How We Run Ads Online For Free (while building a massive list of leads) | Vince Reed | E6

Just a few weeks into the month.

14,757 on this campaign. Dollars on this campaign. So I'm going to show you today how we're able to scale and basically get paid to advertise, how the guru understand how to advertise for free. So it's kind of like a concept that the gurus understand, but regular advertisers who run ads, they don't get it. Like how you can just scale so fast with ad spend but actually make your advertising free. Okay, so let's talk about that.

I think we're ready. We ready? What's up, you guys? Vin Shrid here, founder of eboov.com and welcome to episode six of More Leads, Faster Sales. And we got a good one. It's right up my wheelhouse. We're talking about ads. But more importantly, I'm going to show you in this episode how you can run ads for free. I know it sounds crazy, I know it sounds crazy because, you know, it costs money to run ads, which it does. But there is a concept, a philosophy, a strategy that the advertisers that are spending $1,000 a day, $5,000 a day, $10,000 a day on ads are using to advertise for free. I know it sounds crazy, but we're going to break it all down. We talk a lot about list building.

List building is a concept that was taught to me by my mentor, and I don't think it's discussed enough today when it comes to running ads, because a lot of people running ads today, they're extremely transactional. For example, let's say they spend $100 on an ad. They want to make $300 that day. Right? They just want it to turn a profit that day. They're not understanding the big picture, okay? The business that they're actually building the second they start running ads and how to virtually guarantee that they can scale to the moon. We talk a lot about on this episode, the philosophy and the thought process you need to have when running ads. And we dive into another component which is so important. And it's essentially building and selling to a starving crowd. It's probably my favorite part of the episode. We talk about that, and I show you how, when you sell to a starving crowd, how to create that starving crowd. And I explained to you, but people that aren't selling to a starving crowd, but they think that they are, are losing money with ads. It's really important. All right, so hopefully you're getting a ton of value from these episodes. Do me A favor, especially if you've seen this a few times, make sure you hit that, like, button and subscribe to support the channel. We greatly appreciate it. And with that being said, let's get to it. Episode 6 of More Leads, Faster sales. Let's go. All right, so advertise for free. Now, let me explain the concept, because obviously it's not technically free in a sense of to get an ad to show, okay, you have to pay for that click, right?

Yes.

But the question is if. Let's say you spent $100 on ads, and then that day you make $100, did you spend $100 if you break even?

No.

So that's the way you advertise for free. Right. Now, one of the mistakes I think marketers go wrong with is they try, in my opinion, they try to create funnels to break even, and then they're like, on the back end, we'll try to make money, meaning they create it going in. If I could just break even. You should try to create a funnel that's profitable right out the gate. Right. And then it would be something like, you spend $100 today, you make $150. That's obviously the goal everybody wants. Yeah. All right. But the problem is most people aren't structuring the business to even do that, nor know the math to make it work. So I have some notes here. I'm going to go over what I mean by that. All right, so here's the break even, advertise for free analogy so those of you watching can understand. And this is the mindset of real advertisers. I'm talking about people that are spending $1,000 a day at minimum on ads. So they're spending $30,000 a month or more. If you're spending 50 bucks a day or 5 bucks, you know, then it's going to be harder to do. Yeah, but I'm talking about the people that are spending hundreds of thousands, 30,000amonth, you know, like really spending the way they're thinking about the campaign, or at least the way that they should. So you spend $100. Let's say you make $100 that day, and you get 10 leads. Right. So essentially, you got those leads for free.

Yeah.

Right. Because you paid $100, you got. But you have 10 leads. And the goal would be obviously within those 10 leads. Unless the leads, obviously, in that case would have been $10 a lead. Okay, if you spent $100, got 10 leads, made. A hundred bucks. Yeah. How much money can you make on the 10 leads. Because anything after that would be pure profit. Right? So the idea is, how do you structure and create your business in this way? Because the idea is, if you can create a business in this way, then when you wake up every day to run ads, the goal is, how much money can I spend? It's kind of like if you were standing in front of a vending machine, and you put a dollar in the vending machine, and it spit out $2 and your soda.

Do it all day.

What would you do?

Put in a dollar.

Now, what if you had a $5,000 monthly ad budget and you're in that same scenario?

Just cap at it.

I'm asking you. So you have a five. You came to me and you're like, I got a $5,000 ad budget.

Spend it all.

Okay.

Knowing that. Yeah. Get.

Wait, wait. So tell me, how would you spend it all? You talk about. So let's play. I won't. I want to get into this a.

Little bit deeper still in the scenario.

Let me lay it out, okay? Because this is where people go wrong. And again, a lot of it is just understanding this in your subconscious mind when you're marketing. Okay? So this is what happens. Your business, you have an ad budget.

Mm.

It's $5,000 for the month. That's what you came to me with. And you have a business. And let's just say it's the vending machine. You put a dollar in. Now you got $4,999.

Right?

It spits $2 out. Now you got 5,000. $1.

Yep.

Okay. How much are you spending that day?

5,000.

Why? Just 5,000?

Well, if that's my budget, this is the.

This people. This is the problem. Now say it out loud again. What? You just said you have $5,000.

I know where you're going.

You said you'd spend $5,000 that day.

I would spend that plus what I make.

Why not keep putting dollars in 24 7, 365 as fast as you could? So that what you're saying?

That's what I'm saying. Okay, now that I know where you're going with this.

So what you just said is the problem with marketing and. And why it's hard for businesses to make money.

Cause if I put the 5,000 in there, I double it. I have total now 10,000. I'm gonna spend the 10,000.

The goal of advertising is to figure out a way to spend more.

And what you said is it's more fear I might lose the profits. I might lose the 5,000. I just said you put a dollar in and spit out $2 in the soda. And you said I'd spend $5,000. Cause that was your budget. There is no budget, is the point. Okay. The goal of advertising is to figure out a way to spend more. And this is an example of advertising for free. Right. In this example, let's just say based on the time of you putting the dollar in, getting the $2 out, let's say that took 24 hours. That's one day. And at the end of that day, you spent, you put into the vending machine 70,000 $1 bills. That's all the time. Let's just make that number up. Okay. What would be your goal the next day?

Spend as much as I can.

How? You can get more into that vending machine than 70,000. How do you get 71,000?

Right, exactly.

The goal is to figure out a way and build a business that allows you to spend as much money as possible. To scale.

It's a weird concept, but the.

But the one thing holding people back is what you referred to, Obviously, the fear. Uncertainty. But if you don't. If you don't know how much you're going to make back then.

Right, that's the fear. Yeah. But it more so starts with the goal. Because here's the thing, a lot of people have businesses where this happens. I can't tell you how many times I see a person that has a business and we were crushing it, and we were spending 5,000amonth, and we were making 30 grand in a month, spending 5,000. And I'm like, well, why did you just spend 5,000? And then all of a sudden they're doing something different because it, like, stopped working. When you have something that works, you have to, like, go turn on, like the rocket fuel. All right? So either way, it's technically not free. Cause the person. Well, it's not free. You still have to put the dollar in the concept. And just. I'm trying to give the people watching and you the understanding, like the psychological trigger of an advertiser that's scaling.

Right.

They're not spending money. It's free. Even if they broke. Even If I spent $100,000 today and made zero, but made a hundred thousand, I mean, zero profit, how many leads or how many buyers that I get on that $100,000? And the goal would be, what am I doing with that with those customers or those leads? Right. All right, so there's two ways to think about this. Let's bring this home a Little bit. So people can understand and think about it differently. Because again, we're doing this because we want to go a lot deeper. Like then the surface level stuff we see online.

Sure, yeah.

We talked about this on past episodes. I know we talk about all the time in the offer in the office. The concept of a value. The value of a lead. Yeah. Okay. Now the value of a purchase is the what you make on that purchase. So like you sell a $50 book, the value of that book would be $50. That's what you sold it for. But in terms of the value of a lead, the way I was taught and the way I've really seen it play out in real life circumstances is the lead's lifetime value is a dollar per month.

Yeah.

Okay. So when you get an opt in subscriber, we now look at there being four types of leads. A follower, social media followers, a lead you get obviously an opt in subscriber. We view a watch watch time as a lead. Meaning like if someone watches a webinar, especially using the EBOO platform, we start building those custom audiences. Or someone watches your ad and they watch 50% or more of a two minute or longer video, that's a minute of that video. We consider that a lead and obviously a buyer is a lead. Right. All right. I look at every lead that I get. Those four scenarios again. Social media followers, subscribers, opt in subscribers, watch time leads and purchase buyers, customers has a lifetime value of $1 per month.

So that means if I build a list of 10,000 leads, again, it could be any of those four.

Right.

Then I should at bare minimum be earning $10,000 a month. How? By making offers to those leads, you know, doing sponsorship deals, anything. Those Leads is in 10,000 people in this group, I should be able to extract at least $10,000 a month. Now some people will take those 10,000 leads and make seven figures in a month. Sure. But at bare minimum, the lifetime value of the leads you generate should be a dollar per month. So you should have a conscious mind to be list building at all time.

Okay.

And the concept going back to like the ad spend. Right. So like the budget of 5,000, for example. So let's say you spent 5,000 and you got a thousand leads. Right. You'd be making at bare minimum 1,000amonth. Right. That doesn't mean you didn't make 10,000 because you sold something to one of those thousand people. Right.

Just minimum.

But the recurring every month, you should be making at least a thousand a month. Spend $5,000, the second month. Month two, okay? Now you have 2,000 leads that month. You should be making $2,000, bare minimum a month. Okay? Now you only, in that case, would have lost $3,000. We're just saying you didn't make anything from the leads, okay? The next month, you spend $5,000. Now you have 3,000 leads. Now, again, I know those of you watching, what about the unsubscribers? We're just keeping it easy. Fair numbers. Month four, spend $5,000. Now you have 4,000 people, negative 1,000, okay? In terms, month five, you spent 5,000. 5,000 leads. Now you're at break even. Month six, you spent 5,000. Now you're at 6,000 leads. You're at 6,000amonth. You're at profit. And again, this doesn't mean you didn't make $20,000 off one of those buyers of those leads, right? So this is the concept of list building and how you advertise for free, right? Now, let's say we do this scenario, and you're 12 months in, all right? In month 12, you spent $5,000. Now you got 12,000 leads. We're just doing a thousand. A thousand, right?

Oh, okay.

At the end of 12 months. Yeah. So that's a seven plus 7,000. Their cost that month was 5,000. But over the last year, you've got a thousand leads every month. You're at 12,000. Now you're at a plus, 7,000. Okay? The concept that I'm getting at here is as a business, right, you're looking at your list and you're thinking, what are the offers that I can make? What is it that those people became leads for? Okay? What are the things that they're struggling with? What can I do to make the most irresistible offer possible that would essentially turn those 12,000 leads into cash? And you continue this process throughout time. You build a massive list. You make a lot more money. Now, the key is, how do you make more offers to those leads, right? So you go, you take that same scenario of 12,000 leads, and now I want you to think about a process where you could run. Let's just say you set up a video view ad that costs you one penny. Imagine standing in front of 12,000 people, and it costs you $120. But here's the key. The 12,000 people, you know what and what. What they were thinking, what they did to become a lead, right? You know the intent, right?

They're not just random.

They're not just random. Like, you know.

Yeah. They have no idea.

You're putting an ad on TV and like, no one's interested in the bar of soap commercial, right?

Yeah.

These are people that all were funky as hell. We're in the desert sweating and needed some soap in a shower. And you are like, here's the soap.

Right?

12,000 of them.

Exactly.

They know this is the mindset of the guru. Spending a thousand dollars a day. Most people running ads, they can't get there. So now you can see how you can advertise for free. So let's go back to the scenario. I spend $5,000. Okay. I get a thousand leads, but my list now is 20,000 people. I spent the 5,000, but within that 5,000, I'm spending $120 a day with a video view ad, making offers to all 12,000 to all 13,000 people, knowing what their intent is.

Right.

This is how I can make the statement and say that the average lifetime value of a lead is at least $1. I'm pretty confident. Unless you are just like, you're not clear on your problem and your leads really aren't the leads that you think they are. Meaning. Let me give you an example what I mean. Meaning you build a list manipulating people to get on your, on your, in your autoresponder. It's like the guy that said, how to make $3,000 a day sitting on the beach doing nothing. You run an ad, everybody's opting into that. Right. Just to see what that is. Bad emails, not really a business owner, you know, they're running the ads in all kind of countries where the people couldn't even afford $50 to spend on a product or something like that. Right. So that's what I mean. Those people building the list that way, doing, you know, you know, buying list. I got 100,000 leads.

I see.

You know what I mean? Yeah. This, what I'm talking about is, I'm.

Talking about, like, the intent is.

I'm talking about leads that were generated in a real way.

Right?

Right. Where you know the intent. So when you're doing that and you're running the ads to them. And again, I like to go with a video view ad when I know the intent of the audience. Because at that point, my goal is to just see how many offers I can put in front of those people.

Right.

Because I knew what the problem was.

So, like, that's what you were explaining before when we were talking about how it's really expensive if you do like a video view ad to like, let's say cold audience. They have no idea who you are.

Right.

And. And you were explaining that you. It takes longer for the.

What is it to find the right type of search.

Yeah. Well, for one, if I do an ad right in Facebook, right. If I wanted to target the interest, targeting digital marketing, for example, It'll show like 50 million or 100 million potential reach. Most of those people in that audience aren't your. Your client. It could be in that audience. It could be like, let's say you're a digital marketer.

Yeah.

And you posted something about what you do, what you're doing. Right. And your cousin is friends with you on Facebook. Clicked it. They're in that audience. And your cousin plays Nintendo all day. Right. They're part of that million. 100 million. $100 Million.

Your ideal customer.

Right. So that video view ad is going in front of people that aren't really interested. Right. But if you saw like my ad clicked, became a lead, and it was clear why you opted in. And I'm running, doing a video view ad to that 12,000 or that 13,000 list or 20,000 or 2,000 or whatever it is, and I'm making an offer. I'm making 12,000 or 15,000 or 200 offers a day. Most people are luckily if they make one offer. And that's why the slogan with Eboov is more leads, faster sales. Because our whole focus is how do we make more offers.

Exactly.

Because the amount of money you make is in direct proportion to the number of offers you make. But we're talking about advertising for free. Yeah. So in this scenario, again, I just want to hammer home, I'm spending now. I could spend $12,000 a day. Right. If I'm spending $12,000 a day and I'm making 20,000 offers a day, I'm advertising for free. The goal at that point was how much can I spend? And this is so difficult for people that just lost money with ads. All right, so I have some other things here. So that's an example of.

People getting, doing this for leads. What about the people who are optimizing for purchase? Okay. Right. So how do they build a list? It's the same exact way, but you have to know what your cost per purchase is, obviously. So let's just say you have $1,000 on ads you're spending and your product is 50 bucks. Right. You'd have to sell 20 $50 products to basically break even that day. Right. So you'd have to figure out.

What your conversion rate needs to be in that scenario to hit those 20 sales to make that happen. Right? So I wrote down here, let's just say your cost per click was $5 a click. Always base this on. Worst case scenario, the average cost per click is a little over $2 a click right now. But let's just say it's $5. So you spend $1,000. That's 200 clicks. That person would need to essentially convert at 10% to get 20 buyers. All right? So in order to do that, right, you have to think about the customer and say, what is the offer I need to put in front of these people to convert at 20% on 200 clicks, right? So you think of the math. So when you're thinking, I'm gonna spend $5,000 in a day, it's almost like you have to really understand your customer and. And think about it from this perspective. It's like if I was in a room, like we said before, people who were in the desert for, you know, I tell you, I watch that show naked and afraid all the time. They clearly need a bath. If I got in front of all of people after, like, three days into that show and I offer them a shower and a nice new bar of soap, right? They're the Right. They're gonna buy. Right? Which leads me to the most important thing to understand why this is important. With all of marketing, it's so important to understand how the math of everything works. That's why we go into numbers, right? It's also important for you to understand your customer. But in just going into understanding math, I want to, like, dive into this a little bit deeper. So, like, for example, you know, Connor, who works with us, he loves baseball, and there's. I want people to understand with math how crazy math is and why it's so important. So you have some people who, let's say, bat 200, right? So that's basically 20%. So they go up to bat, they're gonna get a hit two out of 10 times. Okay? Then you have a guy that bats 300. He's gonna get a hit three out of 10 times. The difference between a contract, making the All Star Game.

Endorsement deals is literally from 2 to 10 to 3 to 10. That 2 to 10 guy, 2 out of 10 guy might not be in the league.

Had he got one more hit. He's an All Star making hundreds of millions. This is how important math is.

Okay, that makes sense, putting it that way.

Like, just one more hit. We're talking go from 2 out of 10 at bats to 3 hits out of 10. Okay? That's. That's what I think. People have to understand why they have to dig so deep into the numbers.

And.

And the reason I bring that up is you get the guy. I'm running ads. I understand what you're saying, but I can't run ads, and I'm gonna go broke. And it could be because their product is not being sold for what it's actually worth. Maybe had they sold it for, instead of 50 bucks, $67, they'd be talking about a whole different thing. But they haven't even got to the math to know that. So they're the guy that's 200%, that's out of the league, whereas the other guy figured out the Math and is batting.300 and is in the game.

Right.

Just a small, small little tweaks.

Yeah.

I mean, it's what we've been dealing with and what we've been working on all week.

Right?

We didn't say, oh, let's just make a product. We're like, okay, here's what we have to do in order for this to work, and I'm talking about the funnel that we're about to launch. These things have to happen. And I could go do a test and spend five grand and know if it's working or not, which is another point. You got to be willing to spend the money on ads. The people that are spending 50 bucks today and $3 a day, it's not enough data. You're just basically giving yourself a slow death, in my opinion. You want to, like, fail fast, right? So if your product is $1,000 product, you need to be willing to spend a thousand dollars in that day to see if it's gonna work or not. Where most people do, they'll spend 40 bucks, 30 over, and I have a thousand dollar, but they'll drag it out, and there's not enough data to, like, know if something happened. Now, that doesn't mean you go set up an ad, spend everything, and just spend it all with no, you know, experience running ads. Find someone who can help you. But in my opinion, it's always better to get more data quicker than let it drag out. All right, So I wrote down here, the key to hitting your numbers is to sell to a starving crowd. All right? And we'll. We'll dive into this. I'm here. I want you to think about this. Okay? So have you ever seen, like, the circus and, like, the lions are walking around, like, with the people, like, out there? You're like, why isn't this lion just eating the hell out of this man or woman, which. Yeah, it's happened a few occasions, but.

I know they feed him.

They feed them so they're not hungry. They feed them so they're not hungry. Yeah. So what's your favorite food?

Like, what is it that you love to just. You.

Carne asada.

Carne asada. All right, so if you just went to lunch and you had a bunch of food and your stuff, like, you went to, I don't know, a pizza place.

Yeah.

And you had a pizza and all the food and everything there, and. And then I brought you carne asada and you were stuffed.

Yeah.

It's your favorite food. Do you want it?

Not so much.

That's what's happening, like, with most people's business. Okay. You have to think about how you can sell to a starving crowd. Right? Right. That's your list. That's your lead. That's list building, putting that map. But most people aren't selling to a starving crowd. Right. So it's kind of like.

Not only, like you. For example, when we went to the real Tarzan's ranch, you know, I held the anaconda.

Yeah.

Like, the only reason I held the anaconda is because he told me, like, he had. They just fed it.

Yeah.

How do you sell to a starving crowd? When you're selling to a starving crowd, the concepts that we're talking about works. When you're not selling to a starving crowd, the concepts that we're talking about obviously does not work.

So maybe you have to reassess what you're doing.

You have to reassess what you're doing. So the question is, how did you do that? And it always comes back to the gecko effect. Okay. It's how you set up what happens next. All right, so, like, when you're running your ads and you're calling out a person with the issue and you're telling them how you can solve it, right? So they click. They. They basically, you're raising their hand. They're like, that's me. Right. And then what happens on that next step? They're the starving crowd. You feed them.

Right.

But if you aren't calling them out, let me give you an example. You see these people with a lot of followers on social media. They'll show. They'll have a video of something that went viral, and then they'll be like, they'll comment on it. Right. And it gets all these followers, and they're like, I got 1.5 million followers.

We kind of experienced that.

1.5 million leads yeah, yeah, One of.

The posts that we did, we were.

Yeah, let's talk about that.

Yeah, it was about the, about the Uber driver talking about how much he makes, you know, in a day or in a month. Right. And it was valuable information, but with the audience that you have, it's mostly marketers, business owners, things like that. But what that specific reel attracted, I mean, it probably got the most views we ever had on it, like two point something million. But it was a bunch of people talking about Uber.

Yeah. So you're 100%. So let's, let's give it more color and so people clearly understand what we're saying. So what we're saying is if you build an audience of people who aren't interested in your product or service, it's not going to work. We did an ad, we did a post. I got an Uber. I asked the guy how much he made. I forget how much you. He said he made, but it was like something, it was, it was a lot of money. It was, it was like, let's just say $30,000 a month driving Uber. Right.

He was doing Uber Black. It was in, we were in San Francisco, San Francisco, in a busy area. It was easy for him to do that, where he was, and that's what he made. And I asked him that and I posted it. And of course it went viral because everyone's like, you can't make that. He's, this is an Uber commercial. And all these people started following me. We're like, oh, we got a post that went viral. Come to find out, these were all people that were probably like job seekers or like opportunity seekers, like, oh, how do I make that? How do I do that? Right. They weren't my market, which are entrepreneurs spending money on ads like trying to grow their business. Right. So we had a real tough time getting our algorithm to switch back to our ideal market. Right. Because of that one post. The intent, we didn't know it was gonna do that. That was just a mistake. We thought it would be good business, but it just kind of turned that way. My point is you have to be selling, selling to a starving crowd. Once you get the starving crowd and you start to essentially make more offers to the crowd, you keep a focus on list building. The goal is to feed the funnel, meaning identify the problem, keep feeding the funnel and then figuring out, like, we always talk about how you can make more offers to that list. And if you do that, every time you spend money on ads, you essentially be putting the money back into your bank account. Tenfold than what you spent that day, thus allowing you to advertise for free.

That makes sense.

Any questions?

Free ads sound good right now.

Yeah. So in some. In summarizing everything, focus in on list building. Understand that you're the list that you're building. Okay? It's an asset. It has a lifetime value. And how can you make offers to that list? And do the math. Ask yourself, if I'm running ads and I'm spending $1,000 a day, what is it that I need to do? What are the percentages? What's the numbers that I need to hit in order to break even that day? And not only that, construct an offer that's irresistible. Like, how can you create an offer that you know that if you got in a room full of these types of individuals that it would be very, very difficult for them to say no. Cool, that's all I got. I like it. I'm out.