Creative Ways to Do $0 Out of Pocket Deals

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Hey everybody, Roland Frazier here with another episode of the Business Lunch podcast. And today I have a good friend for a few years now and our fellow member of our mastermind. His company's been on the Inc. Fastest growing. I'm going to let him tell you where it is on the list. And his name is Alaric Heck. So Alaric, welcome to the show.

Awesome. Thank you so much for having me on here, Roland. I'm really excited to dive in and yeah, I'm excited. Thank you.

And I think I may have neglected to mention your company. Do you want to give a shout out for your company here real quick?

Yeah, absolutely. So it's ad outreach. We help businesses with YouTube ads, training them in YouTube ads, video marketing, how to scale to that next level using video. And we were number 87 on the Inc. 5000. We're eight figure company and growing fast.

That is awesome. That's pretty good in the top 100. I gotta like that, right?

Yeah. Thank you.

So now we've talked about a whole bunch of stuff that I think is fun, but one thing in particular that you mentioned as we were kind of chatting before we came live here, is that you're about to complete your first acquisition. I know we had kind of taken A run at a SaaS company before and kind of had a deal and then it fell out. But let's talk about that.

Yeah, absolutely. So this is something that's really exciting and the ink's about to fully dry on it. It's actually gonna be fully, fully finalized here. We've had all the lawyers do all the different things and so this first one is actually more asset based. So there was one of our clients that is in the space that we're in not so much on helping people with YouTube ads, but helping people grow businesses, especially info based businesses, coaching, consulting type businesses. They had used our strategies with YouTube ads, scaled that up. They like many of us had multiple different businesses they were doing. And so they're actually going more the SaaS route, going more the tech, leaving the info to business. And they came to me with the ability to potentially acquire their business. When I looked at it, I realized I was less interested in the IP or the domain name. And so some of the different things that they were excited about, but they can actually sell separately. Other people are actually potentially interested in that. But what I was interested in is the list that they had built up in the Facebook group. And so I am about to fully complete that acquisition. We've already done all the deposits, the initial paperwork and now we're going to be signing the full, a full on transfer, sending the rest of the funds and everything. But the thing I'm really excited about with this is this is the first of what's going to be many acquisitions that we're looking to do because this one we are doing, and I mentioned to you earlier, I know your big thing is that the $0 down and that's what I'm going to be going to for the second and future acquisitions. But with this one we're doing cash to build out the SOPs to kind of start the first one to realize, okay, what's the value of this? Create a case study. And I'm happy to get a little bit into what we're gonna do with the future ones. But basically we've got an email list, it's got about 16, 17,000 of our core clientele. These are all people who have courses, coaches, consultants, info e learning businesses that have been looking, they had done two and a half million to this list already, you know, in revenue themselves. And so we know that what they were teaching is different than us helping people with YouTube ads. So they're kind of helping people build their cor, get into that spot where they have or consulting or offer like helping them grow a little bit more organically. And then if we can help them then with YouTube ads as the next step, it's a perfect fit. And so we're acquiring this for a good rate that we both really like. They weren't doing much with the list or they weren't going to do much with the list, but we're going to be able to leverage it. They know we're going to take care of them. But what I'm excited about is the future idea, which is I'm going to use this to leverage future $0 down deals where I can go to different business owners that are, especially right now, we're going to be in a time of a lot of opportunity. There's going to be business owners that are looking to leave the space. And what I want to say to them is, as you say, right, it's either price or terms. And what I found with this is, you know, for this we actually went on their terms, but our price. What I want to do is flip it. I want to do my terms, their price. So if somebody wants a bigger amount for their list, say okay, we can do that, but let's do $0 down. Let me email to your list first. And then as we make back out, let's say it's a $50,000 acquisition or whatever, whatever we make back out, the first 50,000 goes to you. Upon the 50,000, it gets transferred to me. If we don't make that amount, then let's say we only make 25. We try, we try, we try. Can't do it. Then you get to keep the list, keep the 25,000. But we don't have to pay extra money for a list that doesn't work out to us. So I'm using this as a case study to show that we can do it, that we can extract value as a cash deal. And then I want to leverage this for $0 down deals. I love that.

So you talked about the law of price and terms, which is if, if it's their price, then it is your terms. But if it is, you know, if, if you are getting to dictate the.

Price and the price is lower, it's.

Probably their terms, which is usually we want all cash, right?

So that's cool.

I think that's really, really great. And then what you talked about, the way that you're talking about financing, this is one of our 221 ways of doing it, which is revenue based finance. And so you're basically saying as the revenue comes in we will give that revenue 100% of it. You're saying to them, so that basically it covers funding the deal and then if there's no revenue then you just.

Don'T do the deal.

Right, that's so you're safe, 100% protected no matter what.

The one thing I wanted to ask.

You is so when you're acquiring, acquiring this list, how will it be delivered? Is it just going to be like a file with a bunch of names or how are you getting the list?

So in this case we're taking over the ActiveCampaign account, so we're taking over billing ownership which is, which is ideal. And so and this one, it was very much, you know, we dictated, you know, price, it was their term. So it was all cash deal. You know, upon, upon receiving it, we're going to flip that for future ones. The idea in the future is we get to come in and you know, just get kind of guest access to their activecampaign, their HubSpot, whatever they're using, send out those emails and then it's a win, win on both sides because there's really eliminates risk other than, let's say time for both of us, but it eliminates monetary risk for both sides, the list owner and, and ourselves.

That's great. And so that's, it's so important to do it that way because otherwise like if you just get a bunch of emails then you've got to warm it all up again and new accounts and new IP servers and migrations and it's just you lose typically 60 to 80%.

Plus of the list just goes away.

So I'm really happy to hear that you're doing that way. And then you also acquired a Facebook group.

Yes, yes, a Facebook group as well, which is exciting. And for that we're going to keep some of the existing branding, but we're also going to have a rebrand on the end and we're going to pair that into one of our other offerings that we're really looking to grow. So YouTube ads is the big, you know, key, key, key offer that we've had scale that to over a million a month. But we also have another offer that right now is, you know, in that, let's say 100, $150,000 a month territory that we're looking to scale to have another million dollar a month plus offer which is video clients helping businesses use organic video to scale their business on YouTube. Also Facebook video, Instagram, LinkedIn, even, even TikTok video and that business. And we've got some incredible coaches, not just myself. We've brought in amazing, you know, people onto our team, which I know is something you're a big advocate for bringing. Bring incredible people onto the team and then have them help build out like sectors. And so this is actually going to allow us to acquire a Facebook group that has about 5,000 people of people that are looking to organically grow. And we're going to kind of rebrand that into our group. And so there's. The list is probably going to be more beneficial for our YouTube ads offer because we can say, okay, you've already done this, now let's do YouTube ads. But the group we're just going to be able to rebrand, they were already teaching organic strategies. Now we're going to have our organic strategies be taught.

That's great. That's awesome. So now, speaking of this, you've got all these great strategies. Would you mind sharing a little bit of like, what you see going on in video right now and what are the things that people could do to get the most out of everybody that ever since I met you and I like, I introduced you all to the Mastermind folks I know and they're all like, we got to have Alaric. He's amazing. So I'd love to share some of your genius with our audience if you could.

Yeah, absolutely. Absolutely. So the big thing that I've really known for a long time is YouTube ads. And this is something I've been doing for, well, YouTube ads for over eight years. But I've been on YouTube for over 13 years. I started in 2009. I was actually, I was 12 at the time. I created a YouTube channel. I was reviewing mobile apps, doing tech tutorials. People started watching it. The channel grew. It has half a million subscribers today. So it grew over time. I've got a small team that manages it. I kind of turn that, that into the four hour work week and it actually funds my entire lifestyle. You know, my rent, my food, any travel, I pay for personally. All that's paid for by my first business that I pulled myself out of. But that business, the YouTube channel that I created, it showed me and introduced me to the world of YouTube ads. And so about eight years ago, I had some of the different sponsors of the YouTube channel. They would have me post videos, people would start watching them. And one day there was one particular app because it was like an app review channel. So a lot of people would sponsor us. There's one particular app, it was like a social media networking app. They Said, hey, you know, can we get this video in front of more people? You posted it. We've got lots of downloads. And I said, well, what if we run a YouTube ad? And so, you know, at the time, this was eight years ago, we took. We took that video, we ran a YouTube ad, and for just $500 in spend, we get them 11,000 users.

So they're.

They're now blown away. They're like, this is amazing. They tell their friends who tell their friends who tell that. And so then soon enough, you know, I was helping a lot of different businesses with YouTube ads, and then it kind of transformed into what it is today. Where I started, I joined my first mastermind. I started to help businesses with YouTube ads, teach YouTube ads, especially with a lot of people on Facebook. And something I've been saying for a long time, just that gives a little bit of background for anybody listening who maybe, oh, it's super cool. Where I come from, what I've seen for a long time is the shift to video. Video works so well. And if you can get in front of somebody, it's not just about getting in front of the right person. It's getting in front of the right person at the right time. And one of the problems on Facebook. And again, Facebook works. We know Facebook works, but it's getting more and more expensive. And one of the reasons it's more volatile is the algorithm has to guess what's the right time to show this ad in front of somebody. On YouTube, we have intent, so we use something called 3D YouTube ads targeting. And this is something that's unique because on Facebook, you target, let's say, demographics. So roughly, like age, different demographic details. Maybe you try income, although that's more zip code. It's not as good on Facebook as on YouTube, but you do that. Then you layer it with, who is this person? What are they interested in? What do they like? What are the pages they like? But what you're missing is the intent, the time. People go to YouTube and they kind of repeat the same process, they do one of two things. They either do similar targeting to what they've known on Facebook. So they go on YouTube and they target demographics, and then they target audiences. So maybe it's like an audience around, let's say it's a weight loss example. People who are looking to lose weight, they build an audience around that, but then they're not necessarily reaching people at the right time. They could be watching a totally different video. Or what they do is they only target the videos. But what happens if you reach the, you know, somebody the right time? They might be in the demographics that they can buy it. So you can add in household income, certain geographies, but if they're not the right person, you're going to get window shoppers. Right. They're in the store, they can afford it, you know, or they're in the demographics, but they're not actually the right persons. They're not going to actually take action and invest. And so what we've found is that the biggest key to YouTube ads, and this is the biggest secret to our success. We've now helped our clients generate over $200 million in revenue with YouTube using these strategies is 3D targeting. Layering the demographics is who somebody is. And one big component of that is household income. It works really well on Google and YouTube. Unlike Facebook, where it's all based more on household on zip codes. YouTube and Google, it's based around who you are. So it's based on your actual, you know, usage of Google, what they know about you. Not just Google, but YouTube.

And then also you can still target income even after all the privacy challenges and everything.

Yes. That's awesome. You can. Yeah. So not in Europe. So Europe has some restrictions with the GDPR stuff and some of the eu. But, but here in, in the States you can still target household income. And it's very accurate. And that's great. We have some clients just targeting top 10% household income. And it's some of the most qualified leads you'll see because Google, Google has pretty good accuracy to know where people are.

Great, that's great.

Okay, so what are the 3Ds?

You've got demographics and income and then what's the other?

So we take demographics and it's 3D for three dimensional. So they're not all, they don't all start with D actually try to figure out how to make that work, but.

Trying to figure out what are the dimensions exactly.

So it's that then layering it with who somebody is. So the audiences. So it's basically audiences. So creating custom affinity audiences, creating custom URLs, custom intent. So who is this person? So you can actually create audiences in YouTube the same way you can do it on Facebook. You can put in interest. What are people in the market for? You could put in URLs and then layering it on the other side with your actual intent based targeting. And that's a video targeting. So it's demographics, audiences and intent. The intent side, this is what videos are they watching Right. You know what keywords are on the videos that they're watching. Maybe there's topics of selections of videos. So you're taking reaching the right person based on who they are, the audiences. You're layering it with their ability to buy, which is the demographics. Right. So household income, are they in the right geographic region, you know, age, all that stuff. And then layering it with are you reaching them at the right time? That's the intent. That's the video targeting. So reaching the right person with the ability to buy at the right time, and that's where you reach your ideal clients.

That's awesome. And are you also working on other video platforms like TikTok or anything like that?

Yes, so we are doing that. So we have other platforms as well. What we have found is that YouTube is unique because it is the platform where you can do 3D targeting. And the reason it doesn't really work on Facebook and TikTok, and we actually are seeing TikTok take off, but it's not to the same caliber of YouTube. And the reason for that is YouTube is also a search engine.

I was going to say it's still the second largest, Right?

Exactly. It's the second largest search engine after Google. So people are looking up, if they're looking up how to lose weight or watching a video on that and you have a weight loss offer, you can get your video in front of them. If they're looking up how to grow my business marketing, whatever it happens to be, you can get your video in front of them, reaching them at the right time, versus if you're marketing on Facebook and you're in the feed or you're on TikTok and you're in the feed, you can reach the right person. And there are great tools to reach the right person, but in terms of direct response, reaching at the right time is essential. And that's one thing that YouTube has really mastered. So YouTube's our core focus. It's what we've. We're known for. We don't want to water that down by saying, hey, we know these other things. But we also have an emphasis on what I call omnipresent retargeting being everywhere.

Yeah. And you've done that. I think there was something you were saying that you did that like when you wanted to kind of get your brand out there. Would you share that story a little bit?

Yeah. Yeah. So one of the big things that we've done and I did a presentation at one of the war rooms on this is I Did a whole omnipresent retargeting campaign. So when people come in on YouTube, so they see us with YouTube as we practice what we preach. So where we're running YouTube ads, you know, everywhere, consistently, like a quarter of a million dollars plus a month of just these YouTube ads bringing people in. Right. But then what we're doing is once people come into our ecosystem, we. We want to do omnipresent retargeting everywhere. And so I had this funny campaign that I created. Like, well, people know me as the YouTube ads person. What if I run ads on Facebook and on TikTok and on LinkedIn, these other platforms, and I say, hey, bet you didn't expect to see me here, but I want to be omnipresent. I want to be everywhere and remind you that you can book your strategy call to speak with me. And that campaign, that omnipresent campaign was incredibly profitable for us, and it added some humor to the brand. And so I think that's what you're referencing. We went everywhere and used a funny line instead of. Because some of our team members will say, hey, aren't people going to be confused if you're known as the YouTube ads person? But now you're going out and you're being everywhere. Now people know it's not just YouTube ads, but omnipresent retargeting. We're looking to have people know us about video marketing as well and working on a book around all things video marketing, and so very excited about that. But at the time, it was like YouTube ads. And I told my team, well, this is exactly what we need to lean in on. We need to joke around about it. We need to, you know, squash that objection at the beginning and say, hey, bet you didn't expect to see me here. But I want to remind you everywhere. And when I saw the success of that, I realized, wait a second, this is something I can help clients with. So now a lot of our clients that come to us with you for YouTube ads help. We then help them learn how to do omnipresent retargeting so that they can also be everywhere. And then also having banner ads everywhere, just being seen everywhere, which is great.

That's really great.

Ryan here. And look, if you're an entrepreneur, you're busy, right? Whether it's replying to emails or scheduling meetings, whatever, there is a lot of work and a lot of hats that we need to wear as entrepreneurs. And that's why, as entrepreneurs, especially if you're a visionary founder, you need help Right. And I don't know about you, but at one point for me, I was getting so overwhelmed with all the little day to day tasks that, let's face it, they gotta get done, but they don't necessarily need to get done by you. And so when I came to this realization, I said, I gotta get help. I need to get a virtual assistant. I gotta get a social media manager. And that's when I called my friends at Belay Solutions. Belay Solutions are an incredible organization. Now, look, I don't know about you, but I tried to work with VAs in the past. It was always a disaster. And so I was really, really suspicious of being able to make it work. But their process was fantastic. They found out the type of work that I need done, the type of people I like to work with, and they really did match me with a perfect virtual executive assistant. And this person's been with me now for three years and counting. So obviously it worked for me and I think it's going to work for you. So here's what you need to do. All right? The good folks at Belay, they're actually giving listeners to this podcast. $300 off the startup cost for their virtual assistants. You'll pay less than I did. Here's what you need to do. Text lunch. All right. Text lunch. L U n c h to 55123. Again, that's text LUNCH to 55123. To talk to Belay about getting a virtual assistant of your own. You need it. You know you do, and they can make it happen.

What are you most excited about right now with all the things that are going on? Because there's quite a few things that are evolving in the market right now with CPAs going up and privacy concerns and things like that. A lot of people that used to be able to market in places like Facebook and Instagram can't now because the ROI doesn't work out because of some of the targeting limitations. What.

What are you doing to help your.

Clients with that kind of stuff and those challenges? And also I want you to do two in one.

What's the.

What are the things that you're most excited about?

So what we're doing to help our clients with this is this, honestly is what I've been saying for a long time. People are seeing the need for three dimensional targeting for that intent component. Because if you're reaching the right person with the ability to invest, that used to be good. When the CPMs were lower, the costs were lower, because then you could just, you Know, scatter people's Facebook feeds or you know, and, and, and nowadays like TikTok and these other platforms with ads. Or Instagram. Right, with ads. And then, you know, occasionally you're gonna reach somebody at the right time and it's gonna convert. But because CPMs are lower now, it's so important to layer. I actually had this argument several years ago and like kind of a debate, right? Not an argument, debate. I had a good debate with, with another marketer that, that was basically saying, hey, you're really targeting people, right? Doing 3D targeting, like you're layering. Why wouldn't you just do broader, broader targeting? Wouldn't you get, you know, you'd reach more people. And I said, and what I told them is I want to be as efficient as possible with my spend and reach the most qualified people. Reaching the right person with the ability to invest at the right time. Layering them, not only and at the time, more of the argument was this is what, this is what helps. A lot of our, you know, a lot of clients that we have come in, they want every dollar to count. And so one of the challenges, a lot of agencies, they'll just do very, very broad targeting and then they almost do this kind of narrowed down approach. They'll, they'll test a ton of stuff and then they'll narrow in on what works. We like to actually start more narrow, be more efficient at the beginning, more layered and then, then branch off, but not just branch off like this. It's like a tree. As we see what works. So we see, okay, we launched this campaign with this layering. Okay, great, this audience is working this target, this, you know, type of video targeting or keyword is working. Let's test more keywords based on that. So now we create a tree branch, then we create another tree branch. Okay, let's test other audiences or other targeting based on that. And now we're creating these tree branches with new campaigns that are all layered but they're different. And so one of the things, to answer your question, just to make sure I answer it correctly, to answer your question, one of the problems people have had is on other platforms that aren't intent based, but even on YouTube or Google, people just targeting very, very broad. The thing that I think has worked really well for us, has historically, but now more than ever works really well for our clients is layering from day one and actually doing what Google has intended is to really layer and target. This is my ideal client. Because then even if you have less, less shots, right? Because maybe CPMs are higher. You at least know you're shooting at the right target.

Right, that makes sense. That's really cool. And so is that, does that also the thing that you're most excited about or is there some new development or developments that are. That you see that kind of gets you fired up right now.

So on the YouTube side, I'll give a couple quick answers to that on the YouTube side because there's a lot of things I'm constantly diving in. I'm very, very excited.

I know, that's why I'm curious.

Well, thank you. So on the YouTube side, vacs, right, which is the video action campaigns or responsive ads on YouTube, this is different than what existed before. So this is merging the in feed ads with the existing YouTube in stream. So in stream are ads that appear in front of other videos and those are kind of the classic ads. Everybody knows them. You go on YouTube, you watch an ad, video in front of it is an ad. Now they've merged this with these in feed ads. So now if you're scrolling on YouTube on your phone, the ads pop up and they start to play. If you're watching a video, ads will appear on the suggested side. Now this has happened in the past, by the way, so this isn't brand new, but what YouTube has done is they've now merged these together into what are the new type of main YouTube ads, these vacs video action campaigns that basically take all the inventory. YouTube has to offer the in stream inventory and also all the inventory alongside other videos in the home feedback. And it's basically the switch to add even more, even more inventory on YouTube. And the thing is, if you don't set this up the right way, it can harm you. And the reason for that is now people can actually see the video that you published on YouTube. So if they click on the video, they can now watch it. And if it's an unlisted video and you just have the title be ad number seven, right, they click on that. And it's not the best user experience. So some people actually run into problems with that. And I also, I think I love Google, I love YouTube, they don't roll things out really well. And that's one of the reasons that we exist, is to train people and help people. And so we've been help, you know, nine months ago and this was starting to, starting to come out, we had a checklist ready. We're like, here's what you need to do help. And we've actually published some free resources on this as well. Actually, at War Room recently, I gave presentation, I said, here's the top five things you need to do with vacs. But we have like free resource on our site and everything. But with that, the VAC campaigns, what we have found, when you set them up the right way, you add the right title, you actually add thumbnails, you optimize the video. We're seeing 20 to 25% increase in conversions.

Wow, that's crazy. Yeah, that's awesome. So you obviously have way more to share and help people with than we could possibly talk about here. What are the best ways to get ahold of you and who are the ideal people that you would like to help?

Absolutely, absolutely. So some of the best ways is of course, you know, on adoutreach.com, a-o u t r e a c-h.com and adoutreach.com, that's where people can book a strategy call, we can dive in, see what they're doing on their, on their business, help them map out a YouTube ad strategy. But I also of course have my YouTube channel, Alrich Heck, constantly posting videos. Actually just did a video where I talked about my top five favorite business podcasts. Of course, Business Lunch was on that list. It was the second podcast I talked about. So obviously giving a shout out there as well. But I'm constantly posting videos on my YouTube channel, teaching people. Broke down my $10 million funnel actually recently. YouTube. But yeah, anybody who's looking to scale with YouTube ads, with video marketing, with omnipresent retargeting, we've got lots of free resources on our website on the YouTube channel. You can find me on Facebook, all the socials as well. But yeah, we're loving, loving to help people with YouTube ads, with video marketing, organic everywhere, and then also omnipresent retargeting as well.

And then do you focus mostly on training people and their teams to do it, or do you also run ads and act as an agency for people too?

This is a great question. So we are a hybrid. We are a done with you process, which is something I deeply believe in. I am on a mission to empower entrepreneurs to take marketing back into their own hands. And so instead of having, you know, agencies kind of manage everything for them and there's, there's good agencies out there, but the problem is there's only a small number that are really good. And then on the other side trying to figure things out on your own. Everybody knows there's a massive learning curve. And so what we want to do is we want to bring this back into the hands of entrepreneurs and business owners by working with their team to implement and help them with YouTube ads. So we actually want to work together to help entrepreneurs learn how to use YouTube ads, but actually help them set it up. So we got copywriters on our team. They'll help them write the scripts. We've got people in our, in our team that will help them set up the campaigns. So we're not just teaching people how to fish, we're actually standing beside them, helping them cast, maybe casting the first few throws, but then showing them. Here's how you reel it in. So working together and I saw a big need in the market. There's a lot of people that have agencies, there's a lot of courses. We work together with clients.

I love that model. And it's one that we're in the process of using ourselves. So if you guys, you know, want any kind of personal endorsement here, this guy knows what he's talking about. You should definitely check them out. And, and they're just also, in addition to being just a super nice guy. Right. You're also just a good human.

We like that. So thank you for coming on today.

Really, really appreciate it. Alerkin, you guys can read and check them out. And thank you for being here. Thank you guys for watching or listening.

To Business Lunch if you like this.

We always appreciate the five star reviews. We always appreciate you featuring us in your top favorite podcasts like Alaric did.

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To miss out on this stuff.

We'll see you guys next time.

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