Why the Wrong Avatar Wastes Your Ad Spend — Transcript

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1. 0:00You're on You're on Hermosi hotline.
2. 0:02What's up, man?
3. 0:04>> What is Oh, man, happy birthday and man,
4. 0:07love I'm watching you right now.
5. 0:09>> No way.
6. 0:10Dude, you're the man.
7. 0:12Um okay, so we got 5 minutes. Tell me uh
8. 0:16top line, bottom line, and uh what's
9. 0:18what what's holding you back, all right?
10. 0:22>> Yes.
11. 0:22>> Yeah.
12. 0:23>> Top line doing around average 80k per
13. 0:25month.
14. 0:26>> Okay, 80k a month.
15. 0:27>> around 45
16. 0:2935% um
17. 0:31>> Margins?
18. 0:32>> Profit margins?
19. 0:32>> Yeah, okay.
20. 0:34>> And constraint right now is
21. 0:38getting more qualified leads.
22. 0:40>> Okay.
23. 0:41>> And
24. 0:42more of them, to be honest, yeah.
25. 0:44>> Yeah, you just want more leads, more
26. 0:45front end. Got it. So, said differently,
27. 0:48you can handle double the customers
28. 0:49you're getting right now, is that
29. 0:49correct?
30. 0:52>> Yes, we can.
31. 0:53>> Okay, cool. So, if you can handle double
32. 0:54the customers,
33. 0:56um
34. 0:57what are you currently doing to get
35. 0:58leads?
36. 1:00>> Yeah, that's a great question. So, right
37. 1:02now we
38. 1:03uh
39. 1:04trying to
40. 1:05have a free opt-in
41. 1:07and the free opt-in is into a lead
42. 1:10magnet.
43. 1:11Um that's to get more leads and then we
44. 1:13also
45. 1:15are going to run a low-ticket product to
46. 1:17turn those guys into
47. 1:20more qualified buyers.
48. 1:21>> All right, let me tell you a secret.
49. 1:22This works for everybody who's listening
50. 1:23to this.
51. 1:25>> Okay.
52. 1:26>> I know that it's very common in the
53. 1:28marketing world to talk about, you know,
54. 1:31educating and creating your ideal
55. 1:33avatar. Okay?
56. 1:35I would say that in my experience that
57. 1:37tends to be not true the vast majority
58. 1:38of the time.
59. 1:40Marketing acts far more as a filtration
60. 1:43system more than it does as an education
61. 1:45system.
62. 1:46So, it's more that you are finding the
63. 1:49ideal buyers than you are creating them.
64. 1:50There's always going to be the exception
65. 1:52every once in a while. Hey, this guy
66. 1:53bought this thing for a dollar and then,
67. 1:54you know, you know, he started he
68. 1:55started his life over and all these
69. 1:57other things. Of course, there's always
70. 1:58those stories, but those are the
71. 1:59exception not the rule.
72. 2:03And so if the if the idea is right, go
73. 2:05ahead.
74. 2:07>> Yeah, okay. That that completely shifted
75. 2:09my mind because we're like on the prices
76. 2:12of creating like a low ticket that gets
77. 2:14them into being a low like a qualified
78. 2:16buyer. So that's what we thought.
79. 2:17>> Now, if you want to add friction, yeah,
80. 2:20I would just say this.
81. 2:21The like there's nothing wrong with
82. 2:23having a quote low ticket purchase in
83. 2:26order to shift the relationship from a
84. 2:27you know, from a from a watcher to a
85. 2:29customer, right? Like that's fine. Like
86. 2:31people buy books, 29 bucks, you know,
87. 2:33like you buy a book. Um
88. 2:35and you know, you become you become a
89. 2:36customer. Shifts the dynamic
90. 2:37relationship. Um but it's less so that
91. 2:40like oh because like it just takes a
92. 2:43long time for a lot of people to do
93. 2:44things. Like it takes years, right? And
94. 2:45so to expect that unless you have a
95. 2:48super long-term horizon like which I do
96. 2:49here, which is why I have all these
97. 2:50books. We're trying to give them away
98. 2:51because like I this is my forever
99. 2:52business, but um
100. 2:55Right. So like I I know that there's an
101. 2:5718-year-old right now who's going to buy
102. 2:58these books and is going to sleep under
103. 3:00you know, use it sleeping under his
104. 3:01pillow in 4 years or 3 years who have an
105. 3:03AI startup and then he'll hit me up,
106. 3:04which literally happened, crazy,
107. 3:07uh 2 months ago. One of the AI startups
108. 3:08that we are invested in, hardcore Mosey
109. 3:11Nation guy, started, read all the books,
110. 3:13and then created an AI for
111. 3:15uh legal. So they handle all the intake
112. 3:17calls for law firms now. So he found a
113. 3:19vertical B2B SaaS, high ticket, um sells
114. 3:21his AI through there. Oh Jesus, it is
115. 3:24there's a whole bunch of chaos in the
116. 3:25background. Sorry about that. Um
117. 3:28sorry.
118. 3:28>> Well, wow.
119. 3:30>> Yeah.
120. 3:30>> You completely shifted shifted my mind
121. 3:32because
122. 3:32>> Yes.
123. 3:33>> we're like spending like all this time
124. 3:34to like create this
125. 3:36>> No.
126. 3:36>> low ticket product that turns them into
127. 3:37What you're trying to say to me is that
128. 3:39we should just get more options.
129. 3:41>> Yes.
130. 3:42>> Just get more leads.
131. 3:43>> You want to get more leads.
132. 3:45>> into a person.
133. 3:45>> You want to get more leads and
134. 3:47specifically you want to use things that
135. 3:49don't attract beginners with the
136. 3:50intention of saying oh I'm going to turn
137. 3:52a beginner into an advanced person." I'm
138. 3:54going to attract advanced people with
139. 3:56the type of content that advanced people
140. 3:57talk about. So, the reason this book for
141. 3:59particularly,
142. 4:01um it actually flipped the ratio of the
143. 4:03people who attended the live launch. So,
144. 4:04when I did the Leads book, we had a dis-
145. 4:07we had probably 2/3 of people who were
146. 4:08there
147. 4:09uh didn't have a business. And I think
148. 4:10the main reason for that is because the
149. 4:11subject matter, so what we talked about
150. 4:13with the Leads book was like how how to
151. 4:15advertise. How do you get your first
152. 4:16customers, right? Well, really you can
153. 4:17advertise at any scale, but many people
154. 4:19who don't have customers "Oh, I think I
155. 4:20just need more leads." Now, if I'm
156. 4:22talking about cash conversion cycles,
157. 4:24how do you how do you get more customers
158. 4:25spend more money in less time? That's
159. 4:27purely a business owner problem, right?
160. 4:29So, because of the nature of the subject
161. 4:31matter, on this launch 2/3 of the people
162. 4:33were business owners, 65% were business
163. 4:36owners at this launch. And it's because
164. 4:37the nature of it. Like, you're not
165. 4:38thinking about cash conversion cycles,
166. 4:39you're not thinking about offsetting
167. 4:40CAC, you're not thinking about how you
168. 4:42can accelerate cash flow. Like, none of
169. 4:44these things are issues when you're when
170. 4:45you don't have a business. When you have
171. 4:46a business, you understand the nature of
172. 4:47the problem, right? And so, because of
173. 4:49that subject matter, it lent itself to
174. 4:51more business owners. And so, when
175. 4:52you're thinking about, "How do I want to
176. 4:53attract barbers who are going to spend
177. 4:55more money?" Then it's like, "Okay, then
178. 4:57what do barbers who have more money to
179. 4:59spend, what are their problems?" And I
180. 5:01guarantee you their problems are
181. 5:01different than some of the more junior
182. 5:03ones.
183. 5:06Right?
184. 5:06>> Okay. Okay, that's awesome. Let me Let
185. 5:08me Let me ask you this. Like, would me
186. 5:11doing this strategy right here that I'm
187. 5:12about to tell you fix what
188. 5:13>> And we got 90 seconds, all right? 90
189. 5:15seconds. Just keep going.
190. 5:16>> Awesome.
191. 5:17>> Okay.
192. 5:17>> 90 seconds is all I need.
193. 5:18>> Okay.
194. 5:19>> I created a a a better lead magnet that
195. 5:22attracted the those problems of the
196. 5:25higher more advanced barbers.
197. 5:28Would that
198. 5:30solve what you just told me?
199. 5:31>> Yeah.
200. 5:31Totally fine.
201. 5:33It's going to be both the lead magnet,
202. 5:35but also the content that's that's
203. 5:36advertising it, right? So, if you say
204. 5:38like, "Get rich quick, start your barber
205. 5:40shop." Right? And then you have an
206. 5:42advanced lead magnet, it doesn't match.
207. 5:44So, it has to be congruent. So, like the
208. 5:45nature of the content, the nature of the
209. 5:46advertising should match the messaging
210. 5:48and the thing that you're giving away.
211. 5:50But also, and I'll be clear about this.
212. 5:52I want to I want to I'm going to clear
213. 5:53this is a key point.
214. 5:54Your cost of leads might triple.
215. 5:59But
216. 6:00>> Why?
217. 6:00>> But yeah, cuz there's not as many of
218. 6:02them. So, it costs more to get them. But
219. 6:05Said differently,
220. 6:07would you rather spend 10 like get a $10
221. 6:09lead that's worth 30,
222. 6:11or would you rather get a $100 lead
223. 6:13that's worth a thousand?
224. 6:17>> The the latter for sure.
225. 6:19>> Right, but you still spend 10 times as
226. 6:21much. So, that's the thing, right? So,
227. 6:23you have to be comfortable with
228. 6:24understanding that it's the it's the
229. 6:25ratio between the numbers, not the
230. 6:27absolute amount of the number.
231. 6:29And as soon as you cuz like when you
232. 6:30make a shift like that, you're all of a
233. 6:32sudden your metrics are going to change.
234. 6:33You have to expect there's going to be a
235. 6:34little bit of like a readjustment period
236. 6:35where you re-baseline and relearn the
237. 6:36numbers around this avatar.
238. 6:39Does that make sense?
239. 6:40>> Right. Right, the payback period at the
240. 6:43start to
241. 6:44after profit later.
242. 6:47>> I didn't hear that last part.
243. 6:50>> So, like So, like basically I have a at
244. 6:51the start I won't be making money from
245. 6:53from paid ads.
246. 6:54>> Well, you might, but it's just the
247. 6:55metrics are going to be different. It's
248. 6:56just the metrics are going to be
249. 6:57different. So, it's just expect an
250. 6:58adjustment period. That's all. And if
251. 6:59you're going to do that, you also need
252. 7:00to make sure that you're selling cuz
253. 7:01right now I'm I'm telling you this cuz I
254. 7:03know this is applying more than more
255. 7:05more than one person.
256. 7:06You need to also make sure that you're
257. 7:07adjusting your price for this newer
258. 7:09avatar.
259. 7:10And so, um what the first playbook that
260. 7:12I want you to read cuz I know that you
261. 7:13you got the 800. Um the first playbook I
262. 7:16want you to read is the LTV playbook,
263. 7:18okay?
264. 7:20I want you to follow the LTV playbook
265. 7:22to a T.
266. 7:23And there's also inside of the Lost
267. 7:25Chapters, um one of the chapters in
268. 7:28there is called Your First Avatar.
269. 7:30And so, read the Your First Avatar
270. 7:32chapter and read the uh Lifetime Value
271. 7:34chapter and just execute the steps in
272. 7:36there, okay?
273. 7:37>> You got it. I'll get it done, but when I
274. 7:39see you in the workshop, I'll be coming
275. 7:41out. So, thank you.
276. 7:41>> All right, rock and roll. Appreciate
277. 7:42you, man.
278. 7:43>> I really appreciate it. So, I'll see you
279. 7:44then.
280. 7:44>> All right, thanks for doing your best,
281. 7:45man. All right, bye.
282. 7:47If you're not getting as many leads as
283. 7:48you want and your business is demand
284. 7:49constrained, [music] meaning you could
285. 7:51service more customers than you
286. 7:52currently have, then this is for you.
287. 7:54So, marketing is changing and I think
288. 7:56ACQ tends to be on the bleeding edge of
289. 7:57this stuff. We certainly spend the money
290. 8:00to do it, but we also build custom
291. 8:01software and we pay amazing vendors and
292. 8:03very expensive people to figure out the
293. 8:05system that we have right now and I want
294. 8:06to share it with you kind of open kimono
295. 8:07style. If you're not getting as many
296. 8:08leads as you want,
297. 8:10boy, do I have the thing for you. Click
298. 8:11below, book call and uh
299. 8:13hopefully I'll see you in Vegas.