{"version":"1.0.0","segments":[{"startTime":20.4,"endTime":22.84,"body":"Welcome to the eCommerce alley podcast,"},{"startTime":23.01,"endTime":27.48,"body":"where we believe that great brands"},{"startTime":23.01,"endTime":27.48,"body":"are built on passionate leadership,"},{"startTime":27.85,"endTime":32.68,"body":"smart operations, and of course,"},{"startTime":27.85,"endTime":32.68,"body":"powerful marketing. I am your host,"},{"startTime":32.681,"endTime":36.12,"body":"Josh coffee. And I couldn't be more"},{"startTime":32.681,"endTime":36.12,"body":"excited that you're, you're watching this,"},{"startTime":36.14,"endTime":38.08,"body":"or you're listening to"},{"startTime":36.14,"endTime":38.08,"body":"this right now, which yes,"},{"startTime":38.1,"endTime":42.44,"body":"you can watch this on YouTube and"},{"startTime":38.1,"endTime":42.44,"body":"you can kind of see me sitting here"},{"startTime":42.97,"endTime":46.55,"body":"in our entire alley as well"},{"startTime":42.97,"endTime":46.55,"body":"as see the highlights. Now,"},{"startTime":46.551,"endTime":48.43,"body":"today we're gonna be"},{"startTime":46.551,"endTime":48.43,"body":"talking about something."},{"startTime":48.431,"endTime":53.11,"body":"I call the three rules of profitable"},{"startTime":48.431,"endTime":53.11,"body":"marketing that if broken will"},{"startTime":53.12,"endTime":56.27,"body":"bleed your business dry, let's do this."},{"startTime":64.64,"endTime":68.9,"body":"Profit is the oxygen of your business."},{"startTime":69.37,"endTime":73.94,"body":"When I first started my business, I"},{"startTime":69.37,"endTime":73.94,"body":"didn't really realize how crucial um,"},{"startTime":73.96,"endTime":77.98,"body":"profit was, because what would happen is"},{"startTime":73.96,"endTime":77.98,"body":"I would generate profit in my business."},{"startTime":78.34,"endTime":83.02,"body":"And my first instinct was to then"},{"startTime":78.34,"endTime":83.02,"body":"go and reinvest it and plow it back"},{"startTime":83.29,"endTime":87.85,"body":"into my marketing efforts or"},{"startTime":83.29,"endTime":87.85,"body":"plow back into other aspects of"},{"startTime":88.11,"endTime":88.59,"body":"my business."},{"startTime":88.59,"endTime":93.37,"body":"And what would happen is because marketing"},{"startTime":88.59,"endTime":93.37,"body":"is an ongoing process of testing and"},{"startTime":93.371,"endTime":95.49,"body":"figuring out what's working"},{"startTime":93.371,"endTime":95.49,"body":"and what's not working."},{"startTime":95.65,"endTime":99.85,"body":"I started to bleed my business, dry."},{"startTime":95.65,"endTime":99.85,"body":"My profit margins started to shrink up."},{"startTime":99.99,"endTime":103.77,"body":"And then I realized that we"},{"startTime":99.99,"endTime":103.77,"body":"weren't as profitable as I thought."},{"startTime":104.38,"endTime":109.36,"body":"And so today I have created"},{"startTime":104.38,"endTime":109.36,"body":"a framework that allows us"},{"startTime":109.42,"endTime":113.44,"body":"to continue to market both our"},{"startTime":109.42,"endTime":113.44,"body":"business and our clients' businesses."},{"startTime":113.74,"endTime":118.16,"body":"And it allows us to market to ensure that"},{"startTime":113.74,"endTime":118.16,"body":"we're profitable in everything that we"},{"startTime":118.161,"endTime":121.64,"body":"do because without profit,"},{"startTime":118.161,"endTime":121.64,"body":"just like oxygen, we will die."},{"startTime":121.94,"endTime":124.6,"body":"Our business will die."},{"startTime":121.94,"endTime":124.6,"body":"And so I personally,"},{"startTime":124.97,"endTime":129.91,"body":"our team personally does not"},{"startTime":124.97,"endTime":129.91,"body":"believe in marketing if it's"},{"startTime":130.05,"endTime":134.63,"body":"not focused around generating"},{"startTime":130.05,"endTime":134.63,"body":"profits. And so before we get started,"},{"startTime":134.7,"endTime":138.27,"body":"what I do wanna say is if you haven't"},{"startTime":134.7,"endTime":138.27,"body":"listened to the very first episode of the"},{"startTime":138.271,"endTime":140.87,"body":"e-commerce Ali podcast, I"},{"startTime":138.271,"endTime":140.87,"body":"recommend you go back to it. Uh,"},{"startTime":140.871,"endTime":145.15,"body":"because in that episode, I talk a"},{"startTime":140.871,"endTime":145.15,"body":"about something that we call the MOS,"},{"startTime":145.36,"endTime":147.74,"body":"the marketing operating system."},{"startTime":148.32,"endTime":151.42,"body":"And the reason this is"},{"startTime":148.32,"endTime":151.42,"body":"important is because today"},{"startTime":151.421,"endTime":154.9,"body":"rules of profitable marketing"},{"startTime":151.421,"endTime":154.9,"body":"that is going to be your gauge,"},{"startTime":155.13,"endTime":159.86,"body":"your measuring stick against"},{"startTime":155.13,"endTime":159.86,"body":"every step in the marketing"},{"startTime":159.861,"endTime":162.06,"body":"operating system. So if you"},{"startTime":159.861,"endTime":162.06,"body":"go listen to it, you'll learn."},{"startTime":162.34,"endTime":164.42,"body":"There are three levels to the"},{"startTime":162.34,"endTime":164.42,"body":"marketing operating system."},{"startTime":164.76,"endTime":166.25,"body":"And in each of those levels,"},{"startTime":166.64,"endTime":170.85,"body":"what you're going to apply against those"},{"startTime":166.64,"endTime":170.85,"body":"are the rules that I'm gonna teach you"},{"startTime":171.14,"endTime":176.01,"body":"today because we wanna make sure"},{"startTime":171.14,"endTime":176.01,"body":"that as we ascend through the three"},{"startTime":176.011,"endTime":178.53,"body":"levels of the marketing,"},{"startTime":176.011,"endTime":178.53,"body":"uh, operating system,"},{"startTime":178.531,"endTime":181.44,"body":"we wanna make sure that we're"},{"startTime":178.531,"endTime":181.44,"body":"profitable along the way."},{"startTime":181.86,"endTime":185.44,"body":"So let's get started"},{"startTime":181.86,"endTime":185.44,"body":"with the very first rule."},{"startTime":185.7,"endTime":190.44,"body":"The very first rule is"},{"startTime":185.7,"endTime":190.44,"body":"simple. If it's not trackable,"},{"startTime":191.14,"endTime":192.8,"body":"you don't do it."},{"startTime":193.9,"endTime":198.44,"body":"But Josh Iowas 14 in Iowas, 15 in"},{"startTime":193.9,"endTime":198.44,"body":"what? No more cookies in third part."},{"startTime":199.03,"endTime":201.31,"body":"And it doesn't, it doesn't matter. Uh,"},{"startTime":201.311,"endTime":206.07,"body":"there was a guy in 1911 by"},{"startTime":201.311,"endTime":206.07,"body":"the name of David Ogilvie."},{"startTime":206.13,"endTime":210.67,"body":"He was considered the father of"},{"startTime":206.13,"endTime":210.67,"body":"advertising and David Ogilvie"},{"startTime":210.93,"endTime":215.83,"body":"helped companies and organizations"},{"startTime":210.93,"endTime":215.83,"body":"that you probably use know and love"},{"startTime":216.16,"endTime":219.5,"body":"today, whether that is"},{"startTime":216.16,"endTime":219.5,"body":"Disney or Coca whole, uh,"},{"startTime":219.84,"endTime":222.18,"body":"or it doesn't matter"},{"startTime":219.84,"endTime":222.18,"body":"what it is he has worked,"},{"startTime":222.56,"endTime":226.34,"body":"or probably worked with some"},{"startTime":222.56,"endTime":226.34,"body":"of the largest companies"},{"startTime":226.341,"endTime":231.26,"body":"that you love. And he helped them make"},{"startTime":226.341,"endTime":231.26,"body":"billions of dollars. And back in the day,"},{"startTime":231.261,"endTime":233.62,"body":"billions of dollars was a"},{"startTime":231.261,"endTime":233.62,"body":"lot more than it is today."},{"startTime":233.68,"endTime":236.22,"body":"So that's actually billions and"},{"startTime":233.68,"endTime":236.22,"body":"billions of dollars that he helped them"},{"startTime":236.78,"endTime":238.94,"body":"generate. And in the"},{"startTime":236.78,"endTime":238.94,"body":"efforts that they did,"},{"startTime":239.72,"endTime":244.17,"body":"they were still able to track without"},{"startTime":239.72,"endTime":244.17,"body":"digital, without the internet."},{"startTime":244.22,"endTime":249.13,"body":"There were still things they were"},{"startTime":244.22,"endTime":249.13,"body":"able to do to track the results of"},{"startTime":249.42,"endTime":253.25,"body":"those efforts. And so what I see"},{"startTime":249.42,"endTime":253.25,"body":"a lot of businesses and brands,"},{"startTime":253.35,"endTime":257.21,"body":"and it's really common in the marketing"},{"startTime":253.35,"endTime":257.21,"body":"world, uh, especially the agency world."},{"startTime":257.27,"endTime":262.2,"body":"And this is probably one of my largest"},{"startTime":257.27,"endTime":262.2,"body":"pet peeves is that at people will"},{"startTime":262.27,"endTime":266.84,"body":"justify their marketing"},{"startTime":262.27,"endTime":266.84,"body":"dollars in the name of brand"},{"startTime":266.841,"endTime":270.56,"body":"awareness or activities"},{"startTime":266.841,"endTime":270.56,"body":"that don't generate profit,"},{"startTime":270.86,"endTime":272.36,"body":"but we feel good about ourselves."},{"startTime":272.42,"endTime":276.8,"body":"So we're gonna do it in the name of reach"},{"startTime":272.42,"endTime":276.8,"body":"and brand awareness or whatever that"},{"startTime":276.801,"endTime":279.36,"body":"might be. And so really it's"},{"startTime":276.801,"endTime":279.36,"body":"kind of like a vanity piece."},{"startTime":279.58,"endTime":283.79,"body":"And so I don't believe that you should"},{"startTime":279.58,"endTime":283.79,"body":"be running marketing if you're under 25"},{"startTime":283.79,"endTime":288.63,"body":"million in revenue for anything"},{"startTime":283.79,"endTime":288.63,"body":"other than profit driving"},{"startTime":288.631,"endTime":289.95,"body":"activities. And even beyond that,"},{"startTime":289.951,"endTime":293.83,"body":"you have to focus entirely"},{"startTime":289.951,"endTime":293.83,"body":"on profit driving activities."},{"startTime":294.21,"endTime":296.79,"body":"And so it doesn't have to be purchases."},{"startTime":296.89,"endTime":300.07,"body":"And I wanna talk about this because if"},{"startTime":296.89,"endTime":300.07,"body":"we're tracking the results of what we're"},{"startTime":300.071,"endTime":304.02,"body":"doing and if it's not, well, we don't"},{"startTime":300.071,"endTime":304.02,"body":"do it. Then the question comes, okay,"},{"startTime":304.05,"endTime":306.26,"body":"well, what are we tracking? Well,"},{"startTime":306.36,"endTime":309.62,"body":"you should always be running marketing"},{"startTime":306.36,"endTime":309.62,"body":"campaigns with the goal of driving"},{"startTime":310.06,"endTime":311.3,"body":"purchases, but sometimes,"},{"startTime":311.65,"endTime":315.22,"body":"sometimes you're gonna run campaigns"},{"startTime":311.65,"endTime":315.22,"body":"that are a step before that. Uh,"},{"startTime":315.221,"endTime":318.26,"body":"you might be trying to drive leads. You"},{"startTime":315.221,"endTime":318.26,"body":"might be trying to grow your email list."},{"startTime":318.261,"endTime":322.81,"body":"This is really common. Uh, in Q4, we"},{"startTime":318.261,"endTime":322.81,"body":"recommend building a wait list for,"},{"startTime":322.91,"endTime":325.01,"body":"for example, a black Friday cyber Monday."},{"startTime":325.11,"endTime":329.89,"body":"And so you can build a wait list"},{"startTime":325.11,"endTime":329.89,"body":"of people who want to get V I P"},{"startTime":330.0,"endTime":334.81,"body":"exclusive early bird access to"},{"startTime":330.0,"endTime":334.81,"body":"your black Friday deals before"},{"startTime":334.86,"endTime":337.81,"body":"black Friday. And so you might"},{"startTime":334.86,"endTime":337.81,"body":"be driving leads to that."},{"startTime":337.83,"endTime":341.17,"body":"So purchases is not your metric leads are,"},{"startTime":341.59,"endTime":344.92,"body":"but you need to be able to"},{"startTime":341.59,"endTime":344.92,"body":"track the leads because if not,"},{"startTime":345.18,"endTime":348.84,"body":"you're not gonna be able to know"},{"startTime":345.18,"endTime":348.84,"body":"what's working and what's not working."},{"startTime":349.02,"endTime":352.84,"body":"And so what you need to do is you need"},{"startTime":349.02,"endTime":352.84,"body":"to establish what that measurement of"},{"startTime":352.841,"endTime":355.76,"body":"success or what that metric"},{"startTime":352.841,"endTime":355.76,"body":"is that you're going to track."},{"startTime":355.98,"endTime":360.96,"body":"And you have to make sure that it's"},{"startTime":355.98,"endTime":360.96,"body":"trackable. Now, when it comes to,"},{"startTime":361.6,"endTime":364.24,"body":"uh, tracking from a digital standpoint,"},{"startTime":361.6,"endTime":364.24,"body":"certain things are possible."},{"startTime":364.241,"endTime":365.56,"body":"Certain things can be tricky,"},{"startTime":365.58,"endTime":369.16,"body":"but the reality is even with"},{"startTime":365.58,"endTime":369.16,"body":"a little bit of manual work,"},{"startTime":369.46,"endTime":373.64,"body":"you can get pretty close on your"},{"startTime":369.46,"endTime":373.64,"body":"tracking. It's never going to be 100%."},{"startTime":373.641,"endTime":377.75,"body":"You'll never be able to track all"},{"startTime":373.641,"endTime":377.75,"body":"the marketing efforts. You do 100%,"},{"startTime":377.93,"endTime":382.19,"body":"but you can get 80%, 90% tracking, uh,"},{"startTime":382.51,"endTime":384.47,"body":"tracking accuracy. And"},{"startTime":382.51,"endTime":384.47,"body":"in the marketing world,"},{"startTime":384.471,"endTime":388.75,"body":"we call this another word is attribution."},{"startTime":384.471,"endTime":388.75,"body":"We're trying to attribute our sales,"},{"startTime":388.85,"endTime":393.39,"body":"or we attribute our results"},{"startTime":388.85,"endTime":393.39,"body":"to a particular marketing"},{"startTime":393.86,"endTime":396.23,"body":"outcome. And going back,"},{"startTime":396.29,"endTime":400.18,"body":"if we were look back 50 years and say"},{"startTime":396.29,"endTime":400.18,"body":"they didn't have digital marketing,"},{"startTime":400.181,"endTime":403.46,"body":"they didn't have pixels and"},{"startTime":400.181,"endTime":403.46,"body":"cookies and things like that."},{"startTime":403.46,"endTime":408.26,"body":"They were still able to track"},{"startTime":403.46,"endTime":408.26,"body":"coupons. They were still able to, uh,"},{"startTime":408.261,"endTime":412.62,"body":"bring flyers into buildings and people"},{"startTime":408.261,"endTime":412.62,"body":"had to bring those flyers to the event to"},{"startTime":412.621,"endTime":413.94,"body":"get the special deal or go,"},{"startTime":414.12,"endTime":417.1,"body":"or they would have a certain phone"},{"startTime":414.12,"endTime":417.1,"body":"number on a billboard or a certain number"},{"startTime":417.101,"endTime":419.89,"body":"that they used for a"},{"startTime":417.101,"endTime":419.89,"body":"campaign in a radio ad."},{"startTime":419.99,"endTime":424.89,"body":"And so the reality is you"},{"startTime":419.99,"endTime":424.89,"body":"can track more than you"},{"startTime":424.891,"endTime":428.61,"body":"think, but I think that we just get"},{"startTime":424.891,"endTime":428.61,"body":"lazy and it's a lot easier to, uh,"},{"startTime":428.62,"endTime":430.69,"body":"throw up our hands and say,"},{"startTime":428.62,"endTime":430.69,"body":"tracking isn't possible."},{"startTime":431.31,"endTime":433.81,"body":"And attribution is all over the"},{"startTime":431.31,"endTime":433.81,"body":"place, and it's really difficult."},{"startTime":433.91,"endTime":438.4,"body":"So I'm just not going to make that"},{"startTime":433.91,"endTime":438.4,"body":"a priority for me, but you need to,"},{"startTime":438.66,"endTime":441.28,"body":"you need to, because"},{"startTime":438.66,"endTime":441.28,"body":"without knowing what works,"},{"startTime":441.38,"endTime":446.28,"body":"you're going to amplify and"},{"startTime":441.38,"endTime":446.28,"body":"try to scale the wrong thing."},{"startTime":447.14,"endTime":452.12,"body":"And I'll give you, I'll give you"},{"startTime":447.14,"endTime":452.12,"body":"a real world example of this. Um,"},{"startTime":452.39,"endTime":453.72,"body":"I'll give you a real"},{"startTime":452.39,"endTime":453.72,"body":"world example of this."},{"startTime":453.74,"endTime":458.48,"body":"We actually had a client"},{"startTime":453.74,"endTime":458.48,"body":"whose attribution within their"},{"startTime":458.83,"endTime":462.11,"body":"campaigns was not set up properly."},{"startTime":458.83,"endTime":462.11,"body":"And unfortunately we didn't know this."},{"startTime":462.111,"endTime":465.31,"body":"When we started running this"},{"startTime":462.111,"endTime":465.31,"body":"campaign and the attribution,"},{"startTime":465.65,"endTime":469.51,"body":"the tracking was not set up properly."},{"startTime":465.65,"endTime":469.51,"body":"So first you need to be tracking."},{"startTime":469.511,"endTime":472.43,"body":"But the second thing is you have to make"},{"startTime":469.511,"endTime":472.43,"body":"sure that it's tracking properly and"},{"startTime":472.63,"endTime":473.29,"body":"accurately."},{"startTime":473.29,"endTime":478.23,"body":"And we ran a three day"},{"startTime":473.29,"endTime":478.23,"body":"holiday sale and we spent a"},{"startTime":478.231,"endTime":479.064,"body":"little more than seven."},{"startTime":479.26,"endTime":483.82,"body":"It was almost $8,000 in ad spend just"},{"startTime":479.26,"endTime":483.82,"body":"on Facebook during those three days."},{"startTime":484.12,"endTime":485.34,"body":"And our tracking,"},{"startTime":485.44,"endTime":489.46,"body":"our attribution was showing us $24,000"},{"startTime":485.44,"endTime":489.46,"body":"a little more than that in sale."},{"startTime":489.461,"endTime":493.9,"body":"So it was, it was like a"},{"startTime":489.461,"endTime":493.9,"body":"3.1, 3.15 return on ad spend,"},{"startTime":493.99,"endTime":496.18,"body":"which for them that's, I"},{"startTime":493.99,"endTime":496.18,"body":"mean, that's great. That's on,"},{"startTime":496.21,"endTime":499.06,"body":"that was on cold traffic that we"},{"startTime":496.21,"endTime":499.06,"body":"were running and that's wonderful."},{"startTime":499.06,"endTime":502.65,"body":"We had really great, uh, really great"},{"startTime":499.06,"endTime":502.65,"body":"three day weekend. We're like, okay,"},{"startTime":502.651,"endTime":504.73,"body":"we're happy with this. We had"},{"startTime":502.651,"endTime":504.73,"body":"a three X return on ad spend,"},{"startTime":504.731,"endTime":507.73,"body":"especially when we know that"},{"startTime":504.731,"endTime":507.73,"body":"tracking is always a little bit less."},{"startTime":507.75,"endTime":509.25,"body":"And it under reports, uh,"},{"startTime":509.251,"endTime":512.85,"body":"just from the things that have been"},{"startTime":509.251,"endTime":512.85,"body":"happening in the iOS world lately."},{"startTime":513.31,"endTime":516.21,"body":"And so we were really happy"},{"startTime":513.31,"endTime":516.21,"body":"with it. But as we dug deeper,"},{"startTime":516.23,"endTime":520.32,"body":"we found out that the, uh, that"},{"startTime":516.23,"endTime":520.32,"body":"the attribution was off in the, it,"},{"startTime":520.321,"endTime":523.8,"body":"it was doubling almost"},{"startTime":520.321,"endTime":523.8,"body":"doubling the conversions."},{"startTime":523.801,"endTime":525.92,"body":"There were two different pixels and there"},{"startTime":523.801,"endTime":525.92,"body":"were all these different things that"},{"startTime":525.921,"endTime":526.5,"body":"were happening."},{"startTime":526.5,"endTime":531.28,"body":"And so what happened was we amplified"},{"startTime":526.5,"endTime":531.28,"body":"something that we didn't want to amplify."},{"startTime":531.38,"endTime":533.32,"body":"So over those three"},{"startTime":531.38,"endTime":533.32,"body":"days, the budget started,"},{"startTime":533.88,"endTime":534.76,"body":"there was like a thousand dollars a day."},{"startTime":534.761,"endTime":538.56,"body":"And then we bumped it to like 2,500"},{"startTime":534.761,"endTime":538.56,"body":"and then ended it by over $3,000 a day"},{"startTime":539.86,"endTime":541.0,"body":"in that third day."},{"startTime":541.14,"endTime":545.04,"body":"And so we amplified"},{"startTime":541.14,"endTime":545.04,"body":"something that was not good,"},{"startTime":545.18,"endTime":547.72,"body":"but if we had proper"},{"startTime":545.18,"endTime":547.72,"body":"tracking and if we had made,"},{"startTime":547.98,"endTime":549.72,"body":"if we had tracking and it was correct,"},{"startTime":549.82,"endTime":553.24,"body":"we would've amplified better things"},{"startTime":549.82,"endTime":553.24,"body":"and would've had better results."},{"startTime":553.241,"endTime":556.03,"body":"And so just like anything in market,"},{"startTime":553.241,"endTime":556.03,"body":"you take your lessons, you learn,"},{"startTime":556.05,"endTime":558.95,"body":"you take the punches to"},{"startTime":556.05,"endTime":558.95,"body":"the face and you move on."},{"startTime":559.21,"endTime":563.71,"body":"So you have to ha track what you do to"},{"startTime":559.21,"endTime":563.71,"body":"attribute, to sales to your efforts."},{"startTime":563.711,"endTime":566.87,"body":"And then the second thing is you have"},{"startTime":563.711,"endTime":566.87,"body":"to make sure that it's tracking properly"},{"startTime":566.94,"endTime":571.67,"body":"because marketing is an amplification."},{"startTime":566.94,"endTime":571.67,"body":"And if you are tracking,"},{"startTime":571.671,"endTime":573.95,"body":"you'll be able to"},{"startTime":571.671,"endTime":573.95,"body":"amplify the right things."},{"startTime":574.21,"endTime":577.86,"body":"If you do not track your results tangibly,"},{"startTime":578.13,"endTime":580.58,"body":"then you're going to amplify crap."},{"startTime":580.8,"endTime":583.34,"body":"You're gonna amplify the wrong thing."},{"startTime":583.5,"endTime":585.18,"body":"And so that's why"},{"startTime":583.5,"endTime":585.18,"body":"tracking is so important."},{"startTime":585.24,"endTime":588.66,"body":"So whenever we are looking at"},{"startTime":585.24,"endTime":588.66,"body":"any form of marketing campaign,"},{"startTime":588.661,"endTime":593.1,"body":"whether it's email even social"},{"startTime":588.661,"endTime":593.1,"body":"or it's SEO, or it's, uh,"},{"startTime":593.101,"endTime":597.77,"body":"paid advertising, whatever that is, we"},{"startTime":593.101,"endTime":597.77,"body":"need to make sure that it's tracking."},{"startTime":597.83,"endTime":602.45,"body":"And we believe that if you can't"},{"startTime":597.83,"endTime":602.45,"body":"track it, you shouldn't do it. Now,"},{"startTime":602.451,"endTime":606.45,"body":"if you're Coca-Cola and you're doing"},{"startTime":602.451,"endTime":606.45,"body":"a hundred billion dollars a year or 50"},{"startTime":606.45,"endTime":607.03,"body":"billion a year,"},{"startTime":607.03,"endTime":611.73,"body":"and you're an enormous"},{"startTime":607.03,"endTime":611.73,"body":"leading brand on the planet,"},{"startTime":612.28,"endTime":615.97,"body":"then sure you can have Coca-Cola"},{"startTime":612.28,"endTime":615.97,"body":"signs up at baseball fields and,"},{"startTime":616.24,"endTime":620.6,"body":"and teeball fields and things that that"},{"startTime":616.24,"endTime":620.6,"body":"will be very difficult to track outcomes"},{"startTime":620.601,"endTime":623.4,"body":"of you'll be able to do that. That's fine."},{"startTime":623.78,"endTime":626.96,"body":"But the reality is most of"},{"startTime":623.78,"endTime":626.96,"body":"us are not at that point."},{"startTime":627.54,"endTime":632.16,"body":"And you should always make sure that"},{"startTime":627.54,"endTime":632.16,"body":"your efforts are 100% to your greatest"},{"startTime":632.161,"endTime":634.88,"body":"ability. Trackable. Sometimes"},{"startTime":632.161,"endTime":634.88,"body":"they'll fall below that."},{"startTime":635.78,"endTime":638.59,"body":"Now speak of attribution."},{"startTime":639.33,"endTime":641.63,"body":"You need to take the"},{"startTime":639.33,"endTime":641.63,"body":"time to figure this out."},{"startTime":642.33,"endTime":646.79,"body":"But one thing that we've learned with"},{"startTime":642.33,"endTime":646.79,"body":"attribution is that not everything is"},{"startTime":647.53,"endTime":650.71,"body":"the best. There are different"},{"startTime":647.53,"endTime":650.71,"body":"ways to track attribution,"},{"startTime":650.711,"endTime":654.47,"body":"but your goal should be to take these"},{"startTime":650.711,"endTime":654.47,"body":"resources, whether it's Google analytics,"},{"startTime":654.52,"endTime":658.1,"body":"maybe take your Facebook ads, maybe"},{"startTime":654.52,"endTime":658.1,"body":"take your shop off a, your, and,"},{"startTime":658.38,"endTime":659.94,"body":"or glue or whatever"},{"startTime":658.38,"endTime":659.94,"body":"that tools you're using."},{"startTime":660.2,"endTime":663.82,"body":"And you want to try to get the"},{"startTime":660.2,"endTime":663.82,"body":"most tangible results that you can."},{"startTime":664.08,"endTime":669.02,"body":"But one of the greatest challenges that"},{"startTime":664.08,"endTime":669.02,"body":"we see with paid attribution tracking"},{"startTime":669.36,"endTime":673.14,"body":"is that oftentimes after"},{"startTime":669.36,"endTime":673.14,"body":"that initial click,"},{"startTime":673.8,"endTime":677.3,"body":"we lose steps in the customer journey,"},{"startTime":677.8,"endTime":682.17,"body":"whether they opt out of tracking or"},{"startTime":677.8,"endTime":682.17,"body":"maybe their devices fall outside of that"},{"startTime":682.46,"endTime":687.17,"body":"seven day attribution window, or one day"},{"startTime":682.46,"endTime":687.17,"body":"attribution window, we lose tracking."},{"startTime":687.35,"endTime":690.17,"body":"That's why I recommended"},{"startTime":687.35,"endTime":690.17,"body":"a tool called seme."},{"startTime":690.39,"endTime":695.25,"body":"So se metrics allows you to see how"},{"startTime":690.39,"endTime":695.25,"body":"much your marketing is really worth"},{"startTime":695.6,"endTime":700.48,"body":"with lifetime value attribution"},{"startTime":695.6,"endTime":700.48,"body":"across your entire funnel"},{"startTime":700.74,"endTime":704.72,"body":"or your entire website in all"},{"startTime":700.74,"endTime":704.72,"body":"of your campaigns. For example,"},{"startTime":704.85,"endTime":709.0,"body":"let's say that you had a prospective"},{"startTime":704.85,"endTime":709.0,"body":"customer click on your Facebook app,"},{"startTime":709.54,"endTime":713.32,"body":"and then rather than buying, they"},{"startTime":709.54,"endTime":713.32,"body":"ended up joining your email list."},{"startTime":713.34,"endTime":717.44,"body":"And then two months later, they"},{"startTime":713.34,"endTime":717.44,"body":"ended up completing a purchase. Well,"},{"startTime":717.75,"endTime":719.92,"body":"because it's outside of"},{"startTime":717.75,"endTime":719.92,"body":"Facebook's attribution window,"},{"startTime":719.94,"endTime":724.16,"body":"you would actually not know that they"},{"startTime":719.94,"endTime":724.16,"body":"came from a particular Facebook campaign,"},{"startTime":724.88,"endTime":726.16,"body":"an ad set, an ad."},{"startTime":726.16,"endTime":729.24,"body":"And so what's gonna happen is"},{"startTime":726.16,"endTime":729.24,"body":"email is gonna take credit for it."},{"startTime":729.52,"endTime":731.12,"body":"Facebook's not gonna get anything for it."},{"startTime":731.39,"endTime":733.79,"body":"Even though Facebook was the"},{"startTime":731.39,"endTime":733.79,"body":"one that originated them."},{"startTime":733.791,"endTime":738.71,"body":"And without the Facebook ad, we never"},{"startTime":733.791,"endTime":738.71,"body":"would've had them as a customer."},{"startTime":739.09,"endTime":742.71,"body":"But with segments, what it does is it"},{"startTime":739.09,"endTime":742.71,"body":"will integrate with your ad platforms,"},{"startTime":742.74,"endTime":745.31,"body":"your email marketing tools,"},{"startTime":742.74,"endTime":745.31,"body":"your payment processors,"},{"startTime":746.05,"endTime":750.43,"body":"and it will centralize all of"},{"startTime":746.05,"endTime":750.43,"body":"your data for much more accuracy."},{"startTime":750.431,"endTime":753.94,"body":"And it'll track their journey, not only"},{"startTime":750.431,"endTime":753.94,"body":"from that first purchase, but well,"},{"startTime":753.941,"endTime":756.98,"body":"beyond that, if you have a subscription"},{"startTime":753.941,"endTime":756.98,"body":"business and they purchase once,"},{"startTime":757.0,"endTime":758.7,"body":"and then they purchase another 18 times,"},{"startTime":759.78,"endTime":764.46,"body":"segments will continue to track all of"},{"startTime":759.78,"endTime":764.46,"body":"those purchases and send that data back"},{"startTime":764.48,"endTime":765.313,"body":"to Facebook."},{"startTime":765.44,"endTime":770.06,"body":"So we can have proper attribution"},{"startTime":765.44,"endTime":770.06,"body":"for the lifetime value of those"},{"startTime":770.54,"endTime":771.54,"body":"customers. So if you wanna double your,"},{"startTime":771.78,"endTime":775.97,"body":"at your accuracy within your attri for"},{"startTime":771.78,"endTime":775.97,"body":"your paid ads and including your emails"},{"startTime":776.07,"endTime":779.09,"body":"as well, then I encourage you"},{"startTime":776.07,"endTime":779.09,"body":"try Semetrics out, go to Ali"},{"startTime":782.13,"endTime":784.33,"body":"podcast.com/semetrics to start"},{"startTime":782.13,"endTime":784.33,"body":"a free trial. Again, that's Ali"},{"startTime":786.65,"endTime":790.73,"body":"podcast.com/s E G M E T R I C S."},{"startTime":793.81,"endTime":794.14,"body":"All right."},{"startTime":794.14,"endTime":798.76,"body":"So first we need to make sure that we're"},{"startTime":794.14,"endTime":798.76,"body":"tracking and we have to make sure that"},{"startTime":798.761,"endTime":802.92,"body":"we're tracking properly for any marketing"},{"startTime":798.761,"endTime":802.92,"body":"campaigner effort we're gonna do. Now,"},{"startTime":802.98,"endTime":807.32,"body":"the second thing is, if it's not"},{"startTime":802.98,"endTime":807.32,"body":"profitable, so rule number two,"},{"startTime":807.66,"endTime":812.44,"body":"if it's not profitable"},{"startTime":807.66,"endTime":812.44,"body":"kill, it sounds extreme,"},{"startTime":812.5,"endTime":817.43,"body":"but if it's not profitable and I"},{"startTime":812.5,"endTime":817.43,"body":"want to emphasize how important this"},{"startTime":817.45,"endTime":820.51,"body":"is, uh, it needs to be yes or no."},{"startTime":820.511,"endTime":823.35,"body":"It needs to be in KPI or in,"},{"startTime":824.11,"endTime":826.35,"body":"in profitability or out of profitability."},{"startTime":826.351,"endTime":830.71,"body":"There is no in between"},{"startTime":826.351,"endTime":830.71,"body":"or gray area of just"},{"startTime":831.12,"endTime":835.38,"body":"continuing to do something, not"},{"startTime":831.12,"endTime":835.38,"body":"knowing if it's profitable or not, or,"},{"startTime":835.78,"endTime":838.1,"body":"or keeping something out of"},{"startTime":835.78,"endTime":838.1,"body":"profitability and thinking, oh, it's,"},{"startTime":838.101,"endTime":839.38,"body":"it's going to become profitable."},{"startTime":839.381,"endTime":841.46,"body":"Just give it another month or"},{"startTime":839.381,"endTime":841.46,"body":"another week or whatever that is."},{"startTime":842.6,"endTime":845.82,"body":"It has to be profitable."},{"startTime":842.6,"endTime":845.82,"body":"Now I say, kill it."},{"startTime":846.16,"endTime":850.62,"body":"But what that means is stop the, go"},{"startTime":846.16,"endTime":850.62,"body":"back to the drawing board, refine it,"},{"startTime":851.06,"endTime":853.06,"body":"optimize and continue pushing forward."},{"startTime":853.16,"endTime":857.81,"body":"It doesn't mean if your FA first"},{"startTime":853.16,"endTime":857.81,"body":"Facebook at campaign completely"},{"startTime":857.98,"endTime":860.81,"body":"bombs, and it doesn't do really"},{"startTime":857.98,"endTime":860.81,"body":"well or whatever the campaign is."},{"startTime":860.811,"endTime":863.13,"body":"Doesn't do really well that you"},{"startTime":860.811,"endTime":863.13,"body":"just throw up your hands and say,"},{"startTime":863.49,"endTime":864.31,"body":"Facebook ads doesn't work,"},{"startTime":864.31,"endTime":867.85,"body":"or Google ads or email marketing or"},{"startTime":864.31,"endTime":867.85,"body":"social or whatever that is. Doesn't work."},{"startTime":868.15,"endTime":869.09,"body":"That's not what I'm saying,"},{"startTime":869.19,"endTime":873.61,"body":"but what I mean is you need to stop"},{"startTime":869.19,"endTime":873.61,"body":"amplifying something if it's not"},{"startTime":874.3,"endTime":875.93,"body":"profitable. And the reason,"},{"startTime":876.28,"endTime":880.56,"body":"and this is called the three rules of"},{"startTime":876.28,"endTime":880.56,"body":"profitable marketing is because your goal"},{"startTime":880.561,"endTime":881.92,"body":"in business is to make profit."},{"startTime":882.1,"endTime":886.56,"body":"And so I'm trying to save you from"},{"startTime":882.1,"endTime":886.56,"body":"not lo from losing profit and not,"},{"startTime":886.84,"endTime":889.16,"body":"and not being profitable. That's what"},{"startTime":886.84,"endTime":889.16,"body":"we're trying to save ourselves from."},{"startTime":889.18,"endTime":893.96,"body":"So if something is not profitable"},{"startTime":889.18,"endTime":893.96,"body":"after a determined amount of time,"},{"startTime":894.02,"endTime":896.92,"body":"and this might vary based on"},{"startTime":894.02,"endTime":896.92,"body":"your business size, you might,"},{"startTime":897.3,"endTime":902.28,"body":"you might determine that this"},{"startTime":897.3,"endTime":902.28,"body":"campaign we want to run for one week."},{"startTime":902.3,"endTime":904.56,"body":"And at the end of that week, seven days,"},{"startTime":904.74,"endTime":909.32,"body":"if it's not profitable in hitting at"},{"startTime":904.74,"endTime":909.32,"body":"least a break, even in profitability or,"},{"startTime":909.64,"endTime":912.63,"body":"or greater, then we have to kill it. We"},{"startTime":909.64,"endTime":912.63,"body":"have to go back to the drawing board."},{"startTime":912.631,"endTime":916.47,"body":"We have to queue up the next campaign,"},{"startTime":912.631,"endTime":916.47,"body":"the new assets, the new audiences,"},{"startTime":916.49,"endTime":917.67,"body":"the new strategy."},{"startTime":917.73,"endTime":922.35,"body":"We have to queue that up and continue"},{"startTime":917.73,"endTime":922.35,"body":"testing because marketing is a process of"},{"startTime":922.351,"endTime":924.71,"body":"testing, refining and optimizing."},{"startTime":924.711,"endTime":927.15,"body":"You're gonna go through this"},{"startTime":924.711,"endTime":927.15,"body":"whole process over and over again,"},{"startTime":927.33,"endTime":929.95,"body":"and you need to try to fight"},{"startTime":927.33,"endTime":929.95,"body":"to get the best results."},{"startTime":930.21,"endTime":934.14,"body":"But the thing is everything doesn't"},{"startTime":930.21,"endTime":934.14,"body":"win right out of the gate because,"},{"startTime":934.141,"endTime":936.54,"body":"and if you expect for"},{"startTime":934.141,"endTime":936.54,"body":"everything to win right away,"},{"startTime":936.6,"endTime":939.74,"body":"you're gonna be wildly disappointed"},{"startTime":936.6,"endTime":939.74,"body":"because marketing is a process."},{"startTime":940.2,"endTime":942.66,"body":"And if I were to look at 10"},{"startTime":940.2,"endTime":942.66,"body":"campaigns, six are gonna bomb."},{"startTime":943.04,"endTime":947.5,"body":"Two are gonna do pretty good, and two"},{"startTime":943.04,"endTime":947.5,"body":"are going to knock it out of the park."},{"startTime":947.6,"endTime":950.86,"body":"And so if you can fall this process,"},{"startTime":947.6,"endTime":950.86,"body":"you're gonna be able to mitigate losses,"},{"startTime":951.68,"endTime":956.29,"body":"save yourself from investing in"},{"startTime":951.68,"endTime":956.29,"body":"things that are not profitable"},{"startTime":958.47,"endTime":960.05,"body":"to know if you're profitable,"},{"startTime":960.55,"endTime":965.41,"body":"you need to first identify"},{"startTime":960.55,"endTime":965.41,"body":"and determine what your"},{"startTime":965.46,"endTime":969.53,"body":"break even numbers are. And this"},{"startTime":965.46,"endTime":969.53,"body":"is gonna vary across the board."},{"startTime":969.63,"endTime":973.0,"body":"So whatever the marketing strategy is,"},{"startTime":969.63,"endTime":973.0,"body":"it's gonna kind of vary across the board."},{"startTime":973.56,"endTime":977.2,"body":"I typically will look at breakeven"},{"startTime":973.56,"endTime":977.2,"body":"numbers when it comes to ads."},{"startTime":977.34,"endTime":981.56,"body":"And I look at it like that because ads,"},{"startTime":977.34,"endTime":981.56,"body":"you have to pay to acquire customers."},{"startTime":981.561,"endTime":986.44,"body":"So I need to know what's the maximum"},{"startTime":981.561,"endTime":986.44,"body":"amount that I can pay to acquire"},{"startTime":986.68,"endTime":990.64,"body":"a customer. And that's kind of"},{"startTime":986.68,"endTime":990.64,"body":"that first that's that first stage,"},{"startTime":990.641,"endTime":993.59,"body":"because breaking even at"},{"startTime":990.641,"endTime":993.59,"body":"the beginning is okay."},{"startTime":993.591,"endTime":997.67,"body":"If we know we're gonna generate lifetime"},{"startTime":993.591,"endTime":997.67,"body":"value and additional purchases on the"},{"startTime":997.671,"endTime":1001.11,"body":"back end, because we need to"},{"startTime":997.671,"endTime":1001.11,"body":"constantly be acquiring new customers."},{"startTime":1001.25,"endTime":1005.11,"body":"And it is seven times more expensive to"},{"startTime":1001.25,"endTime":1005.11,"body":"acquire a new customer than to retain"},{"startTime":1005.111,"endTime":1009.83,"body":"one. And so I'm okay with breaking even,"},{"startTime":1005.111,"endTime":1009.83,"body":"but I'm not okay with losing money."},{"startTime":1010.43,"endTime":1012.15,"body":"Uh, so breaking even is"},{"startTime":1010.43,"endTime":1012.15,"body":"like a good starting point,"},{"startTime":1012.151,"endTime":1016.1,"body":"but ideally it on cold traffic and"},{"startTime":1012.151,"endTime":1016.1,"body":"your new acquisition campaigns,"},{"startTime":1016.101,"endTime":1019.86,"body":"you do want to be profitable in"},{"startTime":1016.101,"endTime":1019.86,"body":"those. And if we're not profitable,"},{"startTime":1019.861,"endTime":1021.14,"body":"then we're just gonna kind of leave them."},{"startTime":1021.6,"endTime":1025.9,"body":"And so what we wanna do is we need"},{"startTime":1021.6,"endTime":1025.9,"body":"to determine, break even numbers,"},{"startTime":1025.901,"endTime":1028.18,"body":"because if you're acquiring"},{"startTime":1025.901,"endTime":1028.18,"body":"customers for less than your break,"},{"startTime":1028.34,"endTime":1030.42,"body":"even then technically you'll"},{"startTime":1028.34,"endTime":1030.42,"body":"be profitable. For example,"},{"startTime":1030.79,"endTime":1035.53,"body":"let's say you sell a $20 product"},{"startTime":1030.79,"endTime":1035.53,"body":"and cogs, the cost of goods, uh,"},{"startTime":1035.76,"endTime":1039.97,"body":"sold completely shipped to the door."},{"startTime":1035.76,"endTime":1039.97,"body":"So from the manufacturer through you,"},{"startTime":1040.06,"endTime":1044.09,"body":"after processing fees and everything"},{"startTime":1040.06,"endTime":1044.09,"body":"and shipping to the customer's door,"},{"startTime":1044.42,"endTime":1048.89,"body":"let's say that you're running"},{"startTime":1044.42,"endTime":1048.89,"body":"a 50% margin, which is a, is a,"},{"startTime":1049.13,"endTime":1052.13,"body":"is just a simple number for this case."},{"startTime":1049.13,"endTime":1052.13,"body":"And that's a good margin to have."},{"startTime":1052.15,"endTime":1055.2,"body":"So if you are running and"},{"startTime":1052.15,"endTime":1055.2,"body":"you had a fit 50% margin,"},{"startTime":1055.6,"endTime":1060.16,"body":"then what that means is you have $10"},{"startTime":1055.6,"endTime":1060.16,"body":"of profit to kind of work with within a"},{"startTime":1060.161,"endTime":1062.28,"body":"single product sale. And I'm"},{"startTime":1060.161,"endTime":1062.28,"body":"doing a really simple here."},{"startTime":1062.3,"endTime":1064.32,"body":"I'm not talking about blended, uh,"},{"startTime":1064.35,"endTime":1067.56,"body":"blended cogs or blended"},{"startTime":1064.35,"endTime":1067.56,"body":"product and blended breakevens."},{"startTime":1067.561,"endTime":1071.24,"body":"I'm just talking about single product."},{"startTime":1067.561,"endTime":1071.24,"body":"If you had a $20 product, 50% margin,"},{"startTime":1071.3,"endTime":1072.52,"body":"you have $10 to work with."},{"startTime":1072.63,"endTime":1077.32,"body":"Meaning you can pay up to $10 to acquire"},{"startTime":1072.63,"endTime":1077.32,"body":"customer before you start losing money."},{"startTime":1077.62,"endTime":1080.04,"body":"And so if I'm looking at"},{"startTime":1077.62,"endTime":1080.04,"body":"it from an ad standpoint,"},{"startTime":1080.1,"endTime":1083.92,"body":"so to apply this to an advertising"},{"startTime":1080.1,"endTime":1083.92,"body":"standpoint, if I'm running Facebook or,"},{"startTime":1085.24,"endTime":1087.88,"body":"uh, Google shopping ads,"},{"startTime":1085.24,"endTime":1087.88,"body":"then it means I could have,"},{"startTime":1088.2,"endTime":1093.11,"body":"I need to have at least a row as a"},{"startTime":1088.2,"endTime":1093.11,"body":"return on ad spend of at least two"},{"startTime":1093.61,"endTime":1098.03,"body":"to break. Even now I would wanna have"},{"startTime":1093.61,"endTime":1098.03,"body":"more I'd wanna have like a, a 2.5,"},{"startTime":1098.43,"endTime":1102.91,"body":"a three or higher to really be"},{"startTime":1098.43,"endTime":1102.91,"body":"profitable. Because if I had a two,"},{"startTime":1103.01,"endTime":1106.35,"body":"it means that I paid $10"},{"startTime":1103.01,"endTime":1106.35,"body":"to acquire a $20 sale."},{"startTime":1106.57,"endTime":1108.95,"body":"And I just basically broke even. And,"},{"startTime":1109.04,"endTime":1113.9,"body":"and so a simple calculation for"},{"startTime":1109.04,"endTime":1113.9,"body":"this is to take 100 divided by your"},{"startTime":1113.901,"endTime":1114.734,"body":"profit margin."},{"startTime":1115.08,"endTime":1119.22,"body":"And this will give you your"},{"startTime":1115.08,"endTime":1119.22,"body":"break even return on ad spend."},{"startTime":1119.36,"endTime":1121.98,"body":"And the reason I'm talking"},{"startTime":1119.36,"endTime":1121.98,"body":"ads is because ads are the,"},{"startTime":1121.981,"endTime":1126.66,"body":"are the greatest way to acquire"},{"startTime":1121.981,"endTime":1126.66,"body":"new customers predictably in"},{"startTime":1126.8,"endTime":1128.38,"body":"our expert opinion."},{"startTime":1128.56,"endTime":1132.25,"body":"And from our experience for"},{"startTime":1128.56,"endTime":1132.25,"body":"doing this for over eight years,"},{"startTime":1132.45,"endTime":1134.37,"body":"actually almost 10 years,"},{"startTime":1132.45,"endTime":1134.37,"body":"which is crazy. Uh,"},{"startTime":1134.39,"endTime":1137.85,"body":"but as of the most predictable"},{"startTime":1134.39,"endTime":1137.85,"body":"way to acquire new customers."},{"startTime":1137.851,"endTime":1140.73,"body":"And so I like to think in"},{"startTime":1137.851,"endTime":1140.73,"body":"terms of break, even ROAS,"},{"startTime":1140.84,"endTime":1144.73,"body":"because that's primarily how you're"},{"startTime":1140.84,"endTime":1144.73,"body":"gonna be acquiring new customers."},{"startTime":1144.731,"endTime":1149.21,"body":"So 100 divided by your"},{"startTime":1144.731,"endTime":1149.21,"body":"profit margin. If it's 50%,"},{"startTime":1149.211,"endTime":1150.96,"body":"you take a hundred divided by 50,"},{"startTime":1150.97,"endTime":1155.2,"body":"which is how I got to two X return"},{"startTime":1150.97,"endTime":1155.2,"body":"on ad spend for that example"},{"startTime":1155.75,"endTime":1157.88,"body":"that I gave you. But in doing all of this,"},{"startTime":1158.22,"endTime":1163.16,"body":"you need to know that you're either"},{"startTime":1158.22,"endTime":1163.16,"body":"profitable or you're not profitable."},{"startTime":1163.5,"endTime":1166.16,"body":"So in all your efforts,"},{"startTime":1163.5,"endTime":1166.16,"body":"as you're tracking,"},{"startTime":1166.18,"endTime":1169.52,"body":"and as you're ascending through"},{"startTime":1166.18,"endTime":1169.52,"body":"the marketing operating system,"},{"startTime":1169.521,"endTime":1170.36,"body":"as you're ascending,"},{"startTime":1171.47,"endTime":1176.07,"body":"you're marketing to marketing"},{"startTime":1171.47,"endTime":1176.07,"body":"greatness in Zenum, as you're doing it,"},{"startTime":1176.071,"endTime":1180.75,"body":"you need to use this as your measuring"},{"startTime":1176.071,"endTime":1180.75,"body":"stick. First, am I tracking this second?"},{"startTime":1181.37,"endTime":1185.11,"body":"Am I making sure that these"},{"startTime":1181.37,"endTime":1185.11,"body":"are profitable? Because"},{"startTime":1185.3,"endTime":1189.07,"body":"then I should not be amplifying"},{"startTime":1185.3,"endTime":1189.07,"body":"it. I should not be scaling."},{"startTime":1189.071,"endTime":1192.74,"body":"I need to go back to the drawing board."},{"startTime":1189.071,"endTime":1192.74,"body":"I need to identify how I can improve,"},{"startTime":1193.12,"endTime":1197.02,"body":"how I can optimize and how I can"},{"startTime":1193.12,"endTime":1197.02,"body":"make sure that my marketing is"},{"startTime":1197.59,"endTime":1201.42,"body":"profitable. Speaking of profits,"},{"startTime":1202.2,"endTime":1206.02,"body":"if you're running ads and you want to,"},{"startTime":1202.2,"endTime":1206.02,"body":"uh, you wanna calculate your break,"},{"startTime":1206.22,"endTime":1210.62,"body":"even return on ad spend as"},{"startTime":1206.22,"endTime":1210.62,"body":"well as determine target"},{"startTime":1210.621,"endTime":1214.37,"body":"with numbers and see, and"},{"startTime":1210.621,"endTime":1214.37,"body":"insert your margins. Uh, then I,"},{"startTime":1214.41,"endTime":1218.93,"body":"I wanna invite you to, uh, download"},{"startTime":1214.41,"endTime":1218.93,"body":"our free ad profit planner, uh,"},{"startTime":1219.11,"endTime":1223.41,"body":"no cost to you. We use this for our"},{"startTime":1219.11,"endTime":1223.41,"body":"clients and it is we update this, uh,"},{"startTime":1223.411,"endTime":1227.73,"body":"sporadically as we continue to see"},{"startTime":1223.411,"endTime":1227.73,"body":"better ways of tracking and testing. Uh,"},{"startTime":1227.85,"endTime":1231.89,"body":"but what this tool does is it's going to"},{"startTime":1227.85,"endTime":1231.89,"body":"allow you to insert your average order"},{"startTime":1232.01,"endTime":1235.04,"body":"to values. Uh, you're blended."},{"startTime":1232.01,"endTime":1235.04,"body":"We're gonna help you, uh,"},{"startTime":1235.36,"endTime":1237.72,"body":"identify blended cogs"},{"startTime":1235.36,"endTime":1237.72,"body":"and your blended row,"},{"startTime":1237.88,"endTime":1240.6,"body":"as you should achieve as well as"},{"startTime":1237.88,"endTime":1240.6,"body":"individual product based row ads."},{"startTime":1240.62,"endTime":1244.04,"body":"If you're running single product"},{"startTime":1240.62,"endTime":1244.04,"body":"campaigns. But if you wanna download that,"},{"startTime":1244.041,"endTime":1247.4,"body":"it'll help you at least determine what"},{"startTime":1244.041,"endTime":1247.4,"body":"your breakeven return on ad spend is."},{"startTime":1247.54,"endTime":1251.68,"body":"And then also what the potential"},{"startTime":1247.54,"endTime":1251.68,"body":"is if you achieve higher targets"},{"startTime":1252.42,"endTime":1255.88,"body":"of return on ad spend. So if you"},{"startTime":1252.42,"endTime":1255.88,"body":"wanna download that simply go to Ali"},{"startTime":1259.52,"endTime":1262.04,"body":"podcast.com/profit hyphen"},{"startTime":1259.52,"endTime":1262.04,"body":"planner, that's Ali"},{"startTime":1264.12,"endTime":1265.44,"body":"podcast.com/profit hyphen planner."},{"startTime":1265.74,"endTime":1268.43,"body":"And you'll be able to Del on that"},{"startTime":1265.74,"endTime":1268.43,"body":"spreadsheet, insert your own numbers,"},{"startTime":1268.53,"endTime":1272.35,"body":"and then be on your way to running"},{"startTime":1268.53,"endTime":1272.35,"body":"and managing profitable ads."},{"startTime":1274.69,"endTime":1277.27,"body":"So we've made it through the"},{"startTime":1274.69,"endTime":1277.27,"body":"first two rules rule. Number one,"},{"startTime":1277.55,"endTime":1278.67,"body":"if it's not trackable, we don't do it."},{"startTime":1279.18,"endTime":1282.03,"body":"Rule number two is if it's"},{"startTime":1279.18,"endTime":1282.03,"body":"not profitable, we kill it."},{"startTime":1282.05,"endTime":1284.83,"body":"And of course the only final"},{"startTime":1282.05,"endTime":1284.83,"body":"one is rule number three,"},{"startTime":1285.45,"endTime":1289.22,"body":"if it's profitable going"},{"startTime":1285.45,"endTime":1289.22,"body":"to scale it. And so I,"},{"startTime":1289.3,"endTime":1293.82,"body":"I do wanna talk really quickly about the"},{"startTime":1289.3,"endTime":1293.82,"body":"word scaling. Um, I have to be honest,"},{"startTime":1293.97,"endTime":1297.46,"body":"I've heard this word so much,"},{"startTime":1293.97,"endTime":1297.46,"body":"uh, in the last 10 years,"},{"startTime":1297.64,"endTime":1300.7,"body":"and it it's kind of cringeworthy,"},{"startTime":1297.64,"endTime":1300.7,"body":"I think at this point like, oh,"},{"startTime":1300.701,"endTime":1302.5,"body":"we gotta scale this. We gotta"},{"startTime":1300.701,"endTime":1302.5,"body":"scale that we gotta scale."},{"startTime":1302.501,"endTime":1305.62,"body":"We gotta scale it scale. And I"},{"startTime":1302.501,"endTime":1305.62,"body":"think that, uh, it's overused."},{"startTime":1305.74,"endTime":1306.86,"body":"I think it's over hyped."},{"startTime":1306.861,"endTime":1311.69,"body":"And I think it's really not what"},{"startTime":1306.861,"endTime":1311.69,"body":"people think everyone thinks in"},{"startTime":1311.691,"endTime":1313.73,"body":"terms of scaling. But the, the,"},{"startTime":1313.97,"endTime":1318.05,"body":"the interesting thing is a lot of"},{"startTime":1313.97,"endTime":1318.05,"body":"people don't know what scaling is, uh,"},{"startTime":1318.051,"endTime":1320.17,"body":"because scaling is not linear. Uh,"},{"startTime":1320.33,"endTime":1323.13,"body":"everyone likes to think of scaling has"},{"startTime":1320.33,"endTime":1323.13,"body":"linear. They like to say like, okay,"},{"startTime":1323.19,"endTime":1326.85,"body":"if I could achieve a four X return on ads,"},{"startTime":1326.91,"endTime":1331.8,"body":"if I put $1 and I make"},{"startTime":1326.91,"endTime":1331.8,"body":"$4 out on my Facebook ads"},{"startTime":1331.82,"endTime":1335.84,"body":"or whatever that ad platform is, if"},{"startTime":1331.82,"endTime":1335.84,"body":"I had a four X return to ad spend,"},{"startTime":1335.841,"endTime":1337.0,"body":"I'm running a hundred dollars a day,"},{"startTime":1337.12,"endTime":1339.96,"body":"I should just increase it to $500"},{"startTime":1337.12,"endTime":1339.96,"body":"a day or a thousand dollars a day."},{"startTime":1339.961,"endTime":1344.92,"body":"And I'm gonna five X or 10 X, my"},{"startTime":1339.961,"endTime":1344.92,"body":"revenue, but here's the truth."},{"startTime":1345.42,"endTime":1348.87,"body":"The unfortunate truth is"},{"startTime":1345.42,"endTime":1348.87,"body":"that scaling is not linear,"},{"startTime":1349.18,"endTime":1352.19,"body":"meaning it's not gonna"},{"startTime":1349.18,"endTime":1352.19,"body":"go up in a straight line."},{"startTime":1352.191,"endTime":1354.27,"body":"And the way that I like to think"},{"startTime":1352.191,"endTime":1354.27,"body":"about this is, is very simple."},{"startTime":1354.33,"endTime":1359.07,"body":"So I like to imagine"},{"startTime":1354.33,"endTime":1359.07,"body":"scaling, uh, like a mountain."},{"startTime":1359.75,"endTime":1362.83,"body":"Uh, if you were going to climb a"},{"startTime":1359.75,"endTime":1362.83,"body":"mountain or you were gonna climb,"},{"startTime":1362.831,"endTime":1366.27,"body":"let's say mountain Everest, the, the,"},{"startTime":1362.831,"endTime":1366.27,"body":"one of the greatest feats on the planet,"},{"startTime":1366.29,"endTime":1368.75,"body":"if you were to do that, it"},{"startTime":1366.29,"endTime":1368.75,"body":"would just be an amazing feat."},{"startTime":1368.79,"endTime":1370.14,"body":"I a always thought it'd be cool to do."},{"startTime":1370.16,"endTime":1372.9,"body":"And also incredibly challenging"},{"startTime":1370.16,"endTime":1372.9,"body":"because it takes over two months to do."},{"startTime":1373.24,"endTime":1376.58,"body":"But if you were gonna go"},{"startTime":1373.24,"endTime":1376.58,"body":"and you're standing at the"},{"startTime":1376.6,"endTime":1377.94,"body":"and you're about to climb Mount Everest."},{"startTime":1378.92,"endTime":1382.02,"body":"You would not just start going"},{"startTime":1378.92,"endTime":1382.02,"body":"straight up. It's not like that."},{"startTime":1382.021,"endTime":1384.46,"body":"You wouldn't just start taking one foot"},{"startTime":1382.021,"endTime":1384.46,"body":"and step of the other in front of the"},{"startTime":1384.461,"endTime":1385.12,"body":"other, in front of the other,"},{"startTime":1385.12,"endTime":1387.82,"body":"and then just start climbing"},{"startTime":1385.12,"endTime":1387.82,"body":"the mountain straight up."},{"startTime":1388.25,"endTime":1390.49,"body":"It's more a series of switchbacks."},{"startTime":1390.52,"endTime":1393.61,"body":"It's more a series of going around"},{"startTime":1390.52,"endTime":1393.61,"body":"certain parts that are dangerous."},{"startTime":1393.611,"endTime":1397.01,"body":"And sometimes you have to backtrack a"},{"startTime":1393.611,"endTime":1397.01,"body":"little bit and then you gotta go up a"},{"startTime":1397.011,"endTime":1399.89,"body":"little bit and then you find another"},{"startTime":1397.011,"endTime":1399.89,"body":"way around. And it's the same. I, I,"},{"startTime":1399.891,"endTime":1401.21,"body":"it's the same thing with marketing."},{"startTime":1401.211,"endTime":1403.49,"body":"It's the same thing with"},{"startTime":1401.211,"endTime":1403.49,"body":"growth in your business."},{"startTime":1403.49,"endTime":1406.25,"body":"Like if you're gonna start"},{"startTime":1403.49,"endTime":1406.25,"body":"experiencing, uh, scale,"},{"startTime":1406.27,"endTime":1408.77,"body":"you have to realize it's not linear."},{"startTime":1408.95,"endTime":1412.12,"body":"And so it's an and process"},{"startTime":1408.95,"endTime":1412.12,"body":"of switchbacks and,"},{"startTime":1412.36,"endTime":1414.76,"body":"and punches to the face"},{"startTime":1412.36,"endTime":1414.76,"body":"and failed campaigns,"},{"startTime":1414.761,"endTime":1417.84,"body":"but then also campaigns and"},{"startTime":1414.761,"endTime":1417.84,"body":"offers that are just killing it,"},{"startTime":1418.0,"endTime":1421.48,"body":"products that are killing it, add copy"},{"startTime":1418.0,"endTime":1421.48,"body":"and angles that are killing it. Uh,"},{"startTime":1421.49,"endTime":1423.68,"body":"email campaigns that you learn"},{"startTime":1421.49,"endTime":1423.68,"body":"really resonate with people."},{"startTime":1423.7,"endTime":1427.48,"body":"And it's an ongoing process."},{"startTime":1423.7,"endTime":1427.48,"body":"Marketing is never done."},{"startTime":1427.74,"endTime":1431.76,"body":"And so when we talk about rule number"},{"startTime":1427.74,"endTime":1431.76,"body":"three, if it's profitable, you scale it,"},{"startTime":1431.77,"endTime":1434.28,"body":"there are different ways"},{"startTime":1431.77,"endTime":1434.28,"body":"to scale, but I need to,"},{"startTime":1434.42,"endTime":1438.44,"body":"you need to know that it's going to take"},{"startTime":1434.42,"endTime":1438.44,"body":"time and that it's not just like, okay,"},{"startTime":1438.5,"endTime":1441.56,"body":"I'm just going to increase my budget"},{"startTime":1438.5,"endTime":1441.56,"body":"and I'm going to start scaling."},{"startTime":1441.82,"endTime":1445.95,"body":"And so the definition of scaling"},{"startTime":1441.82,"endTime":1445.95,"body":"and I have to Google this issue."},{"startTime":1445.951,"endTime":1450.23,"body":"So I get this really correct"},{"startTime":1445.951,"endTime":1450.23,"body":"is that scaling is when revenue"},{"startTime":1450.87,"endTime":1455.03,"body":"increases without a substantial"},{"startTime":1450.87,"endTime":1455.03,"body":"increase in resources."},{"startTime":1455.61,"endTime":1460.35,"body":"So processes that scale are those"},{"startTime":1455.61,"endTime":1460.35,"body":"that can be done on a mass scale"},{"startTime":1460.58,"endTime":1464.79,"body":"without extra effort. So to"},{"startTime":1460.58,"endTime":1464.79,"body":"give you a couple examples,"},{"startTime":1465.16,"endTime":1469.58,"body":"if you send an email to 10"},{"startTime":1465.16,"endTime":1469.58,"body":"people or 10,000 people,"},{"startTime":1470.36,"endTime":1473.3,"body":"the effort is essentially the same. Sure."},{"startTime":1473.35,"endTime":1477.66,"body":"Maybe you segment it and you just change"},{"startTime":1473.35,"endTime":1477.66,"body":"a couple personalized things in it,"},{"startTime":1477.88,"endTime":1482.06,"body":"but ultimately the effort is going"},{"startTime":1477.88,"endTime":1482.06,"body":"to be not, it's not gonna be 10."},{"startTime":1482.65,"endTime":1486.69,"body":"It's not gonna be a thousand times"},{"startTime":1482.65,"endTime":1486.69,"body":"more work to send a 10 people, uh, uh,"},{"startTime":1486.71,"endTime":1489.21,"body":"to send to 10 people, or whether"},{"startTime":1486.71,"endTime":1489.21,"body":"you're sending to 10,000 people."},{"startTime":1489.24,"endTime":1493.61,"body":"It's not gonna be a thousand times more"},{"startTime":1489.24,"endTime":1493.61,"body":"work. And so this is what we call scale."},{"startTime":1493.76,"endTime":1497.65,"body":"When you can insert the least amount"},{"startTime":1493.76,"endTime":1497.65,"body":"of resources to accomplish the greatest"},{"startTime":1497.651,"endTime":1500.57,"body":"level of impact. That is what scale is."},{"startTime":1500.98,"endTime":1503.81,"body":"Email allows you to achieve"},{"startTime":1500.98,"endTime":1503.81,"body":"that even social media,"},{"startTime":1503.811,"endTime":1506.96,"body":"whether you're posting to"},{"startTime":1503.811,"endTime":1506.96,"body":"a hundred followers or a"},{"startTime":1506.961,"endTime":1511.4,"body":"million followers, it's the same amount"},{"startTime":1506.961,"endTime":1511.4,"body":"of time to develop a post. I mean,"},{"startTime":1511.401,"endTime":1512.52,"body":"if you had a hundred million followers,"},{"startTime":1512.65,"endTime":1515.64,"body":"maybe you're running it through an editor"},{"startTime":1512.65,"endTime":1515.64,"body":"and you have someone who is like a PR"},{"startTime":1515.641,"endTime":1518.52,"body":"person giving you some additional"},{"startTime":1515.641,"endTime":1518.52,"body":"advice. I don't know, but it's not,"},{"startTime":1518.68,"endTime":1519.72,"body":"I don't have a hundred million followers,"},{"startTime":1519.9,"endTime":1522.12,"body":"but it's not gonna be a"},{"startTime":1519.9,"endTime":1522.12,"body":"hundred million times."},{"startTime":1522.121,"endTime":1523.96,"body":"It's not gonna be a"},{"startTime":1522.121,"endTime":1523.96,"body":"hundred million times more."},{"startTime":1524.03,"endTime":1528.35,"body":"It's not gonna be a hundred or a million"},{"startTime":1524.03,"endTime":1528.35,"body":"times more work just to do that. Uh,"},{"startTime":1528.351,"endTime":1530.67,"body":"same with ads. I will tell"},{"startTime":1528.351,"endTime":1530.67,"body":"you this from experience,"},{"startTime":1530.86,"endTime":1533.47,"body":"whether we're managing or we're,"},{"startTime":1533.48,"endTime":1538.15,"body":"we're running $10,000 a month in"},{"startTime":1533.48,"endTime":1538.15,"body":"ad spend, or we're running 25,"},{"startTime":1538.25,"endTime":1540.35,"body":"or we're running $50,000 in ad spend."},{"startTime":1540.9,"endTime":1545.63,"body":"There's not a significant amount"},{"startTime":1540.9,"endTime":1545.63,"body":"of additional time that you need"},{"startTime":1546.05,"endTime":1550.3,"body":"to invest. As long as you have good"},{"startTime":1546.05,"endTime":1550.3,"body":"frameworks. Now it'll increase the,"},{"startTime":1550.58,"endTime":1552.06,"body":"the amount of resources"},{"startTime":1550.58,"endTime":1552.06,"body":"and time you spend,"},{"startTime":1552.08,"endTime":1556.06,"body":"but it's not gonna be"},{"startTime":1552.08,"endTime":1556.06,"body":"five or 10 times more."},{"startTime":1556.08,"endTime":1560.54,"body":"And so that is the true definition of"},{"startTime":1556.08,"endTime":1560.54,"body":"scale. So when I say, if it's profitable,"},{"startTime":1560.63,"endTime":1563.74,"body":"scale it, I mean, how do you take,"},{"startTime":1563.741,"endTime":1568.57,"body":"what's working in try to squeeze"},{"startTime":1563.741,"endTime":1568.57,"body":"as much out of it as you can."},{"startTime":1568.67,"endTime":1572.13,"body":"How can you achieve the most"},{"startTime":1568.67,"endTime":1572.13,"body":"impact for the least resources?"},{"startTime":1572.15,"endTime":1574.05,"body":"And so this is kind of the"},{"startTime":1572.15,"endTime":1574.05,"body":"mindset you have to think in."},{"startTime":1574.051,"endTime":1578.81,"body":"And if you were sitting in on almost"},{"startTime":1574.051,"endTime":1578.81,"body":"every meeting at flight media at our"},{"startTime":1578.811,"endTime":1580.09,"body":"office, or with my team,"},{"startTime":1580.39,"endTime":1582.53,"body":"you would hear me talk about"},{"startTime":1580.39,"endTime":1582.53,"body":"those two levers all the time."},{"startTime":1582.79,"endTime":1584.93,"body":"You have resource and you have impact."},{"startTime":1584.931,"endTime":1588.84,"body":"Those are the two things that you"},{"startTime":1584.931,"endTime":1588.84,"body":"have and in all the OFS that you do."},{"startTime":1588.841,"endTime":1591.36,"body":"And I think this applies"},{"startTime":1588.841,"endTime":1591.36,"body":"way outside of marketing."},{"startTime":1591.68,"endTime":1594.44,"body":"I believe this applies in"},{"startTime":1591.68,"endTime":1594.44,"body":"so many aspects of life,"},{"startTime":1594.62,"endTime":1597.88,"body":"but I like to apply this to marketing."},{"startTime":1594.62,"endTime":1597.88,"body":"And of course I do it everywhere else."},{"startTime":1598.14,"endTime":1601.6,"body":"But in marketing, you have impact"},{"startTime":1598.14,"endTime":1601.6,"body":"and resource and your goal."},{"startTime":1601.66,"endTime":1606.36,"body":"If you want to truly scale something"},{"startTime":1601.66,"endTime":1606.36,"body":"is to achieve the most impact"},{"startTime":1607.02,"endTime":1611.8,"body":"in this case, profit or revenue that you"},{"startTime":1607.02,"endTime":1611.8,"body":"can with the least amount of resource."},{"startTime":1612.02,"endTime":1615.72,"body":"And that looks different based on whatever"},{"startTime":1612.02,"endTime":1615.72,"body":"the marketing strategy you're doing."},{"startTime":1616.42,"endTime":1620.96,"body":"And so after you have"},{"startTime":1616.42,"endTime":1620.96,"body":"validated your campaign"},{"startTime":1621.46,"endTime":1625.39,"body":"in your marketing and it's past rule,"},{"startTime":1621.46,"endTime":1625.39,"body":"number one, it's past rule, number two,"},{"startTime":1625.391,"endTime":1629.03,"body":"like, Hey, this is profitable. Uh, and"},{"startTime":1625.391,"endTime":1629.03,"body":"not just like breaking even profitable,"},{"startTime":1629.031,"endTime":1633.95,"body":"but this is at least 150% over,"},{"startTime":1629.031,"endTime":1633.95,"body":"uh, what our breakeven is."},{"startTime":1633.951,"endTime":1636.71,"body":"So we at least have that additional"},{"startTime":1633.951,"endTime":1636.71,"body":"margin in it that we could start."},{"startTime":1637.42,"endTime":1639.91,"body":"Then we move it into"},{"startTime":1637.42,"endTime":1639.91,"body":"this point of scaling it."},{"startTime":1639.911,"endTime":1643.78,"body":"So rule number three is if it's"},{"startTime":1639.911,"endTime":1643.78,"body":"profitable, then we, you scale it."},{"startTime":1643.84,"endTime":1648.58,"body":"And you can scale really in one of"},{"startTime":1643.84,"endTime":1648.58,"body":"two ways and you have vertical scale"},{"startTime":1649.16,"endTime":1652.62,"body":"and you have horizontal scale."},{"startTime":1649.16,"endTime":1652.62,"body":"So vertical scale is primarily,"},{"startTime":1652.85,"endTime":1656.14,"body":"it's kind of the easiest to do."},{"startTime":1652.85,"endTime":1656.14,"body":"It's increasing your budget, right?"},{"startTime":1656.141,"endTime":1660.26,"body":"You're going deep. Like let's say"},{"startTime":1656.141,"endTime":1660.26,"body":"you launched Facebook campaign, a, B,"},{"startTime":1660.32,"endTime":1662.58,"body":"and C and a didn't do really well."},{"startTime":1662.64,"endTime":1667.61,"body":"It was breaking V B was not profitable"},{"startTime":1662.64,"endTime":1667.61,"body":"and C was super profitable. Well,"},{"startTime":1667.63,"endTime":1671.45,"body":"you would kill and refine and"},{"startTime":1667.63,"endTime":1671.45,"body":"optimize B, cuz it wasn't profitable."},{"startTime":1671.71,"endTime":1674.93,"body":"You would let a just run. We're not gonna"},{"startTime":1671.71,"endTime":1674.93,"body":"scale something that's breaking even."},{"startTime":1675.19,"endTime":1676.69,"body":"But if C is profitable,"},{"startTime":1676.95,"endTime":1679.97,"body":"one of the easiest things you could"},{"startTime":1676.95,"endTime":1679.97,"body":"do is you can increase the budget."},{"startTime":1680.27,"endTime":1682.97,"body":"Now it doesn't mean it's going to"},{"startTime":1680.27,"endTime":1682.97,"body":"linearly, just increase revenue,"},{"startTime":1683.41,"endTime":1688.16,"body":"proportionately, uh, but you can increase"},{"startTime":1683.41,"endTime":1688.16,"body":"the budget for that particular, uh,"},{"startTime":1688.4,"endTime":1692.16,"body":"campaign. Uh, you can create"},{"startTime":1688.4,"endTime":1692.16,"body":"more ad angles within that."},{"startTime":1692.62,"endTime":1694.4,"body":"If you were running a"},{"startTime":1692.62,"endTime":1694.4,"body":"product based campaign,"},{"startTime":1694.401,"endTime":1699.04,"body":"you can create more ad angles"},{"startTime":1694.401,"endTime":1699.04,"body":"to dive or to dive deeper into"},{"startTime":1699.27,"endTime":1701.64,"body":"that audience that maybe"},{"startTime":1699.27,"endTime":1701.64,"body":"you're running it to."},{"startTime":1701.64,"endTime":1706.23,"body":"But the ultimate thought process"},{"startTime":1701.64,"endTime":1706.23,"body":"behind vert call scaling is going"},{"startTime":1706.61,"endTime":1709.35,"body":"deeper. Now the interesting thing is, uh,"},{"startTime":1709.351,"endTime":1713.39,"body":"when it comes to scaling vertical is"},{"startTime":1709.351,"endTime":1713.39,"body":"actually the least scalable because what"},{"startTime":1713.391,"endTime":1717.35,"body":"happens is vertical is where you start"},{"startTime":1713.391,"endTime":1717.35,"body":"to experience fatigue, the fastest."},{"startTime":1718.19,"endTime":1721.83,"body":"And a good example of this is if you"},{"startTime":1718.19,"endTime":1721.83,"body":"had a thousand dollars month or a day"},{"startTime":1721.831,"endTime":1726.78,"body":"budget running to a particular subset"},{"startTime":1721.831,"endTime":1726.78,"body":"of a a is with a particular product,"},{"startTime":1726.88,"endTime":1729.66,"body":"and then you start to increase that"},{"startTime":1726.88,"endTime":1729.66,"body":"budget. And then over the next month,"},{"startTime":1729.661,"endTime":1733.9,"body":"if you're running 5,000 or $10,000 a"},{"startTime":1729.661,"endTime":1733.9,"body":"day toward those particular audiences,"},{"startTime":1733.901,"endTime":1734.101,"body":"well,"},{"startTime":1734.101,"endTime":1738.54,"body":"you're gonna experience fatigue and your"},{"startTime":1734.101,"endTime":1738.54,"body":"profit margin is gonna come down and"},{"startTime":1738.541,"endTime":1741.18,"body":"your return on ad spend"},{"startTime":1738.541,"endTime":1741.18,"body":"is gonna come down."},{"startTime":1741.2,"endTime":1744.98,"body":"And so you can't vertically"},{"startTime":1741.2,"endTime":1744.98,"body":"scale those super super well."},{"startTime":1745.63,"endTime":1749.97,"body":"Now the second way is horizontal scaling."},{"startTime":1745.63,"endTime":1749.97,"body":"And this is where you begin to, uh,"},{"startTime":1750.07,"endTime":1754.81,"body":"you begin to offer or run to new"},{"startTime":1750.07,"endTime":1754.81,"body":"audiences. You begin to market to new,"},{"startTime":1755.29,"endTime":1757.21,"body":"uh, new products or to new markets."},{"startTime":1757.67,"endTime":1762.29,"body":"You might only be selling in the United"},{"startTime":1757.67,"endTime":1762.29,"body":"States, but at a certain point, you're,"},{"startTime":1762.291,"endTime":1765.49,"body":"you'll want to start"},{"startTime":1762.291,"endTime":1765.49,"body":"to expand into another,"},{"startTime":1765.5,"endTime":1767.88,"body":"maybe a graphical market. Uh,"},{"startTime":1767.881,"endTime":1771.12,"body":"maybe you have fulfillment in the United"},{"startTime":1767.881,"endTime":1771.12,"body":"States and you grow to a certain level,"},{"startTime":1771.121,"endTime":1773.36,"body":"you're doing 30, 40 million."},{"startTime":1771.121,"endTime":1773.36,"body":"And you're like, Hey,"},{"startTime":1773.74,"endTime":1778.0,"body":"we need to now get a warehouse, do some"},{"startTime":1773.74,"endTime":1778.0,"body":"fulfillment directly out of Canada."},{"startTime":1778.1,"endTime":1780.84,"body":"And I'm using this as an example because"},{"startTime":1778.1,"endTime":1780.84,"body":"I'm from the states and Canada's right"},{"startTime":1780.841,"endTime":1781.42,"body":"north of us."},{"startTime":1781.42,"endTime":1785.04,"body":"And it's most people kind of start there"},{"startTime":1781.42,"endTime":1785.04,"body":"before they start going overseas or"},{"startTime":1785.041,"endTime":1789.56,"body":"doing other places. And so in Canada"},{"startTime":1785.041,"endTime":1789.56,"body":"you could open up a fulfillment."},{"startTime":1789.561,"endTime":1792.04,"body":"You could start doing warehousing there"},{"startTime":1789.561,"endTime":1792.04,"body":"and you could start fulfilling within"},{"startTime":1792.041,"endTime":1794.36,"body":"Canada and have campaigns"},{"startTime":1792.041,"endTime":1794.36,"body":"that are running there."},{"startTime":1794.361,"endTime":1798.6,"body":"And so horizontal scaling is"},{"startTime":1794.361,"endTime":1798.6,"body":"taking a proven concept that works"},{"startTime":1799.18,"endTime":1803.19,"body":"and then scaling it to new new"},{"startTime":1799.18,"endTime":1803.19,"body":"audiences, scaling it to new products,"},{"startTime":1803.191,"endTime":1807.31,"body":"scaling it to, uh, scaling"},{"startTime":1803.191,"endTime":1807.31,"body":"with new product lines,"},{"startTime":1807.95,"endTime":1812.71,"body":"creating new offers. There are more"},{"startTime":1807.95,"endTime":1812.71,"body":"ways to scale horizontally in, in,"},{"startTime":1812.91,"endTime":1815.47,"body":"in when you think of marketing"},{"startTime":1812.91,"endTime":1815.47,"body":"because it's an ongoing process,"},{"startTime":1815.61,"endTime":1818.27,"body":"you will ultimately have"},{"startTime":1815.61,"endTime":1818.27,"body":"to scale horizontally."},{"startTime":1818.271,"endTime":1822.7,"body":"You can only go so deep before"},{"startTime":1818.271,"endTime":1822.7,"body":"you, the fatigue, audiences,"},{"startTime":1822.701,"endTime":1827.02,"body":"fatigue offers fatigue, products,"},{"startTime":1822.701,"endTime":1827.02,"body":"fatigue, ad fatigue, add angles."},{"startTime":1827.12,"endTime":1830.14,"body":"And then eventually you're gonna"},{"startTime":1827.12,"endTime":1830.14,"body":"have to start going horizontally."},{"startTime":1830.64,"endTime":1834.66,"body":"Our recommendation is typically"},{"startTime":1830.64,"endTime":1834.66,"body":"go deeper and then go wider."},{"startTime":1834.94,"endTime":1838.3,"body":"Cuz once you go deeper, you have good"},{"startTime":1834.94,"endTime":1838.3,"body":"data. And you know that this offer,"},{"startTime":1838.48,"endTime":1841.42,"body":"you know, that this product, you"},{"startTime":1838.48,"endTime":1841.42,"body":"know, that this messaging works."},{"startTime":1842.09,"endTime":1845.01,"body":"And so now let's take that and let's"},{"startTime":1842.09,"endTime":1845.01,"body":"amplify this horizontally to different"},{"startTime":1845.011,"endTime":1847.85,"body":"audiences and, and markets, et cetera."},{"startTime":1849.07,"endTime":1853.81,"body":"So scaling is optimizing your"},{"startTime":1849.07,"endTime":1853.81,"body":"campaigns to produce the most"},{"startTime":1854.07,"endTime":1857.49,"body":"impact for the least resource."},{"startTime":1854.07,"endTime":1857.49,"body":"And so when I say scale,"},{"startTime":1857.95,"endTime":1861.97,"body":"that's what I mean when I say scale"},{"startTime":1857.95,"endTime":1861.97,"body":"and I do wanna give a word to the why"},{"startTime":1862.24,"endTime":1867.12,"body":"\u003caffirmative\u003e so or a word from the"},{"startTime":1862.24,"endTime":1867.12,"body":"whys that have gone through this"},{"startTime":1867.16,"endTime":1869.0,"body":"a couple times. So, uh,"},{"startTime":1869.23,"endTime":1872.48,"body":"when your marketing is really taking off,"},{"startTime":1872.75,"endTime":1876.2,"body":"when you're starting to gain traction"},{"startTime":1872.75,"endTime":1876.2,"body":"and something is starting to scale and"},{"startTime":1876.201,"endTime":1878.92,"body":"you'll know this because you'll find"},{"startTime":1876.201,"endTime":1878.92,"body":"something and it's gonna click and it's"},{"startTime":1878.921,"endTime":1880.24,"body":"gonna work and you're gonna realize, Ooh,"},{"startTime":1880.62,"endTime":1884.39,"body":"our clickthrough rates are great on this"},{"startTime":1880.62,"endTime":1884.39,"body":"or this particular effort is really,"},{"startTime":1884.391,"endTime":1887.31,"body":"really working. And when"},{"startTime":1884.391,"endTime":1887.31,"body":"you have that happen,"},{"startTime":1887.61,"endTime":1892.35,"body":"you need to remember that your"},{"startTime":1887.61,"endTime":1892.35,"body":"marketing efforts must align with"},{"startTime":1892.5,"endTime":1895.55,"body":"your operations. Because"},{"startTime":1892.5,"endTime":1895.55,"body":"if you scale too quickly,"},{"startTime":1895.69,"endTime":1900.31,"body":"if you increase the volume"},{"startTime":1895.69,"endTime":1900.31,"body":"too quickly, you can run into,"},{"startTime":1900.95,"endTime":1904.62,"body":"uh, you can quickly run into inventory."},{"startTime":1900.95,"endTime":1904.62,"body":"You can run into fulfillment issues."},{"startTime":1904.72,"endTime":1906.38,"body":"And if those go down the drain,"},{"startTime":1906.49,"endTime":1909.18,"body":"then what has to happen"},{"startTime":1906.49,"endTime":1909.18,"body":"is you need to pull back."},{"startTime":1909.2,"endTime":1911.58,"body":"So when people talk"},{"startTime":1909.2,"endTime":1911.58,"body":"about scaling, like, Hey,"},{"startTime":1911.66,"endTime":1915.26,"body":"I went from a hundred thousand a month"},{"startTime":1911.66,"endTime":1915.26,"body":"and I wanna go to 3 million a month."},{"startTime":1915.41,"endTime":1919.02,"body":"It's not like that. Again, it is"},{"startTime":1915.41,"endTime":1919.02,"body":"not linear. It's going to take time."},{"startTime":1919.2,"endTime":1921.14,"body":"You have to be dedicated to"},{"startTime":1919.2,"endTime":1921.14,"body":"it. And you have to remember,"},{"startTime":1921.141,"endTime":1924.93,"body":"you're going to run into hurdles"},{"startTime":1921.141,"endTime":1924.93,"body":"other than acquiring customers."},{"startTime":1924.931,"endTime":1927.85,"body":"You're gonna have to satisfy them,"},{"startTime":1924.931,"endTime":1927.85,"body":"make sure your backend is proper."},{"startTime":1927.851,"endTime":1931.45,"body":"Make sure your fulfillment and make sure"},{"startTime":1927.851,"endTime":1931.45,"body":"your supply chain management is under"},{"startTime":1931.451,"endTime":1935.01,"body":"control. And I'll give you a story to"},{"startTime":1931.451,"endTime":1935.01,"body":"kind of close up rule number three, here,"},{"startTime":1935.011,"endTime":1938.61,"body":"we actually had a client and we were"},{"startTime":1935.011,"endTime":1938.61,"body":"running a thousand dollars a day on a"},{"startTime":1938.611,"endTime":1943.25,"body":"single campaign, uh, to their top"},{"startTime":1938.611,"endTime":1943.25,"body":"t-shirts and the client was, uh,"},{"startTime":1943.27,"endTime":1946.24,"body":"on fire. The, these ads are killing"},{"startTime":1943.27,"endTime":1946.24,"body":"it. We're like, oh my goodness."},{"startTime":1946.48,"endTime":1948.6,"body":"These are past rule."},{"startTime":1946.48,"endTime":1948.6,"body":"Number one. Uh, they are,"},{"startTime":1948.84,"endTime":1952.92,"body":"they have pass rule number two by two"},{"startTime":1948.84,"endTime":1952.92,"body":"times more than our, uh, breakeven goal."},{"startTime":1952.98,"endTime":1955.92,"body":"And we're, we're really crushing"},{"startTime":1952.98,"endTime":1955.92,"body":"this and now we're ready to scale."},{"startTime":1956.12,"endTime":1959.24,"body":"And we pulled it in and we started running"},{"startTime":1956.12,"endTime":1959.24,"body":"a thousand dollars a day on this ad"},{"startTime":1959.48,"endTime":1960.48,"body":"campaign. Well,"},{"startTime":1960.79,"endTime":1965.08,"body":"what happened unfortunately was they"},{"startTime":1960.79,"endTime":1965.08,"body":"ended up running into fulfillment issues"},{"startTime":1965.46,"endTime":1968.68,"body":"and then their warehouse, uh,"},{"startTime":1965.46,"endTime":1968.68,"body":"wasn't able to fulfill in time."},{"startTime":1968.7,"endTime":1972.48,"body":"And we had to stop allowing"},{"startTime":1968.7,"endTime":1972.48,"body":"people to purchase for two weeks."},{"startTime":1972.58,"endTime":1975.44,"body":"And so we didn't have the foundation, uh,"},{"startTime":1975.5,"endTime":1978.95,"body":"to support what we needed"},{"startTime":1975.5,"endTime":1978.95,"body":"from a marketing standpoint."},{"startTime":1978.951,"endTime":1982.07,"body":"So you might be able to get something"},{"startTime":1978.951,"endTime":1982.07,"body":"and just start pumping the fire."},{"startTime":1982.31,"endTime":1983.143,"body":"And who knows, maybe you,"},{"startTime":1983.21,"endTime":1987.35,"body":"you do five X to budget and it"},{"startTime":1983.21,"endTime":1987.35,"body":"maintains that scale and it maintains"},{"startTime":1987.351,"endTime":1990.63,"body":"profitability. You still have"},{"startTime":1987.351,"endTime":1990.63,"body":"to think about operations."},{"startTime":1990.81,"endTime":1993.83,"body":"You have to think about backend customer"},{"startTime":1990.81,"endTime":1993.83,"body":"experience and you have to make sure"},{"startTime":1993.831,"endTime":1998.15,"body":"that all of your fulfillment and"},{"startTime":1993.831,"endTime":1998.15,"body":"inventory is planned and working"},{"startTime":1999.34,"endTime":2001.46,"body":"properly. So to kind of recap here,"},{"startTime":2001.76,"endTime":2005.3,"body":"we have the three rules of profitable"},{"startTime":2001.76,"endTime":2005.3,"body":"marketing. If you wanna be profitable,"},{"startTime":2005.64,"endTime":2008.82,"body":"follow these to a T,"},{"startTime":2005.64,"endTime":2008.82,"body":"repeat them over and over."},{"startTime":2008.821,"endTime":2010.66,"body":"They will look different"},{"startTime":2008.821,"endTime":2010.66,"body":"based on the marketing effort,"},{"startTime":2010.72,"endTime":2014.14,"body":"but I promise you that if you"},{"startTime":2010.72,"endTime":2014.14,"body":"follow these, if you adopt these,"},{"startTime":2014.49,"endTime":2019.42,"body":"they will work and you will grow your"},{"startTime":2014.49,"endTime":2019.42,"body":"business predictably. So rule number one,"},{"startTime":2020.09,"endTime":2024.49,"body":"if it's not trackable, you don't do it"},{"startTime":2020.09,"endTime":2024.49,"body":"rule number two, if it's not profitable,"},{"startTime":2024.491,"endTime":2027.53,"body":"you kill it in rule. Number"},{"startTime":2024.491,"endTime":2027.53,"body":"three, if it is profitable,"},{"startTime":2027.75,"endTime":2031.57,"body":"you scale it horizontally or vertically."},{"startTime":2032.03,"endTime":2033.13,"body":"My name is Josh coffee."},{"startTime":2033.35,"endTime":2037.89,"body":"You have been listening to the"},{"startTime":2033.35,"endTime":2037.89,"body":"e-commerce alley podcast produced by the"},{"startTime":2038.08,"endTime":2042.6,"body":"legendary Dylan counts. You can"},{"startTime":2038.08,"endTime":2042.6,"body":"find show notes for this episode,"},{"startTime":2042.66,"endTime":2046.4,"body":"as well as additional resources on"},{"startTime":2042.66,"endTime":2046.4,"body":"profitable marketing. By going to Ali"},{"startTime":2047.96,"endTime":2052.04,"body":"podcast.com and please, please"},{"startTime":2047.96,"endTime":2052.04,"body":"drop us a review on iTunes."},{"startTime":2052.18,"endTime":2056.56,"body":"Follow me on Instagram at Josh coffee"},{"startTime":2052.18,"endTime":2056.56,"body":"and on behalf of the entire team and for"},{"startTime":2056.561,"endTime":2060.12,"body":"being a listener and making this"},{"startTime":2056.561,"endTime":2060.12,"body":"world a better place. We thank you."},{"startTime":2060.77,"endTime":2062.23,"body":"We will see you again soon."}]}