Helping Business Owners Reinvest Into Their Businesses | Ep 899

I take all that profit and I just see that as like, this is my opportunity to reinvest in the business. When the business is small, reinvestment is you. You are the reinvestment. And so that's where I'm like, okay, I'm gonna pay the, my current agency. I'm gonna pay the next agency and I'm gonna tell both of them I want them to teach me what they're doing and I'm gonna spend my own budget too. Hi John. What's up, man? Tell me about the business.

Yep.

So we help people with chronic back pain and sciatica. Um, we have an online program.

Okay. So online. Okay. Yep. And you help with back pain. Got it.

That's right.

What's revenue?

And we're doing 9, uh, 95 grand a month.

Okay. So you're doing a million bucks a year roughly.

Okay.

So you're doing a million a year. Great. So I know you're online. Are you selling via checkout page or via sales call?

We do a DM, the triage call, the sales call.

Okay.

So sell. Okay, cool. You're an online salespeople.

Okay. Yep.

Okay. Got it. And how are you getting leads?

Uh, it's, we have a million followers on Instagram.

Okay. 1 million on IG. Anything else?

Yeah. Like 200 grand on TikTok.

Okay, cool. Well, you've probably already seen the difference of, uh, the value of 200,000 on TikTok versus 1 million on IG.

Yep.

Want me to give you a quick hack to turn those, uh, TikTok people into, uh, more value? Please. Yeah. So we have found that the best call to action for TikTok, if you wanna sell higher ticket stuff, is actually make the CTA DM me on Instagram and then put the link to your Instagram.

Wow.

Okay. Yeah.

So like on TikTok, you, you get people to DM on Instagram.

I know, but you already have your whole DM team set up on, on Instagram anyway. So like it works great.

Yeah.

Cool.

All right. So that's thing one.

Great.

So what do you wanna do? What's the limit? What's, what's holding you back?

It feels like leads consistency. So we have one sales rep and two setters and I wanna get more sales reps, but it's just like one week will be filled out weeks in advance and then another week we barely get, you know, enough leads to fill up one and then we just end up pitching on every single post. So it just feels fatiguing for the, for the client. So I'm curious, do we start ads? Can we start retargeting or do we need to fix something first?

How many posts a day are you putting out?

Uh, we're putting out one post a day on Instagram. Uh, we tested two, but it's just, uh, like we really focus on, we edit it for 8 hours, we make it great. So it's one a day.

Okay. I think you can probably make more. I'll just put that out there.

Okay.

I would 100% not believe in the mythology of like there's a platform limit. There totally isn't. And that's on, and I, I, I pretty much stand by that on every platform. Like Fox News puts out one. I just looked at this, we were, we were calling up this morning, does one long per hour on YouTube. Oh wow. Right. And they do like 300 million views.

Wow.

Right. And, uh, there's a Bollywood account that gets a billion views a month on Instagram and puts out 100 posts a day on Instagram.

Jeez.

Yeah. So you have to think about it like this. So instead of, so I hear what you're saying with the fatiguing audience. I think more realistically you're fatiguing your editor, not your audience. I think they're not making good enough stuff. No, I'm being real. I think they're not making good enough stuff. Your audience has no, has an insatiable demand for value. Would you like, yeah, believe that in your core. Your audience has an insatiable demand. It will literally never, it's an endless pit when it comes to value and has almost no appetite for fluff and waste. If we have, let's imagine that this circle represents a million people. Okay. When you make a post, you're getting like 1 to 2% of your audience to actually see it. Right.

Mm-hmm.

And so if you make more posts, you'll just have more 1 to 2% that see it.

Okay.

Okay. Now where your issue comes up is that when you make your call, you know, your direct call to action posts, then it's like, goes from like that kind of thicker dot to just like an itty-bitty speck because your, your reach gets hammered. Right.

Uh, we actually do a call to action in every post, like at the end.

Yeah. That's, and that's okay. Well, it's, it's not, it's not the end of the world. Again, all that matters is like, how long is the CTA relative to the post? Right. So it's usually like, are you doing a ManyChat integration?

Yep. Yeah.

So how long is the CTA?

Like 6 seconds.

Is it, that's long. Is it prerecorded or is it like prerecorded then stapled on or are you making them native every time?

It's native, but it's the same every time almost.

Yeah. So you wanna swap out what the lead magnets are constantly.

Oh, okay.

Got it.

Right now. 'Cause like why would they respond? They already got it.

Yeah.

Yeah.

It's tough, right? So, all right. So I'm gonna write down little nuggets for you. So number 1, we're gonna go TikTok, TikTok, DMs to IG as CTA. Number 2, We're gonna make more lead magnets so that you can alternate through them. Number 3, I think more content is a good idea.

Okay.

Number 4 is I think you need to lower your time, your CTA time. So I would probably, I would shoot for like 3 seconds or less for your CTA. Cause the thing is, is it'll kill the, it'll kill the view-through rate. Right. And then that's killing the amount of reach you're getting.

Mm-hmm.

Yeah.

Okay. And you're doing comment like book or comment, whatever. And then it, it DM'd them the thing.

No, we actually do a, like for free static assessment and then we just basically say, come in for an assessment and then we book a call with the teams.

Yeah. I mean, that's also a really heavy ask. So it might be worth considering like a cheat sheet and then a triage question.

Okay.

Because I mean, like, that's like the heaviest right hook you can do.

Yep.

I'll give you guys a little insight also to the, my livestream bros. On one hand, like when we do ads that are like direct to workshop, that's like the heaviest ask, like, hey, come out to Vegas. Right. That's pretty, you know, so you gotta, it's gotta have a hurdle, et cetera. Now when we have a scaling roadmap, which you may have seen ads for, right? The scaling roadmap has lower immediate ROAS, but over a 60 or 90-day window has superior ROAS to direct workshop. In addition to that, it also has like 10 times the reach because getting somebody who's a little bit like somebody who's like, yep, I want to come to a workshop. Like they've already consumed, like that's almost like, it's almost like a warm audience retargeting more than it's like an ad and a process that like nurtures, you know, prospects and then warms them up, provides value, et cetera. And so I think if you want to broaden kind of like the net that you're going through, just make the ask that you have a little bit lighter. So I think one, you've got your direct, if you're doing one a day, I would do like maybe two a week of the direct one and then do the remainder of them as posts that are like lead magnet centered, right? Like 7 tips to fix this or whatever. Right. And you can spin, I'm sure you could spin 100 of those things. It's not that hard. And then the triage question is like, hey, are you here for free stuff or do you wanna solve the problem for good? And they're gonna say, I wanna solve the problem. And you're like, great. And then you're into a sales conversation.

That's great.

Cool.

And then at what point would you start retargeting ads?

The thing is, okay, this will be great for everybody. So again, I don't know if you can see my thing. So if you think about your audience as this pyramid, right? The people who are buying from you right now are this tiny little top 1% here. And so there are some things that, there's some actions that could get you to, to convert just a higher percentage of that 1%, which means that like we could make the, the well or the pyramid larger, which we would do by posting more times and making better content, right? Or mm-hmm. We can keep that pyramid the same size, right? And then we can move this line of what percentage we're converting and make that a little bit deeper. When you add a sales team that converts a higher percentage of the audience, when you add ads, you're going to convert a higher percentage of the audience because you're just going to have your ads shown to a bigger percentage of people in that sphere, right? And so it's almost like reaching into forward revenue and pulling it forward, which is fine as long as you're filling up the bucket, right? So I would— right, you get what I'm saying with that? So you will absolutely make more money if you have a sales team and run ads, no question, but then you will hit another plateau. and you'll still be limited by the growth of your organic unless you create a true cold traffic acquisition channel, which is a different monster and beyond the scope of right now.

All right.

And so my recommendation is I would want you to double your content. I don't want your business to go down. Keep one CTA as your direct to book a call and keep the other and make the second CTA for the lead magnet and just do two a day.

Sounds good.

Cool.

Sounds great. All right.

Rock and roll.

Appreciate you, John.

Awesome. Thank you.

Yeah. Thanks for calling Hermosi Highline. All right. So, uh, let's take a little, let me, let me look at the chat. What's up guys? Okay. So as I build a personal brand, is it better to become an authority in a certain skill and then start posting content? Or is it better to start posting content without being authority in that skill? Great question. So my perspective on this, and this probably will differ from other people's, but I can only explain what I do, right? And the kind of thinking process behind it. I never want someone to question whether I'm legit or not. right? And I think that way, and maybe it's cuz I just have like massive insecurity, who knows? But the reason that I tend to always start with proof, right? And so I would rather like, and if you don't have external achievements, right? Then you need the achievements to be effort-based rather than external. Okay. So what does that mean? So instead of saying, hey, I did a $100 million launch, that's an external achievement. Everyone can see that. Great. Lots of money, et cetera.

Right?

I could say I made 35,000 pieces of content. You can control that. Now, whether you did a good job or not is, is a separate thing. But when you do effort-based achievements, it's kinda like grind or pay, right? And so in the beginning, you don't have the, the money or the proof to do it, so you have to grind. And so grind-wise, it's like, I'm gonna make 35,000 pieces of content and document what you're learning along the way. That's fine. Like, that's the game. And so that will be kind of phase one. Phase two is be willing to work with people for free. People spend way too, like, I'll say this differently. If you're getting started, every single business to this day, I still start with free stuff because I wanna get feedback from people. I wanna know what they like, what they didn't like, what their pain points are. I wanna figure out how to smooth out the process. I wanna figure out all these different things. And me trying to guess at that on my first shot and ask people to pay me, I'm like, I don't wanna do that. I'm gonna have bad reputation. I don't want it. Right? And so it's gonna take you so much more time Think about this. For you to get 10 customers who pay you with it never giving anything away for free is gonna take a long time. You getting 10 people to start working with you for free and then using the 10 testimonials you get there to then get your 11th, 12th, 13th, 14th, 15th, 16th, 17th, 18th, 19th, 20th customer is gonna take you less time to get that 10 paying customers if you do 10 for free first of whatever it is that you sell. So That's my, that's my 2 cents. More people knowing about your stuff is not gonna make you less money. I do think though that like big, big, big picture, it also kind of depends what you're gonna get into. If you want to be, you know, it's like, I wanna be a business coach. It's like, well dude, just look at the people who have the most credibility in, in business. They have some big giant thing behind them. Right. I would not try and compete there. I would try and compete on a much smaller pond that I can be, I can be king of a very, not even a pond, like a puddle. Like just be king of the zitty bitty puddle and create proof around that little bitty, itty bitty puddle. And you will find people who are willing to pay you because you're a specialist and because they have access to you. Okay? And I'll give you, I'll give you one more tidbit for those of you guys who are starting out and then I'll take the next call. So when you're starting out, you always have an advantage. All right? Every, every position has an advantage on the board of the game. So if you are, if you are a, if you're a Super Baller, right? You're, you're, you're a G or whatever you wanna say, right? My position is to say, Don't go with Weenie McGee over here. He's in his mom's basement and doesn't know what he's talking about, right? I have been doing this for how many years and look at all this credibility, looks at all this proof, right? Cool. Weenie McGee, right, he's gonna be in his mom's basement and he's gonna be like, don't hang out with Alex. You're never gonna talk to Alex. There's no chance, right? You're gonna be talking to someone 3 levels down from him and you're just gonna be a number to them. I mean, that's what I would say. Of course we don't operate that way, but like, that's what you would say, right? And so If that's your position, then you say, dude, you're gonna get my phone number. And so it's not, am I better than Alex? Of course I'm not better than Alex. Like own that. Of course I'm not better than Alex, but I am better than the third rung down on his company. And you're gonna get my phone number and I care about my reputation and that person doesn't. That's where you compete. And so that's how you can start getting a foothold, which is why there will always be room in the market for people who are new because people who are established are gonna have their position to play. Coca-Cola Classic is gonna say we're the classic. We've been doing this forever. And the people who are new and upstart is like, hey, I'm a young founder. Just try my soda out. If you like it, tell me, give me feedback. I'll try and fix it. That's the position. Both can win. And for anyone who's like, I don't think this will work or something like that, it's like, dude, like I was in the same position. It's not like I'm 50, you know what I mean? Like I started at zero too. And you just have to outwork, right? And you gotta say like, I'm willing to do more than those guys are. And in the beginning, people don't wanna say it. I'll do it for less. Until eventually we have proof. And then we have proof, it becomes a virtuous cycle of charging more. Okay, caller 2, Steven, let's rock and roll. Nice to meet you too, man. I'm gonna— because, all right, because the team collected your numbers. So monthly revenue right now is $54K, right?

Yeah.

All right. And then ad spend is $3K.

That's monthly.

Yeah, per month. I got you. Ads is $3K, great, per month. Okay, per month. Uh, industry is your medical. What do you do? Uh, custom insoles.

Yes. I'm a podiatrist.

Oh, cool.

Yeah. Buddy of mine's dad was a podiatrist back in Baltimore. Okay. The offer is insoles for 300. So this is your, your AOV, call it right, is 325. I know that you're in pounds, but I'm just used to writing dollars, so it doesn't really matter.

Okay.

Constraint is Google Ads are underspent. Okay. So you can't spend more than the 3,000 a month. Is that correct?

Yeah.

Okay. Are you local?

Uh, yeah, I do. I have a Google Ads specialist that is, uh, running my Google Ads. So, uh, that's something I never learned.

Are you local?

He told me that the— local in the Netherlands, you mean?

Like, are you running ads for a local business? Are you running this ad spend nationally?

Oh, sorry, for a local business, yes.

Okay, you're local. So people do that, they come in, they get measured or whatever, and then they get insults, correct?

Exactly, yes.

Okay, got it. So they're saying they just can't spend more money.

Yes.

Okay. Ah, I don't know if I believe that. How big of a city are you in? Like, what's your 10-mile radius?

I thought he said around 10 kilometers, something like that, but I was I was also thinking from, yeah, maybe he doesn't have the skills just to scale the campaign, so to say. So I am already in touch with, in general, our marketing agency that is already checking in with another Google Ads specialist to see from if they can duplicate certain campaigns and get better results.

Yeah.

So I'll say this, man. So I mean, congrats, you're doing, you know, $600K-ish a year. I would strongly recommend you learning this stuff, cuz it's not that hard. Like it's really not that hard.

Okay.

Because then you're not gonna, like right now you're saying the constraint of the business is under someone else's control, right? That's a tough position to be in.

Mm-hmm.

So I would just want, I would wanna own this myself. And I'll give you a, I'll tell you a story that like really changed my pers— I haven't told this story in a really long time, so this will be a good one. So I went to this meetup where everybody was doing, you know, 8 figures or more. And at the time I wasn't. And so I like snuck in. They were like, no, we think you're gonna be, you know, a big baller. Cuz whatever, they recognized the, the sparked the magic in me. But anyway, so they let me come. And what was really interesting is one of the guys who was making the most money in the room, when he went up and presented, he said this really interesting thing. He said, I would encourage everyone here, 'cause someone asked him like, hey, so what are you doing to like reinvest in your education right now? He said, well, at the level that I'm at, and he was making, I think, $30 or $35 million a year. And I remember thinking, I was like, oh my God, this person is God. When I heard that. But he said he was making $35 million a year. And he said, I would encourage you to write down a percentage of your income whatever percentage you're comfortable with, and put that as your learning budget. All right. And that learning budget, he said, you should spend that every month and expect to have zero ROI on 9 outta 10 things. And then the one 10 thing will make you 10 times the, the money. It's almost like doing a venture bet on yourself from an education perspective. And so I took that to heart.

Yeah.

And then I started spending, saying, okay, you've got your $3,000 a month. I want you, Stephen, to do $3,000 a month that you control. And you say like, I'm gonna spend $100 a day. And I'm gonna see if I can beat this guy. Because I promise you, when it's your business, you'll beat him. Like, you'll suck in the beginning, but you'll quickly learn. Like, PPC for Google Ads is like really not hard. Like, they make trillions of dollars to try and make it easy for you.

Sorry, go ahead.

That's great advice, man. Thank you. Definitely go start with that. Yeah.

And the nice thing is that no matter what, if you spend more money on ads, you're gonna make more money. So even if you're inefficient, you'll still increase top line. But I think that if you just try and get good and good and good at that, and then I would also reach out to whatever these other agencies are. I don't mind spending more on this because again, the big picture is like you have bigger goals than this, right?

100%.

Right. So just don't let your ego get wrapped up in your 1-month or 2-month profit. Like that profit'll be there if you choose not to spend money, it's always there. Right. So I would wanna take as much of that profit as humanly possible. And I'm just tell, I'm telling you how I do things. I take all that profit and I just see that as like, this is my opportunity to reinvest in the business. When the business is small, reinvestment is you. You are the reinvestment. And so that's where I'm like, okay, I'm gonna pay the, my current agency, I'm gonna pay the next agency and I'm gonna tell both of them, I want them to teach me what they're doing and I'm gonna spend my own budget too.

Yeah. Yeah. So that, that was originally already my plan. So I had just a call this, uh, afternoon with, uh, the new agency.

Mm-hmm.

And I told them from, look, if we going forth with a Google Ads specialist, I want to have weekly calls to at least know what, what he's doing in the ad account. So I just can follow the, the guy. And that ever may ever have new ideas that I can just try out, but that I understand what he's doing.

Let me tweak, let me tweak it for you. Let me tweak it for you. Let me tweak it for you. You're gonna ask how often are they, are they gonna be, you know, really doing work on the campaign? Just let's just guess it's twice a week. Okay. I'm gonna do something even better for you. I'm gonna ask that you don't even work on my account. I'm still gonna pay you and I wanna have 2 calls a week and all of the work is gonna be done on those 2 calls. That's it. They don't have to do any other work for my account, but I want to be the one who controls the mouse and I want them to tell me what to do and why they're doing it.

Oh, that's, that's a very good idea.

Okay.

This is how I learned. This is how I learned how to run national level Facebook ads. This is how I learned how to do it. I hired an agency and I said, I'll do whatever. I'll show up whatever hours you want. I was like, but I control the mouse and you tell me what to do and I'll do it. And I recorded my screen and I would ask questions along the way and they would tell me, I'd be like, okay, so why are we doing this? And then within 6 weeks I was like, I get it. I don't need this guy anymore.

That's genius.

Cool.

Yeah, sounds good. Sounds good. Definitely going to start that.

Rock and roll. Congrats on the business, Stephen.

Yes.

Thank you, Alex.

You bet, man. Rock and roll. Okay.

Rock and roll. Bye-bye.

Yeah.

All right. What type of lead magnets or funnels do you make for them? Partnered with my wife on her business. We sell jewelry with purposes. Partnered with my wife on her business. We sell jewelry with purpose, natural stones. What would be the best content to post for advertising? We use TikTok. All right. Done, bro. What are we— what are we talking about here? This is super visual. All right, what are we talking about? All right, so number one, I mean, TikTok, TikTok shop for sure. Like, if you're not doing that, you should be doing that. Number two, I'll bet you with jewelry, probably have very good margins with it, and you could probably pay really aggressive affiliate commissions to any other TikTokers who will repost your stuff. And so I would look at, are there small things that I can give out for free. I know that's heavy, but people will be willing to do it. I don't know what revenue is right now, by the way, Junior, but I would also double this on Instagram, and I would want to do like as many collab posts as I can with other influencers, with them trying on different things. And I think the big thing that I would want to do is I want to tell the narrative, I want to tell the story behind the jewelry. So give you an example. So if you think about like selling merch, right, everyone has t-shirts. There's nothing sexy about a t-shirt. And if a t-shirt just has a logo on it, again, it doesn't really matter. But if you say, let me tell you the story behind why this logo or why this saying is meaningful. And so what we have to do is basically pair this commodity of jewelry with the meaning that you then ascribe to it, or the narrative or the story that you put on top of it. And so 2 years ago, I did my book launch for the Leeds book. And some of you guys might've been there and I sold like millions of dollars of hats. All right. And people were willing to pay $100 essentially for a hat. Now obviously they got 2 other books and the hat was free, but like fundamentally that was what happened, right? And so what's really interesting about that specific event is that I then spent like 4 or 5 minutes just saying like, let me tell you about why I wear this hat, what this hat means to me. And so after explaining the meaning behind the hat, then way more people were willing to buy it versus like, hey, do you guys just wanna buy a hat? And so I think to the same degree, you need to do that within your content. And you're like, well, what kind of content should I do? Like show the jewelry, show people unboxing the jewelry, show people picking out between different kinds of jewelry, and then you telling the narrative behind each of them. In terms of where was the stone sourced? Why did you design it that way? What is, what does this chain do versus this chain? What do these metals do? Like, there's so much to talk about with your content. And don't be afraid to repeat stuff. Just don't be afraid to repeat stuff. And one of the really interesting things with content is that I'm gonna give a Dave Ramsey example, but like, you need significantly less variety in your content than you think you do. So think about what Dave Ramsey has done for the last 35, 40 years, however many years it's been. He has told people to spend less than they make. That has been his core message. Don't go into debt, spend less than you make, cut up your credit cards, pay off your loans. That's more like— obviously, he has the 7 Baby Steps, and that's awesome. But my point is this, is that people still tune in every day when they know what the message is because they're like, I wonder how this will apply to a stripper. I wonder how this will apply to somebody who won the lottery. I wonder how this will apply to somebody who's got a kid who's going to college now, and it's a good college or it's a bad college. right? And so the thing is, is that you can have a single framework or single core product or concept, and the variety will just come from the examples that you use.

Cool.

All right. Third caller is Liz.

Hello.

Hey Liz, what's up?

I'm good. How are you?

Excellent. You're on Hormozy Hotline. So you've got monthly revenue, $600,000 a month. Congratulations. Badass. Thank you.

You're welcome.

Rich, you gotta buy me some jewelry from, uh, from Junior. All right.

Okay.

Ad spend is $150,000 a month. Okay. A little high there. Got it. All right.

What are your margins Well, before we started, so I've been preparing for a million a month for the last 3 months. And so I started building the fulfillment team and in the last few months my margins have been 25%.

Okay.

But before that it was 45%. Yeah. So in the last few months I've been trying to scale, build up the team, try to spend more on ads, have them managed. Got it. So that's it.

Okay. Industry is marketing automation. Okay. So who's the, uh, who's the target?

Yeah.

ManyChat funnels.

Oh, ManyChat funnels. Okay. Got it. So thank you. Makes it easier for me. Okay. ManyChat funnels. Okay, great. And then your offer is, it's for e-commerce brands. Okay, cool. And they gotta be doing over $10,000, sorry, $25,000 a month in spend. That's their requirements.

Okay.

Yes.

$25K a month. Okay. What's your, uh, what's your price?

$6K a month.

$6K a month.

Okay.

$6K per month price. What's churn right now?

Between 5 to 10%.

Hmm.

Okay.

Okay. So 5 to 10% churn. Let's just use 10% to keep it simple. So $60K. What are, what's gross profit on the, on the service of $6K a month?

Well, we, we're breaking even in month 1 and then we're starting to profit in terms of month 2.

No, but that, that takes into cost of acquisition. I'm saying what are gross profits on the service? So how much does it cost you to deliver for a $6,000 a month customer?

About $2K, $2 to $3K.

Okay. $2 to $3K.

Okay.

Exactly.

Okay. Yeah.

A little bit high, but that's fine. Okay. COGS. So cost of goods sold. Okay, great. So what's the question? How can I help now that I have context?

I've been struggling to double my ad spend. So our Meta ads break when we push from $5K a day to $10K a day.

Yeah.

So the question is, should we, instead of multiple $1K a day campaigns, which might be competing against each other, they're not. Don't worry. Consolidate everything into a—

they're not. Don't worry about that. That media buying mumbo jumbo. Don't worry about it. Doesn't matter. Okay. Keep going. So you wanna scale your ads and they're not scaling. Okay.

Correct. Okay. So is, uh, one master campaign that's spending $7 to $8K a day with, uh, one single asset, a ton of ads is better than multiple $1K a day campaigns.

I have no idea. I actually don't think it matters. I'm being real. I don't, I, in my whole, my whole life, that has never been the thing that has limited me. Said differently, I don't think your bidding strategy is the limitation for why your business is not getting $2 million a month.

Okay.

This is why it's valuable to have properly identified constraints.

Is it creative then?

Yes, I think it's probably the creative. How are you thinking through the hooks that you're choosing?

Well, I'm researching, um, using ChatGPT, whatever ads I see online, what feels good, what, what sounds interesting, and I, I roll those out.

Okay. So I'll tell you, I'm gonna guess right now that that's probably the issue. So are you familiar with the 5 levels of awareness? From, this is Eugene Swartz.

Yes, I am.

Okay. So you have to translate those levels of awareness to the types of hooks that you're making. So I'm gonna guess, so if you have like a hard ceiling on your advertising spend, like once you get over a certain level, like you can't spend more, it's typically because the nature of the hooks and the content that you're talking about only really relates to the bottom of the funnel.

Mm-hmm.

So you're talking about most aware customers who already know about your types of offer or, you know, solution or product aware customers who know about They know about ManyChat or they know about you or they know about your offers, right? So that's, it's, you're talking to a very, very warm audience. And so Facebook only has a very small amount of people who are, you know, doing $25,000 a month and know about this specific type of product offering. And so that's the only people they're showing the ads to.

Okay.

And so we have to start like at the extreme, right? You would have the unaware customer who is purely, you have to get them purely on curiosity. Like your business is losing, you know, thousands of dollars a day because you don't have this one integration. That would be something that someone who has no idea about anything to do with ManyChat, anything to do with marketing automation, they might take the next step. Now what happens is as you go up funnel, right? You go to higher or basically lower levels of awareness when there's way more people, sometimes the funnel has to change. And so does the lead magnet. Are you just making a straight offer in your ads? What's the funnel?

Yeah. Making an offer to book a demo.

Yeah. Too. You're like, you're, you are, you are so level, you're so low on the, on, on the awareness thing. Like that's the issue. You have to, you have to make it easier for someone to take a step. They don't know who you are. Like, like just saying like, hey, book a sales call is a tough ask.

Okay.

Right. And so this is why like lead magnets and things like that makes sense. It's like, you might need to have a longer process of breaking even, number one, a longer process of educating the prospect, and you need to have wider hooks. And so one of the big things that happens in like the whole marketing world is some people are like, oh, lead magnets don't work, or they do work. If you just say, hey, buy my shit, you will get higher ROAS than have a lead magnet, but you will be very quickly capped by the amount of people who are warm. And so you've probably heard the whole like 97% of the audience isn't ready to buy right now and 3% is. So right now you're spending all your time on that 3%. If you wanna scale this thing, you gotta be able to go up.

Makes sense.

So you might, right? And so the hooks are gonna be like, how to double AOV, how to decrease, you know, your CPAs or whatever the like types of language that you can make there. And it's like, here's 6 ways that you can decrease CPAs. Now, all of them might include using ManyChat to do it. And they may be like, oh shit, this is really good stuff. And if you are super hands-on, which it sounds like you are, if you're charging $6,000 a month, like you can give away all the secrets. I promise you, just give away all the secrets. It will not matter. Give away all the secrets, all the sexiest stuff. Put it in your lead magnets, put it in your ads, put it in your little video sales letter that you have, right? And people are gonna be like, I don't wanna deal with that. I'll just have them do it.

Yeah. Yeah. You're right.

Cool.

Okay.

All right.

Rock and roll. Good stuff. This was fun. Let's do this again. You bet, Liz. I just wanna make sure that you're not like, here's what's crazy about this. Cause I think this is good for, for everyone who's watching too. People will stay stuck at this level for like years because you keep thinking it's like a media buying thing. It doesn't matter. Like how you're doing your bidding and campaigns is like, we're talking about like 5% differences. Like the things that are going to get you from, you know, $600,000 a month to a million or multiple millions of dollars a month, it's going to be strategic in nature.

Yeah.

But do you feel like you can execute on that?

Thank you. Yeah.

Okay. Rock and roll. Thanks, Liz.

Thank you, Alex.

Yeah, you bet. All right. Hormozy Hotline coming in hot. There we go. Spicy. Okay. All right. So let's see here. Summit, if you only need meta ads, what would you do faster to make $10K only with one type of outreach method. Well then just use meta ads, dude. If you're only good at that, then just use the thing that you're good at.

Okay.

Loosefoot Blitos, $15,000 to $20,000 a month YouTube business. Okay. Podcast about soccer in Spanish. Awesome, dude.

Congrats.

I've been making the same amount per year. I've been focusing on the content and not on the business. How can I scale this up? Okay. So I'm gonna bet that you probably have, so I actually don't know what your monetization vehicle is. So I don't know if you're doing sponsorships or if it's ad revenue, I'm gonna guess that it's one of those two things cuz just the way you described it, you probably, if you were selling something, you probably would've mentioned your product. So I'm gonna assume that you don't have a product and that you were just basically a media business, which there's nothing wrong with that. So if you want to, so think about it like this. There's, there's a couple ways you can grow the business. Number one is that you can sell more media spots. That's the easiest thing you could do to grow the business. So that would be like outreach to other people who buy media in your type of business and are willing to buy more ad spots. That's like thing one. That's gonna be capped though, based on the amount of eyeballs and impressions that you're getting. But that would be like the fastest lever. The second, you know, thing that would take a little bit longer would be like, I'm gonna keep what I have and then just gonna expand my channel so I can charge more with the ones that I've got. That'd be the second way. The third way is, and this is a, this is a smart cookie way of doing it, is it depends on how much, uh, getting in the game you wanna be, right? And so when you have a media business like you do, I see this as this big continuum. Of risk and reward. Okay? So if you want low risk here, and then you've got high risk and potentially higher reward, you're on this side. And I'll walk you through the options that you have besides what I just outlined. So the lowest risk thing that you can do is you can just be an affiliate, which means that you send traffic and you get paid after the sale. All right? That is the single easiest thing you can do. The next thing you could do is you could do media sponsorships, which is what you're doing, right? So now you're saying, hey, I want to get paid no matter what. I don't care what your outcomes are. Okay. The next level that you can think about is you can do white label. Okay. Which means that you can go and find a product that you like. You can drop ship it, or you can like, you're not manufacturing anything like that, but you white label it and you put your brand on it and people buy it from your channel. The next thing you can do is you can do a minority deal, which is where you find an existing product that you like a lot. So maybe it's one of your bigger sponsors and say, hey, I will make this, you know, more exclusive for me, but I want, some points of equity. I want sort of royalty or rev share on what I can bring you. And so that gives you a nice mix of upside today and upside down the line. And you trade some sort of exclusivity with that. Now you don't have to do exclusivity, obviously depends on the size of your brand, but those are things that you could explore. Now the last and most risky but highest reward would be you own 100%, right? So you actually just, you build your own product or service and you have free advertising from your existing media business to go sell that. But I'm going to, I'm going to warn you, That's getting into the game. Like you're getting into the business of business. And so these two are significantly easier. This one is pretty easy too. I might flip these. So like one, two, and minority deal, you basically just keep making media and you just change the economics of how you make media. White labeling and you owning your own thing are you really getting into the game of business. You owning a product that you can sell will for sure be the thing that can get you the most money. It's also a distraction if you don't have the resources. Cool. So hopefully they give you a little bit of outline in terms of like how you can think through how to make more with the existing thing you have. But the, the easiest things here is more eyeballs. If you're already just like, I don't wanna change anything, just get more eyeballs, make more media, or increase sponsors. That would be the easiest, fastest that you could do.