Your #1 Job As A Marketer (My Strategy For Optimization)
13 Aug 2021 · 19 min
Dean Graziosi explains three marketing goals: maximize the offer, increase revenue per client, and measure/ reinvest gains to scale. Using a case study of a longtime events-business owner (John) who'd never optimized landing pages, Dean stresses direct-response principles: know your metrics, A/B test ("beat the control"), and write copy that mirrors current prospect conversations. He presents a "value ladder" funnel—from a free or low-cost book (shipping fee) to a $297 course (Accelerated Success Formula), a $1,000 course (Project Next), and higher-ticket masterminds—to illustrate how over-delivering at each step raises average customer value and permits higher ad spend.
Questions this episode answers
August 13, 2021
Chapters
There's three things I want to do. I want to show you how to maximize what your offer is. I want to show you how to increase the revenue of each client by providing more value. And third, how to measure that and take that revenue and plug it back in so you can grow your company. Welcome to the Dean Graziosi show. All success starts right here. Today is about understanding if you know how much you can spend to acquire a client, if you can get a greater return on each client, you could spend more and you win the ad game. Now, I know some of you are in different types of companies and maybe brick and mortar and it's not online in a full way. And I know a lot of what I'm going to be sharing through is through the eyes of the digital economy. Digital marketing, okay, direct response marketing. But I promise you, just look through the lens of how you can adapt it or adopt it to your business. How every single business in today's world can have a component of knowledge attached to it, like a knowledge product, an information product, or how to convert some of the things you do online or how to sell online. So I believe, I hope that this lands with 100% of you. There's two parts of marketing and selling. And I just did this training from a high level group I had the other day. It was the first time I've ever done it. And again, breaking through how our team looks at this B is the part where you're sending people to. This B could be your landing page, right? Your website, your offer, your product. This is where you're going to send clients, prospects that want to buy or potentially buy your product and service. Now I'm sharing this, like, duh, I get it. I have a website I want to tell you a story of just a dear friend of mine. His name is John Langbein. And John has this great business. He has a business been in for two decades, three, four decades. And he's the guy that if you want front row tickets to the Suns in their championship game or the World Series or NASCAR or the World cup or the Kentucky Derby and you want to go and have a VIP experience, get the best seats, get behind the scenes, all that at a Super Bowl, a World Series, anything you can think of, John is the guy that does that, okay? He's got a great company. John, in business for 40 years, never understood direct response marketing. He's a dear friend. He's done so many things for my family. I'm so blessed to have a friend where I feel guilty. He does so much for me. So I want to do everything in my power that I can for him. So Covid came. He's mostly live events, and things shifted, and I said, get your team here. Let's have a day of direct response. I want to help your team. So we find a company that's been in business for 40 years, you know, 100 million plus a year in business, or 70 million plus. I mean, a significant size company, right? And we get to this page where he's selling, offering this VIP experience with tickets to all these different events, no matter what the event is. And I found out that some of his pages, some of his pages, some of his landing pages or websites or what he sells, he's had the same thing written on them, the same offer. Some for three years, some for five years, okay? And you're like, well, what's wrong with that? He has not. And this is one of the things I want to share with you today. He has not optimized that page. He has not tried to beat the control. I want you to learn that terminology. Some of you already know it. You're like, duh. If you don't, is you need to look at this asset where you send people. If you have a website and you have a headline, right? And your headline is, get the greatest tickets. Get the greatest seats in the world for something. And maybe there's a video on the page that describes your product, your service, your brick and mortar company. Buy, steal from us. Use our law firm, work with our downline. You know, learn marketing better, eat healthier, get coached, live a different life, right? And then you have content about what you're doing, and you have the opportunity to buy, right? This is kind of what John's site was about, buying tickets. It had been the same for years. And what I said to him is, we have. Listen, let me ask you something. Are you guys having the same conversations at the dinner table right now that you had 18 months ago, before COVID How about in the last three months, with the world reopening? Are our conversations changing? Do our fears and desires change based on a lot of the outside circumstances? Who is less uncertain today than they were six months ago? Do you feel more certainty today? Do you see a bigger future? Do you see the world opening? Or are you still, you know, nervous and scared about what's going on? All I'm saying is human emotions changed. We're going back to the art. And write this down. As an artist, as a direct response marketer, what our number one job is, our number One job is to live inside the mind of our prospect. We need to finish sentences our future clients are already asking or saying. We can't live in our head. We can't live in what worked yesterday. We can't live in what we think. We must know the conversations going on in the mind of our future clients. You know them. In a lot of cases, you know exactly what your clients have. But sometimes we get sucked into business and we're worried about CRMs and hiring and customer service, and we forget the messaging, we forget the art. Now, I know some of you have big enough companies where you have a marketing department. Well, get on them, right? Some of the best marketers in the world used to ride the bus or go stand in line at Kmart or JC Penney's or Target and listen to what their prospects are saying, what's going on in the world. People are not having the same conversations today as they did six months ago, a year ago. So I said, john, you have pages about tickets when things are completely different and you haven't tried to beat the control. I'd love to give you some really elaborate thing, but here's what I'm going to tell you. Create a second page. If you know the metrics right, you must know the metrics, right? You must know if 10 people come to the site or if 100 people come to this site, how many people are buying your product, inquiring, filling out an application, getting your coaching, using your service, coming to your restaurant, whatever it is, you gotta know. If you don't know, learn how to figure out those metrics. Today's a new world. These metrics are easy to understand and get right. Ask the who if you don't know how. So once you know, if you know that 100 people come to your site and one person buy, then what is our goal? What is our goal if we're going to try to beat the control? As I said, John, create another site and write a new headline, put a new video, create a different order and measure. When 100 people come to this site, how many people buy, do half a person buy or three people buy? In direct response marketing, we can't live if you're measuring how much you're spending and how much you're getting back. I was brought up in this world. I was brought up in the infomercial world because there was nothing else. And TV was so damn expensive, guys, that it's my unfair advantage. It really is my total unfair advantage because I had to watch every dollar spent and I had to know if the infomercial drove people to a page to buy, was that page converting at 1%, 3% or 10%? And I would obsess, don't even talk about this yet. I would obsess on where I'm sending them and making sure my conversions to buy, conversions to use my product were at the highest they possibly could be. And the only way, you know is to find the benchmark. And the benchmark is the control. Benchmark equals control. So John didn't know the numbers. He's got a $70 million company, didn't know the numbers. He gets his director of marketing. He didn't do the marketing. He gets his director of marketing and his CMO chief marketing officer flies him to my house. They bring me these numbers and they've never looked at them ever. And I'm not critical. I just came through the infomercial world where I had to measure all this. And I said, okay, guys, you've been using this. Let's take, I think it was formula one. Let's take the formula one page. You know, that you're converting. Let's just use round numbers. Let's say there was 10 and it's converting it 10%. You know, right now this page is converting at 10%. Let's change the headline, let's change the video, let's update the look. It's kind of a stale looking page. Everything's almost the same except the copy, the art. Live inside the mind of. I said, wouldn't it be cool to say, hey, you've been cramped up or cooped up for a year. How would you finally like to get out in the fresh air and watch Formula One race? Cars go by you at 120 miles an hour. Da, da, da. And we change the copy, we change the art. Here's the cool part. Know this. The tickets are still the same as they've always been. The price is the same as it's always been. The company's the same, the customer service is the same, the marketing budget's the same. Nothing changed. Nothing changed except a new obsession by his team to beat the control. Now, are you ready for this? Sometimes we have a marketing budget. We want to raise our. We want to grow our company. Who's ever increased their marketing budget to raise their company? Listen, the science is always going to change, right? Phones, Internet, online, an app, a button. But if you've already done the work, if you already are driving people to your business, to your online looking through the lens of direct response and the obsession to beat the control in every area that you touch a client or a future client can be one of the biggest swings you'll ever have. And here's the cool part. It'll become an obsession. But let me share something else. So if we know. If we know that in advertising, if we want to grow, can we all agree that if we have more clients, we get to generate more revenue? Is that a true statement? If we have more clients, we get to sell more. Right. There's a question now. Could John make any money if it costs him $500 to acquire the client with advertising fees? Roas. Right. The return on ad spend, you figure this out. But if John could spend $500 to acquire a client, would that be profitable for him? Yes. He doubles his money, right? So $500. If he could spend $500 to get a $4,000 buyer and he should spend as much as humanly possible. So if everybody has these similar metrics and everybody spends, can spend $500 to acquire that client, or maybe the profit's 2,000 bucks and they could spend $1,000. I'm just making numbers up here. I'm making stuff up. But what if. Let me just ask you something. John's only making 1,000. What if John could spend. What if John could spend $1,000 to acquire that client? Does John make any money? Doesn't seem like it, right? What if John could spend $1,500 to acquire that client? Would that be dumb business? Right? It would seem dumb. But what if he could? Could any of John's competition outspend him in media? If everybody else can spend 500 bucks and John can spend 1500 bucks, who would win? Whose marketing would be everywhere? John would win all of it because none of his competition can spend it. I'm going to show you. I want to take a little time right now and I want to show you how that's possible. I'm going to call it the value ladder. Okay, I know it's more like stairs, but I'm going to call it a value ladder. This is about over delivering at every single level. And when you over deliver at every single level, when you provide more value than you've ever even promised, then a percentage of people will upgrade because you want what's next? The value ladder. The ability to offer more products and services that enhance the person without discrediting any of these other pieces. I have a book called Millionaire Success Habits. It's almost at a million copies. It's one of my favorite books. Right. I've given away I have a free campaign I've given away where I pay for the book. I ask people to pay for shipping and handling, but I've given them. You have the opportunity to get the book for free. Right? And people say to me, how the hell do you do that? It's because I provide so much value to clients that I have a value ladder. So let's just say free. People come in for my book and the book is free. And I think it's. I don't remember. I think it's $7.95 shipping and handling, right? You could get it at Amazon, I think, for 20 bucks. But I have a thing. I think it's seven or eight or nine bucks for shipping and handling. Right? So I just want to show you. People come in and get the book. When they get the book, they immediately click and can have access to millionaire success habits. The freaking book is amazing. I absolutely love it. People love it. The reviews are incredible. Right? I'm not selling you the book right now. I'm just sharing how this works. Barnes and Noble, 85% of the books don't sell more than a thousand copies. How the hell does that happen? Because they build it, they wrote it, and hope people would come with a value ladder. With a free book, how can I spend $30 just in advertising? That's before. Now for me to get the book out the door, it's over 10 bucks to print the book, put it in the warehouse, do all the stuff. It's like $11.50 to get it out. And then when I have to ship it out of the country, it's way more, but it's like $11.50. So let's just round it to 10. But it costs me between advertising and cost. It cost me $40 to get a book out the door. It cost me 40 bucks to get a book out the door. How the hell do I give it away? How can that work? And I've been able to do over a half a million 600,000 copies this way, profitably, because I give it away. And you can just get the book if you want. You don't have to buy another thing. There's no bait and switch. There's not automatic continuity. The book doesn't sell. I think it's the greatest book I've ever written. I'm a multiple New York Times best selling author. I think the book's badass. Because when they get the book, the next opportunity they have is something I call my asf. It's the accelerated success formula. It's a course I created. I think it's absolutely amazing. It's super powerful. It's six modules. It shows people how to shift their mindset, awaken the inner hero, crush the inner villain. It's the greatest mindset course that I've ever created. You got Tony, but it's the greatest one I've ever created in my 25 years. That course is 297 bucks. Okay, so let's just say the shipping here is $9. How the hell can I spend 40 bucks when they can get the book for $9? And it cost me $11.50 but I put 1011 bucks to get it Seems crazy. You're going broke. You can't spend 40, 40 to get 9. But guess what, 7. What's 7 times 3? 7% of the people say Dean delivered on that book. It was badass. I'm going to get his accelerated success formula. What's 7% of 297? 7 times 3 is 21, let's say 20 bucks. Okay, so because 7% of the people get my next product now, my average ticket so far is 20 plus nine. I'm up to 29 bucks. And because this is so good, Tony and I created a course called Project Next. It's our newest one just for people that want to be in the self education industry. They want to be a coach, they want to run masterminds, build courses, do workshops. We allow, we just give people the opportunity to register for that training for free. And that course right now is $1,000. Okay. It's called Project Next. About 10% of the people who buy this buy that. So 10%. No, 10% the total, which is half, let's just say 5% total. So 5% of 1,000 is $50. Because we delivered massive value here. Some people wanted to upgrade over delivered in a massive way. And then some people said, man, if the book was that good and the accelerated success for me was that good, I can only imagine what's in that thousand dollar course. And now that $9 went to 29, 29 +59 is $79. We have some higher level masterminds and workshops where we hold people's hands, where we fly them into our office or we do virtual and they can work with our coaches. And there's higher level 10 and $15,000 programs and some of them buy that and this ticket might go to $150. So now when there's other people out there giving a book away for free and they can only spend $10 to get a book to even break even. I can spend 40. If you guys remember when my book ad millionaire success habits, it was everywhere. Because I know I could serve people if I get my book in their hands. And I want to tell you something. When you look through that lens, Tony never asks. I want to be honest with you, Tony never asks. What is our profit this month? I've been working with Tony for a decade. Tony always asks me every single week, how many lives did we change? How is the impact? How many people are finishing the course? How many people are having the transformation they need? Is there something else we can do? What else can we do for them? When you start looking through that lens, you're not providing the next thing to sell, you're providing the next thing they need. But not everybody. Just the percentage.
If you like today's podcast, then you're going to love being a part of my texting community.
What's that mean?
You could text me right now at 480-400-9019 or it should be below right here. And it comes directly to my phone. Doesn't go to my team, it comes to me. I've been absolutely loving the interaction. I send out some cool things about once a week. I text nothing but things to get your week going, to get your mind thinking. And when we have new videos and things like that, I always text my community first. It is absolutely been a blast and I'd love for you to do it right now. Text me 480-40-0990 19 do it. Text me.
More from Dean
Mental Strategies of 8 Insanely Successful Female Entrepreneurs | Own Your Future Mashup Episode