You can do a lot of things to minimize your risk. But they’re still going to be risk. One way to manage and control the risk and/or minimize the loss is by finding ways to outspend the competition without having to come completely out of pocket.
00:01 Welcome to the digital marketing secrets show with Carlos A. Vazquez where we share actionable strategies and tactics to grow businesses no matter what industry you’re in. Now your host, Carlos A. Vasquez.
00:16 Hey, what’s up? It’s Carlos A. Vazquez Corn digital marketing secrets podcast. If you’re watching my video, you can see that I’m currently driving right now. Um, and today I want to talk about how to outspend the competition without having to really come out of pocket. Now when I see that, I don’t want you to get them to get confused. To think that you don’t have to spend any money, you always have to prime the pump.
00:39 And what that means is basically you have to start, you have to start, you have to start getting that flow of that momentum. And in order for you to do that, you have to just at least put some type of investment in there. Now you have to understand an investment is just that it’s a low risk investment, high risk investment, a low risk investment means you’re most likely going to get a return, maybe not that high.
01:03 Uh, my high risk investment means that you can get a very high return, but the risk is a lot higher that you may not get anything at all. And marketing is in my opinion, it right in the middle because it’s between high and low. You, you can do a lot of things to minimize your risk. However, um, at the end of the day they’re still going to be risk. So one of the ways that we get to manage and control that risk and, and the, or minimize the loss is by finding ways to outspend the competition without having to come completely out of pocket.
01:39 Now, the way we do that is by developing what’s called a foot in the door. Offer a foot in the door offer is a very low priced item. Um, low price at the person feels like it’s a no brainer because it’s so low in price, but it’s high in value and they don’t have to call their spouse to make the purchasing decision.
01:56 Right? Hey Baby, can I buy this? It’s like, what? 27 bucks, $37. Not a big deal. But if it’s a thousand, they probably have to talk to somebody, alright? No, $27, $37. Now the purpose of this is not actually not to generate profits where you’re going to get rich. It’s not gonna happen, okay? But it’s meant to help you cover at least a cost per acquisition per each email address that you get. Okay?
02:22 So usually if your cost per acquisition is a dollar or a dollar 50, meaning you get an email address for that much, then you want to be able to generate at least $3 after, um, uh, you want to be able to generate the, the, the dollar 50, right? To cover one person. Maybe one person can help you absorb two or three people. So $7, um, and then now one person basically helping you cover three or four more people for them to be acquired.
02:53 Now, you’re not going to know your cost per acquisition right away. Your cost per acquisition usually is going to be pretty high at the beginning. But then Facebook, if you’re using Facebook, and in my opinion, I love Facebook. It’s the stick shift of advertise and you get to really control the details.
03:09 But when you have a foot in the door offer that covers us, then you end up putting yourself in a position where one person is helping you get three more and then another person helps you get three more. So that’s how you get exponential with it. Then after that, then you have your gateway offer.
03:25 Then you have your, your main offers that they have a higher profit margin or more more value for you. So it, it, it reminds me of a time when when I had this one client that they were selling these, um, these diabetes glucose meters and what we ended up doing was the product itself was selling, but we were not really breaking even.
03:49 So when we started offering an additional bump offer, meaning we added another product that can be added to the sale, we started not only doubling sales, but then we really started, um, increasing that value between one person. So one person was helping us cover them, breaking even, and then a little bit more to cover the next person. Right?
04:09 And then we started adding quantities. One, two, four, six, eight and now we have people buying four, we have people by six we have people buying an eight. So the idea is that you might break even, but you want to find ways to pass that, right?
04:23 And the more you, the more offers you can throw in there that are our low low ticket items that are no brainers, then you have more money you can spend back into advertising. So it is a slow process. We always hear these stories about how I acquired a client for two pennies, five pennies.
04:40 Whenever look, those are not common. It’s nice to have, but that shouldn’t be the strategy. It should be just the icing on the cake. Okay? You do want to break even, but you’re probably not going to break even right away. You need to go through the phases. So you could teach Facebook about your ads and then you’re going to identify who’s your winners and you get to scale as much as possible. Alright?
04:59 So if you want to outspend your competition, go ahead and, and, and find ways to include a foot in the door, offer to absorb the cost of acquiring a customer and some, okay? Now the product should be low cost enough to add a profit margin that helps you not only fulfill on the, on the product delivery, but also you want to cover acquisition and that’s it.
05:25 So if you haven’t figured out how to do that, I recommend you go ahead and go to the Facebook group. Um, go to uh, MiamiMarketer.com/growth. We’re talking about all kinds of different things out there so that way we can help, um, uh, keep the conversation going and give each other ideas on headache, how to get it going.
05:42 So if you’re interested, go to MiamiMarketer.com/growth fill out the quick application. I want to make sure we have high quality people there that are there to help each other out. And um, I’d like to see you inside. Alright, talk to you soon. Bye.
05:55 Thanks for listening to the digital marketing secrets show with Carlos A. Vazquez. Want to join the exclusive digital marketing community? Of course, you do! Make sure to visit us at MiamiMarketer.com/growth for more info. See you soon!