H. Hello. >> Hey, Liz.
What's up? >> I'm good. How are you?
>> Excellent. You're on Herozi hotline. So, you've got monthly revenue $600,000 a month.
Congratulations. Badass. >> Thank you.
>> Welcome, Rich. You got to buy me some jewelry from uh from Junior. All right.
Um Okay. Ad spend is 150,000 a month. Okay.
A little high there. Got it. Um All right.
What are your margins right now? They didn't ask that. What are your margins?
Well, before we started, so I've been preparing for a million a month for the last three months and so I started building the um the fulfillment team and in the last three 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 up the team try to spend my own ads haven't managed.
Got it. >> So that's it. >> Okay.
industry is marketing automation. Okay. So, who's the uh who's the target?
>> Many chat funnels. >> Oh, Many Chat Funnels. Okay, got it.
So, thank you. Makes it easier for me. Okay.
Many chat funnels. Okay, great. Um 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 um in spend. That's their requirements.
>> Okay. >> Yes. >> 25K a month.
Okay. What's your uh what's your price? 6K a month.
>> 6K a month. Okay. 6K per month price.
What's churn right now? >> 5 to 10%. >> Okay.
Um Okay. So 5 to 10% churn. Let's just use 10% to keep it simple.
So 60K. What are what's gross profit on the on the service of 6k a month? Um, well, we we're breaking even in month one and then we're starting to profit in those of month two.
>> No, but that 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 a month customer?
>> About two 2K 2 to 3K. >> Okay. Two to 3K.
Okay. >> Exactly. >> Okay.
A little bit high, but that's fine. Okay. Um, COGS.
So cost of goods sold. Okay, great. So, uh, what's the question?
How can I help now that I have context? >> I've been struggling to double my ad spend. So, our meta ads break when we push from 5K a day to 10K a day.
Yeah. >> So, the question is, should we instead of multiple 1k a day campaigns which might be competing against each other? >> They're not.
>> Consolidate everything into a >> They're not. Don't worry. Like that that media buying mumbo 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. So, is the one master campaign that's sending seven to 8K a day with a one single asset with a ton of ads >> is better than multiple 1k a day campaigns. >> I have no idea.
I actually don't think it matters. >> I being real. I don't in my whole 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 to a million dollar a month. >> Okay.
>> This is why it's valuable to have properly identified constraints. >> Is it the creative then? >> Yes, I think it's probably the creative.
Um where are you where are you how are you thinking through the hooks that you're choosing? Well, I'm researching um using Chpt whatever ads I see online, what feels good, what what sounds interesting, and I I 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 uh this is Eugene Schwarz? >> Yes, I am.
>> Okay. So you have to translate those levels of awareness to the types of hooks that you're 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 is typically because the nature of the hooks and the content that you're talking about only really relates to the bottom of the funnel.
Mhm. >> So you're talking about uh most aware customers who already know about your types of offer or you know solution or product aware customers who know about they know about many chat um or they know about you or they know about your offers, right? So that's it's you're talking to a very very warm audience.
And so Facebook only has a very small amount of people who are you know doing $25,000 a month and know about this specific type of product offering. And so that's the only people they're showing the ads to. Okay.
>> And so we have to start like at the at the extreme, right? You would have the unaware customer who is purely you have to get them purely on curiosity like your your business is losing you know 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 many anything to do with marketing automation they might take the next step.
Now, what happens is as you go upfunnel, right, you go to higher or basically lower levels of awareness when there's way more people. Sometimes the funnel has to change and so does the lead mag. Are you just making a straight offer in your ads?
What's the funnel? >> I'm make Yeah. making an offer to book a demo.
>> Yeah, dude. You're like you're you are you are so level you're so low on the on on the awareness thing. Like that's the issue.
You have to you have to make it easier for someone to take a step. They don't know who you are. like like just saying like hey book a sales call is a tough ask.
>> Okay. >> Right. And so this is why like lead magnets and things like that make sense.
It's like you might have 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 like the whole marketing world is some people are like a lead magnets don't work or they do work. If you just say, "Hey, buy my shit.
" You will get higher rorowaz than have a lead magnet, but you will be very quickly capped by the amount of people who are 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. >> Have you heard that?
>> So, right now, you're spending all your time on that 3%. If you want to scale this thing, you got to be able to go up. >> Makes sense.
>> So, you right. And so the the hooks are going to be like how to double AOV, how to decrease, you know, your CPAs or whatever the like types of language um that you can make there. And it's like here's six ways that you can decrease CPAs.
Now, all of them might include using ManyHat to do it. They may be like, "Oh [ __ ] this is really good 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 magnets, put it in your ads, put in your little video sales letter that you have, right? And people are gonna 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 do this again.
[laughter] >> 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 for everyone who's watching, too. 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 and campaigns is like we're talking about like 5% differences. Like the things that are going to get you from, you know, 600,000 a month to a million or multillions a month.
It's going to be strategic in nature. >> Yeah. >> But do you feel you can execute on that?
>> Thank you. >> Yeah. Okay.
Rock and roll. Thanks, Liz.
