100M$ LEADS

SECTION I: 

THE PROBLEM: 

To grow a business you need two things:

• Get more customers
• Make them worth more
  

This book solves the first problem. 
To get customers you need leads.
You’re not getting as many leads as you want because you’re not advertising enough.

THE SOLUTION:

Advertise more – better – cheaper -reliably (from more places)

When you double your leads > You double your business

SECTION II: Get understanding

What’s a lead

A lead is someone you can contact. But you mostly want someone you can contact and also wants to buy your offer. And that’s called an engaged lead.

Engaged leads are the true output of advertising

How to get engaged leads

In your business, you have:

• Your offer: products or services you exchange for money
• Your core offer: the thing you make the most money from
  

When you advertise your core offer or offer directly, especially if it’s at a high price point, you need people to trust that you can deliver value first. This is where lead magnets are useful.

Lead magnet: 

• Is a complete solution to a narrow problem given away at a significant discount or for free to attract an ideal customer
• Once a lead magnet solves the narrow problem, it should reveal the next problem… solved only by the core offer.
• A lead magnet is better than selling your offer straight away because it makes people start knowing you and trusting you more and they will be more willing to buy from you.
• Lead magnets get prospects one step closer to being more likely to buy your stuff
• A person who pays with their time now  (while consuming your lead magnet) is more likely to pay with their money later. 
• If you’re not getting enough engaged leads, your lead magnet is not attractive enough for your target audience. They are not engaging with it.
• Problem / Solution cycle:  All problems once solved create a new problem

“If they think your lead magnet is worth their time, they’ll think your core offer is worth their money.”

There are no rules to the lead magnet, you just need to think creatively about what can best hook your customers. Lead magnet steps:

• Step1: figure out the problem you want to solve and who to solve it for
  Pick a narrowly defined problem you want to solve. Then, make sure your core offer can solve the next problem that comes up.
  
  
• Step2: figure out how to solve it
  3 Types of lead magnets:
  • Type 1: reveal a problem. Diagnosis, free site audit, free assessment, …
    • Works great for problems that get worse while you wait. You use urgency to sell them later.
  • Type 2: free trial. Like a “taster”. You limit the number/time of use. You limit the access
    • Small bite sizes of food
    • Trial versions of products
    • Software trial for a period of time
  • Type 3: Give away 1 step of a multistep process
    • You use 4 steps to improve the website speed. You give away the first one and sell the rest.
      
      
• Step3: figure out how to deliver it
  How to deliver the lead magnet:
  • Software: give them a tool that does the job for them (spreadsheet, calculator or small software)
  • Information: you teach them something (courses, lessons, keynote presentations, live events, …)
  • Services: Do work for free. You get enough goodwill if people know you give away something that cost you something
  • Physical product: you give them something that they can hold by hand. A book, bootle, … The product should be somewhat related to your offer.
    
    
• Step4: test what to name it 
  Framing the value they’re going to get from the lead magnet is important. You can test what you name it by :
  • Running an Ad
  • Running a poll
  • Ask people to comment 1 or 2 on a post
  • DM people in your list asking
    
    
• Step5: make it easy to consume
  Make it fast and easy to consume the value by catering to their preferences. If your lead magnet is a book: make it the physical version, the audio version, the video version, or the ebook version
  • Software: make it accessible on phones, computers and multiple formats
  • Information: use all consumption preferences (physical book, podcast, ebook, …)
  • Services: Available more times, more ways, more days
  • Physical product: simple to open and use. (related to design)
  • Give away the secrets and sell the implementation
    
    
• Step6: make it darn good
  • Have more than one valuable thing if you’re afraid you won’t be able to provide more value.
    DO NOT GIVE AWAY FLUFF GIVE AWAY REAL VALUE. WHY?
  • The market judges you on the free fluff. A person may not buy from you because your free stuff sucks and might even tell someone else. It discourages people who could have bought from you.
  • People judge the value they’ll get from your paid thing based on the value of the free thing
  • People buy based on the expectation of future value.
    
    
• Step7: make it easy for them to tell you they want more
  • Always use a CTA and make it easy to ask for more
  • Give direction on what to do: keep it simple and clear. Do not try to get too creative 
  • Give reasons to do it right now: Scarcity – urgency – reason why 

GREAT LEADS WANT GREAT LEAD MAGNETS

• A great lead magnet:
  • Engages ideal customers when they see it
  • Gets more people to engage than your core offer
  • is valuable enough that people consume it
  • Makes the right people more likely to buy
    

SECTION III: GET LEADS

We get engaged leads by letting people know about our stuff

The core four

There are only four ways a person can tell other people about anything.

• Two types of audiences
  • WARM: people who know you and gave you permission to contact them (and you don’t need to necessarily know them) 
  • COLD: people who don’t know you and didn’t give you permission to contact them (strangers)
    
    
• Two types of communications
  • One to One: (Outbound). Phone call, email, text, voicemail, direct message, ..
  • One to many: (Inbound) Billboard, podcast, posts …
    
    

	People Who know you	People who don’t
1 to 1 (private)	Warm outreach	Cold outreach
1 to many (public)	Post free content	Run paid Ads

ONE: Warm Outreach

• You can use emails, voicemail, phone calls, SMS, … 
• Detailed process of how to reach out to people and what to tell them is in the book
• How to reach out to people:
  • ACA method
    • Acknowledge: Acknowledge what they said. Restate it in your own words, this shows active listening
    • Compliment them on whatever they tell you. Tie it to a positive character trait if you can
    • Ask another question and lead the conversation in whatever direction you want.
  • You don’t have to ask them if they want to buy from you, ask them if they know someone who might be interested in buying your offer.
  • Benchmark: 1 in 5 contacts should engage
    
    

	Warm Outreach Checklist
Who	Yourself
What	Fist five free
Where	Phone/Email/Physical mail/SMS
To Whom	Your contacts
When	The first five hours of the day
Why	You want to get customers or intros
How	Personalised message using (ACA)
How much	100 attempts per day
How many	Follow up two or more times after first
How long	Until you get customers

TWO: Posting Content

Pros and Cons:

You post content by offering value at scale to a warm audience

• Pros:
  • Grows a warm audience (people you can reach out to)
  • Makes all other advertising more effective
  • It just costs time. Can get you the highest return per dollar 

• Cons:
  • Difficult to personalize
  • Compete with everyone it’s difficult to stand out
  • You’ll have people copy you, you always need to innovate
    
    

How to know your stuff is good?

• No matter how good you think your content is, the audience decides.
• Your audience simply grows. If you’re not growing it means your content is not that good and that’s okay. Make more, and change it depending on the feedback you get until it gets good.
• Tip for making content: Make all your content for strangers otherwise they feel left out. Don’t assume people know you or your context
  

The three content units (HRR of content)

Good content does one thing, reward the person consuming it. And the person gets rewarded by the content only if they

• Have a reason to consume it (Hook)
• Pay attention long enough to (Retain)
• Get that reason satisfied (Reward)
  
  
• Hook: Get them to notice your content by giving them a reason to redirect their attention from whatever they are doing towards us.
  
  • Topics: pick topics they find interesting. 
  • How to find topics? “Do things. Talk about what you did. Repeat.”
  • Topic examples:
    • Far past: life lessons
    • Recent Past: calendar breakdown
    • Present: real-time capture (tweets/emails)
    • Trends: apply your lens to something that’s happening
    • Manufactured: turn a crazy idea into reality
  • Pick good headlines that give them a reason (from a meta-analysis of news)
    • Recency: as recent as possible = news. People pay attention to something that happened an hour ago more than a year ago
    • Relevancy: Personally meaningful. Nurses pay more attention to things related to nurses than accountants.
    • Celebrity: Including prominent people (celebrities, authorities, …)
    • Proximity: close to home geographically. People care more about a house on fire next door than the house on fire in the other city.
    • Conflict: of opposing ideas, opposing people, nature. Good vs Evil, Freedom vs security
    • Unusual: odd, unique, rare, bizarre
    • Ongoing: stories still progress. If someone goes into labour, people want updates every 10 minutes.
      
  • Match the format that’s rewarded them before
    • Each platform has unspoken rules of how to post. Match your content to that. (facebook is not LinkedIn, LinkedIn is not Tiktok, TikTok is not Instagram…)
      

• Retain: We retain through curiosity. You need to make them asks question they want to know the answers to. You can do that by using:
  • Steps: actions that occur in order. A person would want to know the rest of them.
  • Lists: top 10 mistakes, 10 ways to …
  • Stories
    
    

• Reward: Satisfy their reason for consuming so they can consume again
  • How good your content is depends on how often you reward your audience in the time it takes them to consume it.

Difference between long and short content:

• The only difference is in the number of content units they have.
• People don’t have short attention spans, they just have higher standards. If you hook/retain/reward throughout your long content, people will consume it (people can binge-watch a 20-episode series easily in one sitting) 

TWO: Monetizing content

Master the Give/Ask Ratio:

• Jab, Jab, Jab .. right hook. It works because of the law of reciprocity. If you give to people, they will feel like they need to give back to you.
• The give-ask ratio has been well studied by a lot of media companies. Their goal is to find out how to not lose their viewers/users while running Ads. How can they monetise the attention without losing it.
  • In TV they have a 3.6 to 1 ratio. Per 60min: 47min content to 13min commercials
  • In facebook, the have 4 to 1 ration. 4 content and 1 Ad

• if you’re in the phase of monetizing your audience use the 3 to 1 ratio to maximally monetize
• This does not work if you’re in a growth phase. TikTok didn’t run Ads for years and has grown its platform then decided to run ads

Maximally monetize =! Maximally grow

How to Ask After Giving?

Give in public and ask in private

• If you’re going to ask in public, think of it like commercials. You interrupt your own value with commercials about the stuff you sell in two ways:
  
  • Integrated
    • You can advertise in every piece of content so long as you keep your give-to-ask ratio high. You will continue to grow your warm audience and get engaged leads.
    • If you have written content, integrate your CTA in the PS statement. People usually start with the title, scan the text until the end and read the PS.
      
  •  Intermittent: 
    • is better for short content in general where you don’t have enough time or space to integrate the Ads in your content. You can make pieces of content and then follow it with an Ad according to the ratio discussed before.

• Note: You can either monetize your core offer or your lead magnet.
  
  

How to scale?

• Depth then Width: maximize a platform, then move to the next one 
  • Step 1: post content on a relevant platform
  • Step 2: post content regularly on that platform
  • Step 3: Maximize the quality and the quantity of the content on that platform.
  • Step 4: Add another platform while maintaining the quality and quantity of the first platform
  • Step 5: Repeat steps 1-4 until all relevant platforms are maximized
    
  • PROS: Maximize return on offer. Audience compound faster. Fewer resources
  • CONS: less low-hanging fruit. No omnipresence. Single channel dependency

• Width then Depth: get on every platform early, then maximize them together
  • Step 1: post content on a relevant platform
  • Step 2: post content regularly on that platform
  • Step 3: Instead of maximizing your first platform, move on to the next while maintaining the previous.
  • Step 4: Continue until you are on all relevant platforms
  • Step 5: Maximize your content creation on all platforms
    
  • PROS: Broader audience faster. Repurpose with little effort.
  • CONS: More attention, time and labour to be effective. Often, lots of bad content everywhere.
    
    

The 7 Lessons

1- Switch from “How to” to “How I” and from “This is the best way” to “This is my favourite way” whenever possible 

2- We need to be reminded more than we need to be taught. Don’t hesitate to repeat yourself.

• Your audience doesn’t listen 100% of the time. 
• You’ll get bored of your content before your whole audience even sees it. 

“You might be bored with it but your audience might still want it”

3- Buddles, Ponds, Lakes, Oceans: Start narrow, then expand.

4- Content creates tools for salespeople: Some content will perform well and get more people interested in buying your stuff. That content helps your sales teams.

• Create a master list of your “greatest hits”
• Label each ‘hit” with the problem it solves and the benefit it provides.
  

5- Free content retains paying customers:

• How a customer gets value from you matters less than where they got it.
• If someone pays for your thing and then consumes your free content and finds it valuable, they will like you more and stay loyal to your business longer.
  

6- People don’t have shorter attention spans, they just have higher standards. There’s nothing as too long only too boring

7- Avoid pre-scheduling posts:

• Alex cannot prove why manual posts work better but from his experience, it is because when you manually post, you know that within a short time, you’ll be rewarded or punished for the quality of the content so it gives you that last bit of pressure to get it right.

Benchmark

What to measure?

• How big: total followers and reach
• How fast: rate of getting followers and reach

Improving your measurements only works if you’re consistent with the inputs. 

• Pick posting cadence
• Pick asking cadence
• Post and don’t stop

	Post content daily checklist
Who	Yourself
What	Value: give give give until they ask
Where	Any media platform
To Whom	People who already follow you
When	Every morning, 7 days a week
Why	Build goodwill and get engaged leads
How	Written, images, videos, audio posts
How much	100 mins per day
How many	As many as the platform shows it
How long	As long as it takes

Cold Outreach

Cold outreach has one difference than warm outreach: the people you reach out to are strangers and they don’t know you. And that has 3 problems:

1. You need to find a way to contact them
2. If you find it, once you contact them, they ignore you
3. If they give you their attention, they are not interested

To solve these problems we need:

Get a way to contact them

Build a list of contact information (emails, phone numbers, ..). You can do it using:

• Scrapping software
• List brokers 
• If you cannot pay for any of them, join groups and communities who you think have your audience. And check if there’s a way to contact people who meet your qualifications directly.

Figure out what to say

• They don’t know us => Personalize. When you contact them, act like you know them and the best way to do that is to research the lead you’re contacting.
• They don’t trust us => Provide big fast value. You need to blow their minds in less than 30s. That value can be your lead magnet.

Contact them until they’re ready and able to listen

• Automate the delivery: it’ll help you reach more volume. Use pre-written messages and voice memos to send to everyone. 
• Automate the distribution: Now that your messages, voice memos, … are prepared you need to automate their distribution. There are many apps and tech that allow it.
• Follow-ups:
  • Contact your prospect more than once
  • Contact them in different ways (they may prefer text or email to calls or vise versa)
  • If they don’t respond, wait 3 to 6 months and try again.

Pros/Cons

• Cons: labour intensive. It takes a lot of hours and attempts to get the results.
• Pros:
  • You don’t need to create a lot of content or ads. You focus on perfecting your script.
  • Your competition doesn’t know what you’re doing and it’s hard to copy (they’ll need to know the whole system)
  • It’s incredibly reliable. All you need is volume.
  • You don’t have platform changes
  • No spokesperson. You don’t rely on a figure to promote the product
    

	Cold Outreach daily checklist
Who	Yourself
What	Hook + Lead magnet / Core offer
Where	Any private communication platform
To Whom	List: scrapped, bought, software used
When	Every day, 7 days a week
Why	Get leads to engage to sell stuff
How	Live calls, voicemail drops, email blasts, text blasts, direct messages, video message, voice message, direct mail, hand written cards …
How much	100 units per day
How many	Day1 -2x, Day2 -2x, Day 7 -1x
How long	As long as it takes

PAID ADS

How paid ads work? 

• You advertise one to many cold audiences by paying another business to put your offer in front of their audience.(you’re renting eyeballs).
• If you don’t have the time to build one, paid ads are the fastest way to reach a lot of people.
• The problem is that the audience is cold. The percentage of responses you will get wil be small.

4 Problems to solve to make the Ads profitable:

Problem1: Knowing where to advertise (where)

• To start, place your ads where your competitors place ads
• Find a platform where these four things are true:
  • You know how it works (already used it and gotten value from it)
  • You can target people interest in what you sell
  • You know how to make an ad in it
  • You have the minimum amount of money to spend for an Ad
  • You can target lookalike audience. You provide them a list of contacts and they try to look for similar people.
  • You can include or exclude factors of your choosing: age, gender, demographics, ….
  • The more precise you are, the more efficient the ad will be. Start with a small audience, then use the money you make to target bigger ones.

Problem2: Getting the right audience to see it (to whom)

Problem 3: Making the best ad for them to see (what)

A tip from Alex is to not skip Ads. Watch them and learn from them. There are three chunks to an Ad

PART 1: Call out: get them to notice your Ad
“After you’ve written your headline, you’ve spent 80cents of your advertising dollars). Focus your advertising on the first five seconds to hook the attention. You can use:

• For words:
  • Labels that people identify with: “Gym rats”, “Residents of X” …
  • Yes Questions: A question where they answer Yes, that’s me!
  • If then statement: if they meet your conditions, then you help them “ If you want XYZ, …”
  • Ridiculous results: “person got result X by doing bizarre action Y”
    
• For visuals:
  • Contrast: sound, colour, moving things, anything that sticks out
  • Likeness: Show traits, places, … that people identify with
  • Scene: show the “yes question” or “if-then statement” (person tossing in bed, person stressed, …)

PART 2: Value

The meat of your ad should answer a simple question “why should I be interested in your thing?”
This ties back to showing the elements of your value equation (detailed in the first book). How your offer delivers more good stuff and less bad stuff.You can use the what/who/when framework:

• What = dream outcome (the results) + perceived likelihood of achievement (how guaranteed are the results) + time delay (how fast they’ll get them) + effort/sacrifice (what will they have to do to get them)
• Who = show how your offer helps the status of the person. How the results make others see him. (humans are status-driven)
• When = use timescale to show them the results. Past (how they were before buying from you), Present (how they are when they buy), Future (how they will be after getting the results). 
• You can also show/tell this from the perspective of another person to tie it to the “who” element.

• Call to Action
  • Tell them exactly what to do next. Make it very explicit, easy to understand and do.
  • Get permission to contact them:

When they take the action, take them to a landing page in your website to get their contact information.

Tips for landing pages: make sure it matches your ad – remind them of the action they just took and show how the next action aligns with it.

Now let’s talk money,

How well my Ad is doing?

• Paid ads efficiency is measured by 

LTGP/CAC ratio

• CAC: cost to acquire a customer
• LTGP: Lifetime gross profit
• LTGP/CAC should be higher than 3
• LTGP: all the money a customer will ever spend with you all their life (they may buy more than one product and do it multiple times)  – all the money it takes to deliver it 

Two big levers to improving LTGP to CAC ratio

• Make CAC lower: get cheaper customers by running more efficient ads (better creative, better targeting, choosing better/cheaper platforms …). Use your industry’s average CAC to know if yours is good enough.
• Make LTGP higher: increase how much you make per customer. It’s done with a better business model.

How to know which one to focus on

• If your CAC < x3 industry average, focus on the LTGP (improve business model)
• If your CAC > x3 industry average, focus on the CAC (improve Ad)

How to fix ads

• The LTGP to CAC ratio isn’t always good from the first purchase
• Client-financed acquisition: use the benefit you get from a customer to get other customers. You can do that through upsells (selling them higher ticket items)

Other nuggets

• Don’t confuse sales problems with advertising problems. If you’re getting the right engaged leads and you don’t close, you have a sales problem, not a leads problem.
• The best free content, make the best Ad 
• UGC: when you encourage people to review your product and you can use it in your Ads
• Don’t be afraid to lose your learning budget
  

	Paid Ads daily checklist
Who	Yourself
What	Your Offer
Where	Any platform/audience you can buy access to
To Whom	Target Audience or Look alike audience
When	Every day, 7 days a week
Why	Get engaged leads to sell
How	Call outs + What/Who/When + CTA
How much	Learning budget, then reverse to sales goals
How many	30x call outs x 10 Ads
How long	As long as it takes

More Better New

More:

• If you’re doing something and it’s working, crank up the volume.
• Alex’s simple framework: do 100 units for 100 days (100 pieces of content for 100 days / 100 sales calls for 100 days)
• More Ads > Better Ads > More Leads

Better

• Doing better gets you more leads for the same effort. 
• You can do better by only doing one thing: TESTING
• How to get better:
  • Test one thing per week per platform. If you test multiple things at a time on one platform you never really learn what worked.
  • Steps affect each other. A single change can affect results at each step
  • It forces you to prioritize the thing that will get you the most engaged leads. 
  • Run the test long enough to see if you get actual improvement. If the duration is short you may not get enough viable data and if it’s long you’ll be wasting time you could be spending on your next constraint. Google statistical significance calculator to find an estimation

New

• When to do new?
  • When returns you get from doing more and better are lower than what you can get from a new placement or a new way of advertising
  • We tend to usually switch to new earlier because we always believe the grass is greener;

• The order of new: from the lowest risk highest return
  • New placement: If you’re Instagram and you’re not on stories, go on stories
  • New platform: With similar media. shorts in Youtube vs reels vs tiktok
  • New core four: if you’re not doing another core four (cold outreach, ads, ..) add one of them.

SECTION IV: Get lead getters

• Leverage: is the difference between what you put in vs get out
• A person can only do so much and do it fast. You cannot scale big without having other lead getter
• You need other lead getters
  • Customers: they tell other people about what they got
  • Affiliates: businesses who tell your audience about your offer to get you leads
  • Employees: people in your business that get you leads 
  • Agencies: businesses with service that get you leads

• How do you get lead getters? You use the same core fours

Referral playbook

• Referrals = word of mouth
• A referral happens when somebody (a referrer), sends an engaged lead to your business. The best referrals come from your customer.
• Referrals are the best way to grow at scale. You don’t need any advertising for it.
  • They’re worth more (they spend more higher LTPGP)
  • They cost less (lower CAC)
• Referral growth equation

% Clients referred monthly – % clients churned monthly = % monthly compounding growth

• If you don’t have referrals, you’ll be stuck in the hamster wheel of death where you’re constantly chasing leads who buy and then leave.
• Why you don’t get referrals
  • You’re product isn’t as good as you think
  • You don’t ask for it
• Solving the referral problem

• Problem1: if your product isn’t good enough
  
  • Price, Profit, Value relationship
    Price-Cost = Profit
    Value – Price = Goodwill (economic surplus)
    
    • If you bought something and thought, “wow I would pay way more for this”, that’s an indicator of goodwill. The reason a lead magnet works is that it creates goodwill.
    • If someone gets more value from you, there’s a high chance they’re a referrer
    • If they get exactly what they expect for the price, they’re neutral
    • If they get way less for the price, they will hate you. 
      
  • The best way to get more goodwill is to give more value. You can do it by
    
    • Call out > Sell better customers
    • Dream Outcome > Set better expectations (but deliver on them by ideally overdelivering)
    • Increase Perceived likelihood of achievement > Get more people better results
      You can do this by figuring out what the customers who got good results from your offer did differently and what did they have in common. Force new customers and repeat these actions that got and use them as guarantees to get the best results.
    • Decrease time delay > Get faster results
      • Updates are wins: break the work you do in steps and update them on each step regularly. 
      • Choreograph the first 48 hours. That’s when they make the first impressions of you.
      • Never leave them in “No man’s land”. Always tell them when they expect to hear from you.
      • Never expect customers to forgive you
    • Decrease effort and sacrifice > Keep making your stuff better
      • Use customer data to find the most common problem with your product
      • Figure out your fix
      • Use the feedback to improve the product
      • Give the new version to few of your struggling customers
      • Get your next round of feedback. If it’s good, roll it out to all customers, if not go back to step 2
      • Move to the next more common problem and repeat the process. 
    • Call to Action > Tell them what to buy next

• Problem 2: You don’t ask for them.
  • You can use:
    • One-sided referral benefit: pay your CAC to customers rather than a platform
    • Two-sided referral benefit: you pay CAC to both parties. Half goes to the referrer (credit of cash) and half goes to the fiend (in credit)
  • Ask for a referral right when they buy
  • Add referrals as a negotiation chip. If they give you an introduction to their friends/family interested in your offer you can give them a lower price.
  • Ongoing referral programs
  • Unlockable referral bonuses: create bonuses for people who 1) refer and 2) give testimonials
  • ProTip: match the thing you give with the thing you sell (if you sell T-shirts, give a t-shirt, gift cards work well)
  • Gift Card:
    • Give a gift card for one-third the cost of your business
    • Make it personalized put the name of the person who receives it

Employees

• To scale your marketing efforts, you will need other people, aka employees
• How to get employees? You use the core four! Instead of “letting potential customers know about your stuff”, you “let potential employees know about your stuff”
  • Warm outreach: Ask your network
  • Cold Outreach: Recruiting
  • Post content: Post about a job opening
  • Paid Ads: Promote about a job opening

• Customer referrals > Employee referrals
• Affiliates > Associations, list servers, ..
• Agencies > Staffing firms
• Employees > Employees (your HR team)

• Now that you have employees, how do you get them to get you leads? You train them.
  • Step 1: document. Have a checklist of the different steps you do to get leads.
  • Step 2: demonstrate Do it in front of them and tweak your checklist accordingly with them.
  • Srep3: Duplicate. They do it in front of you and tweak your checklist accordingly with them.
  • If they get it wrong or are confused, you as an employer got it wrong or made it confusing.
  • There’s a difference between competence and performance. If they know what to do but just haven’t gotten good at it, then they just need to practice. 
  • Avoid punishments or penalties during training and reward them for the good stuff.
  • Give them feedback one step at a time.
  • Whenever there’s a major dip, retrain the team.

• Returns from lead getting employees:

Total payroll / Total engaged leads = cost per engaged lead

Agency

• Agencies are lead getting service businesses. You pay them to run paid ads, do outreach or package and distribute content

• The problem with agencies: they will onboard you by assigning to you a senior rep who gets you good results then they give you a junior one who gives you poor ones. Then the senior one hops back in to try to fix it a bit, and then you cancel.

• Use agencies to learn new methods or new platforms.

• Hire agencies that will transfer the skill to you and show you how to do it instead of having them do it yourself. You ask them to teach you how and why they do it for a while (at an extra cost even), and then you’ll have your team train on what they thought. Then you’ll switch to a lower-cost consulting arrangement. This way they can still help you if you run into problems.

• Picking the right agency
  • Someone already got results with them
  • Prominent companies got good results with them
  • They have a waiting list
  • A clear sales process that sets real expectations
  • No short-term hacks. They give long-term strategy and a clear timeline for setup, and scaling and results
  • They tell you what they need from you, when they need it and how they use it
  • They suggest a meeting cadence with you
  • They give updates clearly in simple terms to update on progress
  • They make a good offer
  • They are usually expensive

• Talk to few more agencies before deciding on which one to go with

Affiliates

• An affiliate is a lead getter. They are an independent business that tells their audience to buy from you. They may seem like referrals on the outside but they are much different under the hood.
• Affiliates are a win-win agreement. 
• If you only sell to customers and they’re worth 1k. If you sell 10 customers each month, you’ll be making a consistent 10k. But if each affiliate brings you an extra 10 customers, the more affiliates you can get the more customers overall you can get. 
• How to build an affiliate army:

Step1: find an ideal affiliate.

The ideal affiliate has a business with a warm audience full of people like your customers. Start making a list of those businesses. If none comes to mind, answer these questions about your best customers.

• What do they buy?
• Where do they go?
• What do they like to do?
• If direct to consumers – the employers of your consumers could make great affiliates
• What type of businesses do they work for? What kind of jobs do they have?

Step2: Make them an offer

Step3: Qualify them

• Get them to buy your product so they can try it and have skin in the game

Step4: figure out what to pay them

• What they get paid for: what exactly do I want them to do?
  
• How much they get paid: maximum allowable cost to acquire a customer (calculated according to Gross profit vs CAC ratio)
  
  • Tier 1: 25%CAC
    Anyone who agrees to the initial terms. For example: they sign up and buy a product or a certification.
  • Tier 2: 50%CAC
    Once they activate, they finish the certification they bought, do a specific number of posts or outreach …
  • Tier 3: 100%CAC
    Once they sustain a level of performance (2,3 months in a row)
    
• You can pay with the product. It is cheap for you and valuable for them. (200$ worth of product instead of 200$^cash)

Step 5: Get them advertising – Launch

• Whisper: reveal a tiny bit of what will be launching
• Tease: think of elements of value. It’s time to start satisfying all the curiosity you created during the whisper phase. Reveal your product, make the date of the launch public and start showing elements of value (use what-who-when framework from the paid Ads chapter)
• Shout: call to action. Give specific actions for the audience to take when the product launches. Now you start pounding the audience with bonuses, scarcity, urgency and guarantees around being the “first ones”. 

Step 6: Keep them advertising

1- Affiliates give your lead magnet away when somebody buys their stuff

• The lead magnet should make the affiliate’s offer more valuable. This allows you to charge more and get more leads.
• As the business owner you will use those leads to upsell them on other products. 

2- Affiliates sell your lead magnet

• Example: chiropractors giving a 3h workshop for gyms for free but they can charge their clients for it. The Chiropractors can then use those leads to upsell them

3- Affiliates sell your core offer directly:

Costs and returns

Gross profit = Total sales – Cost of product – Affiliate payout 

Example:

• Advertising cost to get an affiliate CAC = 40$
  
• Average affiliate sells 100$ worth of product per month and stays for 12 months
  100$ x 12 = 1200$ total sales
  
• Your product has 75% gross margin = they cost 25% of retail price to make
  1200$ total sales x 25% cost of goods= 300$ total cost of goods
  1200$ – 300$ = 900$ gross profit from all the customers the affiliate brings
  
• We pay affiliates 40% of gross profit
  900$ gross profit x 40% payout = 360$ to the affiliate as payment
  
• The gross profit left at the end:
  1200$ (total) – 300$(costs) – 360(payout) = 540$
  
• The LTGP to CAC 
  540$ (gross profit) / 40$ (cost of an affiliate) = 13.5 :1 

Remember the goal is to always have LTGP: CAC > 3, if it’s lower here’s how to improve it

• Lower CAC: get affiliates for less (improve ads, offer, sales process)
• Increase LTGP & decrease CAC: get more to activate (by creating the launch process) – incentivise them to sell more
• Increase LTGP: we make them worth more by improving the integration process 

There are two ways to create a compounding business. 

• Find more people who will never stop buying your stuff.
• Find more people who will never stop selling it for you.
• Referrals are the former.
• Affiliates are the latter.

SECTION V: Get started

• Give yourself permission to fail. Set a learning budget that you use to experiment and be willing to lose. You’ll feel more relieved and free to stretch your creative ideas that will make you more money.
  
• Rule of 100:
  • Do 100 unit of actions per day for 100 days
  • All the strategies may work for your business, IF you do enough volume of it (don’t be like the person who goes to gym for a week and complains he’s not seeing results)

• OPEN TO GOAL rule  = you commit to the work until you reach the specific number of outcomes no matter what

• One pager:
  
  • Step1: pick the type of engaged leads to get: customers, affiliates, employees or agencies
  • Step2: Pick 100 rule or open to goal and commit to your daily advertising actions
  • Step3: Fill out your advertising checklist for that daily action

	Advertising Daily Checklist
Who	You
What	Your offer or Lead Magnet
Where	Platform
To whom	Audience/List
When	First/Last 8 Hours of the day
Why	Get X engaged leads or lead getters
How	Warm/Clod outreach, Ads, Content
How much	100 or until you hit your goal
How many	#of follow ups/times retargeted
How long	100 days or until you hit your goal

• Step 4: you do this daily action until you have enough money to afford paying someone else to do it.

• Step 5: When you do, go back to step 1. Make employees your new target lead type and repeat 1-4 until you have all the help you need. Then, scale again.