling me that what you want to do next
4:36is build out a way of getting customers
4:39in the door and you want to target
4:42commercial
4:43>> Yeah because we have like this one uh
4:45client that just came upon us and I
4:47noticed like it's it's a lot more money
4:49and it's a lot more stable
4:51>> because it's reoccurring on a monthly
4:53basis.
4:54>> So,
4:57basically,
5:00you hopefully have seen this before,
5:02right?
5:04Organic,
5:06you've got OB, and then I'll just put
5:08affiliates from over here.
5:11So, you've got four ways that you can
5:13get you can get clients right now
5:15besides referrals, which is what you're
5:17currently doing. So, do you have
5:19experience with any of these things?
5:21Running ads, posting organic content,
5:24cold outreach, or do you have like
5:26people who already have a lot of these
5:27types of customers already?
5:28>> I have like a third party help with the
5:30ads.
5:31>> Okay.
5:31>> Um,
5:32>> well, how many Well, okay, hold on.
5:34>> So, how many customers coming from ads?
5:36Um
5:38I'm not I'm not
5:40>> So this would be
5:41>> like it'd be like
5:42>> just for everyone.
5:45You've got a one of these.
5:46>> Yeah.
5:47>> Right. So
5:49how much do you spend a month on on the
5:51ads?
5:52>> 2,000.
5:53>> Okay. Do you know if you get anything
5:55from it?
5:57>> Yeah. Um I would say like we get more
5:59like off like door knockocking and
6:01referrals.
6:02>> Okay. So you door knock
6:03>> a lot. [laughter]
6:05>> Yeah.
6:05>> Okay. So you so you're spending 2,000 a
6:07month here. You're doing door
6:08doornocking. So how many how many deals
6:10a month are you doing off door
6:11doornocking?
6:12>> Um
6:14like 20.
6:16>> Okay. 20.
6:18>> What's the average deal size?
6:20>> Like uh 350 to 1,800.
6:23>> Okay. So I'll just call 500.
6:26>> Okay. So you got 10,000 a month there.
6:28That sound right? Okay. The rest is the
6:30phone rings or what other percentage is
6:32this? Uh, like the
6:34>> Does more come from the door knockocking
6:35or this?
6:36>> Uh, probably doornocking.
6:38>> Probably.
6:39>> Yes, door knockocking.
6:39>> Okay. So, you say like half comes from
6:41this compared to doornocking.
6:43>> Okay. What stops you from spending like
6:45five times more money here?
6:49>> Um, the fear of not getting my money's
6:51back on the third party doing its job,
6:53right?
6:53>> Yeah. So, I think I think the first like
6:57you need to get this in place. You need
6:58data, meaning you need attribution
7:00tracking, which if somebody else is
7:01helping you run this, they should do it.
7:03Um, and if they don't, then you should
7:05probably find someone who does know how
7:06to give attribution for for the ads that
7:08you're doing. I wouldn't say, "Hey,
7:10let's go after a new avatar and build a
7:12whole new way of getting customers when
7:13you currently have two that are
7:14working." Or one that's working, one
7:15that we're not sure it's working. But if
7:18you're spending $2,000, you're getting
7:19more than one deal a week from ads.
7:22Well, then it's probably working. uh
7:24because you're spending 500 bucks a week
7:26if the average deal is 500 and you're
7:27getting more than that, then you're
7:29probably doing okay. Yeah.
7:30>> And so you might actually be sitting
7:31right now on something that's getting
7:33five to one or 10 to one, but you're
7:35only spending $2,000 a month. And so
7:37it's like if we can just bump that to
7:3810, then that would be big. Now, you
7:40don't have to jump there immediately,
7:41like go from two to four, two to six,
7:43whatever you feel comfortable with, but
7:45step one is get the attribution in
7:46place. Step two, then increase it.
7:48Provide the attribution, meaning that we
7:50can track what we spend versus what we
7:52make is good. then spend as much as you
7:54can there. Once you've tapped that,
7:56you'll have a little bit more cash flow.
7:58And at that point, we can make the
8:00decision of, okay, do we want to open up
8:01another paid ads channel? Do we want to
8:03spin up more doortodoor guys? Um, local
8:06is the only exception I have for being
8:08willing to have more than one
8:09acquisition channel. I'm not against it
8:11as as hardcore as I am for other
8:12businesses. Uh, because if you're in,
8:14you know, bum [ __ ] Kentucky, like
8:16there's only 50,000 people. Like, you
8:17got to reach them as many ways as you
8:19can. Um, but right now, uh, attribution,
8:24spend more if you can, as long as the
8:26attribution's good. I don't think you
8:27should change the business model. I
8:28think you should just do more of what's
8:30already working. And you just don't know
8:31if what you're doing is working. But I
8:32can tell you got 50% margins. It's not
8:34bad.
8:35>> Yeah.
8:36>> Yeah. Yes, sir.
8:37>> Cool.
8:37>> Thank you, Alex.
8:38>> Hey, my name's Alex. I sell luxury homes
8:40in Texas.
8:42>> I do.
8:43>> No, not the luxury homes. Thank you.
8:46>> I do 10 million in revenue. I'd like to
8:48get to 30 million.
8:50>> Okay. Uh 10 million in revenue. So
8:53that's that's not home that's not home
8:55volume. That's your commission
8:56percentage.
8:57>> No, it's like six homes at 1.5 million
9:00each.
9:00>> Oh, you're doing 10 million. Like you've
9:02sold $10 million of homes.
9:03>> Correct.
9:03>> So $600,000 whatever or less than that,
9:06you know, four 400,000ish in
9:09commissions.
9:11>> Uh net takehome is 2 million from the
9:15>> build.
9:15>> You build Thank you. building luxury
9:17homes.
9:18>> My bad. I heard sold luxury homes and I
9:20was like, "Okay, understood. Got it."
9:22So, 10 topline, two bottom line. Um, and
9:26now, sorry, now back to reality. What
9:28was uh what was the goal?
9:29>> The goal I'm trying to get to 30
9:30million. Okay.
9:31>> Uh my question is,
9:33>> how do you attract the top A players and
9:37bring them on?
9:42>> It's going to still be the It's
9:44interesting. We got a lot of a lot of
9:45people questions today. um it's going to
9:48like every business is demand
9:50constrained. You're either demand
9:51constrained for customers, you're demand
9:53constrained for talent. And so most
9:54problems can be solved with advertising.
9:56It's just who are you advertising to?
9:58And so once you realize that like all
10:00businesses have advertising constraints.
10:02Is it am I doing outreach for customers
10:04or am I doing outreach for talent? Am I
10:06doing running ads for customers? Am I
10:07doing ads for uh people? Right? And so
10:10how do you find them? You find them the
10:12exact same way you find customers.
10:14the top players
10:16>> it'll be outreach primarily but you can
10:19still find a level talent but if you're
10:20looking for like leader leaders then
10:22it's outreach mostly
10:23>> just looking for a top a player in terms
10:26of sales
10:27>> okay well yeah I mean sales what I was
10:30mentioning earlier is super applies but
10:32are you looking for sales to sell people
10:34on
10:36the jobs
10:37>> yes the customer correct
10:38>> so you did six last year
10:42>> did you do the sales
10:43>> yesum It's It's just me in the
10:46>> Got it. Um, could you do 18 sales in a
10:50year?
10:52>> Yes.
10:53>> Okay.
10:54>> The operational side is not a problem.
10:57>> Okay.
10:57>> The building side is not a problem. It's
10:59a problem of
11:00>> finding just one good sales.
11:03>> You just want to get your time back.
11:05>> Correct.
11:05>> Got it. Okay. Heard. um you're it's
11:08going to be outreach and I would
11:09literally just reach out to other
11:11construction sales people who sell
11:12luxury
11:13>> and I've tried that with a nice
11:15professional formal letter because from
11:17what I've heard today
11:20>> to bring them on and say hey if you like
11:21the opportunity
11:22>> and it didn't work so I was just
11:25wondering
11:25>> do you like sales navigator LinkedIn
11:27DMs?
11:28>> Uh no I just looked at you know the top
11:30producers in my area in a players are
11:33obviously working.
11:34>> I would expand the region. Okay. I would
11:36offer relocation packages um for people
11:39who are really good. I would use
11:41LinkedIn as primary method though. Okay.
11:44For sure.
11:47All right. I know that was a very easy
11:48one. Thank you.
11:50[snorts and clears throat]
11:50I'll say this before you jump off. Um
11:54most people here suffer from
11:55insufficient volume is that you're not
11:56doing nearly enough. It's like I I don't
11:59know how many you reached out to, but
12:00it's like I reached out to 15 of them
12:02and nothing happened. And so it's like
12:04you just need to add like two zeros to
12:06effort and you'll get what you want.
12:09That would be real. That's like what it
12:11is. Yeah.
12:13>> Hey, Alex.
12:13>> Hey, Mark. What's going on, dude?
12:15>> We did it. When my uh when my wife was
12:17in labor, I worked from the hospital
12:19room on my laptop during the hours she
12:21slept. I promised her for years that all
12:24of this would pay off. But right now,
12:25we're crammed in a tiny house in LA with
12:27two kids under 18 months. And yes, the
12:29second one was not planned. I run a
12:31poker coaching business and I was at
12:32your workshop nine months ago. We were
12:33at 2 million a year then and we've
12:35doubled to about a 4 million a year pace
12:37this year. But my goal is a million a
12:39month.
12:40>> What's stopping me is I can't figure out
12:41how to scale demand past what our warm
12:43audience generates. We've got nearly
12:45200k YouTube subscribers and we close
12:47over 40% of the people we pitch into our
12:495day 5K program. But we only sell 30
12:51something seats a month and we have
12:52capacity for triple that. And every cold
12:55audience funnel I've tried has come back
12:57break even or worse. I was hoping you
12:58could tell me exactly where I'm [ __ ]
13:00up so I can buy my family the house they
13:02deserve.
13:03Well, first off, thank you for that
13:05context. Um, that's it sounds like you
13:07have a crazy story right now. Um, right
13:10now your cold like cold traffic is the
13:13natural funnel that should be added on
13:14to what your exist like basically warm
13:16is only going to get you whatever warm
13:17is going to get you. And you probably
13:19have a a warm sales motion rather than a
13:23cold sales motion. And so when cold
13:25traffic is going through a warm motion,
13:26it's not converting. And so we basically
13:29need to change your sales motion from a
13:30warm motion to a cold motion. And so
13:32there's two downstream benefits of that.
13:33The warm when warm traffic goes through
13:36a cold motion, they will be more sold
13:38and more likely to take a higher priced
13:39offer. And when cold traffic goes
13:41through a cold motion, they'll just be
13:43more likely to buy. And so basically, we
13:45need to microwave your cold traffic to
13:48make it warm. And so that's the
13:51basically the the step in the process
13:52that's probably missing. So walk me
13:54through the cold traffic funnels that
13:56you had um leading up to this. And what
13:58is the actually let's start with the
13:59warm and then we'll do the cold. So
14:01what's the warm traffic funnel right
14:02now?
14:03>> Warm traffic funnel is just VSSL into
14:05book a call.
14:07>> Okay. Yeah. So just a basic call on warm
14:09traffic
14:11>> and we also have a warm direct response
14:13that is printing as well. It just that
14:15one fatigues really quickly. So we have
14:16to keep spend down.
14:17>> So it's just bottom of funnel that's the
14:19issue. So basically it's functioning
14:20like that that direct response kind of
14:22like hey come to the thing is taking the
14:25the bottom slice of the pyramid the
14:28people who are like 6-in putts and then
14:30just putting them in. So in a lot of
14:31ways they're just retargeting but you're
14:32looking at like how do I get more people
14:33in top of funnel uh into my world.
14:35Correct.
14:37>> Correct. Yes.
14:38>> So there's a there's a couple ways to do
14:40this. Um
14:43I call it the short-term and long-term
14:45way and we could have a combination of
14:46both which is probably what I recommend.
14:48So the the call call it the blended way
14:51is to run a paid workshop. So when I say
14:55paid workshop, I'm saying like uh call
14:57it a a $49 to $99 offer, probably 99. Um
15:01and have it be a legit workshop. And
15:04then that workshop will allow you to
15:05take like it's much easier to get
15:06someone to buy a $99 thing than how much
15:08is the uh poker coaching?
15:10>> 5K.
15:11>> Okay. Yeah. So it's much easier to get
15:13those guys to spend 99 and deliver one
15:16thing. uh that's you know super
15:18valuable. You prove the value, right?
15:20That that way they don't have to guess
15:21is this guy good or not. You can take
15:22the time to tell them who you are and
15:24then the vast majority of it is going to
15:25be the value and then you make them very
15:26a nice irresistible offer of taking the
15:29next step. And so basically you book
15:30your calls from that live thing rather
15:32than from like a short VSSL.
15:35>> Cool. We tried a cold webinar and it's
15:36it's flopped a couple of times.
15:38>> Yeah. I'm guessing was it free?
15:40>> Yes.
15:41>> Yeah. So, I would I would make it paid
15:43and just expect that you'll um like
15:48expect to lose money on the you know the
15:50$99 purchases. But what'll happen is I'm
15:52going to bet that the people who did
15:54like did no one show up or were the
15:55people who showed up not qualified?
15:57>> We had about a 25% show rate. But
15:59>> that's fine for free. That's fine.
16:01>> Yeah. Only 5% of those booked calls. The
16:04retention was incredible, but only 5%
16:06ended up booking calls. So what's what's
16:08likely is that the vast majority of
16:09people who showed up to the call did the
16:11webinar were unqualified.
16:13Did you have any metrics on the
16:14customers like from the opt-in of like
16:16who who was qualified for the thing?
16:18>> It seems like even the ones that booked
16:20calls it just most of them could not
16:22afford the thing. So that's where that's
16:24where like having that little bit of
16:26friction will typically take the the
16:28unqualified from like 90% which is
16:30probably what it was uh to closer to
16:32like 40%. Uh on a paid a paid workshop
16:36and once someone makes a tiny purchasing
16:38decision likely they make the next
16:39purchasing decision significantly higher
16:41like buyers buy more.
16:46Does that track?
16:47>> Yes.
16:48>> So basically just run this to a sales
16:49page stack the living [ __ ] out of the
16:51bonuses. Um, so that it just be like the
16:54the $99 should feel like absolutely
16:56absurd and then make that call it like a
16:59threehour
17:00uh workshop and then just sell at the
17:02end.
17:03>> Cool. Okay.
17:04>> Does that make sense? It was just you
17:05just you just had to tweak it. That's
17:06all it was. You were like um free
17:09sometimes can be harder and especially
17:11since you have an audience. It's like
17:13these people have some level of trust
17:14with you and so it's like let's just get
17:17let's let's deliver more value prior to
17:18the ask
17:20>> 100%
17:21>> and qualify better.
17:22>> Yeah. I would also on the opt-in form
17:24are you um getting qualification data.
17:28>> Right now we're only asking for name,
17:30email, number.
17:31>> What do you know? What is what what
17:34behaviors or characteristics
17:36um does someone have to have um to be a
17:39good buyer for you? the average amount
17:42that they buy in for is our highest
17:44quality signal player.
17:47>> Oh, okay. Cool. So then I would just add
17:50that as one of the fields. So you have
17:52name, phone number, email, average buy
17:55in for the games you play.
17:58>> Cool. And do we DQ people who don't?
18:01>> No. What it'll what it'll do is you're
18:02going to get that data. Um, and you can
18:05get a little bit cute with uh Facebook
18:06and have different thank you pages for
18:08the people who buy and are qualified or
18:11don't buy and are not or buy and are not
18:12qualified. And then you can train the
18:14pixel data on the more qualified
18:16audience.
18:18>> Okay, cool. Yeah, we're doing that for
18:20uh for our organic right now anyway.
18:23>> All right, cool. I'm just writing this
18:24down for myself. Okay, so number one, we
18:27switch from free webinar to paid
18:29webinar, which is not even a webinar,
18:31but we're going to change to a workshop.
18:33And then number two, that maybe
18:3690-minute thing that you were doing
18:37before, expand to three hours, deliver
18:40true value for 99 bucks. And then um on
18:44the front end, we want to make sure that
18:45we add the charact the highest signal,
18:47which is the buyin, to the intake so we
18:49can start optimizing all of our ads
18:50around it. And you can quickly see what
18:55your true conversion percentage is
18:56because I actually care very little
18:57about the webinar conversion percentage.
18:59I care a lot more about what the
19:00qualified conversion percentage is
19:02because maybe you had 5% that closed
19:04last time or whatever it was. No, 5%
19:06qualified, whatever it was, but like if
19:08if you closed 50% of the people who were
19:10qualified, it's a banger webinar. It's a
19:12traffic issue and that will give you a
19:14much better uh read uh cuz if you're
19:17going to do these week to week, which
19:18I'm sure you will, you will be way
19:20better at predicting what the revenue
19:21size of the, you know, workshop is going
19:23to be based on how many qualified are
19:25there, not how many leads.
19:27>> Cool. Okay,
19:28>> rock and roll.
19:29>> This tracks. Yeah, I appreciate this.
19:31>> Yeah, and juice the hell out of that $99
19:33offer. That's the third thing.
19:35>> Just give away a ton.
19:36>> Yeah, make it Make it absurd. There's no
19:37reason someone should not do it.
19:39>> Okay, great. Thanks, Axe. I uh I
19:41appreciate it. Once again,
19:42>> congrats on getting from two to four
19:43million.
19:44>> Thank you. Next time next time we talk,
19:46hopefully it'll be over 10.
19:47>> Million a month, baby.
19:48>> Uh I sell barbecue to people.
19:50>> Sweet.
19:51>> U lot of catering in some restaurants.
19:53>> Well, it's probably like men over
19:55whatever like being real, but Yeah.
19:57Yeah. Uh, and, uh, we do, uh, we did 1.2
20:01million last year.
20:02>> Um, I'd like to do 10 million in three
20:04years.
20:04>> Okay.
20:06>> Um, one of the things that's definitely
20:07stopped me is I'm underpriced.
20:09>> Okay.
20:09>> Uh, now I was talking to Ed and uh,
20:12suggested I have a broken model.
20:14>> Okay.
20:15>> Uh, yeah.
20:18>> Yeah. Right. Yeah. Um, okay. So, you're
20:20doing one, two, and you want to get to
20:23bigger.
20:23>> Yeah.
20:24>> Is Amazon primary channel? Uh, no,
20:27mostly word of mouth.
20:28>> Oh, wow. Cool.
20:30>> Yeah. Neat.
20:30>> So, we Yeah. So, we do a lot of uh 80%
20:32of our business is barbecue catering.
20:34>> Okay.
20:34>> And then uh we
20:36>> Wait, barbecq Hold on.
20:37>> Yeah. Yeah. Yeah. So, we I do barbecue
20:39catering.
20:40>> Okay.
20:40>> Yeah. And then
20:41>> cater.
20:41>> What's that?
20:42>> So, you're a caterer?
20:42>> Yeah. Yeah. Yeah.
20:43>> Got it. I totally thought you were
20:44selling tongs. Okay. Got [laughter] it.
20:47>> Yeah. No worries.
20:48>> Okay.
20:48>> Yeah.
20:49>> Got it.
20:49>> Uh and then uh we're also open a couple
20:51days a week.
20:52>> The brushes and the tongs. That's what I
20:53thought we were coming from. Okay. Got
20:55it. No. Meat.
20:56>> Yes. Got it. Yeah. Uh and then uh the
21:00other part of the business is
21:01restaurant. We're open a couple days a
21:02week. Uh kind of. Yeah.
21:04>> Got it. Okay. So, what do you you want
21:07to what do you want
21:08>> do more? I want to do I think you'll
21:10probably need to pick one or the other.
21:11Realistically, it sounds like the
21:13catering business is more scalable. Not
21:15either business could scale, but
21:16>> the restaurant's going to be limited by
21:18your four walls relatively quickly,
21:19whereas the catering, not so much. And
21:21you can, you know, you can do a lot of
21:23catering um in a local area to make a
21:26lot of money.
21:29So, what stops you from doing that?
21:31>> Uh I feel like we're starting to get
21:33capped in those four walls as well. I
21:35mean, we did almost a million in
21:36catering. Uh
21:37>> but are there four walls or you going to
21:39someone else's four walls?
21:40>> Well, we uh we we actually will produce
21:44at our commercial kitchen. We'll push uh
21:47you know up to 10 10 teams out
21:49>> feed well over a thousand people out of
21:50that one kitchen.
21:51>> Okay.
21:52>> Yeah.
21:53>> And so you have a kitchen constraint.
21:55>> Yeah.
21:55>> Okay. But the catering business itself
21:57is fine. You just need a bigger kitchen.
21:59>> Yeah. That that that'd be one of them.
22:00Yeah. And then more then more leads.
22:02>> Okay. So can you currently handle more
22:05leads or are you at capacity right now?
22:09>> It
22:11it's seasonal. So, I think on the busy
22:13seasons we're hitting capacity and then
22:14on the the lower seasons we're
22:17>> Amen.
22:20[laughter]
22:22That was the first phone call I've ever
22:23had taken inside of a conference. Um,
22:26sorry. Go ahead. Um, no, the from a
22:29catering perspective, I think that
22:33[sighs]
22:34volatility is part of the business. So,
22:36you're not going to really change that.
22:38you need to be make sure making making
22:39sure that you're printing money in the
22:40onseason so that you can make up for the
22:41offseason. So volatility doesn't in and
22:43of itself mean that there's anything
22:44wrong with the business. So like Harry
22:45and Davids makes like 80% of their
22:48revenue in December
22:50>> and they lose money the other 11 months
22:52of the year. Seas Candy, same thing.
22:53They make the vast majority of their
22:54profit in Q4. And so that's not
22:56uncommon. And you're in a food kind of
22:58celebration type business. So Q4 is
23:00probably I'm guessing where your season
23:01kind of
23:02>> uh there's big weddings. The season for
23:04us is actually spring and fall.
23:06Interesting. And Yep. And then Q4 as
23:07well.
23:08>> Got it. And so spring, fall, and Q4.
23:11>> Well, yeah. So, so,
23:12>> so three of four quarters you're doing.
23:14Okay.
23:15>> April, May, June, and then September,
23:17October, December.
23:18>> Dude, I don't think you actually have
23:18volatility. I think you just need a
23:20couple more leads and you'll smooth out
23:21your curve. Because if it's barbecuing
23:22is outside, then it's like you got your
23:23spring and your summer covered, and then
23:24you've got celebrations that are
23:26happening in the other part of the year.
23:27So, it doesn't really say like I'll tell
23:30you. So, some of you guys have this
23:31artificial constraint being like, you
23:33know, you know, March is always a bad
23:34month for us. It's like, why? There's no
23:36actual reason. It's just like
23:37historically then we start having a
23:39self-fulfilling prophecy of like said
23:42differently.
23:43>> If you were able to mop up all the
23:45demand for catering every month in your
23:47market, would you be able to handle it?
23:51>> Uh probably most
23:52>> Let me say it differently. If your worst
23:54month of the year traditionally you were
23:56able to scoop up everyone else's
23:58catering business, would that now become
23:59the best month of the year for you?
24:01>> Uh pro
24:03>> for sure. You're doing a million a year
24:04for [ __ ] sure.
24:05>> Okay. All right, let me save the answer.
24:07So the point [laughter] is is the point
24:09is is that all we have to do is just
24:11outmarket the competition so that that
24:13that'll basically smooth out the demand
24:15curve.
24:15>> Okay.
24:15>> Right. So you don't have volatility, you
24:17just need better marketing. Okay.
24:18>> And so from a lead genen perspective, um
24:20right now you said word of mouth and
24:21what's the other one?
24:22>> Uh
24:23>> just word of mouth.
24:24>> Yeah. Yeah. We just do a really good job
24:25and get people to refer people in.
24:27>> Yeah. So um I think for your business uh
24:31catering gez uh paid ads like meta ads
24:33probably work just fine.
24:34>> Okay. Yeah, I actually I think you'd
24:36probably get away with it pretty well.
24:38Um, PPC would also probably do well for
24:39you because people who have high intent
24:41who are looking for a caterer. Um, if I
24:43were to start with one, I'd probably
24:44start with PPC.
24:45>> Okay.
24:46>> And then I would move on to meta, but I
24:48think PPC is probably the highest
24:49likelihood because it'll be the warmest
24:50leads. They're high intent. You'll be
24:51you'll pay more than you're used to.
24:53>> Well, you're not used to paying
24:54anything. So, [laughter] so you'll
24:56actually learn you'll have to learn how
24:57to work leads. And so, this will be a
24:58big shock to your system because they
25:00won't just like immediately get on the
25:01phone and then give you money. you'll
25:03actually have to have a process in
25:04place. Um, but yeah, we can help with
25:06that. But that's kind of the general
25:08gist. You'll have to have a landing
25:08page. You'll have to have a lead nurture
25:10process. You have to get them scheduled.
25:11You'll have to, you know, have them
25:12watch a little VSSL beforehand so you
25:13kind of frame what they're getting into
25:15and what to expect. Then when you get on
25:16the phone, you can go close them.
25:19>> Cool.
25:20>> But yeah, that's what you have to do.
25:21You have to advertise.
25:22>> Sounds good.
25:23>> But let's dive into uh let's dive into
25:25some page reviews. So, this is going to
25:26be a little bit new. Um, I've got a big
25:28list of pages. I'm going to see how many
25:29we can get through. Um, and then we'll
25:31go into cues. Sound good?
25:34All right. Fantastic. So, uh, let's
25:37let's dive in here. All right. So, uh,
25:41overall this looks simple. Let's see
25:44here. Sounds good. Uh, some
25:46testimonials. Great. This is neat.
25:50Strength fitness. Got it.
25:55Got it.
25:57Got it. So, if I were if I were to if I
26:00were to do a tear down of the page, um,
26:03first off is I'd consider having a video
26:04here that kind of walks through the
26:06major components that you talk about
26:08inside of what's included. And so, that
26:11would just be like, hey, like this is
26:12what we do with the workouts. Let me
26:14show you what the workouts look like.
26:15Let me show you what the section on
26:16nutrition looks like. Let me show you
26:17what our uh meal plan looks like. Let me
26:19show you what the community inside and
26:20some of the challenges of people are
26:22participating. Um, let me show you the
26:23the network that we have. So, you can
26:24show the the group, the number of people
26:26that are at it. um some like recovery
26:29techniques. So you could just show the
26:30show the section that you have in
26:31recovery and and show that stuff and
26:34then I think this will be super super uh
26:37valuable for a lot of people. So this
26:38would probably be one of the ones that I
26:40either either I do it right off the top
26:42in the beginning or I would close with
26:43it. So it's like I either want it to be
26:45the first thing they think of and be
26:46like whoa this is really cool or I would
26:47want at the end. So it's something
26:48called peak end bias in terms of videos
26:50is that people from the peak of a video
26:52the peak emotional state and they
26:53remember how things finish. And so I
26:56would want to either have it sandwiched
26:57to the front or the end. Number one.
26:59Number two, I think that these slides
27:02right here are I think they're they're
27:04they're potential like wasted
27:06opportunities maybe a little bit strong
27:08for what I'm saying, but I would want to
27:10show like this is great. Like this is
27:12really good. A little bit harder to
27:13read. So I might use fewer of them and
27:16highlight the parts that I want someone
27:18to read. So I want to direct someone's
27:19eyes here. So I might have three that I
27:21think are the best. And I would
27:23highlight the portions of text because
27:25like the person's gonna like if you ever
27:27watch screen recordings of people doing
27:29stuff like they skip around really fast.
27:31And so you want to just make sure that
27:33you like here it just says it's if I
27:35were to click through this I would just
27:36say people say nice things and then I
27:38would just move to the next one. Like I
27:39wouldn't even read it. I would just know
27:40people have said nice things. So I'd
27:41rather pull out one to three really
27:44meaningful ones. Um, so right off the
27:46bat, um, the video would be first, that
27:49would be second, where I'd highlight it,
27:51and then these each of these tiles I
27:54think should represent images from these
27:56things that are included, right? So if
27:58we're thinking about this from a
27:59features perspective, it's like the
28:01video does the overview with a voiceover
28:03of all the things, right? And I think
28:05fundamentally you just want to say
28:06here's what you get like just very
28:08straightforward and here's what it's
28:09going to help you solve so that you can
28:11very simple process like we have this so
28:13that you can have benefit. We have this
28:15so that you can avoid bad thing. We have
28:17this so that you can have good thing. We
28:18have this so you can avoid bad thing.
28:19Right? It's more good or less bad.
28:22That's fundamentally just sales how it
28:23works. And if you think about value
28:25overall, you think how do I make it
28:26faster? How to make it easier? And how
28:28to make it risk-f free or how to make it
28:29guaranteed. So there's the elements that
28:31you want to be mentioning when you're
28:32talking to the bullets. So does this
28:34thing make it more guaranteed that they
28:36get the result? Does it make it faster
28:38that they're going to get the result? Or
28:39does it make it easier for them to get
28:40the result? And I like to emphasize one
28:42of those three points when I'm making
28:43each of the bullets. Now, with this, you
28:46have you have healing, you have some
28:49elements. You have discipline and focus.
28:51You have I'm guessing some sort like you
28:52have training. So, you've got like
28:53muscle elements. So, there's a lot of
28:55basically solutions being presented
28:56here. And I'd want to boil it down to
28:58like what the main outcome that they're
29:00going to get is um from here. So TLDDR
29:04video first, the structure of the video
29:05I went over already. And then each of
29:07the tiles I would use to highlight um
29:10one key thing. And so now that I'm
29:12talking about this out loud, I would
29:13have a picture of the stuff and then I
29:16would have one testimonial superlaid
29:18over it about that thing. So it's like
29:22here's the meal plans and then there's
29:24Sarah saying like these meal plans are
29:26so amazing. I thought it was just going
29:27to be some generic on the internet, but
29:29these actually really helped me out and
29:30have made fitness so much easier for me.
29:33Boom. That's the testimonial
29:34highlighted. Great. Next tile like uh
29:38workouts, right? It's like, hey, and
29:40then obstacle will probably be like, can
29:42I do these at home? So, someone's like,
29:43I thought I was going to need a gym for
29:44this, but I actually can do these at
29:46home, and they're really challenging, so
29:48I think I'm going to have like, you
29:49know, a year plus before I'm going to
29:50beble to do some of the more advanced
29:51stuff, but it's really nice because he
29:52aggresses it down to somebody who's at
29:54my level, who's just getting started.
29:56Great. That's the testimonial around the
29:58feature. So, it's like feature,
29:59testimonial, or feature, biggest
30:01obstacle. And so, I would think about
30:02that when I'm going through each of
30:04these tiles uh to make it more
30:06compelling in terms of the actual words
30:08themselves. So, let me pull this page
30:09back up because I'm still looking at you
30:10guys are looking at my face. Um I like
30:13the prices going up uh soon thing. I
30:16think that's great. Um okay, this is
30:19fine. Um
30:22let's see here. Workouts. Yeah, this is
30:24more or less the bullets. So that's
30:26fine. Um I I would I would maybe
30:28consider like I said I mean this is at
30:30the end I would probably start with this
30:32one because it's super compelling like
30:34direct access just for everybody here
30:36like access is what groups approximate
30:40like they basically instead of getting
30:42oneonone with you they get one to many
30:44with you and so you want to show any
30:46degrees of access that you are providing
30:47that this looks like it's one to one to
30:49one um you want to show that now it
30:51might just be like responses from the
30:53master or whatever um but you want I
30:55would want to hit with that first
30:56because I think that would be really
30:57compelling. Um,
31:00and
31:02yeah, these things are are nice. So,
31:04yeah, I think I think fundamentally the
31:06words look okay, so I'm good with that.
31:08Um, I I don't I whether the emojis or
31:12not do anything, that's something that
31:13we can probably figure out at a mega
31:14level, whether bullets or check marks
31:16work fine, whether each of the
31:18individual emojis. Do I think it's going
31:19to have a huge effect on the conversion?
31:21Honestly, probably not. But I think the
31:24fixing this stuff would be the thing
31:26that'll drive the most throughput in
31:27terms of uh conversion optimization.
31:29>> I'm in the restaurant business. So
31:32>> restaurant business.
31:32>> Restaurant business. Uh we do about 25
31:34plus million in revenue. Uh we're trying
31:37to get to 100.
31:38>> Amazing. How many locations?
31:39>> We have six.
31:41>> What's the What type of dining?
31:42>> Uh actually there are five different
31:44concepts. Uh two two that are American
31:47Pub Fair.
31:47>> At least you're focused. That's good.
31:49>> Well, there was
31:51>> They're all restaurants. There was a
31:53lawsuit that got in the way of growing
31:54brand. So, um, what's stopping us is
31:57probably to be truthful is me and my
31:59business partner, which I dragged here.
32:00Uh, I'm more
32:01>> business partner,
32:02>> business partner over here. Yeah.
32:04>> I'm more the frontf facing marketing
32:06person. He's the implement finance guy,
32:08right?
32:08>> So, I thought I'd bring him, you know,
32:10to listen to the spiel, right?
32:11>> So, if I'm looking at the business
32:13worksheet that we filled out from the
32:15beginning,
32:16>> the problem is the LTV to CAC. How do I
32:20I don't have those numbers, right? Yeah.
32:22>> So in a restaurant I have let's say
32:26>> I have information from
32:30our what do we say our
32:35programs
32:36>> yeah so restaurants is a such a unique
32:39business um
32:41>> the thing is is like more than anything
32:43and this may sound ironic it's like on
32:45the polar ends of business you have
32:47restaurants on one side and then on the
32:49other side you've got super high-tech
32:50and they both converge on the same truth
32:52which is that in the long run product is
32:53the only thing that matters and so at
32:56the end of the day you can do all the
32:57marketing things you want in the world
32:59if the food sucks the food sucks.
33:01>> True.
33:01>> And if the exper and also it's obviously
33:03tailored with the experience, the
33:04service, the environment, all those
33:06other things, but if the experience
33:07overall is noteworthy
33:09enough, then you get a lot of like,
33:11yeah, it was all right. And then they
33:12never come back and then someone's like,
33:14"Oh, I guess we won't try there then."
33:15Right? It's that those tiny little
33:16because most people do find restaurants
33:18through word of mouth and reviews. It's
33:21like 90% those two sources. I mean, not
33:24many people are scrolling Instagram and
33:26are like, "Oh, I will respond to the buy
33:29one get one." Now, the one exception to
33:31that is when you have a grand opening,
33:32which you should have, I'm sure you do
33:34have hopefully have a grand opening
33:35strategy for future locations. Um, that
33:37for sure is hardcore marketing that
33:39you're doing. But the idea is that you
33:42never do grand openings until you know
33:45that the model that you have, the
33:46experience that you deliver, the food
33:48that you make, when someone comes in,
33:50you know that off of the grand opening,
33:52you can get that that that location to
33:53full capacity within six months, just
33:55off of the word of mouth of basically
33:56the initial push,
33:58>> which by the way is how all brick and
33:59mortar should work. with restaurants,
34:01it's just more exacerbated because data
34:03collection's harder and gross margins
34:05are smaller,
34:06>> right? And so, um, basically, if if
34:10you're like, how do I how do I
34:11aggressively grow the business? It's
34:12going to be
34:14mostly the food and the experience,
34:17>> which is the sad and also amazing.
34:21>> How do I get the finance guy to spend
34:22money in marketing?
34:25>> Um,
34:25>> because if I'm looking for that number,
34:27that CAC number. Yeah. I don't know how
34:29to to get that number.
34:30>> So right now, let's say let's say
34:31hypothetically you you spend zero
34:33dollars on marketing just for, you know,
34:34shits and giggles. So it's like, well,
34:36what's our marketing expense right now?
34:37Well, it's zero. You could just reframe
34:40that question, which is like, what do we
34:42like, what do we pay in premium across
34:45our systems, our service, and our and
34:47our ingredients that increase the
34:50virality or word of mouth from the
34:52business. That alpha, that spread is
34:54basically the marketing. you're just
34:56doing it in the form of product. Um but
34:59to get that um finance guy to open like
35:02you need to have a grand opening
35:03playbook that needs to include what
35:06overstaff we do. I mean what over staff
35:09we do and how much money we're going to
35:10spend on ads across all channels and
35:13what are the kind of promotional
35:14giveaways that we're going to do in the
35:16beginning unless it's super premium. But
35:18even then the giveaways still happen.
35:19They're just different.
35:20>> Giveaways are still the way as like
35:22grand opening strategies. It's just
35:24going to be exclusive and invite only
35:26and things like that, but it still works
35:27the same way.
35:28>> Okay. Thank you. Appreciate.
35:29>> So, my name is uh Yur Smith. I sell car
35:32loans to entrepreneurs. Uh we do 6
35:35million revenue.
35:36>> Cool.
35:36>> We'd like to be at 30 million revenue in
35:392027.
35:40>> Okay.
35:41>> Um what's stop what's stopping me is
35:44that the CPA is getting higher and
35:46higher. When we started out, it was like
35:48€400500.
35:50>> Mhm.
35:51>> Uh now it's almost €900. sometimes even
35:53thousand
35:54>> and I think we're overcompensating the
35:57sales reps.
35:58>> Okay.
35:59>> Like 30% of revenue is for uh
36:02>> uh wages for sales reps.
36:04>> What do you what's LTV to CAC? So what
36:06do you make on a loan?
36:08>> Like 2.5.
36:09>> So you make $2,500 and it's costing you
36:11It was costing you 600. Now it's costing
36:13you 900 for the same deal. Is that
36:16correct?
36:16>> Yeah.
36:16>> Okay.
36:16>> Something like that.
36:18>> Okay. Um, I actually just wrote an email
36:20about this today, which will go out in
36:21like six weeks. Um, so, uh,
36:25fundamentally, if ad costs are going up
36:28and so you feel like there's some sort
36:29of ceiling, like you want to spend more,
36:30but you can't spend more cuz the ad the
36:32cost goes up, there's basically one of
36:34three potential problems for solutions.
36:37So, problem number one is that the LTV
36:39needs to get fixed. And this is just a
36:41fact of life. As you go to colder and
36:42colder audiences, you you get out of
36:45your kind of honeymoon phase of the
36:47easiest targeting which the absolute
36:48highest interest, you know, most
36:53you know what I'm saying that very small
36:55amount of people who are perfect fits
36:57and then it just continues to go wider
36:58and broader, right? And so the way to
37:00fix that is that we have to increase LTV
37:02so that you can spend more. The second
37:05um reason that this would be limited is
37:08based on the quality of the creative.
37:10And so, um, uh, I think a month ago, we
37:13had, uh, you guys seen the, um, Old
37:16Spice ad, the the, you know, the the guy
37:18that whole famous ad. Um, so the guy who
37:21made the ad actually came here. Uh, kind
37:23of cool. Uh, so I, we got to chitchat
37:26about that. Um, but what's interesting
37:28about that ad is that that ad was so
37:30good that they could show it to everyone
37:33and they went from like 20% of the
37:35market to 70
37:37with one ad campaign. And so to me that
37:40is like the the perfect example of what
37:41like complete S tier creative like the
37:44maxed out creative of just amazing
37:46advertising is. And so a lot of
37:48businesses will get stuck at $1,000 a
37:51day for example and say like I think
37:53I've we've capped our market when in
37:56reality it's you've capped your
37:57creative.
37:59And so in order to break through that
38:01the quality of the creative needs to go
38:02up and the volume also needs to go up by
38:04consequence. And so in the companies
38:06that we spend like a h 100red,000 a day
38:08in in terms of our uh ad spend, we we
38:11create, you know, 50 100 pieces a week
38:14that are going out in terms of ads. And
38:16then we do that at first and then we
38:19follow kind of Google's 70 2010 kind of
38:23rule, which is 70% of the creative that
38:25goes on from that point going forward is
38:27the highest performing hooks from
38:30historic. Uh 20% is kind of adjacent to
38:33that. Uh, so just kind of like remixes,
38:36remakes, slightly different versions of
38:39the originals. And then 10% is the wild
38:41ideas that you've been saving. But since
38:42it's only 10%, you're going to only pick
38:45the ones you're like, I think this one's
38:46going to work because you have 20 crazy
38:48ideas cuz you're an entrepreneur and you
38:49think that'll be awesome. But you just
38:50got to pick the one or two. Um, and so
38:53that's problem two that could um be the
38:57reason that that that you are capped.
38:58So, um either you are not the creative
39:02sucks, your LTV is too low. Um and there
39:06was a third one which I forgot. Uh but
39:08there were three in the email. And so,
39:10uh the question that that I would have
39:12for you is which one of those do you
39:13think is the issue?
39:15>> Um I think the LTV is like is is too low
39:20to kek. So, we have to uh make the LTV
39:23higher.
39:24Um but also we we have to get more
39:28creative um better hooks. I think that's
39:31the the key to uh better scaling.
39:36>> The back end becomes the arms race of
39:40every business that spends money to
39:41acquire customers, which is many
39:43businesses. Uh, and so if you look
39:47between industries, the benchmarks for
39:48plumbing businesses in North Dakota, the
39:51cost to acquire a customer is going to
39:52be more or less the same between
39:53businesses. So, as much as we like to
39:55think that we have some like very
39:56special sauce about like our sales team
39:58somehow magically sells different, even
40:00though we recruit from the exact same
40:01pool and compensate the exact same way,
40:03like we think it's somehow different,
40:04but in reality, like we run similar ads,
40:06we run similar promotions, we have
40:07similar sales team, similarly
40:09compensated, pull from the same talent
40:10pool. And so, so CAC is typically very
40:12similar between businesses, but where
40:15you get the outsized returns are that
40:16some businesses can have 10 times the
40:18LTV and that's how they ultimately win.
40:21So, I think you're right. Um, so when I
40:23when I buy a business, I I typically fix
40:26it back to front and then I look at the
40:28creative and think, okay, how do we just
40:29do a ton more volume here? Typically,
40:31because we just don't even have enough
40:32data to figure out what the best ones
40:34are. So, like, let's do way more, then
40:36look at the top 10%, then do more of
40:37that. And that process just never ends.
40:40Please roast me my about page. Let's
40:42see. Let's take a gander, shall we?
40:47All right.
40:53Um, understand for yourself. Okay.
41:04Have you gone through the uh the actual
41:06page roasts? because I would um I would
41:09throw that in there. Uh because you
41:12probably want to have a little bit more
41:13social proof if you can afford it. Uh
41:15this is where I would have people go for
41:17like help people for free. Get them to
41:20leave you a testimonial so you can get
41:21like 10. I would say that's a nice rule
41:23of thumb is like get about 10
41:25testimonials of people that you've
41:27helped do whatever it is you do. So
41:28decoding human behavior. Um, so help
41:31them and then put those testimonials up
41:33here and I'd rather them be written uh
41:36and highlighted around the key points
41:38with maybe an image or screenshots from
41:40inside of the community. I think those
41:42will be the main things. Um, beyond
41:44that, we want to talk about the
41:46features. So, these two don't convince
41:49me to buy. So I want each of these
41:52images probably one of these or two of
41:55these to be lots of compelling proof or
41:58my favorite version of this is feature
42:02proof related to feature being the thing
42:04that unlocked their human whatever right
42:07so it's like if I have my you know
42:09decoder method and then I've got Sarah
42:11who's like man the decoder method on its
42:13own was worth this whole thing I like I
42:15had you know I fixed all this [ __ ] in my
42:17past whatever and then the next one is
42:19the the six-step, you know, stress
42:22framework, whatever. And then you've got
42:24John who's like, "This thing is worth
42:25its weight in gold. I would have paid
42:27two years, you know, I went I paid
42:29$5,000 of therapy and I didn't even get
42:31this kind of clarity and I got in the
42:32first week." Right? So, you want each of
42:35the features to be paired with a
42:37testimonial or two that proves that the
42:39thing is valuable. And so, that's what
42:41each of these things are. And I would
42:44lead with the video. Uh, so that
42:46probably be the the the first one
42:48actually. I mean that one I haven't
42:49split tested on. So that's so that's
42:51that's just a personal preference. Um
42:54and then let's see this first guy. Uh
42:56follow your heart and so this doesn't
42:58increase the likelihood that I buy. Um
43:00and so I want this I want this to be a
43:01promise. Okay. So you want promise and
43:04you want some level of proof. Okay. So
43:06promise would be like uh we help you get
43:08this result in this period of time and
43:10then some sort of unique method. And
43:12then proof would be 38% of people within
43:15the first month knock out one of their
43:17core anxiety things. Whatever, right?
43:19You want to show that. And if you're
43:20like, well, I don't have that stat.
43:21That's why you survey your members so
43:23that you can get data so you can make
43:24those claims. Okay, so that's the stuff
43:26on this page. Uh, let's look here. So,
43:29harsh awakening, cockroaches in the
43:30floor, 200,000 in the bank. Okay. Um,
43:35sounds familiar. I don't think this will
43:37actually sound familiar for a lot of
43:38people having 200,000 in the bank
43:40account. Um, I don't I don't think
43:42that'll resonate. So, this is weird
43:44because on one hand you're trying to
43:45show rock bottom and on the other hand
43:46you're saying you have a lot of money
43:47and I think it's confusing. So, either
43:50like either flex about the money or the
43:52money has nothing to do with like either
43:57either pick rock bottom or rock top.
43:59Don't do both. So, rock top is I you
44:03know I had the penthouse. I had
44:05everything but like in inside I felt
44:07meaningless and I didn't want to keep
44:08living. That's a rock top moment. Rock
44:11bottom is, you know, I just I just woke
44:13up with vomit on my shirt and a needle
44:15still stuck in my arm and I was like,
44:17where am I? I need to change something
44:19about my life. That's rock bottom,
44:20right? You have to pick whether you're
44:21going rock bottom or rock top. And you
44:24know, candidly, richer people have rock
44:26top moments. So, if you're going to sell
44:28to wealthier people, maybe that's who
44:30you want to attract if you're going to
44:32have that be the lead. Um, again, I'm
44:36not I'm not against a story lead, but
44:38I'm guessing that most of the people who
44:39are going to this know who you are, at
44:41least at this level. So, I'd probably
44:42start with the promise of like what
44:44you're actually going to help them do.
44:46And so, um, when your heart's so big,
44:48okay, so this looks very poetic, but
44:50it's it has no fe like what do I like I
44:52have no idea what I get in here. And so,
44:55we just need to be really tangible about
44:58what it is that they're going to get,
45:00why it's important, and how it works.
45:04That's it. And then the rest of this is
45:05proof that it will work for them. And we
45:07use the rest of these people as
45:09basically trying to cover or paper
45:12different avatars saying like, okay, if
45:14I've got Sarah who's 60 and she's black
45:16and I've got Brian who's 25 and he's
45:18white and I've got, you know, whatever,
45:21Lee who's [ __ ] Asian and whatever,
45:24right? Like that's the point. Say you
45:25want to show different demographics,
45:26different psychographics, different age
45:28groups. And if if you're trying to go
45:30wider, if you want to just do dudes,
45:31again, I don't know the who here. So,
45:34there's a lot of things you got to get
45:36clear. You got to get who am I trying to
45:37serve? What am I going to help them do?
45:39How am I going to help them do it? When
45:41am I going to help them do it by? And
45:42this is just for everybody here. It's
45:44like if you don't know how to answer the
45:45the who, what, where, when, why
45:46questions, start there, like just go
45:50through the questions and it makes this
45:51a lot easier to make these sales pages.
45:54And the rest of it is just proof related
45:55to each of those points that you really
45:57can do what you say you can do. Okay,
45:59cool.
46:01You guys like that? Great. Okay.
46:03>> Tracy says, "I'm a life coach building a
46:05free community revolved around achieving
46:07goals in life transitions with a paid
46:09community to convert members. The value
46:11within the community is there. However,
46:13what is your best advice in
46:15beginning/building a robust school
46:17community with low social media
46:19following to convert to my online
46:21community?"
46:22Okay, so this is just a simple
46:24advertising question. This is the first
46:26of the four levers, right, which is
46:27traffic. Like, how do I get more
46:29eyeballs there? And so, you really just
46:31need to pick, right? You can post, like
46:32we talked about earlier, on social
46:34media. You can post in subreddits and
46:36forums for people. Like, some people
46:37really don't get this. Like, Reddit, for
46:40example, has forums of just students, of
46:42just architecture, of like whatever
46:43whatever you're into. Like, there's a
46:45Reddit for that. Um, like there's a
46:47Reddit for potted plant porn. Like,
46:48there's whatever you want. Uh, and so
46:50you can find stuff, right? uh and people
46:53that are there that are targeted. As
46:54long as you add value to that community,
46:56people will be interested. So that's
46:57like at the micro level. Uh Twitter is
46:59also a lot like that too. Engaging in
47:00the in in on people's feeds who are
47:04focused on a niche as you just comment
47:05back and forth. You can DM people um
47:07that you've engaged with. But you're
47:09either going to reach out to people,
47:10you're going to make content, you're
47:11going to run ads.
47:13>> So just pick one. And if you're poor,
47:15start with reaching out. And if you're
47:17less poor, make content. And if you're
47:19the least poor, run ads.
47:22Jamie Medlin.
47:26Car washers or can washers or car
47:28washers? Can washers. Trash can. Okay,
47:31>> cool. These are fun. I love these
47:32businesses.
47:33>> Hello, this is Jamie.
47:34>> Jamie, let's talk about uh washing cans.
47:38>> Hey man, how you doing?
47:39>> Good. So, you got what? 300,000 top
47:41line, like 120ish bottom line. Is that
47:43what I read?
47:44>> Yes.
47:45>> All right. Got it. So, cans. Got it.
47:49Okay. Fun little business.
47:51>> Love it. Great gross margins. Really? I
47:53actually find I actually really enjoy
47:54the business overall. Okay, so 300k
47:57topline. You got good margins already,
47:58which is actually not as common as you'd
47:59think at the size you're at because
48:01typically it's huge as great incremental
48:03margin, but typically up front. So
48:04you're probably running this very lean,
48:05I'm guessing.
48:07>> Yes. Awesome.
48:08>> It I mean, yeah, it's it's it is,
48:10>> dude. Keep it up, man. Okay. So, what uh
48:13how can I help?
48:15Well, um, you know, one of the things
48:17that's kind of my go-to strategy has
48:20been offering a 50% off the the initial
48:23service and we're leveraging Google ads
48:27and a lot of Facebook as well. So,
48:30>> okay. So, you're just running a 50%
48:32discount on canwashing and then I'm
48:34guessing you doubled your price to get
48:36your 50% discount.
48:39Yeah, but I'm I'm still finding that,
48:41you know, I I really feel like the
48:44volume of new customers is pretty low.
48:46And
48:47>> you know, in our industry, which, you
48:49know, I also have a large Facebook group
48:52that I help others with, and
48:54>> we have a CRM we built. Um,
48:57>> it's it's one of those things where I'm
48:58I'm I'm finding that hundred or so new
49:01customers a month is just really low.
49:05>> Okay, let's do some math. Let's do some
49:06math. Okay. So, what's what's the uh
49:08what's your average price point per can
49:10per month?
49:11>> So,
49:12>> this will be fun for everyone watching.
49:14So, I'm I'm going to do some math with
49:15you. It'll be fun. Okay. So, average
49:17average revenue per can or per Yeah.
49:20>> So, with our pricing model, we're our
49:23average I would say subscription is is
49:27important here as well.
49:28>> So, our quarterly subscription is the
49:30most common.
49:30>> Okay.
49:31>> It's about 70% of what people sign up
49:34for.
49:35>> Okay. And with that around here,
49:38>> on average, there's about three vins
49:40that they're selecting. So, our base
49:43price is $35.99 for the first can.
49:46>> Okay.
49:46>> Then, and then it's $5 for each
49:49additional.
49:49>> Okay.
49:50>> So, it's about 40
49:51>> I would say the there are the onesies,
49:54twzies. So, I would give you about a
49:56$40.99 average is what our
49:59>> Okay. I'm going to use 40 as simple math
50:00sake. So, 40 bucks every quarter, right?
50:04Yes.
50:05>> Okay. 40 bucks a quarter. What's churn?
50:09>> Um, you know, I would say about four
50:12cancellations per month
50:14>> on what?
50:15>> Oh, yeah. Yeah. Yeah. Churn percentage.
50:18>> How many clients do you have on the How
50:20many of the four are you? How for for
50:22how many clients do you the four
50:23contributes to how many on the base?
50:25>> So, we have we have uh over a,000
50:28subscriptions.
50:29>> Okay. So, 12 12 cuz it's times four.
50:32It's times three, excuse me. So it's
50:33four per month, but you just gave me
50:34quarterly billing. So I need quarterly
50:36churn. So that's 12 people per quarter
50:38who are churning. So 1.2% churn per
50:41quarter, correct?
50:43>> Yes.
50:43>> Okay, got it. So this will be fun for
50:46everyone. So $40
50:51divided by 1.02. Where's my little
50:54calculator? I mean, it's time 100, but
50:56I'll just be precise here. Um 40id 012.
51:00So, you have a $3,300 LTV. All right.
51:07>> Yeah. Great.
51:08>> Great. And how many And what's your
51:10sales velocity right now? How you're
51:11saying 100 deals a month?
51:13>> Yeah, I'd say last month we had about
51:16130 new new signups.
51:20>> All right. So, it's roughly 70%
51:22quarterly and the rest are one-time
51:24visits that we we put on a we we do what
51:28we can to send promos and try to get
51:30them to repurchase, but it's Yeah,
51:33that's what we're
51:34>> So, 70% are on subscription and 30% are
51:37one-time cleans.
51:38>> Correct.
51:42>> Yeah.
51:46Yeah. Yeah. I mean I you So I mean is
51:48your recurring should be stacking every
51:50month, is it not?
51:51>> It is.
51:52>> Okay. Well then, dude, I think you're
51:54>> it's a slow growth, but it's growing.
51:55>> Well, yeah, because if you look at the
51:57sales velocity, it's like you should be
51:59I mean you you actually have a shitload
52:00of runway right now before you even get
52:04close to your hypothetical max.
52:07>> Yeah. And that's where we are, you know,
52:09from a routing and just growth
52:11perspective, we're really pushing
52:13quarterly because there's also the
52:15additional uh, you know, our monthly
52:18rate, which we just increased actually
52:20to kind of leverage the we want the
52:24customer to essentially go to quarterly.
52:26I could stack more customers and I have
52:29more cancellations on my monthly
52:31subscriptions than I do my quarterly.
52:33>> Of course. Yeah.
52:34>> Um,
52:35>> you go to annual even less.
52:37Exactly. And actually, our annual plan
52:40is the most canceled because they're
52:42like, "Oh, what? Why am I getting
52:43charged a year later?" This
52:44>> forgot. Yeah, that's fine. That's fine.
52:45It's fine. I got you.
52:48>> So, uh yeah, I mean, we're and the the
52:53part that I'm I'm kind of struggling
52:54with is, you know, with our Facebook ads
52:57this this last month because we also
52:59have the the weather, you know, and the
53:02and the this I would say the shoulder
53:04seasons through winter. like it's just
53:06slow. It's it's almost,
53:09you know, 80% of what we actually get on
53:12signups. It's just people aren't there's
53:16not really a ton of um I guess urgency
53:20for them to buy.
53:21>> Yeah. So that 130 per month is only in
53:23high season, not in year round.
53:25>> Correct.
53:26>> Okay. So if you really like sales
53:29velocity times LTV evenly distributed
53:32per month of the year will give you your
53:34hypothetical max. Have you done that
53:35math?
53:37>> I haven't.
53:37>> Okay. So I'll tell you I'll tell you a
53:39little secret from an M&A side. One of
53:41my favorite things to do is try and buy
53:42into a company where they're selling
53:44they're like we're doing 100 deals a
53:46month and we're doing you know we got
53:48$20 a month you know subscription but
53:50our churn's 5%. And so if I know that,
53:53then I know that that company is going
53:54to do a,000 times a,000, which means
53:57they're going to get to a million a
53:58month, but they're currently at 200. And
54:00so then I can just say, cool, I'll value
54:02the company at what it's currently at,
54:03but I already know it has a 5x literally
54:05sitting inside of it if I change
54:06nothing. And so right now, you're like,
54:08I don't know what your true sales
54:09velocity is because you said that was a
54:11high season. So we actually have to take
54:12the blended, so it is lower, which makes
54:14more sense for your impatience. Um, but
54:16you still probably have a significant
54:18amount of runway uh compared to what
54:20you're currently at because you're at
54:21300,000 a year and you're like you're
54:24way out selling that right now. Um, it's
54:26just it just slow because it's so it's
54:29so onesie chooses to your point. So I
54:30think that um we need to create a So
54:33right now you said ads is your primary
54:35way of getting customers.
54:37>> It is. And in the summertime we're like
54:39this past month we're we're on target to
54:42do about 3,000 or more
54:44>> Yeah.
54:44>> in ad spend. Yeah, which
54:46>> you know my and with that 50% off I'm
54:50I'm kind of my new customers are
54:52essentially covering my cost
54:54>> Yeah.
54:54>> um of acquisition but we're still
54:57obviously
54:58you know u it's
55:02it's not really where
55:03>> Yeah. Like can I can I can I can I give
55:05you something? So right now you could
55:09probably spend more money and get more
55:11customers. Correct?
55:13>> Yes.
55:13>> Okay. So, you're in a business that's
55:16capital intensive. It's just the nature
55:18of the business you're in. It takes
55:19more. It takes a ton of time to get it
55:20spun up. You have to have trucks.
55:22There's all this other stuff, right? It
55:24is capital intensive, which is why many
55:25people do take on funding or take big
55:27loans to start this out because the
55:28issue that you're dealing with right
55:29now, which is now that being said, you
55:30have bootstrapped it, which is great,
55:31right? But basically, that $120,000 like
55:34what does it cost you get a customer
55:36right now? I'll bet you it's nothing.
55:37>> About $25.
55:39>> Yeah. Right. Dude, your LTV CAC is
55:41through the [ __ ] roof. So, like said
55:44differently, if I were to take that $25,
55:45like your $120,000 of profit
55:48could translate to
55:52$480,000 customers. Sorry. Sorry, I did
55:54that math wrong. Sorry, I did it
55:55quarters instead of $25.
55:57My bad. So, divided by four. So, it' be
55:5940,000 customers. 30,000 customers. Gez,
56:02sorry, my brain's going melted. So
56:0430,000 customers is if you took a 100%
56:07of your personal income and put it into
56:09the business as advertising.
56:11You would make no profit, but you'd grow
56:12a lot faster. And this is fundamentally
56:14like this is the nature of why V like
56:16this is the way VC back companies are
56:18supposed to run. Now many of them have
56:20just like messed up economics to begin
56:21with, but you have extremely good
56:23economics. It's just at a delay for you
56:24to recoup it, but they essentially
56:25become an annuity because your turn is
56:27virtually nothing.
56:30>> So here here's a question. Would you, if
56:32you had $120,000 to dump into ads right
56:35now, would you?
56:37>> Yeah. I mean, you know, I'm fortunate in
56:40this situation that I'm I'm kind of a uh
56:43an absentee owner in this business.
56:46>> So, this is thing. This is a this is a
56:48no question then. So, if you actually
56:50can provide for yourself, I take that
56:5210,000 a month and I say 10,000 buys me
56:552500 new clients a month.
56:56>> Correct.
56:58>> That's $4. Jesus. I'm sorry. my like my
57:00brain is dead. Thank you. $400, sorry,
57:02400 new customers a month.
57:04>> 400 new customers a month uh is what
57:06you'd be getting if you put the whole
57:08$10,000 in. And so by the end of the
57:10year, you'd have another 4,000
57:11customers, 5,000 customers. Um
57:15and then again, this starts to stack
57:16because by the end of that year, now you
57:19have an extra $10 time 4,000, you have
57:21another $40,000 a month. Huge,
57:23>> right?
57:25>> Now, what are your gross what are your
57:26what are your gross margins, by the way?
57:30So, it's it's about I mean
57:33>> because you are pretty cheap. You are
57:34pretty cheap.
57:36>> Yeah, it I I would say it's it's around
57:42>> Excuse me. I don't I actually would need
57:44to to double check this.
57:46>> Yeah,
57:46>> worth knowing.
57:47>> Yeah,
57:48>> worth knowing.
57:49>> Yeah, it it is. It's just Let's see. I
57:52mean, like I said, that was kind of an
57:53annualized uh rate, which was the around
57:57300 or so thousand. Um, and then about
58:01114,000
58:02is our our our take-home.
58:05>> Okay.
58:05>> Yeah.
58:06>> Uh,
58:07>> well, go ahead.
58:08>> No, no.
58:10Uh, three really mechanical things.
58:11Mechanical thing number one is just for
58:14you as the absentee owner here or just
58:16the investor, I would say. I actually
58:18prefer investor over absentee owner.
58:19It's much much better languaging around
58:21that. Um I would offer to count all
58:25numbers in the same time period because
58:28I think if you run all numbers as a
58:30quarterly time period number it'll be
58:32easy to talk about it and think about
58:33it. U especially since your packages are
58:36quarterly I would almost kind of
58:37>> your whole your whole life has to be
58:38quarterly otherwise it's conf like I
58:39sell this many a month I've got churn is
58:41this much a month this much is build
58:42quart like everything should be
58:44quarterly if that's how you build.
58:44>> Yeah that would be mechanical idea
58:46number one. Idea number two is if you
58:47can afford and if you can actually
58:49deploy to this 10 grand a month idea
58:52into the business and you have the
58:54capacity to service it, this feels like
58:56a no-brainer to do overall. And the
58:58third thing uh this Alex may want to
59:00comment on this one is I'm ultra curious
59:02about a little bit of sales scripting on
59:05the 30%
59:07to actually get them to do recurring.
59:10Maybe there is either an offer at play,
59:12maybe a rollover offer at play,
59:14something at play here because you've
59:15already spent you've spent the $25
59:17acquiring the one-time client. Could you
59:19and and your quarterly is 40. If I
59:21rolled it over, I still make money.
59:22>> Yeah. Yeah.
59:23>> So,
59:24>> so what's the offer that you're giving
59:25them? So, I'll give you let me give the
59:27nice thing is I've been in recurring
59:28revenue my whole life. So, the this this
59:30problem's already been solved. So, what
59:32do you think? I'm just going to walk you
59:33through it. So, what do you think if I
59:34if I go and I show up at a gym here in
59:37Vegas and I say, "Hey, I want a day
59:39pass." What do you think they're going
59:41to charge me?
59:43>> Probably nothing.
59:45>> So, actually, it's the opposite of that.
59:47So, a good gym should charge ton for a
59:49day pass for this reason, the same
59:51problem you're dealing with, provided
59:52you're local. If you're, you know,
59:53whatever. Anyways, doesn't matter. So,
59:55if let's say the the the membership is
59:58uh 25 bucks a month. Okay, we'll just
59:59keep it simple. So, it's $25 a month.
1:00:01their day pass will probably be 50. So
1:00:05they say, "Hey, if you want, you can
1:00:06sign up for a day pass or for 25 bucks a
1:00:09day, you just become a member."
1:00:14>> Yeah, that makes sense. And our and on
1:00:16our one time, you know, it is uh
1:00:19significantly more than the quarterly.
1:00:21>> How much?
1:00:21>> And um it's it's about I'd say on
1:00:25average it's about 50% more expensive.
1:00:28>> It just feels like a scripting thing. I
1:00:30think I think you're going to eek out.
1:00:31>> Yeah,
1:00:32>> you're going to eek out some cuz if you
1:00:34can get the 70
1:00:35>> Yeah, the other
1:00:35>> 30 to even I this may not look like a
1:00:38lot to 80 20 you're with your cact
1:00:41numbers and putting more money in on the
1:00:43front end. This is going to go
1:00:44exponentially.
1:00:47And you know, I've toyed around with the
1:00:49idea of removing one times completely
1:00:51and only offering subscription at this
1:00:53point because we've kind of reached that
1:00:55inflection point where it's like, you
1:00:56know, in the beginning we just really
1:00:58did want to grab as many customers and
1:01:00>> heard
1:01:00>> kind of, you know, garbage can cleaning
1:01:03is just a newer thing.
1:01:05>> Yeah.
1:01:05>> So it was education.
1:01:08>> So you could charge you could charge a
1:01:10hundred bucks for one clean or $40 a
1:01:12quarter. I feel like you do that people
1:01:14are like, "Oh my god." It's like Yeah.
1:01:15So, it's, you know, $13 a month or it's
1:01:17$100 today. It's like, so you're
1:01:19basically going to get, you know, two
1:01:20and a half quarters done for the rest of
1:01:22the, you know, the this next six months
1:01:24if you just sign up, I would just go AB
1:01:26close on this.
1:01:28>> And and I would also say on top of that,
1:01:30if you want to use a money model, right,
1:01:32you want to use the money model
1:01:33mechanism, on top of this being less,
1:01:36I'll also add in this other element
1:01:38that's a sealant that'll decrease the
1:01:40smell of your can or whatever, right? to
1:01:42some some thing some little some little
1:01:44thing that is only available if they
1:01:47take the membership. So, not only is it
1:01:49less, they also get more. When you do
1:01:50that, the AB the the the other onetime
1:01:53thing will will price anchor. So, what
1:01:55you have right now uh when you go
1:01:57through the money models book is read
1:01:58the decoy offer which is an attraction
1:02:00offer. I think it's the third or fourth
1:02:02offer uh in in in the attraction
1:02:04mechanisms and it explains how you can
1:02:06price the difference between both of
1:02:07these things of like what discrepancy
1:02:09you want between the the recurring and
1:02:11the onetime because sometimes the one
1:02:13times can still be valuable, right? Like
1:02:15if you know that you're going to get 10%
1:02:16of people that pay 20 times more, you
1:02:18can factor that into your cost of
1:02:19acquisition and like you actually can
1:02:21cash flow because you said ah well some
1:02:22of these we can maybe break even and as
1:02:24you spend more on ads which you will the
1:02:26cost of acquisition will go up, right?
1:02:27So having some liquidation up front with
1:02:30maybe 10% of people paying four times
1:02:32more not a bad thing.
1:02:34>> No, that sounds good.
1:02:36>> Okay.
1:02:36>> And something that we have implemented
1:02:38is after a one time our automation kicks
1:02:41out like asking if they want to upgrade
1:02:42the plan.
1:02:43>> No, you want to sell them right then,
1:02:44man. You want to sell them right then.
1:02:46So people have very large motivation for
1:02:48very small periods of time. So like uh
1:02:51latency beats intensity
1:02:53>> by a mile.
1:02:57>> Okay,
1:02:58>> cool. So
1:02:59>> hey, thank you so much.
1:03:00>> So I just want to sum mechanic number
1:03:02one is you're going to talk everything
1:03:03in terms of quarters. Number two, you
1:03:05should know and calculate your gross
1:03:06margins. Super important because your
1:03:08LTV I did lifetime revenue, not lifetime
1:03:10gross profit. And we would want to know
1:03:12lifetime gross profit. Number two.
1:03:14Number three, get everything in terms of
1:03:16quarters and then figure out what your
1:03:17hypothetical max will be for the
1:03:19business. Number four, then I would say
1:03:22take your $10,000 a month and I would
1:03:24dump a 100% of that into the business to
1:03:27grow. That's if your goal is to grow to
1:03:28be clear, but I'm I'm aggressive and so
1:03:30I would just want to grow it as fast I
1:03:31could. But I would just say, okay, well
1:03:32maybe if I put that much I don't if I
1:03:34can handle 400 deals, you know, deals a
1:03:36month. If you can't, then just scale
1:03:37your ad spend to your sales constraint
1:03:39and then that'll be the next constraint
1:03:40we solve. Cool.
1:03:42>> Cool. Rock and roll.
1:03:44>> Thank you so much,
1:03:44>> dude. Thanks for donating books, man.
1:03:46Seriously, appreciate it. Who here runs
1:03:47ads?
1:03:49>> Oh, wow.
1:03:49>> Wow.
1:03:50>> What's going on here?
1:03:52>> Yeah. Wow. Okay. Well, then y'all will
1:03:54love what I'm about to share with you.
1:03:56Okay.
1:03:56>> Wait, on what platform first? Hold on a
1:03:58second.
1:03:58>> Yeah. No, this is good. I'm hot and
1:04:00bothered.
1:04:00>> All of you at YouTube.
1:04:03>> This is a unique group.
1:04:05>> Yeah, it was really interesting.
1:04:06>> Yeah.
1:04:07>> Okay. You guys will absolutely love
1:04:09this. Okay. I'm excited. I'm interested
1:04:12in this. So I believe that the future of
1:04:17media between paid and content has
1:04:19completely merged. Like we have reached
1:04:21the singularity of that now. It's done.
1:04:23Like that's not like going to happen.
1:04:24It's already happened. It's here. And so
1:04:27my paid team and my media team have now
1:04:29they're now they're one. And so what we
1:04:33have found to be like what's working
1:04:34now, right? The stuff that's working hot
1:04:36right now. Here's the crazy part. We now
1:04:39mostly because when you asked the
1:04:40question I was like, "Huh, that is kind
1:04:42of what we do." But I was thinking about
1:04:43it because it's not as often as it used
1:04:46to be. And the reason is because we pump
1:04:48out 450 pieces or whatever it is of
1:04:50content per week. And you know what's
1:04:52really cool is the algorithm will just
1:04:53tell you which of these are the are the
1:04:55best and most interesting. And so then
1:04:56what we do is we take those things and
1:04:58then just run them as ads. And I used to
1:05:01think because we did this earlier,
1:05:02probably a year ago, we were adding CTAs
1:05:04on the end. So, it' be like I'd take a
1:05:06piece of content and then I'd be like,
1:05:07"Hey, by the way, get the blah blah blah
1:05:08blah blah." We don't even do that
1:05:10anymore. Just take the ad or take the
1:05:12content and then just just literally put
1:05:14an overlay. Just put a banner that says
1:05:16like, "Click to to grab a thing." Like
1:05:18it people get it. They're they're like,
1:05:21"If the thing was good, they're like,
1:05:23"That was good. I'll I'll take the
1:05:26action the ad platform, you know, allows
1:05:27me to take right now." Whatever the
1:05:28whatever the thing is, whatever the
1:05:29widget is. If I if I'm leading to a a
1:05:33workshop thing or if it's like hey here
1:05:34a scaling road mapap or here are the
1:05:35books whatever like you I could use the
1:05:38same piece of content as long as it's
1:05:40relevant to whatever you know whatever
1:05:41your thing is and most of you guys are
1:05:43still talking about the same topic so it
1:05:44should be fine for me because I do have
1:05:46a wide breath like it would make less
1:05:48sense for me to have a philosophical
1:05:49conversation about work output and then
1:05:53lead to book maybe but like if I'm
1:05:55talking about like more in-depth work
1:05:57stuff like that middle of funnel bottom
1:05:58of funnel stuff the stuff that has lots
1:05:59of saves
1:06:00crush. Crush. And the reason I think
1:06:03that saves thing is important for you
1:06:04guys is look at the content that you
1:06:05have that gives you the most follows,
1:06:07not the most views. Look at the content
1:06:09that has the most saves. Try running
1:06:11those as your ads. And nice thing is
1:06:12with Andromeda, too, you lose so little
1:06:16running a bad ad.
1:06:18So, like, at the very least, some of you
1:06:20guys aren't putting out 450 pieces of
1:06:21content a week anyways, right? And so,
1:06:23like, if you're putting out 20, just put
1:06:25all 20 up and just run them. And you'll
1:06:28you'll be amazed at how much better
1:06:30they're performing. And I think I mean
1:06:32this sounds obvious now, but like it's
1:06:34100% aligned with the platform
1:06:35objectives. Like a perfect platform
1:06:38would have no ads. Right. And so if you
1:06:42can make all of your ads look like
1:06:43content, the platform loves you.
1:06:48Right. That's that's nirvana for them is
1:06:50if the world can just have no ads on on
1:06:52meta or Instagram or Tik Tok or whatever
1:06:55because like as long as the there's
1:06:57purchase intent which we know that
1:06:58content creates purchase intent that's
1:06:59why everyone's here. So we know that and
1:07:01we just didn't combine the two. So this
1:07:03has been this is 100% the direction that
1:07:05that we've already gone in and you guys
1:07:07if you just start doing it immediately
1:07:09you'll be ahead by a year. So and if
1:07:11you're in Latin America you'll be ahead
1:07:12by five years.
1:07:13>> So you just take your best reels for
1:07:15example and you just write a banner with
1:07:17a CTA. Yes.
1:07:18>> For them to download.
1:07:20>> Click the thing to get the thing.
1:07:21>> You know what's interesting? We tried
1:07:22the reverse of that. We took our best
1:07:24ads and posted them as content and it
1:07:25didn't work.
1:07:27>> Oh. [laughter]
1:07:29>> Well, we're like, oh, like, all right,
1:07:32move [laughter] on. We
1:07:33>> static image.
1:07:35>> We haven't made a piece of content since
1:07:37then. Um,
1:07:39>> well, I think part of that might be
1:07:40bottom middle of funnel stuff. Like the
1:07:43one thing that ads give you, right, that
1:07:45organic won't is that it'll give you
1:07:46reach, right? You pay for the reach.
1:07:48Like that's the trade. Like they
1:07:49wouldn't normally boost this because
1:07:51it's not good enough content to get
1:07:52displayed because it's more right
1:07:53hookie, right? And so you have to pay
1:07:56the platform to do it. They if it's if
1:07:58it's good enough, it's valuable enough
1:07:59on its own, they'll distribute it for
1:08:01free. Now, if you put money behind it,
1:08:02they'll super distribute it for free.
1:08:04>> But what we did find is our best ads
1:08:06were made by short form creators. So
1:08:08like there is a move there. it works
1:08:10taking what works organically and
1:08:12running it as an ad. Not so much the
1:08:13other way, but yeah, but I think
1:08:16>> I uh we did 560k in rev last year,
1:08:20>> but the issue is we lost about 90% of
1:08:22our leads. Um 70% came from
1:08:27lead generation companies. The other 20%
1:08:30came from doortodoor. Other 10% was
1:08:34referral-based.
1:08:35>> What do you sell?
1:08:36>> Google PPC.
1:08:39We do solar and battery storage systems
1:08:42to anybody that basically makes over
1:08:44150k in income.
1:08:45>> Got it. Yeah. Yeah. Yeah. I saw your
1:08:47comment in the group. I think I
1:08:48responded. Um
1:08:49>> yes, you did.
1:08:50>> Okay, good. What' I say? [laughter]
1:08:53Okay, so
1:08:54>> something that helped a little bit.
1:08:56>> Oh, good. That's helpful. I'm glad to
1:08:57hear that. Okay, so 70% of the uh 70% of
1:09:00your leads are coming from leads you
1:09:02buy, right? So you got brokers and then
1:09:04and then you've got door todoor for 20.
1:09:07>> Yes. But we we were funneling through so
1:09:10many sales reps over the last 24 months.
1:09:11We got to like 15.
1:09:12>> Yeah.
1:09:13>> So we just dropped that and we tried to
1:09:14start doing the Google PPC because
1:09:17>> the lead generation companies we were
1:09:18using went out of business.
1:09:20>> Oh word. Oh [ __ ] Well, dude, were the
1:09:22leads good? Was it fine?
1:09:25>> Uh from the lead company? Yes.
1:09:29>> Okay. But we got some insight from a
1:09:32company that we're actively competing
1:09:35with that's a lot bigger than us or like
1:09:36a behemoth.
1:09:37>> Yeah.
1:09:38>> And they told us that Google PVC would
1:09:41work and kind of like the intermingling
1:09:43content and stuff together. But I don't
1:09:46know if our offer is right. We've been
1:09:47running ads for
1:09:5010 days. We spent like 718 bucks. No
1:09:53leads, 2,000 impressions, 115 clicks.
1:09:56>> Well, yeah. Something's wrong.
1:09:57>> I don't know where to go.
1:09:59>> Yeah. So, uh, let me before I jump into
1:10:01that, the business that went out of
1:10:03business that was giving you leads. What
1:10:05happened to the team?
1:10:08>> Um, I don't know. They were all
1:10:11virtual, so I I think they had nearshore
1:10:13people, but I don't I don't know where
1:10:14to find those guys.
1:10:15>> I mean, you had a rep there, right? I'm
1:10:17sure you got a couple people's phone
1:10:18numbers because if it was small enough
1:10:20to go out of business, right?
1:10:21>> I did.
1:10:23I think that the guys started another
1:10:25lead generation company, but their
1:10:27uptick in lead volume has been very
1:10:29slowed.
1:10:30>> Okay. Well, I'll tell you, if I were in
1:10:31your shoes, I would reach out and try
1:10:33and get a hold of everyone in that
1:10:34company and try and find the person who
1:10:36was actually running the stuff for your
1:10:38account and offer him a job today.
1:10:42>> Okay. And then
1:10:43>> cuz he obviously was getting you leads
1:10:44that was actually working. So, I'm like,
1:10:46let's go get that guy one.
1:10:48>> Yeah. The issue is that we saw is that
1:10:50they're all pushing the free solar
1:10:52narrative and solar is not free. So it
1:10:54brings in a ton of unqualified people.
1:10:57>> You mean because the R&D credits
1:10:59expired?
1:11:01>> I mean I guess but this it just brings
1:11:04in people that are just BSers.
1:11:07>> Me
1:11:11because we we so so solar is super
1:11:13custom
1:11:14>> and it has been but the narrative has
1:11:16been get in home. We can't give you a
1:11:18price till we get it home. So our
1:11:20thought is we design free packages, run
1:11:22Google PPC to those packages
1:11:25>> and just try to get people that way.
1:11:28>> Well,
1:11:29>> but I don't know.
1:11:29>> I would say your current way isn't
1:11:30working that well, right?
1:11:33>> No, I mean we started it ago.
1:11:35>> So whenever I'm going to get into like
1:11:37if there's a behemoth in your space, I
1:11:39replicate before I iterate. So, I would
1:11:41copy the existing thing before I get
1:11:44cute because like new always sucks.
1:11:49>> Yeah.
1:11:51>> No, seriously, like think about think
1:11:54about the the apps in the app store.
1:11:56They've been the same for like 20 years
1:11:57because like new sucks always. So, it's
1:12:00like we don't earn the right to do new
1:12:02things until we are until we replicate
1:12:03what already works. Also, I think
1:12:07>> the behemoth that we're dealing with is
1:12:10>> the behemoth is called Good Faith
1:12:12Energy, but they are $30 million company
1:12:15and they pride themselves on number one
1:12:17solar company in Texas.
1:12:19>> Okay.
1:12:20>> Tesla Power Wall. That's really it. They
1:12:22really cling to Tesla heavily.
1:12:25>> Okay. So,
1:12:28>> but where do I go? Just
1:12:29>> Well, that doesn't matter and run with
1:12:30it.
1:12:31>> Yeah. I mean, you sell batteries, right?
1:12:33You saw the same deliverable, correct?
1:12:36>> Yeah, we're we're certified with all the
1:12:38same people.
1:12:39>> Is the product better?
1:12:42>> No, it comes from the same place.
1:12:44>> Okay. So, it's the same.
1:12:46>> Yes.
1:12:47>> Okay. So, if you have the same thing,
1:12:48how do you beat somebody?
1:12:51>> More money.
1:12:52>> No, no, no. It's a real question. If you
1:12:54have the same If you have every dude, if
1:12:56you've learned anything from my content,
1:12:58every player on the field always has an
1:12:59advantage. So, what are your advantages?
1:13:02We can install anyone with under 60
1:13:05days.
1:13:06>> Speed. So you're faster than them.
1:13:08>> Mhm.
1:13:09>> Okay. So you got speed number one. What
1:13:11about ease? Can you do anything for them
1:13:13that's a little bit more white club than
1:13:15they do?
1:13:21>> I would say communication. That's been a
1:13:22big thing in store.
1:13:23>> Yeah. Can I give you a hint?
1:13:26>> Yes.
1:13:27>> You can have my cell phone. I'm the
1:13:28founder. These guys are these big
1:13:30behemoths. They don't care. You're just
1:13:31a number.
1:13:33So like you should always be able to
1:13:34beat these guys because you're not
1:13:35actually competing against the behemoth.
1:13:37You're competing against account rep
1:13:38number seven.
1:13:40>> Yeah, that's very true.
1:13:41>> Right. So you'll beat them on speed.
1:13:44You'll beat them on service. What else?
1:13:50>> I mean price, but
1:13:52>> I don't want I don't want I want I don't
1:13:53want you to win on price, man.
1:13:56>> Just do it on speed and do it on
1:13:58service. And I would replicate the offer
1:14:00that we already know works.
1:14:03Okay. I mean, I think we have a good
1:14:05base. We got 65 reviews on Google. Good.
1:14:07>> I've got 15K followers on Instagram, 200
1:14:10on Tik Tok. So, I figured I could do
1:14:12something with it.
1:14:13>> Yeah. I do think that long term it makes
1:14:15more sense for you to use the Instagram
1:14:17to go attract doortodoor guys.
1:14:18Personally,
1:14:19>> I think it's higher leverage. One sales
1:14:21guy's going to make you a million bucks
1:14:22a year. One uh you know, one uh one
1:14:26lead's not going to be worth very much,
1:14:27right? From a house household
1:14:29perspective.
1:14:31No, I mean revenue you're looking
1:14:32between like 40 to 70, but
1:14:34>> say it again.
1:14:35>> Gross profit before
1:14:38um average ticket is like 40 to 70k, but
1:14:40that's before paying for everything.
1:14:41>> Yeah. Yeah.
1:14:42>> Net sales rep like 10.
1:14:45>> Yeah. Per sale, right? So it's like I'd
1:14:46rather go get a node that generates
1:14:48sales, which is salesperson who
1:14:50consistently can bring me give me
1:14:51people. Now, you said you shut your door
1:14:53to door down, which I'm I'm not even
1:14:55going to touch for now. But as I see
1:14:58this, here are my steps. Step number one
1:15:01is we got to get the to the greatest
1:15:03degree possible job offer, the people
1:15:05who used to work your account that were
1:15:06getting you leads that were working.
1:15:07Thing number one, and just like just do
1:15:10whatever you can to go get in touch with
1:15:11those people because whenever I have
1:15:12something that works, I never want to
1:15:13let it go. Right? Once you have a flow,
1:15:15never let it go. Oh, that rhymed. There
1:15:16you go. There you go. Little Sante.
1:15:18Little little rhyming action. Okay. So
1:15:20job offer that guy number one. Number
1:15:22two is we got to replicate the existing
1:15:23offer from a lead genen perspective. Now
1:15:26when we win in the paint, we're going to
1:15:28win on the things that we have, which is
1:15:30going to be speed and service.
1:15:33>> Now what I would do is do you have a
1:15:36manager who comes by and does like the
1:15:37the tour walkound once the person um
1:15:42uh gets the stuff installed, the battery
1:15:44installed?
1:15:46>> Oh, yeah. Like a like a post sale survey
1:15:48type thing.
1:15:49>> Yeah. Yeah. So, what I would do when
1:15:51that person
1:15:51>> Well, actually, what I want you to do is
1:15:53actually have your manager or like the
1:15:54the crew runner, whatever, have that guy
1:15:58>> director.
1:15:58>> Yeah, exactly. Have that guy swing by
1:16:01and say, hey, how is the service?
1:16:03They're going to, you know, how is the
1:16:04how are the guys? They're going to say
1:16:05great or whatever. And then you're going
1:16:07to say, hey, you know, uh, ownership
1:16:09gives the guys a little spiff if you
1:16:10leave a review. I know it would mean the
1:16:12world to them.
1:16:13Uh, and so people are more likely to
1:16:16give a review because the people were
1:16:17there and they know that it's going to
1:16:19help those guys out. It's like, hey, you
1:16:20know, John and Dan, you know, they got
1:16:22families. It helps them out. If if you
1:16:24think they did a good job. If you leave
1:16:25them a review and put their name in it,
1:16:26it would mean a lot. The owner spiffs
1:16:27them a little extra.
1:16:31>> Okay. And then what if
1:16:33>> and just have that guy give a thank you
1:16:34crew thank you gift from the crew before
1:16:36asking for it.
1:16:37>> So, hey, the crew got together, said you
1:16:39guys were an awesome homeowner. Here's
1:16:40the $50 thing. you know, just thanks for
1:16:43being, you know, we get a lot of crazy
1:16:45people, so you were awesome. Thank you.
1:16:47>> Yeah, that'd be great. That's a good
1:16:48point.
1:16:50>> Okay,
1:16:50>> my last question would be to your first
1:16:52point where you said hire the person. If
1:16:54I can't hire them and they've they
1:16:57started another company, if their uptick
1:16:59is slower, should I just try to beat
1:17:01everybody out to buy those leads?
1:17:03>> Yeah. Make a commitment. Say, "Listen,
1:17:05you're starting your business. I'm a
1:17:07small business owner, too. We're in this
1:17:08together. If I succeed, you succeed. The
1:17:10more good leads I get, the more I can
1:17:11buy from you.
1:17:13>> Okay.
1:17:14>> You're too small for these guys. They're
1:17:15not taking you seriously, but you're
1:17:16just big enough for me.
1:17:18>> Yeah. No, because
1:17:20>> not what she said. Okay, keep going.
1:17:22Sorry.
1:17:23>> No, I was just saying the behemoth is
1:17:26getting all their traffic funneled to
1:17:27their
1:17:28>> Yeah.
1:17:28>> contact page on their website based on
1:17:30their thousand reviews that they get.
1:17:32>> Yeah. So, we got to get your reviews up.
1:17:34But you always have the best position,
1:17:36which is that like listen, you're at at
1:17:37the behemoth. You're going to be, you
1:17:38know, house number 278. With me, you got
1:17:41all my attention. I'm here. Something
1:17:42breaks, call me. Like, every single one
1:17:45of these reviews makes a huge difference
1:17:46in my life and my family's life. I'm
1:17:47make sure I'm going to take care of you.
1:17:50>> Okay. So, actionable steps is
1:17:53>> hire that person or go in with them.
1:17:56>> Get all their volume. Step two is
1:18:00>> replicate the offer.
1:18:01>> One more time.
1:18:02>> Replicate the offer.
1:18:02>> Replicate the offer. Number three is win
1:18:04on speed and service
1:18:05>> director go to the site post install.
1:18:07>> Yes. And win on speed and service.
1:18:09That's your angle.
1:18:11>> So you don't compete on price. Cool.
1:18:13>> Dude, you are awesome.
1:18:14>> You're awesome, dude. I appreciate you.
1:18:17>> Thank you so much for everything you put
1:18:18out, man. It's great.
1:18:18>> You bet, dude. Let me know how it goes.
1:18:20I'll see you in the group. If you like
1:18:21this video and you're a business owner
1:18:22who wants to break through your current
1:18:23revenue ceiling, I distilled every
1:18:25lesson from scaling 10 businesses past
1:18:2610 million and three businesses past 100
1:18:28million into a completely free scaling
1:18:30road map that I've used to go from 0 to
1:18:321, 0 to 10, and 0 to 100 plus. And so
1:18:35you can click here and you can check it
1:18:36out. Again, absolutely free. And since
1:18:38you're a business owner, appreciate you.
1:18:39And uh enjoy.

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