right balance between investing in ads for growth and ensuring a positive return on investment.
That's a fine question we might cover.
What metrics or benchmarks should we look at?
All right.
Welcome in to Vision Pros Live.
I'm Jackson Calame.
I'm your show host.
We will be doing interviews for visionary entrepreneurs and guest leaders who are building
fantastic visions out there.
Ultimately, I just want to go through some of the things that might help you with your
vision.
If you have a vision that you're pursuing, drop a link in the comments and let us know
what that is.
If that's a business or a brand, if it's a nonprofit that you run, be happy to promote
it, be happy to talk to you about it.
And if you'd like to apply to be on Vision Pros and be interviewed about that vision,
then by all means, feel free to reach out.
Hey hey and welcome in Vision Pros.
I'm your host, Jackson Calame, first class business founder, the co-founder of Able
Health and the CEO of Pod Booker.
We're going to be diving into a topic that I just see so many business owners struggling
with and that's how do I invest in my brand properly, marketing, advertising?
What am I supposed to do?
What channels do I put my money towards?
I put it towards Facebook or LinkedIn, et cetera.
There's so much research that needs to be done on the front end the right way in order
to make sure that you're moving forward correctly or you need to find the right strategic partner
to help guide you on that.
My hope is today that I'll walk you through some systems that will help you understand
how to gain clarity on this subject that is one that people don't want to talk about.
It's a tough conversation to have.
And so why is it a tough conversation?
Because you got to, as a provider of services, you have to constantly walk this balancing
act of what do I say that's not going to offend this person, but it's also going to inspire
them to move forward.
And especially around a subject that's so controversial because there's so many mainstream
ideas that are talked about that could be followed in order to grow your brand.
But most of them are bogus.
Most of them are based on variables that don't pertain to your brand.
Should you be on TikTok?
Well, Bill Gates went on TikTok.
He's got he can win on almost any platform with how far and wide he's well known.
But what about your newer brands?
If you're a brand new entity, what should you be doing to draw buzz and attract people
to work with you?
And when it comes to testimonials and case studies, do you have them?
And does that matter to you?
Are you good enough at selling that you don't need those aspects as part of your brand to
sell?
There are so many things that people have a tough time talking about and don't want
to hear.
But, you know, I'm going to say this, he that has ears, come here.
He that has eyes, let him see.
We're going to dive in and this is going to be an application based session.
So whatever you hear today, if you're listening to the episode, know that there's a video
that goes along with this where I'm actually showcasing the materials that we use to qualify
to pre-qualified clients and make sure that they are ready to scale their businesses without
these assets.
We will not grow a business.
We don't want to.
We don't want to grow business unethically.
We want to grow businesses that are set up for scale.
And if they're not set up for that, we've got to find that reality out in order to make
sure that they're ready to move forward.
But we also don't want to spend money before forecasting how much money we're going to
make.
And if we don't know that, then why are we spending money to begin with?
Right.
You should calculate all this in advance.
That way you're not wasting any money whatsoever.
So Jaime is going to drop a link in the comments right now.
This is going to be a free gift to you.
It's our $99 revenue growth workbook intensive, which comes with a workbook and a seven minute
video from me where I explained that we use this tool to launch all of the viral video
ad campaigns that we launched at Video Power Marketing.
It's a phenomenal tool.
We would have never run a campaign without running a client through that process.
It didn't matter if it was Nordic Track or Vivint or John Lee Dumas or Michael Hyatt,
T. Harvacher and everybody that we worked with.
We had to make sure that they had a formula that was set up for success.
So the revenue growth workbook intensive, when you click on this link, we're going to
give it to you for free.
You're just going to download it.
That's going to get you in there and you'll be able to use the workbook that I'm going
to pull up on my screen and start walking you through and show you.
You know, basically we're going to call this entity visionary entrepreneur.
And you're going to see how many things we need to learn about somebody before we decide
that this campaign is safe.
This is a campaign that we are safe to run with and build out.
And we may not get to the end of it.
We're going to use this 45 minutes to show you, all right, for working with a brand new
entity, what types of questions that we need to ask responsibly in order to help that entity
succeed.
So let's go right into the revenue growth workbook.
Now I've hidden the first page, the organization page where we ask questions about the brand
to get to know the brand, since we're not going to be, excuse me, let me go back over
real quick and just make sure you all are seeing this.
Okay, perfect.
You are seeing it.
We're going to skip the questions about what are your goals?
What's your customer lifetime value?
What service do you sell?
How much does your service cost?
How much investing in marketing?
All those questions are super important on the front end too, because they dictate the
type of scope of work we can put together for an entity we're working with.
Let's also just breeze through the blueprint itself, right, because most of you know this
blueprint.
If you don't, don't feel left out, just pause this video and look and see what it is.
But it's, there's an advertisement that you're attracting people's attention with to a landing
page that should be even more attractive, that drives people to convert or opt into
an offer where they then land on a thank you page where you honor them for having opted
in and you should have an email series that nurtures people to consider buying from you.
Right?
Some people buy right away when the brand is like a Disney or Netflix, it's easy to
see the value and it's really easy.
Like there's low barrier to entry.
In other instances, you may have a high ticket solution that you're trying to sell.
And in that case, and by the way, Jaime, feel free to share this link with people too, the
actual live workbook I'm going to be working on.
You guys will have view access to it.
So you can dive in there and look at it alongside us, but we're actually going to move over
to a calculator that intimidated me big time the first time I saw it.
And it was not as nice looking as it is now, but it was still, it was a spreadsheet and
I didn't like spreadsheets back when I learned about this.
I think I was like, I don't know, 25, 26.
I built a pro forma on a spreadsheet with my stepdad.
So I knew how performers worked and I knew how to use spreadsheets, but I still wasn't
comfortable with them.
And so the idea of using this really intimidated me.
And I found that most entrepreneurs feel the same way.
They don't want to admit it, but they don't know how to use the calculators and how to
use the spreadsheets as well as they could.
Now if you do, you'll just be patient as we go through this process, because you probably
have a marketer working for you who's also intimidated by this, or you have somebody
on your team who needs to understand how this value gets broken down.
So let's start at the top.
Where's this customer value?
Now this customer value number, how you determine this, I have a separate spreadsheet for this
too that I'm also going to be sharing.
And let me, in fact, let me stop sharing real quick.
We'll go back and I'll show you the other material that we're going to be walking through,
because both of them are going to be super helpful for you.
I'm just going to share entire screen this time in order to help make sure you can see
all the assets.
All right.
So we're going to be looking at a report for ads as well and how we run advertising for
our clients in order to make sure that the advertising is set up to win based on a maximum
budget of $100.
We do not need to spend more than $100 for testing.
I don't know a lot of advertising companies that are able to pull that off because they're
counting on a big retainer from you each month.
So with that said, the entrepreneur visionary lifetime value one-on-one, we'll be going
over how to set up what type of value you're going to get from your customers.
Because again, too many entrepreneurs have never done this type of exercise where they've
outlined what is the income from one experience with a client, what is the lifetime value
of the income and how do you project your net profit so that you know that from the
start you are winning in business.
Too many providers don't have this information when they start advertising.
The agency assumes that you should have this information.
Technically speaking, they may be right, but at the end of the day, if you don't have this
information and you're trying to win in business, you are likely to set yourself up for extreme
failure and we don't want that for our businesses.
So let's move right back over.
Let's start here on this customer value again.
We'll backtrack to that later, but the customer value, what we're going to do is we're going
to look at this from that tough conversation standpoint.
If you have a low customer value, you're going to have a very hard time winning in business
unless you have fantastic distribution, are able to scale that product to the masses super
fast, which requires quite the gamble and a big risk.
This is also why we work with high ticket clients, whether that's a dentist or a roofer
or in our case, mostly the visionary entrepreneurs we work with tend to be coaches and providers
of consulting services because there's quite a large profit margin on those services.
There's room for error and they're usually coaching or they're usually working with an
entity that is gaining a financial return.
And if they're gaining a financial return, then it's also easy to justify reinvesting
in your business.
If you can see the return on investment that you have.
So that's why we choose those entities, but the calculations still work because it's math.
It's really a matter of logistics.
There's not really an emotion behind the reality that you're just processing a transaction
with another human being.
So customer value, we prefer to work on the, again, if you've got a client package of $6,000
for coaching services, then your profit margin is most likely going to be somewhere between
40% and 90%, depending on what type of coaching you're doing, how much time you're committed
to that.
And also what you determine your own hourly rate is divided by the amount of hours, that
coaching package by the amount of hours you put in.
We've also got operational costs associated.
So we're not going to spend this entire episode talking about how to determine your true cost
of goods sold, which we do with our clients, or how to understand how to increase your
profit margins and also simultaneously increase the value that you provide.
Those are different services.
There are different things that we also work on with our clients to make sure that they're
creating the lifestyle that they want.
We're going to focus in on assuming that people watching this audience have a customer value
defined so that we can start defining the calculator.
Naturally, if your customer value is $60, then you're going to have to hit different
metrics in order for your return on investment to be bigger.
Whereas if you have an $18,000 customer value, which if you're in luxury real estate, then
that's much more along the lines of accurate than knowing that you're going to get a $60
paycheck for somebody who signs up for your software for one month.
So again, there's a lot of variables that are going on here.
If you have a business model and you want to provide in the comments, by the way, an
insight into what your...
In fact, I'm going to stop sharing one more time just to clean up the share.
We're going to focus in on this document.
Let me go back to present, share the screen.
Let's go to the revenue growth workbook exclusively.
There we go.
Now I can come back and forth a little bit easier.
Then feel free to drop in the comments what your lifetime value is or what type of business
model you have.
If you don't know what that is, then ask.
This goes back to those tough conversations.
If I'm talking way over your head as a business owner, if you want to become a wise steward
and run your business in a responsible fashion, you got to start learning these terms.
You got to work with somebody who understands this terminology and knows how to help guide
you to this process.
They're not condescending at you.
We're trying to help you understand what you're doing.
And if you understand what you're doing, you're going to move forward in your business a whole
lot more confidence.
So now let's look at the advertising.
So we're pretending right now, let's go all the way to the bottom, that we've decided
to spend $500 on a Facebook ad.
That's a lot of money.
It's better to pretend that we're spending it than spend it, in my opinion, especially
in this case.
In this case, this business owner lost $500.
It says that you spent $500.
You got zero customers based on what happened here.
You did get 3,000 views, but you didn't close anybody yet, and so therefore you had zero
return.
Well, that means that you lost $500.
What I see most business owners do in this case is they shut their Facebook ads down.
And in many cases, they blame Facebook.
And they say Facebook's the problem and that Facebook didn't work.
And they have no idea just how close they got to winning because they're not mathematicians.
And that's OK.
We don't expect you to be a mathematician, but we do expect you to work with people who
are and work with people who do like to figure these things out.
Because if this one business owner, if this business owner just spent $40 more, but they
would have realized that they had a profitable funnel.
You see this?
Now I spent $540.
The key difference maker was I had to get enough lead conversions in in order to convert
one customer.
But now that I have, I've made a $2,000 return on a $540 spend.
That's a 370% return on ad spend.
Now again, in isolation, I see so many advertisers be like, well, that's it.
Now you should scale in and just believe me from here and let's move forward.
I don't like that approach.
It's just not it's not cool to me.
There's too much that the business owner needs to understand about the variables here.
If I were to spend $700, watch what happens to the return on ad spend.
It goes down and it goes down quite considerably.
Why?
Because I've spent more on ads, but I've still only maintained the one conversion because
of the way the metrics work out.
So I did not have a true 370% return on ad spend because I wasn't done spending money
and I'm not satisfied with just one customer.
I've got to figure out how do I get repeat customers and what's it going to cost me to
get repeat customers?
Well, let's just scale the ad spend, but do so in a safe way.
None of you on the show right now are spending $7,000, right?
But I am on this calculator, right?
Theoretically, because the logic is going to play out the same on Facebook if I know
what my metrics are.
But that's also why it's so critical to know your metrics.
But check this out.
If we spend $7,000, in fact, let's bump it way up.
Let's pretend we spend $70,000.
The reason why I'm doing this is I know that my variables are starting to level out.
They're starting to make sense across the board, right?
So let's see here, $75,000.
Just play with that for fun.
You notice that the numbers are changing a little bit less each time.
But I know that if I could spend $75,000 on ads, if these are the metrics that I hit,
then this would be what my outcome is going to be.
That would mean that every time I spend $75,000, I'm going to make a gross return of $288,000
minus the ad spend of $75,000.
Now my net return, again, excluding other cost of goods sold, is $213,000 minus the
ad spend.
But I also have to pay for my advertising team.
I have to pay for the systems that I have in place.
I have to pay for the materials that I give to my clients.
There's still information to be accounted for.
There's still costs to be accounted for.
We're trying to simplify this for everybody to understand, though, that you do have more
power and control over winning on advertising than you even realize.
So let's talk about what that looks like and how that works.
So customer value-wise, we're going to come back to that later.
For now, we're going to talk about the cost per view.
You've probably never been told this.
You may have never heard this before in this capacity, but you have full control over the
cost per view that Facebook gives you.
How do you control this?
You control this by the quality of your offer.
If your offer lacks quality, Facebook will jack up the price of your cost per view because
they cannot prevent you from running a terrible offer.
So if you want to lose on Facebook ads, run the same campaign most people run, which is
sign up for our newsletter or come look at our general website.
If you do that, Facebook's going to slap their forehead.
They're going to say, oh, I wish this guy would run something more valuable than that.
But because you're not, and we know our users don't want to see this.
We know that our users hate advertising that doesn't provide value.
So we're going to jack this price up of the cost per view so that you will put yourself
out of your misery and stop advertising.
That's what they're trying to do.
They're trying to tell you, stop, it's not working.
On the flip side, what if you had an offer that was amazing?
What if you had an offer that inspired people to want to come back to Facebook because they're
like, man, this person wants to give away a free car.
And I'm talking about a legitimate deal here where you're actually doing it.
If you're actually doing that, Facebook's going to drop your cost to less than one cent
because they're excited to promote that.
They know that people will then associate that opportunity with Facebook and they're
like, man, this ad is awesome.
The algorithm is designed to catch and see, okay, which ads are being shared, which ones
are being commented on, which ones are being liked or hated.
If it's drawing people in and getting people to engage in the platform, Facebook rewards
that advertising and wants to push it to the masses because it improves the user experience.
Right?
So let's talk about restaurants.
How does a restaurant take advantage of that?
A free dessert.
Yes, you have costs associated with that free dessert, but watch what happens when we change
from that $500 in ad spend.
We use the same exact ad spend, but we change the cost for you to one cent because you've
provided something of amazing value that people want.
Oh.
Oh, if I hit the holy grail of one percent cost per view, now I've got 50,000 people
who've shared this, who want to see it, want to get involved.
I've got all sorts of people who might move forward on this free dessert concept.
Right?
Here's what also happens.
Not only did more people get to see it, but your click through rate is also going to go
up.
We didn't even account for that yet, but let's talk about this click through rate, this 1.5
percent.
We're targeting a local demographic around that restaurant.
And I'm giving away a free dessert for everybody who comes through on this.
I'm going to go ahead and I'm going to suck it up.
I'm going to make that the cost because I know that my restaurant is so valuable and
we've got such great food and great service that as people come in, they're going to come
back and back and back and spend again.
That's the goal for the restaurant.
The restaurant gives that free dessert away.
Here we have a click through rate of 1.5 percent.
Now that means that only one percent of people who saw that ad actually clicked on and moved
forward.
No, no, no.
We need to look at this and say click through rate.
If I'm giving away a free dessert, we're probably going to get a click through rate of north
of five percent to 10 percent.
We might even get as high as 15 to 20 percent.
The highest I've seen of a client is 16 percent on a click through rate.
She's a coach in the binge eating space and the lady was just so magnetic that every time
she talked on an ad, people clicked like crazy.
Our targeting had a little bit to do with that, but it was mainly just she just had
something magnetic about her.
Let's move this up to a five percent click through rate.
Watch what happens instead of making twenty five thousand on that.
Again, we'll come back to customer value.
We're going to talk about right after I change this because you're going to be like, what?
How do we make two thousand dollars on a dessert?
We didn't.
That's not the point.
Five percent.
Bam.
We upgrade that click through rate and now we've got far more people moving forward
with a transaction and now we're talking about making ninety thousand dollars of gross return
off of an ad spend of five hundred dollars.
OK, let's also look at changing this customer value now because customer value depends.
Are we talking about lifetime customer value or are we talking about immediate customer
value?
Right.
You've got to decide when you're marketing and when you're advertising which metrics
and which which variables, which wins, which victories are you going to base your growth
on?
Right.
Those, again, are discussions that you should be having with the marketers and the advertisers
that you're talking to.
If you're not having those conversations, you're not likely to win or you're likely
to create a campaign that's a fly by night campaign and set up and it kind of works one
time or works here and there or burns out because you didn't take the time to understand
how all this business model stuff comes together.
So let's again digress back to customer value.
Why did I put a customer value of two thousand dollars?
One because it's simple.
I'm trying to teach right now and I want to teach based on round numbers so you know what
we're talking about.
Now let's move over to let me go back to the streaming tab here where we host.
By the way, thank you for having an awesome set of tools to be able to do this.
We're going to now present to you how we come about deciding a lifetime value and also how
we determine which value we're going to base our advertising on.
So this particular workbook, feel free to ask us for it.
It's something we provide to our clients.
It's something that we've we've optimized to great links over the last few months actually.
And it's something that provides tremendous clarity for those who don't really understand
the business models behind what they're doing.
So lifetime value one on one.
We're going to look at a restaurant scenario first.
All right.
So we've generalized this pricing for the sake of simplicity.
This is not a real restaurant, but it is based on full service restaurants.
And there's a couple of definitions you're going to need to read over here perhaps to
keep up with this conversation.
I want to go a little bit faster, though.
You can slow down by pausing if you need to.
The data that we have to calculate this this forecast that we're going to show you of net
profit projection of a restaurant owner making seven hundred thousand dollars in net profit
for the year or six figures for your or losing money.
Again, this is based on the net profit take home, not off the total loss and not off the
total gain as an entity.
But let's go back over and look at where we got some of this information.
So the data comes from the National Restaurant Association, which projects that the average
patron comes back to a restaurant two times per month for two years for a total of twenty
four visits.
So what you'd want to do is multiply how much is one visit worth by the amount of visits
that occur.
And in this case, we've actually built the simplified lifetime value based on the simplified
net profit value for the restaurant owner.
So in this case, if this restaurant patron comes in, buys appetizer, dinner, alcohol
and dessert, they buy all those things.
Their check price is going to be fifty four dollars.
And the income is going to be based off of a in this case, we did a five percent profit
margin because the average restaurant makes somewhere between three percent and ten percent
profit margins for for the restaurant.
So that means that the restaurant owner makes two dollars and seventy cents off of that
one guest for that one visit.
And then I can delete this too.
I need to delete this.
This doesn't factor into the calculations here.
But then we multiply those visits by the amount of times we forecast them making that particular
purchase.
This again is a theory, but it breaks down to a thirty eight dollar and seventy cents
lifetime value, net profit value for this restaurant owner, knowing how much is he going
to make based on that?
And this is again, this is also I don't want to say it's calculated based on a what's the
word I'm looking for, a low projection, you know, a worst case scenario, because there
are people who have much worse cases than this scenario.
There's people who have their prices for their restaurant and far lower than they should.
There's people who have it priced high, far higher, you know, and they're winning.
Fantastic.
So what you need to know, though, as an entrepreneur is your pricing is arbitrary.
You can read as many books on pricing as you want to.
And you will find that all the methods and the madness that exists there.
Yes, they tie into formulas to some degree, but you don't learn how to ride the bike by
learning the mechanics of how to create the bike.
You learn how to ride the bike by getting on the bike and riding it and being willing
to fall as you go.
So while we know a lot about these concepts and how to justify or discuss and argue these
concepts, we're missing the point if we're not focused on moving the the client that
we're talking to forward on their own business model.
So let's go and go to a core product or profit maximizer.
In this case, we're going to say that it's a coaching client.
And for their coaching, they want to do a and I'm making this up as we go, but a six
weeks program.
I prefer a 12 week program and value per transaction.
Let's say that for that 12 week coaching program, they charge twelve thousand dollars.
In fact, let's just cut it in half.
Let's do six thousand dollars.
We'll do a small projection on this one.
And then their income and cost of goods sold.
Since they're doing coaching, they don't really have a lot of hard costs associated with the
model.
So they're going to under project because if we under project, we can over deliver.
So let's put a cost of goods sold of 70 percent on this.
Therefore, for that one coaching client and the 12 week program, your net take home of
forty two hundred dollars is is what we would then be building your your business on if
we're talking about the immediate direct conversion impact of how much you're making.
Now, if we want to figure out the lifetime value, we would forecast how many times is
this person going to reinvest in us?
Are we doing a program where they're only with us for 12 weeks and they're cured for
life and they never need to talk to us again?
Maybe they're getting coached on on fertility and they only plan on having one child.
Right.
In that case, that would be the lifetime value of that that situation.
If there's other mothers who are going through a fertility program and they plan on having
five or six children and they might go to the coaching program multiple times to continue
to get assessed and help as their health continues to change as they age, then they might they
might buy six times.
It's not my job to determine the vision for my clients.
It's my client's job to determine their vision for their relationship with their clients.
And then this number ends up helping us project and understand, all right, what what type of
the foundation we're laying, what's the value of the foundation that we're laying up front?
So if this person is, hey, you know what?
We're going to coach them over the course of 10 years, but we're only going to coach
them one quarter every 10 years.
Then now we've projected the simplified lifetime value of this particular product or service.
We have not stacked it to showcase all the other things that they might buy along the
way or they might upgrade to given that we add other services.
But for now, we're going to take the daily value as we call it in restaurants, the one
visit transaction value, we're going to take the one transaction value.
We're going to come over here to the net profit projection and we're going to look at, OK,
this person who has a six thousand dollar high ticket offer with a cogs of forty two
hundred rather.
I'm sorry.
Their income minus the cogs of forty two hundred.
We're going to take that net profit and we're going to calculate it based on the visits.
So stay with me here, left side to right side.
OK, on the left side, this is the restaurant side of things.
What have we calculated over here?
We calculated a daily customer value that changes based on the scenarios.
Why do we do that?
Because there's variables that are fairly predictable.
If we're working with a worst case scenario, well, these people, they don't tend to calculate
their lifetime value very well.
They're not mathematicians.
They wouldn't be in this problem to begin with.
Right.
They underestimate their taxes.
They don't factor in wage changes.
They have employees who are quiet quitting and they have plates breaking, late orders,
food sent back, spoilage, late shipments, fees.
They tend to do worse when they're not as well prepared for operating a business.
So we went ahead and we added in a projection that is less than ideal.
And on this side, I'm going to go ahead and remove that variable, assuming that you decide
in your worst case scenario to at least get your business model ironed out so you don't
have so many misfires and mishaps benchmark case.
All right.
So this would be 30 customers coming into that restaurant and buying food per day.
That would be awful.
That would be like having a restaurant that's empty almost the entire day.
And yeah, you'd naturally lose money.
We also predicted that on the business days, this is something that I see so many business
owners remain ignorant to.
And I'm like, how do you project your financial future if you're not factoring in how many
business days you have to work per year?
They're building based on a 365 day calendar, yet they've only got 260 working days to move
forward.
And that's including some holidays that most people don't want to take off.
But in the case of the worst case, a lot of those types of individuals, maybe they aren't
working as hard.
Let's just say they are.
Let's say they do work every single one of those days.
Well, they're losing more money because they're not aware of their operational costs.
And the cool thing is you can come in here, you can adjust these calculators for different
levels of losses or wins or level them out.
So you're looking at your daily customers based on the exact same variable.
Right.
And it's really important to factor, now, if I'm over your head, I apologize.
We'll need to take more time one-on-one to go over this and we can.
Right.
But let's shift gears.
So this is the restaurant side.
On the coaching side, you're not trying to sign 30 new coaching clients, 30 high ticket
clients per day, I don't think.
And in most cases, that would be a super victory.
So Tony Robbins level victories.
On the daily customer side, you're probably signing one person every 10 days.
In the worst case scenario, maybe less.
And if that's the case and you're on point with your profit margin, well, you know what?
Even if you only work 220 days per year and you sign somebody at that rate, look at that.
You're sitting at 92,000 on your net profit margin.
That's not a bad scenario to be in.
But is that your actual net profit margin?
I don't know.
Or are you actually signing somebody up every 10 days or is it taking you longer to sign
your accounts?
Again, that's why it's so helpful to recognize that when you project these values upfront,
you have somebody who walks you through it and helps you see that, okay, if you're in
the best case scenario where you're charging a little bit more and you can provide a little
bit more value, check out the difference of if you are signing almost one client per day
and a little bit, let's lower it.
I'm just going to lower it right to the value you want to charge.
Right.
That $6,000.
Then if you were to charge $6,000 every time on nearly somebody signing up every single
day and you were to only work 240 days out of the year, you'd still make $800,000 at
the end of the year.
That's a fantastic return.
Right.
So this, again, these numbers help us make sure that when we're forecasting back to the
other revenue growth workbook, that we're forecasting based on a number that makes sense
for your business.
And too many businesses don't take the time to verify these numbers with their providers.
The providers know it's far safer, far more likely to move a transaction forward if you
don't complicate it than if you try to teach all this stuff to a business owner.
The problem is the business owner, again, makes decisions that aren't on the business
owner's best interest is the word I'm looking for.
So this, again, this is a very, very small introduction into a very difficult topic,
but one that business owners should be planning around and preparing for.
And it's not something that you present as a business plan to a bank just to forget later
or not use.
It's something that you should be utilizing with the teams that you work with, the agencies
or the consultants that you work with.
They need to understand this stuff.
And if they don't understand this stuff, then how are they going to guide you strategically
on moving your business forward?
So let me go back to StreamYard again.
Let's see.
Chris Burns is in here.
He says, and he's amazing by the way, he says, sharing the best practices and strategy.
Keep up the great work.
Dude, you're awesome, Christopher.
I'm glad to have you.
And I look forward to hosting you on the show soon enough because you do throw down a ton
of value.
Again, if there's any questions that come up from the audience about what we're talking
about, if you want me to slow down on any particulars with this workbook, then don't
hesitate to ask guys.
You're not being a great coach and being a great business owner by pretending you know
how to do everything.
In fact, that's often holding you back.
So let's go ahead.
I'm going to stop sharing the screen.
I'm going to go back to the revenue growth workbook and I'm going to keep diving in a
little bit deeper, a little bit deeper, a little bit deeper on what that looks like.
So here we go back to that calculator.
So back to customer value again, if we know the customer value we're projecting on, then
that gives us the peace of mind that we can build the strategy and the campaign based
on that particular number.
And this matters when it comes to learning how much scale do we want.
So the $2,000 customer value.
Well, we just learned that it's not 2000.
We just learned that on a $6,000 package, it's actually a $4,200 value.
So why does that matter?
Well, you know, it would make you more confident to invest in us as an agency, right?
Or as a consulting firm.
But the reality is when we're working with clients at the highest levels, I remember
when we were at Video Power working with LaserWay and they wanted to be able to scale, we got
to a point where we could not scale their campaigns and we couldn't scale their campaigns
because we were undervaluing the value of their customers and we were already spending
the maximum amount we could spend on both Facebook and YouTube.
So when I walked Todd through how to understand the lifetime value, he knew what that was.
He knew his lifetime value of his customers, but what he wasn't able to assess was what
was the value of the direct conversions that came from Facebook and YouTube ads.
And we had to do some research to figure out the indirect value, the indirect conversions
and how those worked.
And as we did, well, what I can tell you is this.
He went from eight locations by understanding his indirect value and lowering his expectations
on the direct conversion rates.
We were able to expand the budget and he went from two locations, I'm sorry, eight locations
to two years later to more than 40 locations across the nation.
I don't know what all changes he made in order to make that happen, but I do know that our
campaigns were, they were being shut off.
They were being, we weren't able to scale them because they didn't understand the full
value of what was being received by their investment.
And if you're addicted to attribution models and you don't fully understand them and you
think you do, that's one of the most dangerous positions you can be in in life is where you
think you know it all.
When you think you know it all, you kind of shut your ears to what could exist in the
market to benefit you.
So let's take a look at some of what I'm talking about.
So some of the other variables you're seeing here, this return, this astronomical return,
I'm going to move it back a little bit, but I invest $500 here and I make 89,000 in net
return here.
Yeah, like who in their right mind wouldn't reinvest in this scenario?
Well, I see it happen.
I do.
I see it happen far too often.
And what ends up happening is one month one, this type of situation plays out.
And then let's talk about the restaurant, right?
So the restaurant gives away a free dessert and they don't have proper tracking in place.
So on the restaurant level, they can't actually see that these people, these 45 customers
all came in from that Facebook ad.
They didn't ask people about it.
They didn't track it on their end.
They don't trust your judgment.
But what happens is they do see an influx in business and they kind of correlate it
with something else that might've happened.
And then they have all sorts of marketers who become attracted to it.
Why?
Because over a thousand people see their brand.
And so what happens, I'm going to stop sharing my screen now and come back to you guys, is
the business owner gets contacted by all sorts of marketers that exist out there.
And the marketers call in and say, hey, you know, your landing page sucks.
I mean, they should have made that better.
Or, hey, you know, we want to help you get found on Google because you're not showing
up on Google anywhere.
You attract all sorts of attention.
So the business owner says, you know what?
You're right.
I should be found on Google.
Why am I company not?
Because you're going to end up eliminating the marketer who drove the business to begin
with and hiring new entity who really just came in as a wolf in sheep skin to distract
you because they have something they want to sell you.
Right.
And when, when, when you start selling hammers, everything looks like a nail.
But as you start to increase your value and you start to pre-qualify as a business who
has money and who is worth investing in, well, you're going to have all sorts of entities
that come towards you and want to work with you.
And they're going to say everything that they can.
But guess what?
As you get more sophisticated as a business owner and you start to make more money, the
challenge of recognizing the good providers versus the great providers versus the scams,
it gets harder and not easier.
It becomes much harder to evaluate who is actually on your side and who's not because
they get more sophisticated.
You don't, Tony Robbins and his team, they don't fall for the same cons that the, that
the businesses do who actually receive those.
Like, you know, I don't know if you get the calls.
I get them all the time.
I'm like, hey, we want to help you improve your Google listing click.
Like, you know, I don't have time for those calls.
You know, those calls are not effective.
They are scam artists most of the time trying to help you with that Google listing, extended
car warranties, right?
You would think nobody falls for that.
Well, if nobody fell for it, then they wouldn't do it.
But again, as you level up, there's a higher level of sophisticated scam that comes your
way and you can't always recognize who the great providers are and who the providers
are that are full of crap, to be honest with you.
And there's unfortunately, there's a lot of them and they know how to protect themselves
and they don't have a system to, we don't have a system as marketers.
We don't have one to evaluate.
Are we teaching the right principles or are we not?
You can't report us to a bar.
Like, you know, like the legal, you can report a lawyer to a bar.
You can report a doctor for malpractice.
You can sue them.
But in marketing, unfortunately, there's not a standard out there that people can say what
they want.
And the FCC will rarely come after people unless you're making millions and millions
and millions of dollars.
And so you have to figure out like, all right, well, how do I then assess if somebody is
ethical and building with my long term interests in mind, it can be a very, very challenging
process.
I don't have a one size fits all answer.
There's not an easy answer on that.
You have to learn how to evaluate marketing itself.
And so I'm going to give you again, as much as I can in this 45 minute period to help
you do that.
But ultimately, you should not be firing your advertising team.
You should be finding an advertising team that's addicted to the scientific method.
And that's really what it comes down to because it's a matter of variables.
Let's say I did want to help a company so that they they can win, not based on a two
thousand dollar customer value, but let's say that you need something more practical.
You've got a software that you're trying to sell and that software you're going to generate
forty dollars a month.
Well, I would I would hope that you would have enough confidence in your software to
know that people will at least stay for three months time.
Right.
And if they will stay for three months time on a twenty dollar value.
Well, let me lower that.
It's going to be a sixty dollar value.
So if we're basing our advertising budget off of needing to make sixty dollars off of
off of the money that is spent, then we need to make sure that our campaign has an irresistible
offer enough to attract people to convert within a 90 day period, perhaps or within
a 30 day period.
Again, all all of the timeline factors and the assets and the metrics, they all they
all have to be factored in.
And if you're a new business and you don't have these benchmarks, well, I hate to break
it to you, but you're always going to be shooting in the dark.
You have to be willing to shoot in the dark in those cases.
And so you have to work with an entity that can respect a budget that is that is much,
much lower than than what we've talked about today.
We talked about that hundred dollar maximum budget.
I'm going to show you what we do in just a minute.
I'll finish on that.
But here's what we're building towards.
We want to get a customer.
We want to get a cost per view of around one cent.
And even in this case, you know, you're not profitable.
Oh, you're barely profitable.
Actually you were.
That's that's amazing.
So how are we profitable?
We don't know if these numbers are true.
So maybe they click through to your landing page at a one point five percent rate.
But maybe your landing page is so awful that it doesn't work on mobile.
And so you only get a five percent lead conversion rate.
And let's say your sales skills are so terrible, you only get a three percent conversion rate
here and now you've only got one new customer.
Right.
Well, you can fire the advertising team, but the advertising team is not wrong.
The advertising team did the right thing.
They got you that irresistible offer.
What you need to improve is the landing page and your sales skills.
Because if you improve those things and you say, OK, well, I'll spend another five hundred
dollars on this, but I'm not just going to count on the money.
I'm going to make sure that I learn how to ask better questions throughout my cell.
And maybe I double the effectiveness of my cells of my sales calls and my lead conversion
rate.
Let's fix that mobile page.
And if we fix the mobile page, maybe you move it from a five percent to a 10 percent success
rate.
And now out of those 750 website visitors, 38 no, 75 are converting.
Right.
And this is increasing the amount of people who move forward with you because you're increasing
your value, your click through rate.
Maybe you go from saying download free download to download now.
That's proven over the years to actually perform a little bit better.
And so you go from one point five percent to a two percent click through rate.
And that affects your bottom of your funnel.
Right.
So now you are getting closer to winning.
You've got to stay dedicated to the process of optimizing, not constantly creating super
cheap low cost systems only to then turn around and eliminate them and start fresh again or
to start with some other mechanism.
That's only going to give you a bunch of boxes in your garage or a bunch of cars in your
garage that are half built and parked and never finished when you really need to dedicate
yourself to the process of optimizing what it is that that you're putting out into the
world.
So coming back, I said I was going to share one more resource.
I'll do just that.
I'll show you how we ran the advertising campaigns for AbleHealth to end this call.
And so with AbleHealth, what we do is we create campaigns called gold coin campaigns.
We call them power campaigns.
Either way, they're based on a scientific method.
We want to test one variable and one variable only against one audience.
Right.
So we pick the audience by doing a lot of research and development with you on the front
end.
And we create these statements that draw attention.
And some of them, the red ones didn't win.
The yellow ones were silver coins.
They do win.
But the green ones are the one we focus on because they won very big.
You'll notice here again, pause the screen to go through this and you're on your own
time.
But the amount spent on this one campaign was six dollars.
Same thing on this one, five ninety nine.
And we were able to reach four hundred people, which was able to give us enough data to know
are people clicking on this information.
We then do the same thing with a series of headlines.
And again, we had several headlines at one.
Now we took one of those headlines and we turn that headline.
Don't get any fertility treatments until you read this into a series of images.
And we ran the same test again.
Always look at the cost of the test.
We're spending four dollars and forty eight cents here.
And this image that won, you know, got a click cost per click of fifty six cents.
These are all ads that we can scale.
And as long as they're getting a cost per click at this level, then we don't mind putting
those ads out there.
Then we wanted to test that against a video.
Same thing in this video.
Got a 50 cent cost per click.
So it's the most powerful of the assets.
But now we've got a series of assets that we can scale out.
And we know that this is the as long as we're getting a cost of per click at this level,
then we've got a very, very good campaign.
It's a great way to test the assets.
Now, every single one of these assets can also be utilized.
I'll stop sharing my screen now.
They can also be utilized in the email nurturing sequence.
You can utilize those in posts.
You can go live about that topic.
You can create podcasts about that topic, all knowing that it was the target audience
that resonated with that message so much so that a lot of people started to click in the
process.
I just I don't see enough businesses taking the time to plan strategically before they
launch.
So I would encourage you to take a 90 minute strategy call or even a 20 minute strategy
call, sign up with somebody and then assume that everything's going to be off to the races
and we're going to win no matter what.
And it breaks my heart that so many people launch that way and think that that's what's
going to drive the value for their business, that they're going to somehow create the perfect
solution and win.
And yeah, there are some people who do win with that concept.
There's enough that win by doing it that way that it gives everybody else hope that they'll
also win that lottery.
But hope should lead to a series of faith based actions, right?
It should lead to a belief and a process that you then commit yourself to.
And you exercise the discipline necessary to be able to build out the campaign the way
that that you should build it out with an entity that you trust to help you ask the
hard questions that you don't know the answers to in order to protect your brand on winning
big.
And if you do that, you can create phenomenal growth for your company.
You can create campaigns where you're seeing multi thousand percent returns on those campaigns.
But it takes somebody who's dedicated to the process to see that Dr. Eric Berg is a phenomenal
example of that.
You can go and see how he's grown from 106,000 subscribers and a brand that was struggling
to convert with the landing page to hearing some very tough conversation feedback from
myself and our team of guy.
Dude, you can't you can't launch this and expect people to want to purchase from that
page.
You're going to have to fix your branding.
And he did fix his branding.
He put a lot of money and effort into building that brand at the time.
And now he's at like 10 million subscribers on YouTube and continuing to scale up.
The exception to the rule shouldn't be the victors, in my opinion.
I think the majority should move towards victory, but the majority we have we have to learn
to be inspired to dedicate ourselves to the principles of learning and growth that will
lead to us understanding what we need to understand to scale our business models effectively and
appropriately.
So I hope this was super helpful for everybody that was watching on.
If it leads you to asking more sincere questions about your own growth plans, then I've ultimately
provided the value I wanted to provide today.
If you want to dive into the revenue growth intensive revenue growth workbook intensive
for free, we've got that link shared in the comments as well.
My hope with that, too, is not to undervalue the actual resource, but to inspire you to
say, you know what, there's a lot of value that's been put into this process for years.
I should go through it and I should see what first class business is willing to provide
to me in order to assess are they the type of entity that we would want to work with
for our growth.
And our doors are open to you.
We're happy to discuss what that could look like.
We invite you to connect with us on LinkedIn, Facebook, anywhere, wherever your preferred
method of connection is.
Let's start a dialogue about how to help you move your brand forward, because at the end
of the day, I'm not winning if you're not winning, but we are winning big.
If you are winning big, you have a vision to fulfill and we want to see you fulfill
it at the highest scales possible.
In order to do that, you got to know where to put your money, where to put your time
in order to scale that.
And I think you're far closer to being able to scale than you even realize.
You just need to dive into that conversation and start asking those questions and getting
the candid answers back so you can let go a little bit and say, you know what, perhaps
I am more prepared than I thought I was.
Or perhaps that coach who's holding me hostage, you know, they're not necessarily treating
you that way.
But if they're saying, you know, oh, you don't need another coach, well, they're wrong.
Everybody needs a lot of coaches in life.
Or if you have a team and you think, well, I've already got a team, do you have the right
team or the wrong team?
You know, do you have a team that's set up and maybe able to help you in the future once
you figure these other fundamental aspects out?
Probably.
You know, but are they going to help you figure out these fundamental things out?
Because if they haven't already, they probably aren't very well equipped to answer all those
questions.
And I just did, again, it hurts my heart to see business owners who are so close to launching
phenomenal visions, but they're held back by their support group or the environment
they're stuck in when, you know, there's there's an answer right in front of them.
And we could help them scale and grow to tremendous capacity while improving the quality of service
that you provide and also making room for all of those who do want to help you with
growth.
But maybe you're a little bit scared to let you go or let you grow.
Let's not keep you stuck there, guys.
Continue to ramp up your visions.
Thank you for your time.
Thanks for joining us on Vision Pros Live.
And we will see you on the next episode.
Have a fantastic night, everybody.
Bye bye.
Thank you for being here today.
I'm really happy that you tuned in to Vision Pros Live.
I'm looking forward to seeing your reactions as these episodes continue to move forward.
We optimize them as the months go by.
This is going to get more and more fun.
We'll have more and more engagement as well.
We'll invite people to participate in the show.
And thank you for giving us your time and attention.