Why a Newsletter Should Sell More Than Ad Slots — Transcript

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1. 0:00Uh, my name is Jazz. I run Winnipeg
2. 0:02Digest. It's a local newsletter / media
3. 0:05company.
4. 0:05>> Okay.
5. 0:06>> audience of 110,000
6. 0:08people in Winnipeg.
7. 0:10>> Sweet.
8. 0:10>> Um, so that's about 70,000 on socials,
9. 0:1340,000 newsletter list in the last 18
10. 0:16months.
11. 0:17>> That's awesome.
12. 0:17>> We right now do
13. 0:19Yeah, thank you. We do about $10,000 in
14. 0:21revenue right now, 6,000 profit through
15. 0:24local advertising.
16. 0:25>> Okay.
17. 0:26>> Is that per month or per year?
18. 0:28>> That's per month, yeah.
19. 0:29>> Okay.
20. 0:30>> And then and then six we currently have
21. 0:32six annual advertisers, mostly paying
22. 0:34about 1,000 per month with two paying
23. 0:372,000 per month.
24. 0:38>> Okay.
25. 0:38>> And then the rest of the revenue comes
26. 0:40from single one-off ads.
27. 0:41>> Okay.
28. 0:42>> My question is a little two-part, so the
29. 0:44first one is how do I scale to a million
30. 0:46without running out of local advertisers
31. 0:48in the future, which I'm afraid of, or
32. 0:51running into a supply constraint because
33. 0:53we only send out 12 newsletters per
34. 0:55month. Um, so basically my primary
35. 1:00>> No, we send out 12 newsletters per
36. 1:01month, so it's three per week.
37. 1:03>> Okay, got it.
38. 1:03>> Monday, Wednesday, and Friday.
39. 1:05>> And these are digital, right?
40. 1:07>> Yeah, these are these are digital email
41. 1:09newsletters.
42. 1:09>> Yeah. Got it, got it, got it, got it.
43. 1:11Okay.
44. 1:11>> Yeah.
45. 1:12>> And are you I mean
46. 1:13>> Yes, so that's my question.
47. 1:14>> Yeah, so I would not be worried about
48. 1:16running out of advertisers. There's
49. 1:18110,000 people in the city. There's you
50. 1:19can for sure get enough advertisers.
51. 1:21That's not an issue.
52. 1:22So put that one away.
53. 1:24Um, you running out of ad space is more
54. 1:28uh, more possible.
55. 1:30So you have how many people on your
56. 1:31list?
57. 1:32>> um
58. 1:33>> [clears throat]
59. 1:33>> Yeah, so we have 40,000 on the list. The
60. 1:36city is a million people.
61. 1:37>> No, the city is a million.
62. 1:40>> Yeah, so the city is a million people.
63. 1:41The 110,000 is what our audience size
64. 1:44is. So it's 70,000 on social media
65. 1:46>> Oh, word. Dude, you have so much room.
66. 1:48You have so much room. So much room.
67. 1:51>> Yeah, so that's kind of So okay, so if I
68. 1:53have room then kind of from a growing
69. 1:56perspective, then I'm afraid that we'll
70. 1:58run out of ad space. So, we'll run run
71. 2:00into a supply problem.
72. 2:01>> No, you're not going to run out of ad
73. 2:02space. You're going to have to make sure
74. 2:03that you're pricing your CPMs
75. 2:04appropriately. So, said differently, if
76. 2:07you have, you know, 250,000 of the
77. 2:10people out of the million in the city on
78. 2:11your newsletter, you could charge a you
79. 2:14I mean, every ad would be
80. 2:16you'd be, you know, $100,000. Like, it
81. 2:18would be a lot.
82. 2:20>> Mhm. Yeah.
83. 2:20>> what I'm saying? So, yeah, so the space
84. 2:23itself obviously you have limited you
85. 2:25don't want to you don't want to send
86. 2:26your entire newsletter is just all ads,
87. 2:28right? That's not going to work. The way
88. 2:30that media scales is via impressions and
89. 2:33and and quality of impressions. And so,
90. 2:36you can charge more for the same space.
91. 2:37That's what That's what you have to do.
92. 2:38So, it's like, how do I scale this
93. 2:39business? You get more eyeballs.
94. 2:42>> But it's like there's not that or like
95. 2:43what I don't know if there's enough
96. 2:44businesses that can pay me 200 like
97. 2:47$100,000 per ad, you know?
98. 2:50In locally
99. 2:50>> sure businesses Well, again, you're
100. 2:52you're selling 12 ads a month. You're
101. 2:54$1,000 a month in in advertising is not
102. 2:57like many businesses can can do that.
103. 2:59Many businesses can do five or 10.
104. 3:02>> Mhm.
105. 3:03>> Dude, like my dad used to run My dad
106. 3:05local business owner, right? He used to
107. 3:07spend 10 or 15,000 [clears throat]
108. 3:09dollars to be in like Baltimore Digest
109. 3:11or something or Baltimore's whatever.
110. 3:13Like, one one magazine per month went
111. 3:17out. He would spend $15,000 to be in
112. 3:18that thing for like a half page, right?
113. 3:21>> Mhm.
114. 3:22>> So,
115. 3:22>> Okay, yeah, so that kind of that kind of
116. 3:25semi I guess that kind of answers my
117. 3:27second question, too, which was like it
118. 3:30was either okay, should I expand to new
119. 3:32cities, stay in the current one, but
120. 3:33niche down. So, let's say go start
121. 3:36another one, but say Winnipeg real
122. 3:37estate digest or something, right? Or
123. 3:40just keep
124. 3:41>> I want you to keep scaling this way. I
125. 3:42do not think it's worth you
126. 3:44splitting splitting your attention right
127. 3:46now.
128. 3:47I think you have way more way more
129. 3:50impressions to capture. The other piece
130. 3:52that you want to consider here though is
131. 3:53like you're sending a a newsletter. It's
132. 3:55like are there other places you can like
133. 3:58you have 70k on social. It's like we can
134. 4:00charge for posts, we can charge for
135. 4:02stories, we can charge for YouTube video
136. 4:03integrations, we can charge for
137. 4:04newsletter. Like I would rather you do
138. 4:06all that stuff first before even
139. 4:09considering niche down for now.
140. 4:11>> Okay, but what you would say the next
141. 4:13step would be to niche down after like a
142. 4:16certain niche
143. 4:17>> No, for dude, I would I don't even want
144. 4:18you to think about niche down. I want
145. 4:19you to just do more. You need way more.
146. 4:21>> Okay. Okay. And then
147. 4:24Okay. And from a acquisition standpoint
148. 4:27of subscribers, we are currently running
149. 4:29Facebook ads and acquiring subscribers
150. 4:31at like a dollar 40.
151. 4:32>> Okay.
152. 4:33>> So, that's that. So, my question then is
153. 4:36do we continue to face scale Facebook
154. 4:38ads cuz right now it takes about like 3
155. 4:41months to break even on a subscriber.
156. 4:43>> Okay, so you already know that. Yeah.
157. 4:44I mean that's fine, man.
158. 4:48>> Okay.
159. 4:48And so we keep scaling Facebook ads and
160. 4:50social.
161. 4:51>> Yeah.
162. 4:53You can also sell people longer, you
163. 4:54know, periods of time
164. 4:56on the front end.
165. 4:59>> And is there and is there like a front
166. 5:01end offer? Like cuz I know a lot of
167. 5:03people in the space trying trying to
168. 5:05achieve like negative cost for acquiring
169. 5:07a subscriber, right? So,
170. 5:09um
171. 5:10having some sort of a front end offer,
172. 5:12would you say I should still continue to
173. 5:13just push B2B advertising or
174. 5:16>> push B2B advertising as you do your
175. 5:18Facebook ads when people opt in for the
176. 5:19newsletter.
177. 5:20Just have something called an SLO which
178. 5:22is self self-liquidating offer on the
179. 5:23thank you page.
180. 5:25>> Okay.
181. 5:26>> Do you have anything on the thank you
182. 5:27page that you sell them?
183. 5:29>> No, nothing right now. I made
184. 5:31>> Bro, I'm about to change your life. I'm
185. 5:33about to change your life. You ready?
186. 5:36>> Yeah.
187. 5:37>> I want you to offer a a 10 pack of guide
188. 5:40to Winnipeg's best restaurants, guide to
189. 5:42Winnipeg's best
190. 5:43new uh spots, guide to Winnipeg's best
191. 5:47ski guide to the best dessert. Like
192. 5:49literally just put a put 10 different
193. 5:51kind of like magazines, do it once. Uh
194. 5:54make that 10 pack like $37, put it on
195. 5:57the thank you page. If you can get one
196. 5:59out of 37 people to buy it, your cost of
197. 6:01acquisition is zero, and then you can
198. 6:03scale this thing with a [ __ ] money.
199. 6:05>> So those would be physical like physical
200. 6:07things or like digital guides?
201. 6:08>> You can make it digital, it's fine.
202. 6:11>> Okay, I was literally about to offer
203. 6:12that for free in our welcome sequence.
204. 6:14So
205. 6:15>> There we go.
206. 6:16>> [snorts]
207. 6:17>> Okay, and yeah, okay. No, I think that
208. 6:20kind of answers all my questions.
209. 6:21>> I feel like that was pretty good.
210. 6:24>> Yeah, I mean no, that was
211. 6:25>> [laughter]
212. 6:26>> great. Thank you.
213. 6:28>> All right.
214. 6:29>> No, like I mean I've been I've been like
215. 6:31going back and forth with like oh [ __ ]
216. 6:33I started a Christmas holiday lights
217. 6:35company on top of this.
218. 6:36>> No, dude. No.
219. 6:37>> No. What? That sounds [ __ ] awful.
220. 6:39>> No, it sounds horrible.
221. 6:41Do more of this. All you have to do is
222. 6:43add a self-liquidating offer on the
223. 6:44front end. You'll be able to grow the
224. 6:45hell out of your media. You can charge
225. 6:47more. [snorts] You can get more
226. 6:48advertisers in. Done and done. You can
227. 6:50also if to your concern, you can also
228. 6:52parse your list,
229. 6:53>> [snorts]
230. 6:54>> right? So let's say you triple your list
231. 6:55size. If for some reason you can't find
232. 6:57advertisers who can pay more, which I
233. 6:58wholeheartedly reject. But just to show
234. 7:00you that you can still be creative here.
235. 7:02You can say I'm going to send
236. 7:04uh 12 emails to these people, 12 emails
237. 7:06to these people, and 12 emails to these
238. 7:07people. List A, B, and C cuz you made
239. 7:09the list three times as big, and you can
240. 7:11charge that many more times.
241. 7:12>> Uh-huh.
242. 7:14Okay, got it. That answers I think all
243. 7:16my questions. Thank you.
244. 7:18>> Rock and roll, man. Appreciate you.
245. 7:20>> Thank you so much. Bye-bye.
246. 7:21>> Goodbye.
247. 7:23If you're not getting as many leads as
248. 7:24you want and your business is demand
249. 7:25[music] constrained, meaning you could
250. 7:27service more customers than you
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253. 7:32think ACQ tends to be on the bleeding
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264. 7:48call and
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