the best place to start is with a promise I promise to do my very best to give you the highest rate of return on your investment of time and attention today your time and attention is the most valuable resource you have and I want to thank you for investing it here with me today so we are disruptor school we help Brands and marketers see more success and less stress with a focus on machine learning and cash flow my name is Charlie and I'm the founder over 300 Brands and marketers around the world work with us this brand makes shapewear and Grew From 50k a month to over a million a week this woman is director of growth at an agency with over a 100 clients this guy is VP of marketing at one of Canada's biggest Juice companies all of these Brands and marketers share one thing in common focusing on results not vanity driving growth with consistency and the best thing they do it by making things simple it's it's by far the most simplest process like I'm literally teaching my 14 or well he's almost 16 now but I'm literally teaching my son this right now and I was like this really is that simple like it really is I got a freaking 15-year-old kid almost 16 you know sitting here making ads in just one session it's crazy I mean it's absolutely attainable for everybody but when you started talking about how you were looking at Facebook as a partner and not an enemy which in my line of work we've always looked at Facebook as an enemy right but the truth of the matter is if you do look at them as a partner and you give them what they want and you play in their sandbox they will give you better results about a month now and I just have to say that it has really been exactly what I was looking for in terms of a no fluff really systematic from the top down there's a lot of Integrity in Charlie's approach and it's just been answering questions I had that I couldn't find anywhere else on the Internet or even in other courses in terms of um not just the tactics and the lowl tactics but the really high level Birds I view it's been uh about three months now and I can confidently say that it is literally 10x my business I went from having an agency do this for me and we were kind of in a sales cycle where pretty much what we were spending is what we were gaining to now being in a profitability um and steadily kind of increasing it's definitely a big change love the you know weekly chats being able to get on and kind of ask questions love that your way is totally different um and the results show they're actually uh predictable and profitable and sustainable this is is like the most consistent my ads have ever been uh and I've also uh made the most uh sales in my business uh since working with you so and I'll be honest with you this is probably the most informative course I've ever been through um I I was following Charlie on YouTube I implemented a lot of the stuff that he was doing on YouTube first it's working it's made my j a job a lot easier I'll be honest with you on number one now that I'm in theba uh MBA is why didn't I why didn't I join this earlier you know it would have saved me so much money and time but these results are not from Quick win hacks having helped hundreds of AD accounts go from hundreds a day in spend to thousands a day at a profit we've identified three systemic Transformations that need to occur in the way you are trying to grow your business in order to see the success that you deserve each of these Transformations are interl and dependent on the previous step so let's break them down starting with step number one and by the way this training is for Brands and marketers focused on sustainable growth of profit volume if your goal is to get rich quick or build reports that ultimately look really good while not helping the business this training is not for you the first one is profitable scaling margin and it goes like this you focus on Raz and me you chase profit margin by product and you live in the daily results you focus on reacting to change and avoid building cash flow the problem is this approach focuses on the marketer ego entering around vanity metrics that don't actually help grow the bank account doing more work instead of more valuable work the problem is optimizing for the funnel is only 50% of the game the other 50% is optimizing for the customer Journey focusing on profit volume and growing the business that's why you make the big bucks or you will one day very soon that's why you write the checks instead of working for somebody else where the harder you work the better their life gets advertisers who focus on sustainable growth and profit volume swim circles around those who focus on profit margin at any cost so that's the First Transformation going from performance marketer to growth marketer prioritizing the value of your work instead of the volume of it the next problem is a lack of a customer acquisition flywheel and this stems from the first one advertisers look in the mirror and convince themselves I need to be first order profitable they somehow adopt this mentality that in order to build a wildly successful business every single penny spent must be profitable right away Cheyenne founded his business in his early 20s his experience shaped his beliefs he worked with big agencies who all made big promises and only delivered bigger disappointments then he started working with me now he's planning an exit of his business instead of closing the doors how did this happen how could this founder do more for himself than any high-profile agency well here's the answer a good agency may be able to optimize what you have to pay for their fee giving you a better row as on your $1,000 a day Facebook ad account but they can't go beyond their scope and their business model is to not get fired their success is not dependent on your success and they will not be able to take you to where you want to go because there are many skills needed to successfully travel the road to a successful business product and offer web design customer service sales and marketing analytics and Tech Human Resources the people who work in an agency don't understand all of these skills if they did they wouldn't be working at a job to get paid $5 or $6,000 a month to manage six or eight clients that each pay the agency $8 to $10,000 a month or more they wouldn't be working a 247 365 service industry job getting paid a fraction of what they were worth if they did an ad agency is a bank operated by salespeople who underpay and overwork young advertisers looking to learn how to master one of these skills so how should we be thinking about this what do you need to know what separates those who work really really hard to just tread water from those who are scaling 200 400 500% a year well there are some fundamental truths that'll set you free that the performance marketers ignore and the growth marketers know in their heart first making a sale at a profit is not the same as having a scalable business second a good business is what scales ads regardless of what you've been told by salespeople for years it's not the other way around and third not all customers are created equal people behave differently the reasons they buy are different their value to your business is different and it's not just how much it cost you to make the sale and it's not just what your average order value was it's not about roaz it's not about me people behave differently they buy for different reasons and what they do after that sale is fundamentally different based on a lot of different things which brings us to the biggest unlock your first sale is the least profitable the end of your marketing funnel is the first sale and this is where the customer Journey Begins so if you're ready to transform yourself from being focused on the marketer ego to scaling the bank account in a geometric fashion these are the things that you need to understand and when you get them down when you have the contra idence to bend the market to your will and can truly develop a flywheel of compounding growth that not only saves you time every day but makes you more and more money and provides you more and more success on less and less work well it kind of feels like [Music] this with the factory RS I got the 90 years the ver the really it's got to the point that I don't even care got Jew in a safe that I don't even wear you become dangerously independent self-reliant and you gain control over your destiny and that's why they call it the game cuz when you get this right it becomes really really fun so this brings us to the second transformation the shift from thinking of yourself as somebody who succeeds because you're a good salesperson to focusing on growth by buying the right customer and the third transformation is simple systems big results you don't know what works and you've been lied to over and over you see out of Contex screenshots and binge podcasts for hours on end and dive down dozens of YouTube rabbit holes so you try to test everything chasing Promises of profit margin even when something works you lose and you have millions of Unfinished projects I often call this playing the lottery the result is you move 1 in forward in every direction Your Enthusiasm wains the defeat and attack on your confidence becomes overwhelming and the honest truth is nobody wants that so how do we find direction how do we go from stress to success the first step is to stop chasing a thousand short wins scalable growth doesn't come from assembling a dozen small victories instead we need to solve the most important problem in the simplest way possible which brings us to a fundamental truth simple scales and complex fails every single time every great growth marketer knows this they've experienced the pain of losing a thousand times just to end up right where you started and they obsess over the process of making something as simple as possible that can grow with the least amount of work installing these simple systems that scale are what help us avoid the distractions and more importantly what allows us to keep our emotions out of the game if you change direction constantly if you try to get lucky in a million different places if you don't lean on your strengths you can't predict outcomes with confidence so this means you can never scale your business so that brings us to transformation number three the shift from chasing winds to compounding them these three transformations the path from where you are today to where you know you deserve to be renting expertise from people who don't care about you playing a game built where you are the main character that everyone can take advantage of that is very different than realizing all of the actors at play and taking control of your future can you see how these all connect when you have one of these issues you almost always have all three but hear me when I say this you are worth so much more you can take control you can do this you are important and what you're doing matters but if you want to change everything you have to start with yourself if you don't want to be an actor in somebody else's play you have to commit to start writing your own script you have to commit to start taking control otherwise having your own personal clone of Alex Heros and Gary vaynerchuk and Taylor Swift in your back pocket won't be enough to help you achieve your dreams sure at any time you'll know what to do but you won't know how to do it ideas are worthless execution is everything so if you're somebody truly ready for something bigger something better I can show you the way to make that change I can show you the exact stepbystep process that hundreds of people just like you have followed to get to thousands a day in profitable ad spend let following the footsteps of the most successful business people one of my favorite examples of this is Shark Tank they find find brands that do one thing well with a scalable operation they focus on what works and as Brands grow their investment multiplies they focus on cash flow and exits the secret to their success is simple they leverage opportunity they build systems to compound it they stabilize simplify and scale to start we have to establish the rules of the game how do we make money let's take an e-commerce direct consumer example of Facebook Raz which is just simply Revenue divided by ad spend however that Revenue number isn't accurate because it doesn't account for all the money the business makes and the ad spend isn't the reason all of that Revenue happened if you stopped spending money today your business would still make money tomorrow and the money you made today is often from ads spend from yesterday and last week and from things that cost no money at all so Ras doesn't work another popular example is Alex Heros LTV to CAC the problem here is that products cost money to make and every sale costs money so an LTV to or lifetime value divided by customer acquisition cost we have to remember that that customer acquisition cost isn't real this works in a gym but it doesn't work for e-commerce so LTV to CAC doesn't work either so instead of looking at assumed data and information that isn't accurate built for business models that don't match what we're trying to do there are three metrics we really need to look at so let's start by defining the three metrics of the profitable scaling margin now before we go any further I want to Define profitable scaling margin for you this is the math that makes money profitable scaling margin is LTV divided by CPA and frequency LTV is lifetime value how much money does the customer give us over the course of their entire ire customer Journey so now let's define CPA this is cost per transaction and this is not based on attribution this is total amount of money spent and total volume of transactions we don't care if the sale is attributed to a Facebook ad or to email or to Google and why this really matters is because none of that information is actually important so let's give a quick example here your Facebook dashboard might say that according to attribution it should take credit for 10 sales you might also have your Google dashboard saying according to attribution they should take credit for 10 sales your email team might say according to their attribution they should take credit for 10 sales but when you look at your actual store you only sold 18 things not 30 so what matters is how much money did you spend to get those 18 sales that's your cost per transaction action and the last number here is frequency this is the average number of purchases somebody buys in this customer Journey so let's break down the math using some real world examples going back to our analogy of the hunter versus The Farmer in the Hunter's Way our product might have a $30 CPA with an $18 cost of goods with a $60 aov and $130 LTV and that customer might buy 2 and A2 times now according to roaz the hunter has doubled their money right we have a $60 aov and a $30 CPA but when we look at profitable scaling margin we realize the hunter only makes an 8% profit now if we look at the farmer's way of doing this we get a $22 CPA again with those $18 cogs with a 20 aov and 150 LTV because we're getting three purchases now the row as on this is only a 0. 9 you could say the farmer loses $2 for every single sale they make but according to PSM they're actually making a 25% profit on this customer Journey so let's get into the math the marketer ego versus the bank account starting with the hunter way aka the marketer ego we really only make 8 cents for every dollar that we spend on the ads however the Farmers way aka the bank account we actually make 25 cents for every dollar we spend what you need to know here is that Raz is built on how much profit or credit for each sale we give the marketer or the channel PSM is how much more money can we spend to acquire any transaction in the customer Journey the farmer can afford to spend 177% more to acquire each transaction and still make the same volume of profit now if we were to spend 17% more even with no added attributed sales they would still get more emails more searches more visitors and more Revenue so now that we understand that let's go back to answering the most important question here how do we make more money we invest a portion of our profits this is a hero offer table and I encourage you to pause this and take a screenshot and you can fill this out later but let me walk you through each thing that you need to know first for this hero offer example let's break down the three metrics of PSM we have a $100 LTV a $30 Blended CPA and a purchase frequency of 2. 5 that gives us a PSM of 1.
33 which means we make a 33% profit on every dollar that we spend now it's also important to know that we have a second purchase rate of 30% meaning 30% of people who buy once buy a second time also our average order value is around 40 and our cash flow Cadence is 25 days meaning that on average it takes 25 days for somebody who bought once to become a repeat buyer now if we start this off with a $1,000 budget that means that we're going to come in around 33 sales a day right ,000 budget Blended CPA of 30 on day one with a $40 aov and 33 sales we can expect to make $1,320 daily revenue now 25 days later we know that 30% of those people are likely to buy again so on Day 26 we're going to see 30% of those 33 sales come back and buy a second time which is 10 more sales this means at an aov of 40 we're actually going to make $1,720 daily revenue now that we have people coming back to buy again if we spent the rest of the year investing 10% of that profitable scaling margin that would be 3. 3% added 48 more times cuz remember our profitable scaling margin is 33% and it took roughly 4 weeks to get somebody to buy twice so that's 48 more weeks later our budget would be $ 4751 and at a $40 aov and $118 sales our daily revenue would be $632 and what's really exciting is that's only on the second purchase we're not even counting that extra 05 in the purchase frequency that is unaccounted for profit in this model are you beginning to feel the excitement here this is what it feels like to wake up every day and know exactly what you need to do in the business you understand your money and how the customer works and now now your entire job is to just make sure this doesn't break while you add more this is a superow now you know what to do and you go out there and you win you crush you scale with confidence every day fear and curiosity and doubt will be distractions to set you off of this Simple Plan you will no longer fall victim to shiny object syndrome your social media feed filled with chat Bots and out of context screenshots affiliate deals that seem too good to be true and marketing hacks that if you act now could 10x your bottom line you won't have to worry about those things anymore because you already solved the puzzle every single one of those distractions is like an agent in The Matrix and now you be able to block every single punch and avoid every single one of their tricks you are no longer their prey so fill out your hero off offer and set your projections and while you're at it download the PDF of the math that makes money which I've also included as a resource beneath the video print it out pass it around duct tape it to the wall so that you never forget look at it every day let every decision you make go through the Matrix of does it help me to achieve progress in one of these three metrics don't let anyone ever distract you from the success that you deserve ever again so now you have a framework you have clearly defined goals and most importantly you've got momentum so now it's time to break down the simple question of how do we turn up the volume the simple answer is we have to build a flywheel we need to get more attention this can happen with Facebook and Instagram ads you can go to Tik Tok and YouTube influencers Affiliates emails television radio Billboards Direct Mail Etc but what matters most is the ability to leverage a tool that will do the work for us and Deliver us a consistently improving quality and quantity of similar people so that we have stability with our hero offer this leads us to Facebook and Instagram ads The Meta machine learning algorithm and AI has trillions of data points on billions of people going back over a decade they know who you talk to they know what you're buying they know why you're buying they know how to make you feel happy they know how to make you feel sad they know what you're looking for they know your desires your secrets and most importantly they are better than anyone else at conditioning human behavior and it reaches more people in the world than everything except the Sun and we can use that simple machine to scale our business with confidence and stability so let's break down how a business works first of course we need the attention and then we monetize it the problem is that's not how a business works that's how being a salesperson works and a salesperson is not a business so what's the difference well a business works by getting attention and monetizing it but most importantly turning that monetization into future cash flow flow and then we can invest a portion of that future cash flow in profits into buying more attention what we need is a continuous system that produces and amplifies cash flow and profit volume which brings us to the important question how do we make more money there are three simple rules that we mentioned earlier but I want to touch base on again the first sale is the least profitable every sale is a chance to improve a and CPA is all transactions not just meta attribution so again the way a business works is getting attention and monetizing it and then turning that into future cash flow that we can invest in buying more attention so let's break down each one of these steps even deeper so that we can truly understand their value and how to maximize it let's start with focusing on attention not all attention is the same different ads attract different people different offers attract different people and different people behave differently if you have a second purchase rate of 30% that means that some people only buy once and other people buy four or five times what kind of ads attract people who only ever buy once and what kind of ads attract the people that come back and buy over and over again this is incredibly important and we need to focus on buying the right type of attention that has the most value to our business getting back to how business works we need to focus on buying the attention that is of most value to our business and most importantly we need that to be consistent if you have a store and every single day the same kind of person comes in and you know exactly how to maximize their value the path year success is to get 10,000 more exactly like them what really matters here is if you want to be a successful business you want two or three different types of people coming into your store and you know exactly how to behave and to grow your business you want to go from getting 50 of them to 10,000 that is extremely doable however if you get 10,000 different kinds of people that are all motivated by different things that are all looking for different solutions to different problems and the way they behave in the offers they want are all completely unique the ability for you to be able to predict how they're going to behave in the future and optimize for frequency and LTV is almost impossible so what matters here when we look at how a business works of buying attention monetizing and turning it into future cash FL that we can reinvest when it comes to attention stability is key now let's focus on monetization I am sure that you have been told that what matters most is the profitability of the first order this is a trct a sale is a lead e-commerce is lead gen the sales finnal ends in a sale that sale Begins the greater value customer Journey let me break this down for you one more time with another real world example if your CPA is 50 and your aov is 50 that means your profit is $0 if our spr is 20% and remember spr is second purchase rate or the percentage of people who buy more than once if that's 20% and our cash flow Cadence is 45 days that means on day 46 we make $10 profit per sale now now we have cash flow now we can invest our profits we can quote unquote lose money on the first sale now we can build the business now now we can grow geometrically when it comes to how business works and that first step of attention stability is key because the monetization of that attention is a lead to accessing future cash flow this is a business now we can reinvest a portion of that cash flow into acquiring more attention in a way that is a compounding flywheel this is exciting this is what it's all about this is the secret to success let's go now you have a framework for success and you have clearly defined goals you have momentum and you can scale which brings us to the third part simple systems and big results everything we've broken down so far is based around the hero offer this is a cash flow device and remember the key to success with our hero offer is stability going back to our previous example if we have a CPA of 50 and an aov of 50 we have a profit of zero but if we have an spr of 20% and our cash flow Cadence is 45 days on day 46 we make $10 Prof Prof per sale what if our budget was $500 how fast can this double if our budget was $500 and our profit is $10 per sale can we add 5% more budget today or 50 cents per sale sure and I hear you Charlie but that's not a lot of money 500 plus 5% is only $525 that's not a lot more let me ask you what is the most powerful force in the whole universe you're the astronaut that's the universe what's the most powerful force it's compounding interest what if we added 5% three times a week here's what the math equation looks like I hear you what the does that mean well let me do the math for you if we added 5% three times a week it would take 14. 2 instances or 4.
73 weeks or 33 days to go from 500 to 1,000 what if we did this for a year that's 52 weeks times three times a week that's 156 times that we would add 5% 500 becomes $133,900 so why are we doing anything else we've solved the puzzle we're having fun we have a revolving door of customers who come in they buy more than once we take a portion of their profit margin and reinvest it into finding more people who look and behave and are motivated by the same thing and we are scaling to the moon but obviously this isn't sustainable to Infinity because as we scale CPA will rise so let's get to part two in our simple systems big results we focused on the hero offer which is our cash flow device now we're going to look at catalog ads catalog ads allow us to show people what they want want to buy based on what they're interested in whether they've been to our store or not we can sell them every product in the store for prospecting we use Dabba which is dynamic ads for broad audiences we can also retarget our 10K audience and our 10K audience here by the way if you go into your events manager you will see how many times every event has occurred you'll also be able to play with the time length up to 28 days begin to look at your view cont content and your add to cart how low in The Funnel of your customer Journey can you go and how short of a period of time can you make it so that you have that event occur 10,000 times that is your ideally targeting audience to start with if it works you can scale it if it doesn't work you can get more focused now what I love about catalog ads is these ads never fatigue this gives our business the ability to directly control volume of sales so as our hero campaign scales up and our CPA gets worse we can use this to suppress Blended CPA and customer acquisition cost which means we can scale up more our hero offers a cash flow device our catalog is a volume device now we have cash flow and volume of transactions which keeps CPA down but wait there's more in our simple system for big results we have one other piece which is called a reup cell also known as a rebuttal upsell what we're looking to do here is overcome objections of value instead of marking down our products to buy a wider variety of more and more dissimilar lower quality customers we can instead focus on providing Solutions instead of selling products and where this really works is if the aov is greater than the LTV of our average customer we can buy better customers something to keep in mind too price conscious buyers are the least brand loyal to start this off we can leverage our 10K audience and we will never have to run a discount ever again one of the most famous examples of the rebuttal upsell is the Ginsu knife you may or may not want this $20 knife that does amazing things but if I give you two of them plus something that can cut a fish and a block that it comes in and then a gift pack and I'll double so that you can give one to your friend and it's three easy payments at $39.
