LTV - Life Time Value (total gross profit of a customer)
Example - acquiring a customer for $200 ad spend when you make 10% gross margin on the $700 that the customer spends over time (spend $200 for $700)
All your business decisions should be made on gross margins
30-Day Cash (how long it takes for a customer to pay back their acquisition cost)
Get access to a credit card
Use that money, and use the 30 days to pay back interest-free
If you know that the 30-day cash is equal to or less than the CAC, then you can use other people's money to acquire customers
LTV to CAC ratio
LTV:CAC > 3:1
Need to be able to generate 3 times the CAC in gross profit
Example
Making 80% gross in business
The customer has a $1000 LTV
You end up with $800
Your CAC needs to be less than 800/3 ($266)
30-Day Cash to CAC ratio
Need to have at least a 1:1 ratio of 30 Day Cash to CAC
You at least break even on acquiring customers
AND you are breaking even within a window where you can use other people's money for CAC
Example (following the previous example)
CAC needs to be under $266
If you can get your 30 Day cash to be greater than $266, then you at least break even on acquisition, and you get to keep the other $500 or so profit
Give people what they want to give them what they need
Sell accurate, short-term success
Once have trust, provide a longer-term plan
You already know what needs to happen, the prospect doesn't
Direct Marketing
Need money quick
Branding
Compounds in value over time
People are willing to pay a premium
Word of Mouth / Affiliates so you market with no money
Content (social media) Marketing
Make Something and Post it Sometime Somewhere
Post something somewhere consistently
Your doors say 'open' on them
Post reliably on all platforms
Learning what packaging looks like on different platforms
Maximize output on all platforms
Capture and create (ex podcast clips)
No such thing as too long, only too boring
Quality > Quantity, but quality quantity wins over quality
You start by sucking, you get better, then eventually you suck so little that you are actually good
Part 1-2 is about lead nurturing
Post something recently that's not shit
people who hear of your business can look at your social profile and think that it is legit
give salespeople ammo
You can weave what works on your organic content into your paid side of marketing
Low-risk ways of testing hooks and headlines to get more people to buy from you
Part 3-5 is about generating new customers from your content
The platforms start serving your content to people because they can increase the amount of time that people spend on the platforms (makes the platforms money)
How to convert eyeballs to money
Insert CTA's into vid
Provide value the rest of the time (extract value in a tangible way)
Why should this person listen to me?
Why is this worth their time?
The more you give the more you grow, the more you take the more you shrink
Costs
Time
It's going to take a lot of work to get people to keep coming back to your content
Long Term
Fame is the most efficient business model
Money
Phase 3-5 will surpass your capabilities to keep up with what is required for each phase
You need some form of leverage (labor)
Use vendors, but some are data-driven, and you have to balance the clicks and views with how you want your message to be conveyed
Expand
Not only about reaching more avatars
Have different spokespeople
Represent different demographics
Represent different psychographics
Expand your marketplace without needing to change what you are selling