0:01 the last three companies I founded and sold grew so fast it felt illegal us
0:06 Allen got to $1.2 million per month at the end of the first year Prestige Labs
0:11 got to $1.5 million per month by the end of the first year and gym launch got to
0:15 over $2 million per month by the end of the first year I'm going to show you the
0:19 strongest growth levers I used to get these results so that you can too let's
0:23 start with the first one which is nobody knows you exist and if you're under $1
0:28 million in Revenue I can virtually guarantee that basically everyone on
0:32 Earth doesn't know you exist and so the first four hours of every day should be
0:36 dedicated to solving that problem and going from obscurity to being aware and
0:41 so we do that by doing the core for more which is you have to do more Outreach
0:45 cold or warm you have to make more content or you got to run ads but the
0:48 thing is is you don't need to do all of them you pick one you go all in and
0:51 that's what you spend your first four hours every single day on now the reason
0:54 that I talk about advertising more so much is that advertising is a boom and
0:58 if you're like what's a boom it's actually a term that I started using
1:01 inter for our business which is a business order of magnitude change all
1:05 right and so fundamentally if you think about a business there are many things
1:09 that you can optimize so you can increase your close rate by 10% you can
1:12 increase your your conversion rate on your on your optin page by 10% you can
1:15 increase your email followup all of those things are optimizations and so
1:20 the problem is with optimizations you can only go to 100% they're capped but
1:25 with advertising you can in a very real way 100x the amount of people who find
1:29 out about your business and one of the key that small business owners get stuck
1:32 in is they get in this little optimization mouse trap where they're
1:36 like I need to move this oh I I I I I was at 10.1 1:1 and now I need to be at
1:41 at 10.2 to1 it's like dude just get a 100 times the leads and your business
1:45 will grow so here's what most people think when they think about their given
1:48 Marketplace so let's say you're a local dry cleaner all right you see that
1:52 you're advertising on Facebook and so you see you have the whole pie and so
1:56 you're happy so that's just you then you have you plus one other person then all
2:01 of a sudden you've got half of the pie then it's you plus three other people in
2:06 the marketplace and now you feel sad but the reality is the marketplace is
2:09 significantly bigger than you ever give it credit for there are so many humans
2:13 on Earth this is what it looks like in reality you're actually only advertising
2:18 on one of four different methods and the way that you're doing it is only on one
2:22 slice of the medium and then within that you have your tiny little quarter that
2:27 you're taking up and so the marketplace has so many different ways they can
2:30 communicate using each of the methods of communication so for
2:34 example if I'm talking about content I'm like oh there's somebody else in my
2:37 Marketplace who's marketing on Instagram Okay cool so there's that but isn't
2:41 there also other platforms you can do it on and don't you think that maybe
2:44 there's enough people in your Marketplace to satisfy your business
2:47 probably the amount of times that I would have a gym owner for example who'd
2:50 come to me and say hey there's this other guy in the marketplace who's now
2:53 running Facebook ads I'm like you only need 200 people in your gym to be
2:57 incredibly profitable and right now the last time I checked you've got 1 million
3:00 people in your city and so you just have to get 200 of them and so if there's 10
3:05 others or 100 other gyms that are advertising your era even on the same
3:10 platform you still just need to get 0.002% of that audience to just come to
3:15 you and so you think that as these people enter you're losing market share
3:19 but the reality is you're this tiny little spec and most people don't even
3:23 know you exist so the next growth principle is instead of trying to beat
3:29 your competition shrink your competition Eminem has responded to hate in two ways
3:34 publicly that I absolutely love so the first is that when will frell confronted
3:39 him about some things that Afrojack had said to him he said hey afrojack's been
3:43 talking trash do you have anything to say about it and Eminem just said who
3:47 and then will faroh repeated the statement and then he just looked at him
3:50 and he was like who and he was like okay yep that's what I thought and so the
3:56 first is I'm so big I can't hear him the secondary is that you kill them with
4:00 kindness right so either grow so big that no one can see them or hear them or
4:04 you meet them where they're at on a different game which is you play on
4:09 kindness and Grace and so in 8 Mile Eminem tries to claim all of the flaws
4:13 that he has so that no one else can say anything and so I get hit on a lot not
4:19 like that uh for talking about working a lot people are like that's not healthy
4:23 and of course I try to put disclaimers in every video I'm like do whatever you
4:27 want right um I get uh hit on for like oh I think he's he's trying to make
4:32 money duh I try to say it all the time but people assume that I am trying to
4:35 hide this from my owns of course I'm trying to make money I'm in business
4:38 that's the whole point I do this and that way if I always start with I'm here
4:41 to make money when I do something nice then people are like oh well that was
4:44 nice of him rather than me claiming that I I have to be the Super kind whatever
4:48 person and then when I try and make money people are like ah shake their
4:52 finger at me like it's not good and so I try and learn from mem and just take all
4:56 of the negatives that I can think that somebody would possibly say and then
4:59 just claim them as my own because yes we are all flawed and none of us are
5:03 perfect and so for some reason we are bothered when someone else points out
5:06 our imperfections that we would readily State ourselves we know we have
5:09 deficiencies what you want to do is overwhelm the marketplace so that you
5:13 drown them out you want to be so loud that no one else can hear them you
5:17 shrink them into irrelevance by comparison and so there's two ways that
5:21 you can become the tallest building right you can knock everyone else down
5:25 or you grow so that they become smaller in comparison to you and so everyone
5:29 sees their little building and thinks oh no I should knock all my competitors
5:34 down right when in reality all you need to do is build the biggest absolute
5:37 building there and the thing is is that you're going to block out the Sun and
5:41 your Shadow will be so big that no one can even see these people and let me
5:46 tell you a story about this when I launched my last book 00 million leads I
5:51 spent a tremendous amount of time and effort across I think at the time we had
5:56 sevenish million uh subscribers or you know audience size across all platforms
5:59 I emailed a bunch I made a ton of com content we spent money on ads we did
6:03 Outreach we had Affiliates going we had all these different channels going to
6:06 get as many people as possible to the launch and when I walk around Las Vegas
6:12 because I live here I will usually get stopped about three-ish times when I do
6:17 about a 60-minute walk uh mind you I walk in a crowded area so it's not like
6:20 I'm just like walking in the neighborhood because then that would
6:22 just be weird anyways and of course you should be recognized by your neighbors
6:25 but I'll get stopped by three people and every time for the month leading up to
6:29 the launch I would be like hey you going to the book launch 19 times out of 20
6:34 the people would look at me and be like what's the book launch and I was like
6:37 how do you not know about this right but it was this wonderful reminder that most
6:41 people when you get tired of your advertising most people don't even know
6:46 your first name if you have diluted yourself into thinking that you should
6:51 only have to say something once and somehow everyone in the entire world has
6:55 heard you say that thing you are kidding yourself you need to become a master of
7:00 variety in terms of of how you can resay the same thing in different ways and
7:05 taking the natural extreme there's this fallacy that most small business owners
7:09 think and myself- included for years I thought this was that repetition in and
7:14 of itself is somehow bad so let me explain there's probably people on the
7:19 internet I personally follow a bunch of philosophy accounts and so most of the
7:26 philosophers are dead and yet I still love to see the quotes they have because
7:30 they remind me of the things that I want to follow the way that I want to live
7:35 and it's not like oh another senica quote does this guy never give up it's
7:39 like he's dead he hasn't come up with a new quote in 2,000 years and yet I still
7:44 like seeing the quotes even though I know I've seen them before and often
7:48 times you serve that role for your audience more than anything else like we
7:52 think that it's like oh I've said this one thing therefore they have all
7:55 changed out their behavior immediately and they never need to learn that again
7:58 but the biggest lesson that I've learned is that people need to be more reminded
8:01 then they need to be taught and in the off chance that you've received hate or
8:05 you have a competitor who's talking crap and it happens this counts double so instead of
8:11 trying to beat them or prove them wrong you only have two options option one is
8:16 you grow so big that no one can even hear them the alternative is that you
8:21 kill them with kindness which is that you do not beat them by proving that you
8:29 are right you beat them by proving that you are kind and then by comparison they will
8:37 look bad and so I can only thing I can tell you about having dealt with plenty
8:41 of it in my day is that on the occasion that I do choose to respond to hate I
8:45 try to respond with kindness and so someone can just absolutely tear me one
8:48 and just say like this guy sucks he's terrible whatever right I will then
8:53 usually say hey you're right I'm a super flawed person um that being said it
8:57 seems like you've developed like a big audience here and they seem to like you
9:00 and so congrats on your your success right when someone sees that it's very
9:04 hard for everyone to be like man that guy sucks it's just like now if I were
9:08 to try and like list out all the points all I do is invite more back and forth
9:11 which I don't want to do and it's a waste of my time and so instead you
9:16 start all hate responses with you are right because it's all they want to hear
9:19 and there's really nothing else to say after that and so what's interesting is
9:23 that often times hate if you boil it down comes down to I do not prefer the
9:29 way this person does things I have a different preference and it's like great
9:34 right like I I make money one way he makes money another way and therefore he
9:38 is wrong it's like no you just do the way you want which is awesome because
9:41 you do it your way and they do it their way and the people who are attract to
9:43 that will do that and the people attract to you will do yours and great like I
9:46 mean of course there's engagement baiting and things like that because you
9:48 know people people want to get views and all that and I and I respect it I get it
9:53 um but but big picture I think you can't take it um you can't take it personally
9:58 because whenever I I fall into that little trap I think to myself
10:01 I'm a relatively developed monkey that is sitting on a little Blue Marble in a
10:06 solar system that's in one of a billion galaxies and I'm worried about some
10:10 screen that has words on it of a madeup language that we had in the last 1500
10:13 years of how we communicate face noise to each other and when I think about
10:15 that I think you know this would be pretty silly for me to like ruin a day
10:19 over so the third big growth lever and this one's massive is clear not clever
10:24 all right so what do I mean by that well when I looked at the highest converting
10:29 ads that I had run and I do this pretty regular I look for different components
10:33 sometimes I'm like What's the hook sometimes I'm like what's the color
10:36 scheme what's the what's the visuals that are being displayed in the first
10:39 however many seconds and in this one particular pass I just looked at the
10:43 grade level of the language that was being spoken and the reason I looked at
10:46 that it was I think it was a you know one or two election Cycles ago I had
10:49 heard this research study that had stated that the president who spoke in
10:54 the lowest grade language was the one that won the election over and over
10:57 again and when I heard that I see presidential elections fundamentally as
11:02 massive brand campaigns and so I see that as they were able to communicate a
11:07 message to a higher percentage of the population because they lowered the
11:10 barrier to entry of comprehension meaning more people got what they said
11:16 and so when I hear that I thought man I like to use all these big fancy College
11:20 words and no one knows what I'm saying and so all I do is feed my ego not my
11:25 bank account and so I made one of my big marking rules clear not clever and so
11:30 you want to take whatever communication is look at your landing pages look at
11:33 your ad copy look at the words you're saying in your content and say does a
11:38 third grader understand this and the point that some people try to make as a
11:41 counter is like oh I don't want to talk down to my audience no when you speak in
11:46 a more broken down manner you help the experts understand it more easily and
11:50 you help the beginners understand it for the first time and so it's not that
11:54 experts are all of a sudden saying oh no I I don't believe that because listen we
11:57 get tons of very big companies that come to acquisition. comom for investment and
12:00 the the guys who run those companies very intelligent but I try to make my
12:05 videos in a way that people can't understand them because who who do I who
12:10 do I prove when I use a big word and then all of a sudden 3ars of the
12:13 audience can't understand it and if the point of me making these videos is to
12:16 make real business education accessible for everyone part of it making it
12:20 accessible is making it interesting making it fun and making it
12:23 comprehensible which is a fancy word for understandable and what you guys don't
12:27 see behind the scenes is that I will typically selfed and so I said distilled
12:33 earlier in a sentence than I said broken down for experts it because I said
12:36 distilled and I was like I have to use a different word broken down and then I
12:39 said comprehensible and then I said fancy word for understandable and so I
12:43 try to constantly catch myself in this and it's also made me a significantly
12:47 more effective leader so if I'm trying to communicate with my team I'm not
12:51 trying to say big words I don't want to impress them I want to change what they
12:54 do and so I I've taken this to such an extreme that with my books I just use
12:58 little little stick figures right I have these little drawing it's like oh look
13:01 here's a guy who's walking on a path look little apple orange big dollar sign
13:05 little dollar sign right we try to make this as simple as possible so that
13:08 people can understand what's actually going on because if you can explain it
13:11 to a third grader and this is Richard fan who said this who famous physicist
13:14 he said if you can explain it to a third grader then you understand it if you
13:17 can't you don't and you need to understand it better so that you can
13:20 break it down and so the broader the audience the broader the analogy and the
13:24 simpler the language and so I'll give you an example one element is the grade
13:29 language of the words you use the second is what visuals or stories you use to
13:33 depict them and so if I'm talking to mechanics I might use an analogy where I
13:38 relate something they understand cars to something they might not understand a
13:40 business right if I wanted to teach a specific concept if I was talking to the
13:45 same uh I was trying to teach the same concept but I was teaching it to
13:48 Realtors then I would probably use a house analogy if I was teaching it to
13:51 baseball people I would probably use a baseball analogy right and so if you
13:55 have a narrow down audience you'll increase comprehension by using
13:58 analogies that they all understand if you're talking to a broader audience
14:03 then you need to have a broader slice of the market probably a more human
14:07 experience that all of them have so if I'm talking to everyone I might talk
14:11 about food I might talk about sleep I might talk about driving right because
14:14 most people do that assuming I'm not talking to children and so you have to
14:21 match the analogy to the history of learning from the people that you're
14:27 trying to communicate to and this is what takes your marketing and your
14:30 advertising and puts it on steroids and to put this to the test this is
14:35 something you can do right now look at whatever emails you send run them
14:39 through a reading grading level app keep working on it until it's below
14:43 fifth grade minimum third grade if you're awesome and then send it I did
14:48 this to our email follow-ups and had a 50% increase in conversion I didn't
14:53 change anything about what I said but I saw that as I got 50% more people to
14:58 understand because the goal here is to decreas increase the friction of
15:01 comprehension so if we think about the elements of value speed ease time delay
15:07 these elements are all impacted by complexity and so something complex
15:11 takes longer to understand it takes more effort right and so and it's harder
15:15 right and so instead what we want to do is say okay how do I make it easy and
15:21 faster okay well then I'll just speak in a way that everyone understands the next
15:26 massive growth lever is proof over promise all right and so with this means
15:31 is that in my earlier days I would spend so much time on my promise right and I
15:36 wrote a whole book on promises which is basically offers right and I would
15:40 obsess about the offer but and the offer is super important but the only thing
15:45 that's more important is proof all right so let me give you two hypothetical
15:48 examples let's say that you've got business one that's selling Thing One
15:51 and business two that's selling thing two well let's say they still compete
15:56 for more or less the same audience and business 2 says we'll do X we'll do y
16:00 we'll do Z we'll do W and we'll guarantee X Y and Z right and you look
16:04 at their reviews and they've got a five-star rating and they've got one
16:10 review the other company says we'll do X and they've got 11382 five stars and they've got a
16:18 4.7 who do you buy from this guy obviously but why this guy has a better
16:23 promise because you believe this guy and so you want to have proof up to your
16:29 eyeballs proof is your single highest EST priority as a business owner or
16:33 marketer or Advertiser or promoter for your business it is the one thing that
16:37 you prioritize before I enter any new space launch a new product the first
16:40 thing that I do is try and get beta users I work for free in exchange for
16:45 testimonials reviews and feedback and sometimes referrals if I'm lucky but in
16:50 the beginning that is the highest most valuable thing that you can do so people
16:55 will say things like never work for free and you only hear that from people who
16:59 don't make that much money if you make a lot of money you will know that you
17:03 spend so much time in the free phas because getting the product right is so
17:07 important is such high leverage and so the proof process both makes you
17:13 convicted because you get the opportunity of many feedback loops to
17:17 make your product better so that you then can collect the positive feedback
17:21 that you can then advertise to get more people like those customers and the most compelling way to
17:30 advertise anything is show don't sell and if I just stand here and said
17:33 nothing and I said and I just stated the facts and told the truth and I said I
17:39 have 11382 reviews and our average review is 4.7 and I make pasta really
17:52 good and then or I have one review from my mama and I make super fragile
17:58 calistic X docious pasta guaranteed which which one do you like better
18:03 obviously this one you don't need to say much more the proof is the pudding the
18:08 most important part of a message is the messenger themselves they're
18:12 inextricably linked from the thing that's being communicated and this is
18:15 what people seem to miss when they're making content which is why I'm a big
18:20 advocate of do epic stuff first then talk about what you did and if the stuff
18:24 that you didn't do is epic focus more on the doing epic stuff not on the talking
18:29 about it and so I started this channel uh with a commitment to a vendor saying
18:33 I'll make three YouTube videos a week and I was busy and I was like I'm just
18:35 going to hit a webcam and I'm going to talk to the camera and that is how this
18:40 channel was started and the only reason in my opinion that people decided to
18:45 listen was because I just so happened to have sold a company for just under $50
18:50 million and so because of that there was proof that I was able to deliver on the
18:55 promise whereas somebody else might have a totally beautiful studio and have all
18:59 these things but they just forgot the one most important thing which is why
19:03 should I listen to you and so it either is going to have to be proof that you
19:06 generated for yourself or proof from other people saying that you help them
19:10 achieve that thing if any of these growth principles help you in thinking
19:14 about your business differently so that you can scale faster or you need to
19:17 sendage your team it would mean the world to me if you shared it um that's
19:21 my only ask and appreciate it so the next big thing is the hook now you're
19:26 like okay I've heard about hooks before not the way that I'm going to talk about
19:30 it all right so so the hook is greater than everything now you're like wait a
19:33 second I thought proof was greater than everything well the proof is going to be
19:35 contained in the thing but no one's going to see the proof unless you have a
19:39 good hook all right and so the one thing that I think has consistently been
19:42 reinforced and it's just like a greater and greater percentage of my time is
19:46 allocated towards this one part of my advertising that grows my company the
19:52 most is I search for the best Hooks and then I don't convince myself that I'm
19:55 more creative than I think I am and I just keep using the ones that work so
19:58 think about it like this these are the only four things that you can do to
20:01 advertise any business you can warm Outreach so reaching out 10 one to
20:05 people you know cold Outreach reaching one one to people you don't know you can
20:08 run paid ads which is going one to many to people you don't know or you can post
20:10 content which is one to many to people you do know and in each of these four
20:17 situations you can double triple 5x the amount of people who open and respond
20:23 who click and watch your ad who uh watch your content all the way to the end and
20:26 if you do something like that and you do increase the clickr rate by go from 1% %
20:31 to 5% or 2% to 10% which absolutely can happen when you do that you in a very real way can 2x 3x 4X
20:41 5x your business with just that one thing remember I talked about earlier
20:45 that advertising is a boom it's it's an order of magnitude change well what
20:52 other one thing can you just tweak that then opens up the flow to the entire
20:56 business based on how good the first five seconds are or the first one second
21:01 and so in thinking about hooks I think about both the visual hook as in what's
21:06 happening what that people can see and then there's the auditory or or verbal
21:09 hook which is what are the actual words that are being communicated and we have
21:14 right now we reviewed our top YouTube videos of all time and I made a video
21:17 about six months ago saying what we found which is our hook formula is proof
21:25 promise plan and so if you have the opportunity to make content make make
21:31 ads run cold outbound if you can include these I can almost guarantee that you
21:35 will do better than if you include none of them and this is a force multiplier
21:39 on any kind of advertising you do and so when I think about like all the
21:42 different things all the effort that goes into advertising a business if I
21:46 can just do one thing and the crazy part about hooks is they're the shortest part
21:50 they're the shortest part of the whole darn thing and this is where David Ogie
21:55 says if you have written your headline you've spent 80 cents of your
21:58 advertising dollar the more advanced the advertis is that I meet whether it's a
22:01 content creator somebody who's on outbound somebody who makes paid ads the
22:06 more obsessive they are on the first frame the first impression that someone
22:11 gets because they know one it increases the likel that the person's going to
22:13 watch the rest of it and then potentially buy and then two it changes
22:18 their entire perception of what follows so we actually looked at this uh for
22:23 speakers at an event which was if we change the intro the the one to two
22:28 minute intro that we had for a 60-minute talk talk the person's net promoter
22:32 score so what people rated them in terms of how good they were changed massively
22:38 even though the actual presentation was the same so simply how we framed the
22:42 presenter the person that even gotten up on stage yet changed how everything they
22:47 did afterwards was perceived and so if there's two minutes that can influence
22:51 the score that you get the customer satisfaction the amount of prospects the
22:55 one thing to focus on is nail the hook let me show you the force multiplication
23:00 of this we just started reviewing uh short form content on the content team
23:03 and just doing a more regular activity of saying like what are the things that
23:07 make uh content do well and there was a video that we were like we think this
23:11 thing is good and so all we did is we took the same video that got like 40,000
23:15 views and then we just chopped out the first three seconds that was kind of
23:19 like getting into the into the video before the actual real Hook was
23:22 delivered and by snipping those three seconds and then just starting where the
23:26 hook really was it went from a 40,000 view video to a 780,000
23:31 video so you're talking about a 19x Improvement so I'm talking about you
23:35 know 1% 2% I'm talking 19x that is why obsessing over the Hoke
23:40 is so important so the next big growth lever that gave us the super fast growth
23:46 was more so I talk about more better and new as the three primary
23:52 strategies of growth you either do more of what's already working you do what
23:56 you're doing to make it work better or you do something entirely new now most
24:00 entrepreneurs love doing new stuff and that's why it's called shiny object
24:02 syndrome and it's a Cancer and you should get that looked at but the very
24:08 boring answer is the mundane more you have to master more and it's going
24:13 instead of zero to one which is what most people love doing oh my God I
24:16 finally got it to work but actually doing one to end which is how do I do as
24:20 this thing as many times as seemly possible without wanting to kill myself
24:24 and so here's the actual math explanation of this more is typically
24:29 the highest risk adjusted turn strategy all right and so what that means is if
24:35 you can do something and you already know it works the likelihood that the
24:40 next thing you do works is much smaller and so this is why once you have a
24:45 control meaning you have um a specific landing page or ad or copy or email that
24:51 you know converts whenever you deviate from a high converting advertisement the
24:55 likelihood that the variant is going to beat it is typically low and so you have
25:00 to try a bunch of variations cuz all you're doing is messing something up
25:04 that actually already works if you had one sales guy and he's closing at
25:10 30% well you could try and obsess to get him to 35 or 40% and that would be
25:15 material you know get a 25% lift overall 30 to 40% to 25% Improvement but you
25:20 know what would be even cooler just hire three more guys and then you have a 4X
25:26 or a 300% Improvement and so it's like I could get a 25% Improvement or I could
25:30 get a 300% Improvement and me trying to change up the sales script also has a
25:34 significant shot of me taking it from 30 down to 20 because it's a change and so
25:39 here's the thing is that when you change anything you guarantee you incur the
25:44 cost of change but you do not guarantee that you get the benefit of change and
25:49 so in each of the core four methods you do more Outreach which is cold or warm
25:52 you go from 100 reach outs a day to 200 reach outs a day paid ads you go from
25:55 $100 a day to $200 a day you go from posting content you go from posting once
25:59 a day to twice a day right those are how you do more and when I talk to the most
26:04 experienced advertisers that I know the most experienced business people that I
26:08 know the most common theme we talk about is we kind of laugh in the back room of
26:11 like if people just people just don't know how much more they can do that's
26:17 that's honestly the real that's the real is that when I when I when I have
26:19 conversations with small business owners they're like hey I don't think I can do
26:23 any more uh ads you know I'm running I'm I'm already running $1,000 a day I'm
26:27 like I mean dude there's businesses that run like two million a day and so you
26:31 usually have so much more Runway than you think you do and sometimes you just
26:35 need someone ahead of you to be like dude you can like 10x this and nothing's
26:39 going to change but they think because of whatever mental limitation they have
26:42 are like you've never spent that much money on on an ad before you've never
26:45 made that am is it goingon to hurt my account no they want you to make good
26:49 content is it going to hurt my ads no they want you to spend money is it gonna
26:52 is it going to hurt my my you're going to people who've never met you before so
26:55 why would they know that you've sent it to another 100 people right is that
26:59 there's this these perceived fears but most of the times it's just between your
27:02 ears I'll tell you guys a quick story about this so when I had my first I
27:07 would say real business uh which is my first location of my first gym I had a
27:11 mentor and he was a really good local marketer and so he had a strategy for
27:16 his tning salons where he would bring in I mean thousands of customers every
27:21 single uh every single quarter and what he did was he would put out flyers he
27:24 just put flyers on cars and then had like a you know free VIP gift card and
27:27 people would come in redeem them you flip them into memberships and so I
27:31 figured okay I'll just run the same play and so I did the Flyers and I put 300
27:37 Flyers out and I waited by the phone being like Oh my God I'm going get 300
27:41 people in here it's going to be sick and what happened well my phone only rang
27:45 once from the Flyers and when I picked up the phone uh the guy was like hey did
27:49 you put the flyer on my car and I was like yeah I did I like what time you but
27:53 he cut me off and he was like you damaged my Mercedes and I was like click
27:59 and I I didn't know what to do um and as soon as i i i i and thankfully he never
28:02 called me back because I definitely had didn't have the money to fix any
28:07 Mercedes at that time um I called uh uh my mentor back up you know a week or two
28:11 later once it was clear that no one else was going to call I said he said hey
28:14 how' the Flyers work out and I was like well they didn't work out at all
28:17 actually you know I was like taking some attitude with him he was like oh what
28:21 was your test size and he like he didn't take the bait he was like oh what was
28:25 your test size and uh I said well what do you mean he was like well like what'
28:28 you test with before you like did the real campaign and I was like oh well I I
28:34 mean I put 300 out and he was like 300 he's like you can't know anything with
28:38 300 I was like what do you mean he's like I test with 5,000 he's like and
28:45 then we put out uh 5,000 a day for 30 days and so I was looking at his results
28:54 from 150,000 Flyers over 30 days and comparing them to my results of 300 in a
29:02 day and once I saw that ju to position I was like got it I will never make this
29:07 mistake again it was very embarrassing for me because I was on the right path I
29:12 just didn't do enough and so one of the big metal lessons of this is that what
29:18 presents as volatility is typically a symptom of low volume so if you're like
29:23 man I only get like you know a sale every week or every other week it's kind
29:26 of like you know it's you know most days I don't get a sale and then every once
29:28 in a while I get one it only appears volatile because you're
29:34 doing so little per day but if I looked at your year and saw that you closed
29:38 about let's say 12 customers in that year you closed one a month for example
29:42 every every three or four weeks you get a customer well all I would do is look
29:46 at your entire advertising activity for the year and say okay if we wanted to
29:51 get 12 customers a day we would have to do 365 times more advertising than we
29:55 currently do and if we did that on a daily basis we would get 12 customers a
29:59 day and so you just take your to calendar horizontally and then you flip
30:03 it vertically for a day and that is how much volume is required and so most
30:06 people just think that it's like oh they're they can't be doing more than
30:10 like twice as much as me but in my experience the people who are crushing
30:13 it literally are doing a thousand times more than you and that's the part that
30:17 like until you sometimes you hear it or you have someone ahead of you say it it
30:20 doesn't become real for you and it's why I make these videos is to try and like
30:23 push as much you know out of out of my brain and and history so that you can
30:28 just get the story without the scar um and that's and that's that's the whole
30:32 point okay so once you're like okay I have something that's working I should
30:35 just do way more of that awesome well the next thing the next power lever here
30:40 is word of mouth and it's not the way that you think so Word of Mouth people
30:44 are familiar with referrals you know customers uh tell other customers or
30:48 other prospects that your stuff is good but what a lot of people don't
30:52 understand is that negative word of mouth is significantly stronger and
30:58 faster than positive and so Disney did this big study where they found that it
31:01 takes 37 tragic moments to make up for one magic moment and versus uh there's
31:09 basically like a 5x versus 37x on uh if someone has a good experience they tell
31:11 five people if someone has a bad experience they tell like everybody and
31:17 so a new business owner often will get customers pretty cheaply and then all of
31:21 a sudden costs start going up and part of the reason that costs go up faster
31:24 because you can actually put math to this which is understanding the
31:28 difference between CPM which is cost per impression um and it's like why is it m
31:32 it's mil which is French for thousand so it cost for thousand Impressions um
31:37 versus CPL which is cost per lead all right and so if your cpms more or less
31:43 stay the same but your cost per lead has 2x or 3x or 4X well if it's not costing
31:49 you more to reach those people then it means that fewer of them are responding
31:54 and if that's the case and you're just going to still relatively warm markets
32:00 then the issue is that instead of having positive word of mouth working for you
32:04 we should be actively lowering the amount of cost that it takes to get a
32:09 new customer you have Word of Mouth working against you and so people who
32:14 would otherwise purchase from you heard something negative and then choose not
32:17 to and so now all of a sudden you have to reach three times the amount of
32:20 people because two out of the three people who would have gone and bought
32:25 your thing heard it was bad and then now you only have one person who's just
32:28 heard nothing and so over time the percentage of the audience that's
32:31 neutral or hasn't heard of you gets smaller and smaller and smaller and so
32:35 it's way harder to grow off a word of mouth that's positive but it's really
32:39 easy to get crushed on negative word of mouth and for whatever reason no
32:43 business owner ever claims that they have negative word of mouth but I can
32:48 tell you half of you are below average that's a fact and this is why I
32:53 emphasize the proof over promise earlier on so much because if I'm going to get
32:57 negative word of the mouth which I know I am if I'm starting out I want to keep
33:01 that as concentrated and quiet as possible I don't want anybody to know
33:04 right and so of course I'm not going to charge the money because the last thing
33:07 I want to do is also have their money when they're upset right so it's like
33:10 hey I'm making this trade you're going to get stuff it's probably going not be
33:13 that good my only ask is you give me feedback right tell me how I can make
33:17 this right tell me how I can make it better right and when you ask those
33:19 types of questions you get the types of answers that can ultimately create more
33:22 value for the customer and then once you get positive feedback positive feedback
33:26 positive feedback now you have something that people actually want they you can
33:29 need introduce strangers to it and of course you're going to roll into the
33:32 next issue which is okay how do I keep that consistent because now it's not me
33:34 doing everything I've got a team and we'll get into that ah this is a really
33:39 good one so the next big growth lever is steel uh oh what am I what am I about to
33:43 say from yourself so one of our portfolio companies which is very large hired a
33:50 new advertising director and that advertising director had came in with
33:54 lots of new ideas and so the founder because he wanted to teach an important
33:57 lesson to the advertising director said sure let's let's do all of your ideas
34:00 and so he sat there he said the scripts he you know he he recorded all these ads
34:04 he took multiple days to do it and what ended up happening is that they ran all
34:09 the ads and they didn't work and so he said hey crazy idea what if we use the
34:14 same hook that's been working for three years and they used the same Hook and
34:19 the ads worked and so think about it like this Nike on its second year after
34:25 just do it wasn't like hey just do it kind of old let's switch it up it's it's
34:29 like when you find a message that converts you keep hammering the message
34:34 when you find the ad Hooks and you find the the the processes that work well for
34:42 you most times you'd be better served just continuing to reuse it because you
34:45 will get bored of it far before your customers ever do so believe it or not
34:50 there's actually math to support this so uh Sergey brenn and Larry Page I can't
34:53 remember which one of them uh is like a brilliant mathematician and actually was
34:58 able to prove this ratio out and so when you're stealing from
35:02 yourself you want 70% of all of your effort to go into basically carbon
35:06 copying the thing that works and this works across all functions this works
35:09 for a sales script this works for product this works for reinvestment
35:14 activities like this rule works the second is adjacent so something that's
35:18 just like one degree removed right so it's close to the core of what you
35:22 normally do okay so instead of saying uh starting a school Community is the
35:24 fastest way to start an online business right I could say that would be a hook
35:28 and it's a hook that worked I could say um one of the fastest ways to start an
35:31 online business to start a school Community right that would be a
35:33 variation of something that we knew that those words worked but it would be
35:36 adjacent to it not the exact carbon copy but similar now 10 is that means that
35:41 one out of 10 of the things that you're putting your effort towards all right
35:44 would be something that's brand sping new completely you know out of left
35:49 field and when you look at your effort in your business I can almost guarantee
35:55 you that you have this flipped and I only say this because uh I speak from
35:58 experience um is that this is what I would do I would spend 70% of my time on new crazy
36:03 things new ideas all the stuff that excited me and then 20% I'd be like oh
36:08 yeah um I'll do something kind of different from what I was doing before
36:11 and then 10% I'll be like fine I'll I'll maybe and this is this is a maybe most
36:14 times like oh I already use that use that Hook Once I don't want to use it
36:17 again I don't want to use the same hook that worked before in another
36:21 ad it's silly also a different version of uh this from an advertising
36:24 perspective of the 20% is you use the exact same hook you have a different
36:27 background so it's uh just like a different variation so it's like I could
36:29 wear a different shirt I could have a different setting and I could still
36:32 deliver the same hook and to me that would still be kind of a a 20% variation
36:36 all of your competitors are copying your stuff and taking what's working when you
36:42 find something that's Works keep doing it deviation from what works is more
36:47 likely not to work think about it like this if you demolish a building so let's
36:51 say we build a building and it takes us two years to build a building right
36:54 there's our building took us two years demolishing it might take five minutes
37:00 just put a bomb boom because the place of the bricks and the steel in that
37:05 building every other potentiality that those bricks could go to create not a
37:09 building but there's only one placement of that brick in steel that creates a
37:13 building and so you have unlimited options for Destruction and only one for
37:17 solution and so when you do find something that works the likelihood that
37:20 when you change it and you move the brick and you move the you move the
37:23 scaffolding that you destroy the building is very high something can
37:26 literally go anywhere except for the right place and so you can have have
37:30 more options and all of them be wrong so once you're done stealing from yourself
37:36 then let's talk about emotional versus logical buyers this was a huge like
37:42 monstrous increase in business for me so have you ever heard from from the
37:46 marketing world there's logical and there's emotional buyers I had heard it
37:49 growing up and I kind of repeated it over and over again because I hadn't
37:52 really thought about it I don't actually think that's true and so let me explain
37:57 I actually think that there's a Continuum of buyers that people sit on
38:01 and you've got people who require more information so they're high info buyers
38:05 and then you've got people who require less information and there's two
38:09 elements to this one is their information requirement and secondarily
38:14 how much info they have received and so you could have a high information buyer
38:17 that's further closer to this little this dollar sign here that only needs a
38:21 little bit more information in order to buy and then you have some people that
38:25 just generically buy lots of stuff and everybody loves those people of course
38:28 but guess what everybody fights over those people and so the thing is is that
38:32 the amount of low information buyers is like this the amount of high information
38:38 buyers is an order of magnitude or multiple orders of magnitude greater
38:43 only crazy people buy immediately it's very normal for people to want to have
38:46 more information before making a decision and so when we think about our
38:51 advertising the reason that the direct response Community typically can't grow
38:56 very large businesses most of the time is because because they only advertise
39:01 to these people and this pool of buyers is significantly smaller but the reason
39:05 building a brand for example and investing in an audience is because
39:09 you're trying to move them down this line now when I heard this in the
39:13 earlier days of my career I was like I don't have time for that I need to make
39:17 money I get it sure in the beginning you just advertise the the six-inch putts
39:21 but when you want to scale you have to educate a higher percentage of the
39:26 audience because they will require more to buy the way to move people through this is
39:33 something that Eugene Schwarz uh pioneered in his book breakthrough
39:38 advertising and he talks about the five levels of awareness so he has unaware
39:42 people so people have just no idea about anything uh the next is problem aware so
39:48 they have some sort of pain you have solution aware you have product
39:57 aware and then you have most aware Okay so so those are the five stages now a
40:01 customer will basically move in this direction going from unaware to most
40:06 aware and if you want to go to broader and broader audiences to get their
40:11 attention the unaware audience you typically have to go off of broad
40:15 curiosity and so if you've ever seen those crazy like ads that are like weird
40:19 articles like you know Arizona State blah blah blah has this new blah like
40:23 they're trying to go after a massive audience of people who have no idea
40:27 what's going on that new you know scientific breakthrough could lead you
40:30 to buying a supplement it could lead you to buying uh a weight loss thing it
40:33 could lead you to buying some sort of equipment it could lead you to buying
40:36 Insurance like it could go in any direction but it's the Curiosity that
40:41 gets them in problem aware would be something to the extent of like do you
40:44 wake up to pee three times a night does it hurt when you bend over to tie your
40:47 shoes do you get out of breath when you play with your kids those are going to
40:51 be problem Weare now they again that could lead you to a supplement that
40:54 could lead you to insurance that could lead you to whatever but it's a slightly
40:58 more Weare person at least they're problem aware solution aware is that
41:03 somebody knows of the potential things that they could buy and you're helping
41:07 them select between them product aware is at even more micro level and most
41:11 aware is typically your existing customers so here is where you just make
41:16 offers right this is why the book offers is where I started because the people
41:21 who are here is the tiny audience here and so you just make an offer to get
41:24 them to buy but that only works for this tiny audience so you will make money
41:28 quickly doing that but you will also cap yourself quickly in an effort to figure
41:32 out okay well how much should I allocate between these most aware less info
41:37 people and the maybe problem unaware High information people who require more
41:41 education in order to make a purchasing decision well I had one of the most
41:45 enlightening conversations I've had in a really long time uh with Ben Francis
41:49 who's the CEO of Jim shark and then he introduced me to Chris Davis who's the
41:54 CMO of New Balance and so we had an awesome conversation talking about what
41:57 Chris had done at New Balance and help them just Skyrocket their sales and so
42:03 what they did is that when he took over 30% of their advertising budget was
42:08 going to here was going to the broad awareness level storytelling emotional
42:13 stuff and then 70% was basically geared towards buying shoes saying hey go buy
42:17 these shoes what he did when he took over was that he flipped them that he
42:23 ended up with 70% going to Big highlevel pairings endorsements uh specific
42:27 athletes that they wanted to recruit recuit that they felt represented their
42:31 brand and only 30% of their advertising budget went towards actually telling
42:35 people that they had shoes and that they were for sale and so after he made that
42:41 flip here's the crazy part it took 18 months for them to see the return on
42:47 that budget and so if you're in a rush this isn't going to work but if you're
42:50 in a rush you're never going to get big anyways keeping this ratio made this
42:56 concept Tactical for me and so when I think about my marketing effort my
42:59 marketing dollars and most importantly how I measure it my marketing
43:03 Impressions I want to make sure that 70% or more of the advertising Impressions
43:07 that someone's going to get are going to be around the pairings that I want of me
43:11 giving something rather than asking so when we look at this ratio this is
43:16 actually super well studied between 70 and 30% here because right now uh it's
43:22 actually three and a half to one is the ratio that has been studied 3.5
43:28 to1 of give to ask to basically not lose audience and so if you look at television for
43:35 example and they've already studied how many commercials can we jam into the
43:39 show before people stop watching and so they figured it out that it was every
43:43 three and a half minutes of content they could basically put one minute of
43:47 advertising in if you look at your Facebook Newsfeed for every three posts
43:51 you get when you scroll you'll get one ad and the platforms that grow the
43:56 fastest have a larger percentage of this give and a small percentage of ask Tik
44:00 Tok for years had zero ads on the platform and just wanted to grow as
44:04 virally as possible and they acquired more users because they had a give first
44:08 give all the time strategy and so the fact that they settled on this ratio and
44:13 it has been corroborated fancy word for it it's worked in multiple other places
44:18 made me think wow there's something to this and so this makes this concept of
44:23 how do I balance High information buyers people that need more brand people that
44:27 need more education prior to purchase with me making money is that you
44:31 basically start with that ratio add patience in time and then it becomes a
44:36 snowball that compounds unto itself and then you will get to a point in the
44:39 future where you still you're doing so much more than you could ever possibly
44:44 do if you only focused on the direct response on the less information but
44:48 you're actually still digging the well for what you're going to do next year
44:51 and so basically you can see when a Founder stops running a business and
44:54 then the corporate execs come in because what they do is they flip the ratio they
44:58 basically pull pull forward demand from the future they you had the the the
45:02 founder dug the well and then they just suck all the water out of the well but
45:05 then they didn't dig the next well and so you always going to be ahead of
45:08 demand I'll give you even more tactics if you guys want more TCT fine I'll give
45:13 you more tactics so B2B businesses and B Toc businesses do this differently and
45:16 this was something that took me a really long time to figure out and so B Toc
45:20 businesses so like business to Consumer businesses will typically do these types
45:25 of pairings in terms of high information buyers by telling emotional stories
45:30 making associations getting endorsements from athletes and influencers or
45:34 organizations that represent the values that they think resonate positively with
45:38 their ideal audience and once they do that they then can place the product
45:42 next to those associations so that they can then pair them and then the person
45:44 wants to buy the product as a consequence that is what it looks like
45:49 in a b2c business but it took me a really long time to think through well
45:52 what does this look like for a B2B business and so I break this down into
45:58 several tactical things so number one is aspirational outcomes that you have
46:03 achieved or the business has helped facilitate secondarily people like this
46:08 person like your avatar that you have help facilitat so just to be clear stuff
46:11 that you did stuff that you help other people do the third is stuff that you
46:17 help them do the prospect themselves which you can only facilitate at least
46:21 in my opinion in two major ways one is that you give them free content and
46:24 education which is why I make this stuff and the second is that you give them
46:26 free products and services which just why why the books are free they're on my
46:30 site you can read them you consume them there's a scaling road map there
46:34 personaliz all that stuff is free because fundamentally it's two degrees
46:39 of separation if some person does it Alex had a big exit now he's a big
46:42 portfolio cool that's two degrees of separation there's other companies in
46:46 the portfolio or other businesses who look just like mine that he helps scale
46:51 one degree separation I used his stuff and made more money zero degrees of
46:54 separation and this is always going to be stronger than anything else but it'll
46:59 take longer and so in understanding the difference between B Toc and B2B in
47:03 terms of what do I do top of funnel here how do I allocate my resources it means
47:07 that I'm spending time putting together the course in my spare time so that you
47:11 guys can go consume it on uh how to make offers how to get leads how to Scale
47:15 company from Z to 100 million like that's time that's effort that's my team
47:19 who's behind the camera right now that's budget that goes towards that because
47:23 I'm not looking for demand today I'm looking for those of you who are going
47:26 to scale your companies and in 5 years hit me up let's say acis.com went public
47:30 tomorrow and I got AED for being rude which I probably would and then they put
47:34 in a new CEO and that new CEO says I need to hit quarterly earnings so what
47:37 would he probably do he' probably switch to lots of direct response uh and he'd
47:41 probably cut down all the budget on the gives and the books and all of a sudden
47:46 be like well there's no Roi In A Book Like books don't make any money it's
47:51 like yeah not today but they bring people into our world and when they do
47:55 have the next billion dollar company they will hit us up first
47:59 and that's the goal but that guy will just say well you know what screw all
48:02 that I'm going to recapture all this marketing spending effort we're going to
48:05 focus it all on these direct response ads tell people to buy bye byy and you
48:08 know what for a quarter it'll work maybe two quarters it'll work but all of a
48:11 sudden it'll start slowly going down slowly going down slowly going down then
48:14 what happens they call the founder back up and they're like hey help help help
48:18 us fix this and then the founder is going to say I can't do it in a quarter
48:21 like it's going to take me a year year and a half to basically right siiz the
48:25 ship because you sucked all the wells dry and I'm gonna have to start digging
48:28 again so the next one is some of my marketing laws so I'm going to give you
48:30 a few of them and I'll start with the first one that you if you've heard my
48:33 channel then you should know this one it should be ingrained in your brain which
48:37 is State the facts and tell the truth and the reason this is so important to
48:43 me is that it forces me as a Advertiser business person to change reality and so
48:51 rather than try and exaggerate it makes more sense to put all of the effort into
48:56 doing epic stuff and then telling a truthful story rather than telling an
48:59 epic story about something that was underwhelming and I think the vast
49:03 majority of marketers and marketing do the second thing they have something
49:06 normal and then they TR try and tell an exaggerated story of it rather than
49:10 having something absolutely insane and just stating the facts and telling the
49:13 truth and I can tell you that the second this one stating the facts and telling
49:17 the truth is the best long-term strategy and so how do I actionized this all
49:21 right so number one is that we make the truth more compelling all right we
49:24 actually change reality the second is that we show only what we can show
49:28 and so I remember I was talking to a martial arts guy and he's like there's
49:32 all these other martial arts studios you know in my area how do I stand out and I
49:36 said well what's your you know what's your specialty or whatever and he said
49:39 I'm a double secret black belt of something and I said okay well how many
49:42 double secret black belts he's like well there's only six in the nation and I was
49:44 like okay well do any of them live in your era and he said no I was like well
49:49 why don't you say that right why don't you say that so every business if you
49:53 get narrow enough has something that's unique about it you might have the best
49:57 parking you might have uh the fastest you know introduction to getting
50:01 somebody to sit down you might have the most gyms you know whatever it is the
50:04 most customers the most customers at a certain price point the most like you
50:07 just need to slice the data of the business to figure out what is unique
50:10 about your business and I remember this moment in uh Madmen which is a an
50:15 advertising show it's like an old 50 show well it's a new show about the 50s
50:19 anyways and Don Draper who's the lead character who's an advertising guy um is
50:23 pitching a client who's a cigarette company and they're trying they're like
50:27 the third or fourth in the category highly commoditized they're competing on
50:32 price and they're losing and so he asks them to explain how cigarettes are made
50:35 and they kind of roll their eyes they're like why is this important he's like
50:38 okay well first we have the plants then we take and he keeps going through it
50:41 he's and he's like and then we you know we let we let it sit out in the sun he's
50:44 like what do you mean he's like you know to to to dry out the leads he's like so
50:49 you toast them he's like yeah we toast them he's like it's toasted and so that
50:55 was a unique part he just sliced down and got really narrow about one particular part of the process
51:00 and was able to pull that out and emphasize it so that people are like oh
51:05 this is different than other things and the really important part about this is
51:08 that maybe some of the other cigarette companies also toast it but they don't
51:13 say that they toast it and so the perception is still that it's different
51:18 even if it is the same and so the best version of this is finding something
51:21 that's truly unique the second best version is to just say something that's
51:24 unique about something that everyone else already does but that your
51:27 customers don't know and so the the correlator to that is say
51:32 what only you can say so you show what only you can show and you say what only
51:36 you can say so the showing part is going to be like okay with the toasting thing
51:40 how do we display that visually with the super secret blackp then how do we
51:43 display that and you could show the black belt you could show you shaking
51:45 your hands getting the certification you could show you winning some tournament
51:48 right if you're if you're toasting you could show the bed of all the the
51:51 debacco that's getting toasted and the smells and the wafting through the air
51:55 whatever right and then you describe it in a way that only you can say
52:01 and so to do this you get narrower to be more unique and so the thing is is that
52:04 you don't need to be the best in the world you need to be the best in a
52:08 puddle it's more important that you are the best than what you are the best of I
52:14 would rather be from a marketing perspective not absolutely I'd rather
52:16 have the 10th biggest company in the world right than the first biggest
52:21 company uh in Indiana but from an advertising perspective it is more
52:25 compelling to be the best and I'll tell you a story that I haven't told
52:32 um John Rockefeller when he uh was early on in his oil Empire bid to buy the biggest oil
52:41 refinery in Cincinnati and he was the second biggest and he ended up
52:47 overpaying for the business and the business owner of the oil refinery
52:50 laughed at him and kind of laughed his way to the bank he's like you completely
52:54 overpaid for this thing and so then what John D Rockefeller did after he bought
52:58 the second the the first biggest and he already had the second biggest is that
53:02 he then was able to say he was the biggest and then in the next 30 days he
53:08 had over 20 m&a deals in the next 30 days to consolidate the entire rest of
53:13 the market because he became the Gilla and so he was willing to overpay
53:19 for the asset to get the story the difference in value between what he
53:24 should have paid for those 20 deals and what he was able to pay by strong arming
53:28 those smaller competitors because he was now the gorilla more than made up for
53:33 what he minorly overpaid or maybe even majorly overpaid for the one company
53:36 that he bought and when he recants the story when he tells the story again he
53:42 talks about how that competitor didn't see the bigger picture and that was
53:46 always it was such a I remember reading it in in the letters that he wrote to
53:51 his son and thinking to myself that is powerful he was willing to overpay for
53:56 the story he saw it as an investment in his brand in his reputation and so the
54:01 guy who sold it just saw it as him overpaying for a product but he wasn't
54:05 appropriately valuing how much true brand value that would give Rockefeller
54:10 as a result the next big growth lever is all about the list all right so when I
54:15 talk about the list people immediately think that I'm talking about email list
54:18 Direct Mail list and sometimes that's true but I'll give you a hypothetical
54:23 example so let's say I am selling winter coats and I advertise an amazing offer
54:29 on some killer coats that people love they look amazing and nothing comes back
54:34 well what could have happened well if I showed my advertisement to people who
54:38 live in South Florida the likelihood that they buy my very expensive really
54:43 heavy and hot winter coats is very low it has nothing to do with my offer
54:46 nothing to do with the ad creative nothing to do with my pricing nothing to
54:49 do with anything it's just the wrong people are seeing it and so many smaller
54:56 businesses think that marketing doesn't work work when in reality they were
55:00 showing to the wrong people and so the first thing that you have to get right
55:04 in marketing is targeting the correct audience and so this is different by
55:11 method of advertising and so if we pull up our core four here you want to reach
55:15 out to people that you know are suffering from the problem that you
55:19 solve or have a high likelihood of suffering from the problem that you
55:22 solve and the narrower the problem the smaller the list from a paid ads
55:26 perspective this is where the target targeting by platform gets more
55:29 important and this is why some ad platforms tend to be more profitable
55:31 than others because what makes an advertising platform successful is how
55:36 well targeted is in fact Facebook was so good that they had to roll it back
55:39 because of privacy loss but it was so effective at targeting people that
55:42 people complained because it was so good it felt creepy posting content this is
55:47 where the algorithm itself based on this is what's crazy what you look like and
55:52 how you talk and what you say will impact what the AI serves your content
55:58 to the same works with paid ads and so if I want to get more women to buy a
56:04 product guess who I'm not going to have in the ad me because this is not what
56:09 attracts lots of ladies right this is just usually a bunch of entrepreneurs
56:14 who T have beards and like Fitness or whatever else right but like my audience
56:20 is like 89% male and sure for for my 11% females keep rocking I appreciate you um
56:24 but by and large I have a male driven audience now maybe it's because I talk
56:27 about money but there's tons of female entrepreneurs who talk about money and
56:31 don't have predominant male audiences and so it's just that my way of saying
56:34 things and or the algorithm just tends to display it to dudes and so one of the
56:38 easiest ways to make sure that you're displaying your ads to the right Avatar
56:42 is make sure that the person in the ad looks like the Avatar and I'll tell you
56:48 a funny story so when I was running the gym launch 1.0 version which is where we
56:51 used to fly out to gyms and do the turnarounds I found out that when I put
56:55 the thank you page this is before automated schedulers even existed so
56:58 it's kind of wild all right um I remember when I my first automated
57:01 schedule to put on the thank you page I thought I had like i' i' cured cancer I
57:04 was like this is the coolest thing people can automatically book like I
57:07 don't have to call them and work the lead um and so anyways the thank you
57:13 page that I set up uh was just like hey text this number and then the second
57:16 version of the thank you page was hey my name's Alex I'm going to be calling you
57:19 so I put a picture of me and I said I'm going be calling you from this number so
57:24 I tried to put some visual to it then when I put Lela picture on the thank you
57:27 page and said Leila is going to be the one contacting you what do you know our
57:32 response rates went through the roof people were immediately responsive they
57:34 were showing up to appointments they were oh yeah sure I can make five o' for
57:38 me they're like oh no I don't give a right and so if you want to attract a
57:43 certain Avatar try to make sure that uh what is in your content how you talk uh
57:47 matches the way they talk because fundamentally all marketing works as
57:53 long as you get the targeting right it's like think about this way if you walked
57:57 into room this is how I like to visualize marketing because people
58:00 people over complicate it if I walked into a room and I got on stage and there
58:04 was a thousand people in the room if those thousand people were my deal
58:08 customers then even if I had just like a really mediocre offer and uh a something
58:14 that they like kind of wanted I would get some response now it might not be
58:18 efficient it might not get me the return I want so I might lose money but I might
58:22 I would probably make something right I would get some clicks I would get some
58:26 leads right and so it would allow me to start the feedback loop so I could
58:30 improve but if nothing is coming through it's typically because the wrong people
58:33 are seeing it and so one of the highest leverage ways of getting more from
58:36 advertising is just making sure that the right people are seeing it which is a
58:40 perfect transition into the next one which is how do you know that you've
58:45 mastered something which is that Masters have more ways to win now what does that
58:49 actually mean they understand the many different ways that you can measure progress so if
58:58 you were to talk to an HR professional okay and you ask them what do you do a
59:02 lot of times they're going to give you a couple vague answers they're like you
59:06 know I'll payroll and I'll uh I'll make sure that people get in their benefits
59:09 and whatever but when you talk to someone who's a master at this and I
59:12 remember the first time I had somebody who who completely improved my
59:15 understanding of talent and acquisition and recruiting um in the interview the
59:22 candidate said oh um well what's your time to fill and I was like what do you
59:25 mean she's like well the average time to fill a role I was like I don't know
59:29 she's like oh well what's your what's your two-sided fit I was like I don't
59:34 know what you mean and so she was like okay uh what's your cost uh to acquire
59:40 talent I was like I don't know and so she had all of these different metrics
59:44 that she was using to measure which completely made sense to me like I have
59:47 cost to acquire a customer I should have cost to acquire talent I should have you
59:51 know what's my cash conversion cycle how quickly do I get my first sale how
59:54 quickly do I fill a role and then in terms of like customer satisfaction
59:57 action is basically employee satisfaction of How likely is it that
60:03 the manager and the employee both say at day 90 that this is a 10 out of 10 fit
60:06 and so when I started looking at that I was like oh wow there's a total there's
60:10 a whole another level of understanding this that I I had no idea about because
60:15 Masters have a higher quality and quantity of metrics that they use to
60:21 measure progress and so if I am trying to fix this function I have nothing to
60:25 know how well I'm doing and so a beginner will try to advertise or will
60:29 try to sell and they will have binary outcomes they'll just say I didn't sell
60:32 or I did sell or I got leads or I didn't get leads but there are so many Nuance
60:38 steps between that and when you have the Milestones the progress markers it
60:42 allows you to fix things so you can keep moving the buck along until you get the
60:46 outcome and so I'll tell you a story about this so when I was starting
60:52 outbound way back in the day I it was a new channel for us and I'd never done it
60:58 and about 90 days or or or 4 months in my executive team kind of did like an
61:02 intervention so they came together I was like I was getting like a drug rehab
61:05 right they were like we think this is a problem we think this is a shiny object
61:09 we think you're you're distracted and we should double down on what works I was
61:12 like how dare you use my words against me right and the thing is is that
61:15 strategically I knew we needed to have a second acquisition channel for us to
61:20 sell the business and so I was like no it's because they could only see that
61:24 we'd only done one sale in four months and 100% of my time was going to towards
61:28 this but what they didn't see was all the progress that we were making and so
61:31 I had hirer degrees of Mastery in this now to be fair it was just because I had
61:34 learned it along the way but when it started it was like okay well we have to
61:37 get a list so where do we get the list so we looked at you know we bought a
61:40 bunch of different list a lot of lists didn't work one of them did we're like
61:42 okay this is a good provider and then we start you know like oh we got to enrich
61:44 the DAT so we start learning how to enrich the day then we we started
61:47 calling them but then no one was picking up and then we had to learn how call
61:50 wrapping works we get local numbers and then all of a sudden people start
61:52 picking up and then started hanging up on us and then we had to fix the the
61:55 hook in the script and then we fix the hook in the script people would a minute
61:57 but then they'd hang up on us so then we got we fix the hook and then we fix the
62:00 offer and then people would then go to the second call but then they weren't
62:02 showing up for the second call and so it's like we have to just keep moving
62:06 the buck along the way but if you looked at it two months in it's like you know a
62:10 heart surgery looks like murder to somebody from the outside who doesn't
62:14 understand the milestones and so as you master something if you don't know why
62:18 something's not working look closer look for the smaller attributes that you can
62:22 actually zoom in on and say okay well I we'll get a sale eventually if we just
62:25 keep moving in this direction and so look for directional correctness rather
62:29 than binary and so this is a perfect example of Masters have more leading
62:34 indicators to success than beginners too beginners typically look at purely the
62:37 lagging indicat they just say churn is up they sales are down revenue is down
62:40 cash collection down those are all lagging indicators you can't if I looked
62:43 at you and said increase Revenue you can't do anything if I said decrease
62:47 turn you can't do anything with that you would then have to do something else and
62:49 then the result would be a decrease in turn the result would be more Revenue
62:53 the result would be more sales and so we have to do we have to identify what all
62:57 those steps are are that are high correlates or increase the likelihood
63:01 that ultimate outcome occurs and if you like these growth principles you're
63:05 absolutely going to love the 13 years of marketing lessons that I've learned it's
