The Game with Alex Hormozi - Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 922
Episode Date: December 18, 2025Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast, you’ll hear how to get more customers, make ...more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Wanna scale your business? Click here.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition
Transcript
Discussion (0)
Let's rock and roll. Okay, so at every 22, want to build a multimillion dollar business. Should I start
now? Feel forward and learn all the way or spend on the way to choose building skills,
cash and clarity. To me, those are one and the same. Like, you will build skills by failing.
So I would try and do stuff. Just being real. Like, do stuff, learn from it. And if you can make money while
you're doing it, great. I think that for many people, one of the, like, a huge leg up that you can have,
is working one to three years in the industry
that you want to get into.
Like, I think there's huge upside there
because you don't even know what you don't know
and you learn so many, like,
default ways of operating.
Because when you have to,
I'll give you an analogy.
So imagine you've got a pile of bricks, right?
So you've got this pile of bricks.
All right, let's say that these bricks represent,
you know, stuff that you can use to build.
This is going to be a terrible pile of bricks, but whatever.
Okay.
And someone says, go build me a building, right?
So you then try and assemble these bricks in a hundred different ways.
And the thing is, it's like, if you don't have directions on how to assemble those bricks,
you're not going to know what assembly is the correct one for a building.
And so the thing is, is that if you have an ideal building in mind, right,
then there may be a few ways that you can correctly assemble the bricks to get a building,
but there's going to be way more ways to not assemble the bricks to make a building.
And so for me, I'd rather just like, kind of like if you're building a building, like you're building an IKEA desk, right?
If you don't have the directions and you have the pieces, you might eventually figure it out.
But it's so much, it takes so much more time than having a model to look at because you automatically know, you're like, okay, well, first thing I'm going to do is I'm going to separate my tools over here, I put my screws over here, and then I'm going to put my blocks over here.
Great. So it's the first thing. That's what you do.
And then after that, you're like, okay, I'm going to look at this picture.
There's got these four legs. And you're like, let me put the leg number.
flip it upside down, but like one, like two, like three, like four, you're like, like,
okay, it's almost looking like a table.
But if you have no idea and you've never built a table before, you didn't build anything
before, then it's way harder to do.
And so that's why I think I would recommend make money, earn and learn one to three years.
It's like my first thing out of college, and like college is different now than it was then.
But like, like, I did college for three years.
And then I worked for two years.
And then the next thing I did is I still didn't even start immediately.
I then started as like an apprentice.
at a gym because I wanted to get in the fitness business.
So I went to a successful gym owner and said,
hey, can I work for free?
Can I'm off the floors?
And I was like a white collar consultant.
So I went from making, I think, I actually don't remember what I made.
I know I had $50,000 in savings.
The reason it's like unclear is because I got paid on contracts.
It was like very lumpy.
Anyways.
But anyways, he then basically started paying me minimum wage to follow him around.
But like, an amazing ROI for me because he was like, oh, yeah, like email marketing.
And I was like, what's that?
He was like, oh, it's this whole thing, right?
And again, YouTube wasn't really like around the way that, when I started doing this.
And so I had to learn the hard way.
So that being said, hopefully that helped for Adam in terms of thinking about what to do.
And John, what's up?
We on?
John.
As we said, Alex.
Yeah, that's me.
John, what's up, man?
Tell me about the business.
So we help people with turning back in Antarctica.
We have an online program.
Okay.
Okay, so online, okay.
Yep.
And you help with back paid.
Got it.
That's great.
What's revenue?
And we're doing 95 grand a month.
Okay, so you're doing a million bucks a year, rough them.
Okay.
So you're doing a million a year.
Great.
So I know you're online.
Are you selling via checkout page or via sales call?
We do DM to Trees call to sales call.
Okay, so, okay, cool.
You're no online salespeople.
Okay.
Yep.
Okay, got it.
And how are you getting leads?
We have a million followers on Instagram.
Okay.
One million on IG.
Anything else?
Yeah, like 200 grand on TikTok.
Okay, cool.
Well, you've probably already seen the difference of the value of 200,000 on TikTok versus 1 million on IG.
Yeah.
Well, me to give you a quick hack to turn those TikTok people into more value.
Please.
Yeah, so we have found that the best call to action for TikTok, if you want to sell higher ticket stuff.
is actually make the CTA, DM me on Instagram,
and then put the link to your Instagram.
Wow, okay.
Yeah.
So, like, on TikTok, you get me to be a DM on Instagram.
I know.
But you already have your old DM team set up on Instagram anyway,
so like it works great.
Yeah, cool.
All right, so that's thing one.
Great.
So what do you want to do?
What's holding you back?
It feels like key consistency,
so we have one sales rep and two setters,
and I want to get more sales reps,
but it's just like one week.
We'll be filled out weeks in advance,
and then another week we barely get, you know, an athlete to follow up one,
and then we just end up pitching on every single post.
I just feel fatiguing for the clients.
So I'm curious, do we start at, can we start retargeting,
or do we need to fix something first?
How many posts a day are you putting out?
We're putting out one post a day on Instagram.
We tested two, but it's just like we really focused on,
we ended up for eight hours, we make it great, so it's one of a day.
Okay.
I think you can probably make more.
I'll just put that out there.
I would 100% not believe in the mythology,
of like there's a platform limit, there totally isn't.
And that's on, and I pretty much stand by that on every platform.
Like, Fox News puts out one, I just looked at this,
we were calling up this board, does one long per hour on YouTube.
Oh, wow.
Right, and they do like 300 million views.
Right, and there's a Bollywood account that gets a billion views a month on Instagram
and puts out 100 posts a day on Instagram.
So you have to think about it like this.
So I hear, so I hear.
what you're saying with the fatiguing the audience,
I think more realistically,
you're fatiguing your editor,
not your audience.
I think they're not making good enough stuff.
No, I'm being real.
I think they're not making good enough stuff.
Like, your audience has an insatiable demand for value.
Wouldn't you like, believe that in your core?
Your audience has an insatiable demand.
It will literally never,
it's an endless pit when it comes to value
and has almost no appetite for fluff and waste.
So if we have,
let's imagine that this circle represents a million people.
Okay.
When you make a post,
you're getting like one to two percent of your audience to actually see it, right?
And so if you make more posts, you'll just have more one to two percent that see it.
Okay.
Now, where your issue comes up is that when you make your call, you know, your direct call to action posts,
then it goes from like that kind of thicker dot to just like an itty-bitty speck because your reach gets hammered, right?
We actually do a call to action on every post like at the end.
Yeah, and that's okay.
Well, it's not the end of the world.
Again, all that matters is, like, how long is the CTA
relative to the post, right?
So it's usually like, are you doing a minichet integration?
Yeah.
Yeah.
So how long is the CTA?
Like six seconds.
That's long.
Is it pre-recorded, or is it pre-recorded
than stapled on, or are you making them native every time?
It's native, but it's the same every time.
Yeah, so you want to swap out
with the lead magnets are constantly.
Oh, okay, got it.
Right now.
Because, like, why would they respond?
They already got it.
Yeah.
That's right.
So, all right, so I'm going to write down little nuggets for you.
So number one, we're going to go TikTok, TikTok, DEMs to IG, a CTA.
Number two, we're going to make more lead magnets so that you can alternate through them.
Number three, I think more content is a good idea.
Okay.
Number four is I think you need to lower your time, your CTA time.
So I would shoot for like three seconds or less for your CTA.
Because the thing is it'll kill the view through rate.
Right.
And then that's killing the amount of retrogating.
Yeah.
Okay.
And you're doing comment like book or comment whatever and then at DM them the thing.
No, we actually do a like for a free static assessment and then we just basically say comment for an assessment and then we book a call at DMs.
Yeah, I mean, that's also a really heavy ask.
So it might be worth considering, like, a cheat sheet and then a triage question.
Okay.
Because, I mean, like, that's, like, the heaviest right hook you can do.
Yeah.
I'll give you guys a little insight.
On one hand, like, when we do ads that are, like, direct to workshop, that's, like, quote, the heaviest ass.
Like, hey, come out to Vegas, right?
That's pretty, you know, it's got, it's got a hurdle, et cetera.
Now, when we have a scaling roadmap, which you may have seen ads for, right?
The scaling roadmap has lower immediate ROAS, but over a 60 or 90-day window has superior ROAS to direct workshop.
In addition to that, it also has like 10 times the reach.
Because getting somebody who's a little bit, like, somebody who's like, yep, I want to come to a workshop.
Like, they've already consumed, like, that's almost like, it's almost like warm audience retargeting,
more than it's like an ad and a process that like nurtures, you know, prospects and then, you know, warms them up,
provides value, et cetera.
And so I think if you want to broaden kind of like the net that you're going through,
just make the ask that you have a little bit lighter.
So I think one, you've got your direct, like, if you're doing one a day, I would do like
maybe two a week of the direct one and then do the remainder of them as posts that are
like lead magnet centered, right?
Like seven tips to fix this or whatever, right?
And you can spend, I'm sure you can spend a hundred of those things.
It's not that hard.
And then the triage question is like, hey, you're here for free stuff.
to solve the problem for good.
And they're going to say, I want to solve the problem.
Then you're like, great, and then you're into a sales conversation.
That's great.
And then at what point would you start retargeting at?
The thing is, okay, this will be great for everybody.
If you think about your audience is this pyramid, right?
The people who are buying from you right now are this like tiny little top 1% here.
And so there are some things that, there's some actions that could get you to converge
just a higher percentage of that 1%,
which means that we could make the well
or the pyramid larger,
which we would do by posting more times
and making better content, right?
Or we can keep that pyramid the same size, right?
And then we can move this line of what percentage
we're converting and make that a little bit deeper.
When you add a sales team,
that converts a higher percentage of the audience.
When you add ads, you're going to convert
a higher percentage of the audience,
because you're just going to have your ads shown
to a bigger percentage of people in that sphere.
Right?
And so it's almost like reaching into forward revenue
and pulling it forward,
which is fine as long as you're filling up the bucket, right?
So I would...
Right, you get everyone from saying about that?
So you will absolutely make more money
if you have a sales team and run ads.
No question.
But then you will hit another plateau
and you will still be limited
by the growth of your organic
unless you create a true cold traffic acquisition channel,
which is a different monster
and beyond the scope of right now.
All right.
And so my recommendation is I would want you to double your content.
And if you want to keep one of your CTAs as,
because I don't want you to like,
I don't want your business to go down,
keep one CTA as your direct to, you know, book a call,
and keep the other and make the second CTA for the lead magnet.
And just do two a day.
That's good.
Cool?
Sounds great.
All right.
Rock and roll.
Appreciate you, John.
Awesome.
Thank you.
Yeah.
Thanks for calling Hermosie Highline.
All right.
So let's take a little, let me look at the chat.
What's up, guys?
Okay, so as I build a personal brand,
is it better to become an authority in a certain skill
and then start posting content,
or is it better to start posting content
without being authority in that skill?
Great question.
So my perspective on this,
and this probably will differ from other people's,
but I can only explain what I do, right,
and the kind of the thinking process behind it.
I never want someone to question whether I'm legitimate, right?
And I think that way,
and maybe it's because I just have, like,
of insecurity, who knows. But the reason that I tend to always start with proof, right? And so I would
rather, like, and if you don't have external achievements, right, then you need the achievements to be
effort-based rather than external. Okay, so what does that mean? So instead of saying, hey, I did
$100 million launch, that's an external achievement. Everyone can see that, great, lots of money,
etc., right? I could say, I made 35,000 pieces of content. You can control that. Now, whether you did a good job
or not is a separate thing. But when you do effort-based achievements, it's kind of like grinder,
pay, right? And so in the beginning, you don't have the money or the proof to do it, so you have to
grind. And so grind-wise, it's like, I'm going to make 35,000 pieces of content and document
what you're learning along the way. That's fine. Like, that's the game. And so that will be kind of
phase one. Phase two is be willing to work with people for free. People spend way, like,
I'll say this differently. If you're getting started, every single business, to this day,
I still start with free stuff
because I want to get feedback
for people. I want to know what they like, what they didn't like,
what their pain points are. I want to figure out how to smooth
out the process. I want to figure out all these different things.
And me trying to guess at that on my first shot
and ask people to pay me, I'm like, I don't want to do that.
I'm going to have bad reputation. I don't want it.
Right. And so it's going to take you so much more time.
Think about this. For you to get 10 customers
who pay you with never giving anything away for free
is going to take a long time.
You're getting 10 people to start working with you for free
and then using the 10 testimonials you get there
to then get your 11th, 12, 13, 14, 15, 16, 17, 18, 19th customer
is going to take you less time to get that 10 paying customers
if you do 10 for free first
of whatever it is that you sell.
So that's my two cents.
More people doing up your stuff is not going to make you less money.
I do think, though, that like big, big, big picture,
it also kind of depends on what you're going to get into.
If you want to be, you know, it's like,
I would be a business coach.
It's like, well, dude, just look at the people who have the most credibility in business.
They have some big, giant thing behind them, right?
I would not try and compete there.
I would try and compete on a much smaller pond that I can be king of.
Not even a pond, like a puddle.
Like just be king of this itty-bitty puddle.
And create proof around that little itty-bitty puddle,
and you will find people who are willing to pay you because you are a specialist
and because they have access to you.
Okay.
And I'll give you one more tidbit for those you guys are starting out, and then I'll take the next call.
So when you're starting out, you always have an advantage.
All right.
Every position has an advantage on the board of the game.
So if you're a super baller, right, you're a G or whatever you want to say, right?
My position is to say, don't go with we need McGee over here.
He's in his mom's basement and doesn't know what he's talking about, right?
I have been doing this for however many years and look at all this credibility and looks at all that's proof.
Right. Cool. We need McGee, right, he's going to be in his mom's basement. And he's going to be like,
don't hang out with Alex. You're never going to talk to Alex. There's no chance. Right. You're going to be
talking to someone three levels down from him and you're just going to be a number to them. I mean,
that's what I would say. Of course, we don't operate that way. But like, that's what you would say.
Right. And so if that's where you're position, then you say, dude, you're going to get my phone number.
And so it's not, am I better than Alex. Of course I'm not better than Alex. Like, own that. Of course I'm not better than Alex.
but I am better than the third rung down on his company,
and you're going to get my phone number,
and I care about my reputation, and that person doesn't.
That's where you compete.
And so that's how you can start getting a foothold,
which is why there will always be room in the market for people who are new,
because people who are established are going to have their position to play.
Coca-Cola Classic is going to say, we're the classic.
We've been doing this forever, and the people who are new and Upstart is like,
hey, I'm a young founder.
Just try my soda out.
If you like it, tell me, give me feedback.
I'll try and fix it.
That's the position.
Both can win.
And for everyone who's like, I don't think this will work or something like that, it's like,
dude, like I was in the same position.
It's not like I'm 50.
You know what I mean?
Like, I started at zero two and you just have to outwork, right?
And you got to say, like, I'm willing to do more than those guys are.
In the beginning, people don't want to say it.
I'll do it for less until eventually you have proof.
And then when we have proof, it becomes a virtuous cycle of charging more.
Okay.
Color two, Stephen, let's rock and roll.
Then we have proof.
It becomes a virtue of virtual.
Nice to meet you, too.
Nice to meet you, too, babe.
I'm going to because the team collected your number.
So monthly revenue right now is 54K, right?
Yeah.
All right.
And then ad spend is 3K.
That's month.
Yeah, per month.
I got you.
This is per month.
Great.
Ads is 3K.
Great.
Per month?
Yeah.
Industry is your medical?
What do you do?
Custom insoles?
Yes.
I'm a podiatrist.
Oh, cool.
Yeah.
A buddy of mine's dad was a podiatrist back in Baltimore.
Okay, the offer is in souls for 300.
So this is your AOV you call it, right?
It's 325.
I know that you're in pounds, but I'm just used writing dollars, so it doesn't really matter.
Okay, constraint is Google ads are underspent.
Okay, so you can't spend more than the $3,000 a month.
Is that correct?
Yeah.
Okay, are you local?
Like, are you running ads for a local business?
Are you running this ad spend nationally?
For a local business, yes.
Okay, you're local.
So people do that.
They come in, they get,
measure it or whatever and then they get insults, correct?
Exactly, yes.
Okay, got it.
So they're saying they just can't spend more money.
Yes.
Okay.
I don't know if I believe that.
How big of a city are you in?
Like, what's your 10-mile radius?
I thought he said around 10 kilometers, something like that.
But I was also thinking from, yeah, maybe it doesn't have the skills just to skill the campaign, so to say.
So I am already in touch with in general our marketing agency that is already checking in with another Google ad specialist to see if they can duplicate certain campaigns and get better results.
Yeah.
So I'll say this, man.
So I mean, congrats, you're doing 600-ish a year.
I would strongly recommend you learning this stuff because it's not that hard.
Like, it's really not that hard.
Because then you're not going to, like, right now, you're saying the constraint of the business is under someone else's control, right?
That's a tough position to be it.
So I would want to own this myself.
And I'll tell you a story that really changed my person.
I haven't told the story a really long time.
So this will be a good one.
So I went to this meetup where everybody was doing eight figures or more.
And at the time, I wasn't.
And so I like snuck in.
They were like, no, we think you're going to be a big baller because whatever.
They recognize the magic in me.
But anyway, so they let me come.
And what was really interesting is one of the guys who was making the most money in the room when he went up and presented,
He said this really interesting thing.
He said, I would encourage everyone here,
because someone asked him like, hey, so what are you doing
to reinvest in your education right now?
He said, well, at the level of them at,
and he was making, I think, 30 or 35 million years.
I remember thinking, I was like,
oh, my God, this person is God.
I heard that.
But he said, he was making $35 million a year.
And he said, I would encourage you to write down
a percentage of your income,
whatever percentage you're comfortable with,
and put that as your learning budget.
All right?
And that learning budget, he said,
you should spend that every month
and expect to have zero ROI on 9,
of 10 things and then the 1-10 thing will make you 10 times the money. It's almost like doing a
venture bet on yourself from an education perspective. And so I took that to heart and then I started
spending, saying, okay, you've got your $3,000 a month. I want you, Stephen, to do $3,000 a month
that you control. And you're saying, like, I'm going to spend $100 a day and I'm going to see
if I can beat this guy. Because I promise you, when it's your business, you'll beat him.
Like, you'll suck in the beginning, but you'll quickly learn. Like, like, at, like, PPC for
for Google ads, it's like really not hard.
You definitely go far as well with it.
Yeah, and the nice thing is that no matter what,
if you spend more money on ads, you're going to make more money.
So even if you're inefficient, you'll still increase top line.
But I think that if you just try and get good and good and good at that,
and then I would also reach out to whatever these other agencies are.
I don't mind spending more in this because, again, the big picture is like,
you have bigger goals than this, right?
100%.
Right.
So just don't let your ego get wrapped up in your one-month or two-month profit.
Like, that profit will be there if you choose not to spend money.
It's always there, right?
So I would want to take as much of that profit as humanly possible.
And I'm telling you how I do things.
I take all that profit, and I just see that as this is my opportunity to reinvest in the business.
When the business is small, reinvestment is you.
You're the reinvestment.
And so that's where I'm like, okay, I'm going to pay my current agency.
I'm going to pay the next agency.
And I'm going to tell both of them, I want them to teach me what they're doing.
And I'm going to spend my own budget, too.
Yeah.
Yeah, so that was originally already my plan.
So I had Justin called this afternoon with the new agency.
And I told him from, look, if we go with the Google Edge specialist,
I want to have weekly calls to at least know what he's doing in the ad account.
So I just can follow the guy and that ever may ever have new ideas that I can just try out,
but that I understand what he's doing.
Let me tweak it for you.
Let me tweak it for you.
Let me tweak it for you.
You're going to ask, how often are they going to be, you know, really doing work on the campaign?
Just let's just guess it's twice a week, okay?
I'm going to do something even better for you.
I'm going to ask that you don't even work on my account.
I'm still going to pay you.
And I want to have two calls a week,
and all of the work is going to be done on those two calls.
That's it.
They don't have to do any other work from my account.
But I want to be the one who controls the mouse,
and I want them to tell me what to do and why they're doing it.
That's a very good idea.
Okay?
This is how I learned how I learned how to run national-level Facebook ads.
This is how I learned how to do it.
I hired an agency, and I said, I'll do whatever.
I'll show whatever hours you want.
I was like, but I control the mouse.
And you tell me what to do, and I'll do it.
I recorded my screen, and I would ask questions along the way,
and they would tell me, I'd be like, okay, so why are we doing this?
And then within six weeks, I was like, I get it.
I don't need this guy anymore.
That's genius.
Cool?
Yeah, sounds good.
Definitely going to start that.
Rock and roll.
Congrats on the business, Stephen.
All right, what type of lead maggots or funnels do you make for them?
I'm guessing, I don't know what that one is in reference to.
Richard Ferris.
Okay, core question is how do you, is your P.E. firm? Okay, hold on. Partnered with my wife
on our business. We sell jewelry with purpose, natural stones. What would be the best content
to post for advertising we use TikTok? All right, duh, what are we talking about here? All right.
So, number one, you should be on, I mean, TikTok, TikTok shop, for sure. Like, if you're not doing that,
you should be doing that. Number two, I'll bet you with jewelry, probably have very good margins with it.
And you can probably pay really aggressive affiliate commissions.
to any other TikTokers who will repost your stuff.
And so I would look at, are there small things that I can give out for free?
I know that's heavy, but people will be willing to do it.
I don't know what revenue is right now, by the way, Junior.
But I would also double this on Instagram.
And I would want to do as many collab posts as I can with other influencers,
with them trying on different things.
And I think the big thing that I would want to do is I want to tell the narrative.
I want to tell the story behind the jewelry.
All right, so I'll give you an idea.
So, or I'll give you an example.
So if you think about like selling merch, right, everyone has T-shirts.
There's nothing sexy about a T-shirt.
And if a T-shirt just has a logo on it, again, it doesn't really matter.
But if you say, let me tell you the story behind why this logo or why this saying is meaningful.
And so what we have to do is basically pair this commodity of jewelry with the meaning that you then ascribe to it or the narrative or the story that you put on top of it.
And so two years ago, I did my book launch for the Leeds book, and some of you guys might have been there.
And I sold, like, millions of dollars of hats, all right?
And people were willing to pay $100, essentially, for a hat.
Now, obviously, they got two other books, and the hat was free.
But, like, fundamentally, that was what happened, right?
And so what's really interesting about that, the specific event is that I then spent, like, four or five minutes just saying, like, let me tell you about why I wear this hat, what this hat means to me.
And so after explaining the meaning behind the hat, then way more people were willing to buy it versus, like, hey, do you guys just want to buy a hat?
And so I think to the same degree, you need to do that within your content, and you're like, well, what kind of content should I do?
Like, show the jewelry, show people unboxing the jewelry, show people picking out between different kinds of jewelry, and then you're telling the narrative behind each of them in terms of where was the stone sourced?
Why did you design it that way?
What does this chain do versus this chain?
What do these metals do?
Like, there's so much to talk about with your content, and don't be afraid to repeat stuff.
Just don't be afraid to repeat stuff.
And one of the really interesting things with content is that I'm going to give a Dave Ramsey example, but like,
You need significantly less variety in your content than you think you do.
So think about what Dave Ramsey has done for the last 35, 40 years,
however many years it's been.
He has told people to spend less than they make.
That has been his core message.
Don't go into debt, spend less than you make, cut up your credit cards, pay off your loans.
That's more likely.
Obviously, he's seven baby steps, and that's awesome.
But my point is this, is that people still tune in every day
when they know what the message is because they're like,
I wonder how this will apply to a stripper.
I wonder how this will apply to somebody who won the lottery.
I wonder how this will apply to somebody who's got a kid who's going to college now,
and it's a good college or it's a bad college, right?
And so the thing is, is that you can have a single framework
or single core product or concept,
and the variety will just come from the examples that you use.
Cool?
All right.
Third caller is Liz.
Liz, let's get busy, Liz.
the lottery. Hello. Hey Liz, what's up? I'm good. How are you? Excellent. You're on Hermosie Hotline.
So you've got monthly revenue, $600,000 a month. Congratulations. Bad ass. Thank you.
Welcome. Rich, you got to buy me some jewelry from junior. All right. Okay, ad spend is $150,000 a month.
Okay, a little high there. Got it. All right. What are your margins right now? They didn't ask that,
but what are your margins? Well, before we started, so I've been preparing for a million a month,
the last three months.
And so I started building the fulfillment team.
And in the last few months, my margins have been 25%.
Okay.
But before that, it was 45%.
Yeah, got it.
So in the last three months, I've been trying to scale, build a team,
try to spend on ads, have a many.
Got it.
Got it.
Okay, industry is marketing automation.
Okay.
So who's the target?
Many cat funnels.
Oh, many chat funnels.
Okay, got.
Thank you.
It makes it easier for me.
Okay.
Many chat funnels.
Okay, great.
And then your offer is, it's for e-commerce brands.
Okay, cool.
And they got to be doing over $10,000, sorry, $25,000 a month in spend.
That's their requirements.
Okay.
Yes.
25K month.
Okay.
What's your price?
6K a month.
6K a month.
Okay.
6K per month.
Price.
What's churn right now?
Between 5 to 10%.
Hmm.
Okay. Okay, so 5 to 10% turn. Let's just use 10% to keep it simple. So 60K. What's gross profit on the service of 6K month?
Well, we're breaking in in month one and then we're starting to profit in the most of two.
No, but that takes into cost of acquisition. I'm saying what are gross profits on the service? So how much does it cost you to deliver for a $6,000 month customer?
About 2K, 2 to 3K. Okay, 2 to 3K. Okay.
Okay, a little bit high, but that's fine.
Okay.
Cogs, so it costs a good sold.
Okay, great.
So what's the question?
How can I help?
Now that I have context.
I'm struggling to double my ad time.
So our meta ads break when we push from 5K days to 10K days.
Yeah.
So the question is, should we instead of multiple 1K&A campaigns,
which might be competing in the day to each other?
They're not.
Don't worry about that.
They're not.
Don't worry.
Like that media buying Mamba Jumbo, don't worry about it.
Doesn't matter.
Okay.
Keep going.
So you want to scale your ads and they're not scaling.
Okay.
Correct.
Okay.
So is the one master campaign that's sending seven to eight K a day with one single asset
is a ton of ads?
It's better than multiple one K a day campaign.
I have no idea.
I actually don't think it matters.
Being real.
I don't, my whole life, that has never been the thing that has limited me.
Say it differently.
I don't think your bidding strategy is the limitation
for all your business is not getting $2 million a month.
This is why it's valuable to have properly
identified constraints. Is it creative then?
Yes. I think it's probably the creative.
Where are you,
how are you thinking through the hooks that you're choosing?
Well, I'm researching
using chat with the Piki,
whatever ads I see online, what feels good,
what counts interesting.
I wrote those out.
Okay. So I'll tell you, I'm going to guess right now
that that's probably the issue.
So are you familiar with the five levels of awareness from a, this is Eugene Swartz?
Yes, I am.
Okay.
So you have to translate those levels of awareness to the types of hooks that you're making.
So I'm going to guess, so if you have like a hard ceiling on your advertising spend,
like once you get over a certain level, like you can't spend more,
it's typically because the nature of the hooks and the content that you're talking about
only really relates to the bottom of the funnel.
So you're talking about most aware customers,
you already know about your types of offer
or solution or product-aware customers
who know about ManyChat
or they know about you or they know about your offers, right?
So you're talking to a very, very warm audience.
And so Facebook only has a very small amount of people
who are doing $25,000 a month
and know about this specific type of product offering
and so that's the only people that are shown the ads to.
And so we have to start, like, at the extreme, right,
you would have the unaware customer who is purely,
you have to get them purely on curiosity.
Like your business is losing thousands of dollars a day
because you don't have this one integration.
That would be something that someone who has no idea
about anything to do with ManyChat,
anything to do with marketing automation,
they might take the next step.
Now what happens is as you go up funnel, right,
you go to higher or lower levels of awareness
when there's way more people.
Sometimes the funnel has to change.
and so does the lead manager.
Are you just making a straight offer in your ads?
What's the funnel?
Yeah, I'm making that offer to book a demo.
Yeah, too.
You're like, you are so level,
you're so low on the awareness thing.
Like, that's the issue.
You have to make it easier for someone to take a step.
They don't know who you are.
Like, just saying like,
hey, book a sales call is a tough ask, right?
And so this is why, like, lead magnetists and things like that
makes sense.
It's like you might need to have a longer process
of breaking even, number one,
and a longer process of educating the prospect,
and you need to have wider hooks.
And so one of the big things that happens
in the whole marketing world
is some people are like,
oh, lead magnets just don't work
or they do work.
If you just say, hey, buy my shit,
you will get higher ROAS
than have a lead magnet,
but you will be very quickly capped
by the amount of people who are warm.
And so you've probably heard
the whole, like, 97% of the audience
isn't ready to buy right now
and 3% is.
So right now you're spending all your time
on that 3%.
If you want to scale this thing,
you've got to be able to go up.
Makes sense.
So you might,
Right, and so the hooks are going to be like how to double AOV, how to decrease your CPAs
or whatever the type of language that you can make there.
And it's like six ways that you can decrease CPAs.
Now, all of them might include using Manning Chat to do it.
And then maybe like, oh, shit, this is really good stuff.
And if you're super hands-on, which it sounds like you are if you're charging $6,000 a month,
like you can give away all the secrets.
I promise you.
Just give away all the secrets.
It will not matter.
Give away all the secrets, all the sexiest stuff.
Put it in your lead magazine, put in your ads, put in your little video sales letter that you have.
Right. And people are going to be like, I don't want to do with that. I'll just have them do it.
Yeah. Yeah. You're right. Cool?
Okay. All right. Rock and roll. Good stuff. This was fun. Let's see this again.
You bet, Liz. I just want to make sure that you're not. Like, here's what's crazy about this.
Because I think this is good for everyone. People will stay stuck at this level for like years.
Because you keep thinking it's like a media buying thing. It doesn't matter. Like how you're doing your bidding in campaigns is like we're talking about like five percent differences. Like the things that are going to get you from, you know, 600,000 a month to a million.
or multiple millions of dollars a month, it's going to be strategic in nature.
