🔥 How To Crush The Competition And Engineer A Financial Advantage In Your Business

Now that Sabri Subhi joins me now in the studio, I really look at business as an incredible vehicle to really make good and make change in the world. Hey, guys, Sabri Subhi here. And in today's video, I'm going to be talking to you about customer acquisition and more specifically, the biggest issue that I see when it comes to people being able to actually go out there and advertise at a rate that's profitable and get customers. You see, in my business, in our agency, you know, we speak with thousands of business owners every single month. And most people are really of the belief that they have a marketing issue. They come, hey, can I just hire you guys to get me some more traffic? I just need to get some more eyeballs on my landing pages, on my offers, to my webinars, to my book funnels or what have you. But in reality, when you kind of sit down with most people and you talk through their problems in terms of having the ability to go out there and get customers, what you start to see is the biggest issue that most people have is not a marketing problem or not even a sales problem, but actually a business model problem, meaning that they haven't really thought, when they've sat down and thought about their products, about how to price them, and realistically what the business model is going to be in order to be able to have an engine that really propels that business forward. With paid advertising, all types of marketing is paid, right? Whether it's SEO, it's organic, it's whatever it have you, it's all paid to some elements element in terms of you either pay with your time or you pay with money. And the thing that is really, really important, specifically in today's day and age where we're so connected to the Internet and you know, the Internet is the number one advertising channel on planet Earth right now, and it accounts for around 60 cents of every dollar spent when it comes to advertising is that you need a factor in the cost of getting that attention and getting those eyeballs to you. Now you might be sitting there and being like, oh, well, you, you know, I can just do like, you know, blogging. I could put a whole bunch of content marketing out on YouTube and get free traffic. Sabri yeah, but you're paying with your time, right? And there's going to become a time where you're going to have to hire somebody to actually do that so you can continue to grow the business. And that cost to hire that person is a paid advertising budget. So whether you're paying on time or you're paying in cash. It's the same thing. And the biggest thing that you really need to think about if you want to win in today's climate is engineering what I call a financial advantage. In your business, where you've got your pricing, you're really providing the most amount of value to your marketplace. And that in turns allows you to extract the most amount of value out of a client because you're giving them the most amount of value and you're providing them with the most dramatic transformation that you can. And you are compensated by a percentage of that value creation that is taking place between you and your client. And what that does is it just bolsters and fattens up your ltv, your lifetime customer value. And it's really the person who can provide the most value to their marketplace and then get rewarded for that value creation in terms of lifetime value with their clients. That is what allows you to then go out there and spend the most amount of money to acquire a customer in buying up all the eyeballs on the newsfeed or all the inventory on Google Ads. And that is what allows you to win the market. But that's not what most people think. They're like, hey, I've got this gadget, I've got this gizmo, I've got this high ticket offer. I'm charging 5k for this. And whenever I scale past 10 or 20k per month in ad spend, the thing just shits the bed and nothing seems to work. I've gone through three agencies. Could I just hire your agency Sabri to, you know, show me where on the genie's belly can you to rub to make money magically fall from the sky. And all the emphasis is just on the marketing. It's just all on the offer. It's just all on getting the cheapest clicks or converting those clicks at the highest rate possible on their opt in pages, where that is really just the tip of the iceberg. And what you do is you see so many people mindlessly optimizing button color and all these different elements when they're not the elements of a whole selling system that moves the most freight. You need to first build it on very strong economics. Because one thing that I need to make absolutely crystal clear is that you are not in the building business, right? You are not in the fitness business. You are in the customer acquisition and arithmetic business, right? Business is a numbers game. And what you want to make sure that you're doing is constantly looking at your business model and looking at the financials and looking at how can you optimize all of the moving parts within your business to give yourself an unfair advantage financially? So your landing pages might convert half of what your competitors do, right? Your funnel might convert half. You might not have the best copywriters to work on your ads or to shoot the best videos, but you have a financial advantage. And you can go out there and you can just bully these people and you don't need to rely on only having the best, and you will still win. And then when you do get the best, and you do get all of the elements of your funnels fully dialed in, then what you have is what I call a force multiplier. And it really allows you just to occupy the dominant position in your marketplace and to be the apex predator. But it's very difficult, almost impossible, to become the apex predator of your market if you haven't engineered a financial advantage into your business model. And you're just spending all of your time and energy on looking at the mechanics of the marketings and the ad platforms, and you're needing to launch thousands of ads a day, or iOS 14 comes out and you know, you're running for the hills, scared, and your whole business is crumbled. You know, of course, that is throwing a spanner in the works for a lot of businesses. Tracking, however, the biggest underlying thing is, you know, you can't be running your business at a knife's edge where a little breeze will come through and knock your whole business down, because you're relying on everything, absolutely having to be completely dialed in, from the ads to the funnel to the tracking, to absolutely everything in order for you just to make a profit. Right? Of course, we need to have all of those elements set up, firing correctly and fully dialed in so we can get the data that we need. Right? However, when you go through periods like we're going through right now, where tracking is astray, there's all these issues that are happening, you know, that can't. You can't. Business can't be so lightweight and so fickle and that this little gust of wind will blow you over. And if you have a financial advantage, that is the margins are fat enough that you can sustain periods like this and still win. That's what it's really all about. So that really begs the question of when you're looking at customer acquisition, the most important place to start is how can you have a look at what your entire marketplace is doing right, and the value that they are presenting to the same prospects as you, and how can you give two times, three times or even ten times more value to that market and solve that much more of a big pressing problem for them than any of your competitors. Not how can you scream louder with your marketing, how can you spend more money, how can you convince them even more to do it? But how can you actually genuinely provide much more value to that marketplace than any of your competitors are willing to do? And therefore you get rewarded with commanding higher prices because you're getting a percentage of that value creation, then that then bolsters your ltv and then you can go out and afford to spend two times or three times more than any of these guys on acquiring a customers, right? And then if you're able to do that, then they are just left dumbfounded to they're like, what is this maniac doing? Like how is it possible that they can be so aggressive or that every person that I pitch is also speaking to this person's business? It's because you've engineered a financial advantage to just out muscle these people, right? And that's the biggest key that I can give you. If you've been running traffic or if you've tried traffic or paid ads, all that kind of stuff, and it hasn't worked for you in the past, do not blame the channel, blame your business model, right? And look at why is this channel not working and what would I need to be charging in order to be able to make it work? Like this is what my cost per lead is. So instead of constantly having all of your focus on whittling down that CPC or that cost per lead, have a look at, well, what would my LTV need to be? What would my 30 day cash position need to be in order to make a profit on acquiring this customer? And then focus 80% of your time on that and then 20% of your time on bringing down those precursor metrics, right? Like a cost per lead or a CPC or a cost to acquire a customer. And if you can do that, I assure you that when all of these small little tremors happen in the ground or there's an update or this platform is changing one thing, your business will be left somewhat uninterrupted and you can continue to just go the course and continue to win and out muscle all the people in your marketplace. So in summary, spend 80% of your time on focusing on value creation and LTV and 20% of your time on CAC and the channels and the ads and the copy and the funnel. I hope this helps you. If you enjoyed this video, please like and subscribe. We're dropping a video like this almost every single day on YouTube, and if you've got any questions, leave them in the comments box below with hashtag heysubree and I'll do my best to get in there and get that answered.