How Tesla Spends NOTHING On Advertising

Hey guys. This week on HeySubree, I'm going to be answering Billy Sasatino or Tio's question. Hey Sabri, what do you think of Tesla's $0 advertising? How do you make a decision of using organic marketing strategy versus paid marketing strategy? Okay, so let me unpack this a little bit. So first of all, if you look at like what are the basic first principles of doing? And the very first one is to get attention. Nothing happens until you've got some eyeballs on your business, right? On your offers and the problem that you're helping people solve. So when Elon talks about like a zero dollar advertising budget, well, on traditional advertising that might be correct. What does he spend for his PR agency, right? He gets lots of pr. There is always about getting intention, right? And you look at like what has Elon done with his personal brand over the last couple of decades to get him to a position where he is worthy for people to talk about him? And how did he grow those businesses, right? Like what kind of growth hacking did he use? Like when he did PayPal and they were like reaching out to people on ebay, what kind of advertising budget were they using at that stage? So you know, you don't just want to look at the current state of events, but you want to look at, you know, where Elon is right now is really like the third, fourth, fifth, fifth order consequences from what he has done earlier on in his career. And then if you just put that aside and you look at, well, like how does Tesla sell cars, right? Well, they get lots of media attention and like they invite all journalists and they hold these massive events, right, that costs a lot of money. So you can say that it's not advertising, but it is, right? Like it's just a different form of advertising. Like how many PR companies does he have on retainer, right? And you need to think about all of those other things that he uses to get eyeballs on what it is his core offer is, right? Going on Joe Rogan, you know, posting controversial stuff on Twitter, whatever it might be. It's all a game of attention and getting attention and he has a phenomenal product, right? And where I see so many marketers go wrong is that they try and market a subpar shitty product and then they spend these marketing dollars and then they come into the business and then there's no network effects where that is turns into a flywheel where there's other people talking about that and referring other people. So really what you want to do is create an incredible product. And then, yeah, first of all, you might be needing to do organic marketing methods, which is using your sweat equity and your human capital in going out there, reaching out to people in Facebook groups, cold emailing people, cold calling, going to networking events, doing whatever you need to do. If you're in the situation where you don't have money to deploy on advertising, right? And you do that, and then you get some clients and you get some money in the door, and then you take the money that you've gotten from those clients and then you start to advertise, right? You start to get clients in that way, right? You think about if Elon was just a normal dude, right? And like, he didn't. Hadn't built this personal brand and this kind of image as being a real innovator and a pioneer, then would he still be getting the same attention? Like, if he was some dude in his garage that had kind of created this product and he didn't have any money to do anything else, we wouldn't be talking about him, right? And the reality of it is, if you look at the amount of money that he has poured in from other ventures where he has done advertising to get him into the position that he is today, then you really start to unpack it. So it's very important not just to look at the surface level, you know, facts that appear to be real and dive in and look at the whole story and the whole series of events that's taken place, to really be in that position. That's the most important thing. So, you know, that's the way that I like to think about it. That's the way that, you know, I think that it can get deceiving. When you look at big businesses and you're a small business and you try to mimic what those big businesses are doing, because that's just going to set you up in a position where you're going to get hurt very, very quickly, right? Because make no mistake about it, business, when you boil it down to its first principles, is about getting attention on your offers, right? On your business, what it is that you're doing, and then solving people's problems and generating happy customers and then getting them to refer other happy customers and just repeating that cycle. Whether you get the attention from pr, whether you get it from advertising, public speaking, the news, whatever it might be. At the end of the day, without attention, your business is not going to go anywhere. Hey, guys, if you enjoyed this video, make sure that you click the like button and subscribe. We're dropping a video on YouTube every other day. And if you've got any questions about any of the content that I covered in this video, just basically leave a comment with Heysubri in the comment section. And every week we're also trying to go through all those questions and get them answered. So go ahead, ahead, click subscribe, and we'll see you in the next video.