Why This Affiliate Isn't Spending Enough on Ads — Transcript

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1. 0:00Rock and roll. Well, Corinne, tell me
2. 0:01about the business.
3. 0:02>> Okay.
4. 0:03>> Okay, so you're doing 83k a month,
5. 0:05right?
6. 0:06>> 83k a month. Uh your ad spend is 3k per
7. 0:09month. Got it. You're an influencer.
8. 0:12Okay, look let's see. GLP-1.
9. 0:15Okay, so you're doing you're doing um
10. 0:17got weight loss stuff. Okay. Cool. And
11. 0:19then your constraint is attribution
12. 0:20issue. All right.
13. 0:21So,
14. 0:23um
15. 0:24So, you're doing $83,000
16. 0:26Okay. So, what's profit on that right
17. 0:27now?
18. 0:30>> Um so, let's see.
19. 0:33We
20. 0:33I'm like nervous. We came to the Scaling
21. 0:35Workshop and it's not all it's not all
22. 0:38GLP-1, but overall our business
23. 0:42um
24. 0:43let's see, a couple months ago was the
25. 0:45revenue was 856
26. 0:47and then 389 and then the EBITDA was
27. 0:50544.
28. 0:51>> 856 was a few months ago?
29. 0:53Or like last year?
30. 0:55>> Um
31. 0:56the last 12 months.
32. 0:57>> Okay, got it. I was like, girl, what
33. 0:59happened?
34. 1:00>> [laughter]
35. 1:00>> Okay, got it. So, so, so you're going
36. 1:03up. You're at 83 at a million dollar run
37. 1:04rate. Fine. Um so, what's the issue? So,
38. 1:07so you have your audience. You solicit
39. 1:10the audience to go buy GLP-1 stuff. Do
40. 1:11you have an affiliate or sorry, are you
41. 1:12basically acting as an affiliate to
42. 1:14somebody else?
43. 1:16>> Correct. I act as an affiliate to lots
44. 1:18of different brands. This is the one
45. 1:19that we get paid back on the quickest,
46. 1:21so that's why we're trying to run ads.
47. 1:23>> Yeah.
48. 1:24>> But our ads that Meta thinks that we're
49. 1:27not converting because we can't actually
50. 1:29hook up to their back end.
51. 1:32>> Word. Okay, so
52. 1:34you would need you just need to add you
53. 1:37do you have software for ad attribution?
54. 1:41>> No.
55. 1:42>> Yeah, just literally hook like this is a
56. 1:44one-time setup. It'll probably cost you
57. 1:45between Luis, what are the what's the
58. 1:47range for like ad tracking software
59. 1:49cost?
60. 1:50>> Anywhere from like 1 to 3,000 a month
61. 1:52depending on how
62. 1:52>> Yeah, it'll be like call it like on the
63. 1:54low side like maybe 500 to 1,000 and
64. 1:56then it kind of tends to scale up with
65. 1:58your your spend level. So, it'll
66. 2:00probably be a thousandish, call it, but
67. 2:02sometimes more to get the attribution.
68. 2:04So, what it'll do is it'll then feed
69. 2:05back the data to Facebook so that you
70. 2:08can get a conversion mechanism in place
71. 2:09and just like shorten the loop. But,
72. 2:11that's like a Google search on YouTube
73. 2:13and how to set it up and most of those
74. 2:14most of those are B2B SaaS, so they'll
75. 2:15have some sort of concierge that'll do
76. 2:16the setup with you. Like Super Solvable.
77. 2:20>> Okay, even if I don't own the GLP-1
78. 2:23company?
79. 2:24>> See, that's a little harder. That's a
80. 2:26little harder if you don't own that.
81. 2:27Now, they still might be willing to
82. 2:28install your pixel on their page if
83. 2:30you're like a big affiliate for them.
84. 2:33>> Okay, cuz that's been our eternal
85. 2:35struggle since like 2019.
86. 2:38>> I want to spend money to advertise your
87. 2:40product.
88. 2:42Can you give Can you install my pixel on
89. 2:44your page?"
90. 2:46A lot of people are willing to do that.
91. 2:47If you're going to send me money, it's
92. 2:48like, "Sure.
93. 2:49Go for it."
94. 2:50>> Okay.
95. 2:52Okay, is there any other workaround as
96. 2:54an influencer?
97. 2:55>> Well, let me do Let me give you one more
98. 2:56detail on this. You can have them clone
99. 2:58the page,
100. 2:59>> right? So, that's not like you're not
101. 3:00getting their data or anything like
102. 3:02that. So, they'll clone the page and
103. 3:03make it Corrine's page, right? So,
104. 3:05GLP-1/Corrine
105. 3:07or whatever. And that page is only for
106. 3:08you, and then you install only your
107. 3:10pixel on that page. That way it's not
108. 3:11like you're like using their data or
109. 3:12anything like that. So, they'll probably
110. 3:13be far more likely to be like to to to
111. 3:15to do that with you.
112. 3:17>> Okay.
113. 3:18>> Okay? Uh beyond that though, yeah, as an
114. 3:21influencer. So, number one, get the get
115. 3:23the tech stack. Number two, ask the
116. 3:25people who you are doing this affiliate
117. 3:27stuff if they'll just clone the page and
118. 3:28install the pixel there so you can spend
119. 3:29more money so you can make them more
120. 3:30money. Um the next thing though, a a
121. 3:34third door, how big is the company that
122. 3:36you're dealing with?
123. 3:39>> Uh
124. 3:40how big? They've been in business for a
125. 3:42little over a year, but she's been doing
126. 3:45um telehealth for 10 years.
127. 3:47>> Okay, well, I was going for size of
128. 3:49revenue, but
129. 3:50um
130. 3:51what I what I would suggest No, you're
131. 3:52fine. Don't worry about it. So, what I
132. 3:53would suggest doing um
133. 3:56is saying, "Hey, I'll make ads for you.
134. 3:59And my normal affiliate commission,
135. 4:01what's your normal uh commission
136. 4:02percentage?"
137. 4:04>> For them, 40%.
138. 4:05>> 40, right? So, I say, "Hey, I will do
139. 4:07this deal with you where you give me
140. 4:1020% instead of 40.
141. 4:13But I'll make ads for you and you can
142. 4:14run them."
143. 4:18>> Okay.
144. 4:18>> And then they're fronting the cash.
145. 4:20And you get paid 20%. And they you'll go
146. 4:23back and forth. It'll be a negotiation.
147. 4:24But at the end of the day, it's free
148. 4:25money for you.
149. 4:28>> Yeah, I don't know if they'll do that
150. 4:29because it's like a direct sales
151. 4:30company. So, if they do it for one
152. 4:32person, they have to do it for everyone.
153. 4:33>> They don't They don't have to do it for
154. 4:34everybody. They could say that's
155. 4:35something that they unlock after you do,
156. 4:37you know, you Hey, if you if you make us
157. 4:39$50,000 a month and you have a larger
158. 4:40getting following, we'll put money
159. 4:41behind ads.
160. 4:44>> Okay.
161. 4:44>> I mean, I would do that as a business
162. 4:46owner.
163. 4:47Like if you have a massive audience with
164. 4:48the types of customers that I have, like
165. 4:49sure. Like I'll spend the money. And
166. 4:51like the beautiful part for you is that
167. 4:52you're going to get your brand more
168. 4:53recognized, right? So, you're going to
169. 4:55get free exposure. You're going to get
170. 4:56paid to do it. But there It makes sense
171. 4:58for them because your ads for sure will
172. 5:01decrease CAC by more than 20% than than
173. 5:03their standard whatever ads they have.
174. 5:06>> Okay.
175. 5:07>> Right? So, that's that's door three.
176. 5:08Door one is obviously like just clone
177. 5:10the page, get ad tracking set up, and
178. 5:12then you can run your ads. That's like
179. 5:14that's the super easy one.
180. 5:17>> Okay.
181. 5:18All right.
182. 5:18>> Feel like you can do that?
183. 5:21>> Yes.
184. 5:21>> All right. Rock and roll. This is fun.
185. 5:23Let's do this again sometime.
186. 5:24>> Thank you.
187. 5:25>> [laughter]
188. 5:25>> You bet.
189. 5:26>> sure.
190. 5:27>> All right. Talk to you, Ingrid.
191. 5:28>> Okay. Thank you.
192. 5:29>> If you're not getting as many leads as
193. 5:30you want and your business is demand
194. 5:32constrained, [music] meaning you could
195. 5:33service more customers than you
196. 5:35currently have, then this is for you.
197. 5:37So, marketing is changing and I think
198. 5:39ACQ tends to be on the bleeding edge of
199. 5:40this stuff. We certainly spend the money
200. 5:42to do it. But we also build custom
201. 5:44software and we pay amazing vendors and
202. 5:46very expensive people to figure out the
203. 5:47system that we have right now and I want
204. 5:49to share it with you kind of open kimono
205. 5:50style. If you're not getting as many
206. 5:51leads as you want,
207. 5:52boy, do I have the thing for you. Click
208. 5:54below, book call, and uh
209. 5:56hopefully I'll see you in Vegas.