Over the past 11+ years, my award-winning digital marketing agency, Business Nitrogen… has been the go-to resource for Founders & CEOs doing at least $1 million in revenue with $10 million - $100 million dollar potential. Since then, I've been responsible for selling $247+ million in products & services… due to sales campaigns my team and I have built for our private clients.
On this episode of the rich dad, poor add podcast, we have an awesome guest David astronauts who has got shoot seven, two comma club awards, built multiple eight figure businesses. And that generated well over 250 million in revenue for his companies and clients, we dive into an ad, absolutely killed. It had shoot it's 250 X return on ad spend. And the ad that just did not do well with David being featured in it, of course, and kind of how David sees his business when it comes to company culture, company morale on this. No, an awesome way to kind of really, you know, feed off your team's energy and, you know, having more collaboration versus competition, make sure to tune in this one to juicy. You're not going to want to miss it. One of the things that, I mean, as I said, I've built multiple eight figure businesses, right? We've got clients who've done multiple eight figures. Um, you know, I joked earlier about the gray hair. You know, whether it's gray hair or wisdom, you know, when someone comes to us and they say, Hey, I really want to grow my business. And I say, how much do you want me involved? Or how much do you want us involved? And they said, well, what are the options? I said, we can run your traffic. We can run your funnels. We can look at things, Jeff, on a return on ad spend
The rich and poor ed podcast, where we break down the financial principles that rich advertisers are deploying today to turn advertising into profit and get tons of traffic to their websites without killing their cash. These advertisers agencies, affiliates brands are responsible for managing over a billion dollars a year in ad spend. You'll hear about what's working for them today. They're rich ads and we'll roast their Epic failures and crappy ads on the internet with poor ads. Let's get into it. Welcome to another episode of the rich dad, poor dad podcast. This is your host, Zach Johnson, and I'm with the one and only Dylan Carpenter. You excited about today's guest Dylan. Yeah, man, I am pumped. This is gonna be a juicy one. Y'all yeah, man. This guy's been around for a while. He's the founder of business nitrogen. He's really the highest award-winning ClickFunnels certified consultant and has not one, not two, not three, not four, not five, not six, but two comma club awards, uh, that have a seated seven figures in revenue plus an eight figure award.
Guy's done. Gosh, maybe a quarter billion in sales across all his clients. And, um, was formerly one of the top business coaches with the late Chet Holmes and uh, current Tony Robbins. So I'm excited to have David on, I think over the last 12, 24 months, they've managed over 24 million in media and ad spend for their clients. But this guy, David is also a full stack marketing sales and finance, uh, machine. He really goes in and works with his clients, uh, across their entire business. And I, I would say of the thousands of agencies, uh, that we work with. FunnelDash David in his relationship with his clients, I think is just like so much deeper, so much more intimate than, than most people at the service that are either just managing media or just optimizing funnels. Uh, so I'm excited to get into it. What do you think, David, are you ready to rock and roll? You're ready to rock and roll. Well, welcome to the show. We're excited to have you on. Thanks for having me guys. I, uh, I want to hear what's the latest, all right. Cause you've been around you, you've got a ton of credit, but like what's happening in your world right now that you're excited about
[inaudible] I'm excited about a lot of things. So you're asking the wrong person, I've got shiny object syndrome thing every day. So, you know, one of the interesting things that, you know, when, when this whole COVID thing hit, um, it was a really good time to sit back and reflect and say, what do we do really well? And how can we serve people and on a higher level than we are right now. And so we've actually gone deeper with our clients. We're bringing on more clients where we're basically their virtual chief revenue officer, the chief marketing team. Now, when we do that, we're yes. Are we running traffic? Yes. I have my team that you've heard me talk about the, I think they're absolutely amazing. They're very gifted on, on running traffic. So we run their traffic, we do their marketing funnels, but where we do something a little bit different is we help them combine their online lead gathering to their online sales and their offline sales.
I'll give you an example. I have one client that came to us in February and was traveling around the world, building their software company, just speaking and whatnot. And they knew that they're going to have to change their model. I said, what's your year-end goal? And they said, I want to hit a million by December 31st. I said, okay, we can do that. They said, are you sure you can do that? I highly believe that we could do this. Now in less than 90 days, they got their two comma club award and we're down doing about 150, maybe $200,000. What last month, this month we may do 300,000. Okay. So why? Because we're not just doing their sales. I help are doing their online traffic. We're getting involved in all aspects of their business is business mentor because not because I have gray hair, because What we actually do is, you know, let's look at the strategies that your team, how are you going to make your business scalable? You know, right now
You you've been able to get to a certain level with everything coming through you. How do you put the systems and processes in the right team members in place? So you can be the visionary entrepreneur and help really scale this to that eight figures and beyond on an annual basis. And so that's just one example. I have a lot of examples of clients like that. So what am I excited about? I love serving our clients and hearing the success stories. Just this week alone. I have two, three clients who wrote letters to us saying how happy they are with our team and how our teams serving them in all different levels. And I've got, you know, for my CMOs, working with them on their funnels, my ad teams, working with them on the ads. Um, my VP of sales is working with them to create their sales process internally where we do it.
We're doing things differently. That's awesome. I have to, the companies that I own, that my agency does work for, which I'm excited about those too. That's awesome. And that's awesome. Well, I feel like any of the agencies listening, they, I feel like they'll aspire to have a model like yours, David, where you get some equity participation, you get revenue share participation, you do the retainer model, right. And, uh, you know, you, you really don't mess with the clients that aren't willing to give you enough retainer. That's gonna allow you to properly invest into the marketing campaigns and the funnels that ultimately they need to succeed. I feel like a lot of, you know, folks really flip, you know, in the agency space, they really flip it, right? It's like, yeah, I've got some clients, you know, that are like three to five K a month.
And then I've got like one or two that pay me like 10, you know, 20 K. And they're always just a striving for those. Right. But with you, you're just like, Hey man, like, this is what we need to really do well for you. And if you can't do that, then we're not going to do well and it's not a fit. Right. And it's just so black and white for you in terms of a starter. So I, uh, I think the newer agencies listen to this show have a lot to learn from you, but that being said, you also, the other side have a broad reach in terms of what's working right now on media campaigns and funnels. So I want to hear about this rich ad campaign. You're ready to dive into it. Dylan, man, I got to pull up on my end.
So it's 237 row. That's pretty, pretty good. Pretty aggressive. I'm looking at the ones that they gave you. I've got a be okay. They gave you, I I've got 237. I've got a 47. I didn't know which ones they gave you. And you had so many, you had so many you're, you're trying to keep track of what the winning rich ad here is that we're talking about today. I love it. I love it. All right. Cool. Yeah. So I mean just beautiful blue color here. That is just the star kid. Sorry. It's red and blue. Uh, yeah, read that out, break it down for us.
Sweet. So we got, I mean, Roaz two 37. I mean, so it looks like you spent around 200 bucks here, so definitely a smaller spin, but when it comes to that actual word, turn 20 to 30 K super juicy key part here, this was sent to a very warm audience. So being retargeting makes sense there. Now what made you kind of have this type of ad for retargeting David? Um, I mean, it's, it's kind of more long. Copy got some solid links up in here. So what made this ad work so well kind of to these warmer audiences, cause I'm sure you had a nice cold ad that you would warm them up nicely to get prepped for this bad boy. Well, if you look at it, you know, it's not just the ads and that's one of the big things that I think that, uh, we have to explain to clients that like, we just need the ad to work.
We need the ad to go to a landing page and people just buy. So when we're talking about someone who's really warm, we may have a nurture sequence for 12 to 14 before we're, we're just adding value, adding value, adding value. Uh, someone may have bought something earlier and not upgraded. And instead of letting them fall off, we're nurturing them and adding value, value, value, value, value. So, you know, I want everyone I even on, I wouldn't, I'd rather someone do four weeks of value before they actually offer anything. So this one happens to be a client that their initial offer their, their smallest initial offer is about a thousand dollars. Their ticket is $10,000. So when you look at why, why did it work? You know what, I don't know why everything works. I'm going to be honest with you, why everything works. One of the things we had when, before we went live here is we do a lot of message testing, right?
So one of the things that we do upfront before we launch something like this, this campaign out is we will just take, um, a piece of it. We'll create messages on something that looks like a tissue or a napkin or toilet paper, seriously, that point simple. And we'll find out what messages work, and then we'll take those exact messages and we'll put them with an image. And then we do a lot of long form copy. We, I see long form copy working very well, especially if you put it with the right emojis, the right images. And all of this is as a smiley lady with the 200 and $295, um, something there it's like a gift card. So the curiosity that there's not a lot of words, but you see in gold, they're $295 gift card. So it creates that curiosity when someone says, use this private link and go there. So if you've already gotten this program, you're going to love this program. I'm going to give you $295 to invest in another with us. So it's basically, we appreciate you. We're getting back to you. And I think that that's why it worked. And I say, think because just like anything, I believe that we don't know, we have to test a lot of headlines. You have to test a lot of images in order to find out what works.
Speaker 4 (12:12):
I mean, that sense of scarcity is right there. I mean, shoot only available to the end of the month. Don't delay or into the day shoot, man, I'd be ready to convert. You know,
You would be ready to convert. You were S w if you, if, if this client, if you were following this person and they, you love them and they gave you $195 gift card to invest. Yeah. You probably would use it because it's only available for the next 10 days. The next 30 days, we use a lot of deadline funnel. Um, so that way, when someone ops in and it has a countdown timer, it will follow them through the emails. It will follow them to the next funnel. And you know, so many people try to just refresh and take that link and put it in a new browser. Well, let's use a system like deadline funnel. You can't do that. Yeah.
Speaker 4 (13:02):
I did have a question for you when it comes to the emojis. Is this something I'll do across the board for all the clients or it's something you kind of test include with the messaging testing, or y'all just kind of emoji people in the ads more or less?
Um, I'm not an emoji person, so it must be whichever copywriter mine is already. So, um, to answer your question, we would, we test the different ads with emojis and without, and a lot of times we may not like emojis. I mean, thinking about this is a guy we were like, huh, but guess what? It points right here. If you think about it, that ad right here, it has that like the finger pointing to it twice in a row, use this link. So why do you use, if you use emoji selectively to say, I want to point out this one thing I want someone's eyes to go here. Remember this? You know, I've, I've been in the Facebook office multiple times and one of the things and Instagram, and one of the things they talk about is people are scrolling through, you know, 300 plus feet per day on a daily basis.
It's going to be thumb stopping. That's it, that's all they talk about is content. And if we think about a long form message, Hey, jumpstart friends, you know, and then we scroll down. It's not open to the public. So guess what? You're seeing this ad you're being remarketed because it's something private just for you because you're an insider. And there's a limited time. I want to give you $295. You want it? Yes. Great. Click here, go check it out. That's here's the thing. We, we then know who clicked on that because they're an insider because they're being tracked. We know that they went to the page and if they don't buy, we have a whole separate sequence. Then the up with them to create that sense of urgency down to when it closed. I love it. By the way, this client, last year in December, they said, we need to do something. We want to do something very special to close out the year. And so we launched out in mid December a campaign that they actually did over eight figures. It was their best campaign by two and a half times that they ever did. And it was combining marketing funnels with the ads, with the email marketing together.
Speaker 5 (15:20):
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Check it email@example.com. All right, David, I want to roast the. Yeah. Report. Totally do that one. Yeah. That's catchy stuff. Stop. I like the video too. I like the video over the client on the books. I want to hear about, uh, I want to hear about this Batman one. I'm not looking at that one. I am. I want to know how bad did that fail. It felt how bad did that fell. It failed so bad. If I was a comedian, I'd have a punchline for it. Listen, here's the interesting thing. Um, we came up with an idea for the moment and we joke around a lot. Like everyone in my company is a superhero character. And in my Ted talk, I actually went through, you know, who some of the superheroes are in our company. And I joked that I'm Batman. I'm not, I don't show it. I mean, I'm Batman. And, uh, so I did a, uh, I did a launch last year for something called funnel secrets. And I did some things where I was like a cartoon from a cartoon character version of me as Batman. And it didn't, uh, let's just say it didn't go very well.
Well, let's not just say that. Let's say more, let's say more invested
Over $10,000 and got nothing from it.
I love it. That's saying something,
But here's the thing. And I look at it this way. You know, we were talking about this earlier to me, it was like one of the, the, by the way, what did I learn from it? Change your approach. So I know for a client, I wouldn't have done that with a client. I'm much more careful with their money, but with mine, I'll put it all on red and throw the dining sensei
Here, degenerate gambler
With my own. Well with clients' money, like we were talking earlier, I'll start at a hundred dollars a day. Here's the thing. If it didn't work, it didn't work with change the approach and actually did change their approach. And in less than two weeks had over 700 people sign up with a whole different set of ads. I, you know what really worked me handholding my, my phone while I was walking and talking me, having my video, actually, this was interesting. My video, uh, I have a tripod, you know, Lindell, Mount tripod in my car while I was driving. Just talking, I wasn't looking at the camera, just blocking. I got death threats. I hope you die. You're sitting there doing videos while you're driving. And then I had people defending me so that we got over 700 people signed up in less than a couple of weeks changing the approach, changing the offer. And it worked, but Batman sought
It would have made you so cool though.
Oh my gosh. I love your advertising. It's so cool. You must be crushing it. I'm like, no, we're not.
Yeah, exactly. Right. Yeah. Yup. All right, man. So I want to dive in to this next segment, David, you're one of the few folks that I know that even mentions the word reviewing P and L when it comes to their client relationship. Okay. So you're the first guest on the show that is actually having that conversation. And first I want to know, like, how does that work? Why do you wait for your clients to like send you a P and L do they just like, copy you on all those? Like, how do you have that level of trust to where you sign on a client? You're like, yes, I need all your financial statements. Uh, like walk us, walk us through that. Because on this show, we're really trying to bring the bridge, the gap here between marketing and finance. And there's a ton of marketers that are doing their marketer math, and they're rounding up to the nearest million. And you know, when you're looking at a P and L like, that's, that's the source of truth. So how do you, how do you get that level of detail, uh, from your clients?
Well, that's part of the front end process and who we're attracting as a client. So when someone's coming to us, they're most, most of the time, they're not looking at us just to run ads for them. So if someone's just looking at us to run ads, I'm probably, I'm probably not even involved myself. My team's evolved. I've got 21 people on my team. I may never even be on a phone call with them. However, most of the people who come to us saying I'm looking to grow my business, I've looked around. And one of the things that, I mean, as I said, I built multiple eight figure businesses, right? We've got clients, who've done multiple eight figures. Um, you know, I joked earlier about the great hair. You know, whether it's gray, hair wisdom, you know, when someone comes to us and they say, Hey, I really want to grow my business. And I say, how much do you want me involved? Or how much do you want us involved? And they said, well, what are the options? I said, we can run your traffic. We can run your funnels. We can look at things just on a return on ad spend, or we can act as your virtual chief revenue officers or your virtual CMO. We have a, we call it virtual CMO of CRO package. And with that, I'm getting together with the CEO, just, you know, man, man,
[inaudible] how do I say?
And what we're doing is we're looking at, you know, everything that's involved. I have a client that we grew to, you know, they wanted to go direct. They had to offer, and everyone was telling him, you can't go direct to sell. And it was a home exercise product. And, uh, we scaled that, you know, w we were able to increase the cart conversions go from like 7% to over 25% car conversions, uh, be able to scale the ads are still not making money. And I'm like, how can you not be making money at three to four times return on ad spend like, well, let's look at your books. Are you willing to sit down with your books? And then that's all of a sudden we said, where the waste is happening. Where are the manufacturing processes can be improved if you think about it, when someone goes to talk to a shark on shark tank and they ask, well, what's your cost for the product?
Well, I can help you get it manufactured at X price. I can help with your efficiencies there. So when a client is coming to us on something like that, it's because we have the ability to look at their business on a 360 degree point. And look at all angles, let's find some blind spots. Let's look at some opportunities for improvement. Let's look at some budget reallocation. I'll give you an example. I have a client that's over $60 million year business. Um, they are a brick and mortar, uh, with, uh, over 80 locations. And one of the things that we did before we got them, we worked on a relationship for over a year. Yeah. And then signed in February. And we started doing a test and we were able to get a conversion lift of about 30% on a funnel that we launched and then COVID hit and they had shut down their locations.
And so one of the things that happened during that timeframe was we sat down and he, I had a conversation with the founder and CEO, and he said, I'm so sorry, as the way you apologize to me, you don't have any control over this. And he says, well, just pick it back up when it's over. I said, no, we're not. I said, we have a standing call on Mondays. I'll see you next Monday, but I can't pay you. And I said, I understand that. I'll see you next Monday. He says, I just need some time to clear. I said, okay, you've got one week off. I'll see you in two Mondays. And he said, really? And so for the next two months, we met every Monday. And then all of a sudden, I said, let me ask you this question. If you could wave a magic wand and make your business all over again better, what would your business look like?
And to me about the culture that he wanted to bring back, these had got lost over time. He talked to me about the efficiency and communication within the team and the operations. You talk, talk to me about what he would want the marketing team to operate like and how it would communicate with the operations. And so I said, great, let's craft that company. He said, what do you mean? I said, let's craft that company. And we sat down and we re-engineered his entire business. Um, then he brought in and another executive in his company. And then he brought in CFO. And then we created a 60 day launch plan before opening. Okay. And Matt, I ended up meeting with them every day. I didn't have time and day. So I said, will you meet me? I have to meet you at 6:00 AM. Can we meet?
I'll meet you at 6:00 AM every day. So for three weeks straight, I met them at 6:00 AM every day, re-engineering their entire business. So we can open up with a lot. And then he had me present this to his board of directors and get me presented. Okay. So when you talk about trust, I think that if someone's having you present a plan to the board of directors, you build that kind of relationship. So why there's something that my, my grandfather told me this, when I first got involved in court, I was in corporate America before I became an entrepreneur. My grandfather told me this, if you want to be really successful, treat everyone that you work for as if it's your business. But if you want to know Dylan and Zach, why I think that people do that is I, when I'm spending their money, I'm actually treating better than I do my own money as I use
You're hurting because it's very obvious. Yes. It's very obvious Batman
Money as if I should be treating them
As if I should. I'm being honest. Right. I so good.
And, uh, and so that went really well. And they're like, fantastic. And what's happened is we've implemented that plan now. And my team actually, what they decided to do is slim down and who are, they were going to bring back off furlough on their team. And their team is actually working with my team cohesively as if it's one team, because it is one team. And so, you know why, because when we have just, if you bring someone in as a true partner and you're working together to accomplish goals, you can accomplish great things. If everyone's focused, everyone's rowing in the same direction. My son used to roll through. If one person is not rowing that boat is not going
Row in the exact same direction and working cohesively, where we're looking at their financials, where we're looking at, where there's opportunities for improvement. When we're looking at blind spots, we can achieve that.
Yeah. I love that level of detail, man. And that level of care. It's true. True white glove right there, man. Congrats. I, uh, you know, I want to give you a little shout out here, David, because you're talking about your team for a second, you know, being in the agency business, it requires great salesmanship, great care for your clients, but it is ultimately, it is the peak year in the people business and you're arbitraging talent. Like it's crazy and you have a great eye for talent and, and you're a great arbitrager of talent. You know, there are, you know, there's some people that don't have as much leverage, um, on the talent that they have on their team. And I feel like your strategy and the systems, you know, that you put in place as well as, you know, the people that you have on is it's, it's obvious, you know, even from the outside, that your, the way that you run your client business, your agency, your consultancy, it's obvious from the outside, looking in that it's much and far more profitable than the industry average, you know, the industry average for ad agencies is a 10% profit margin.
Like maybe 15%. Yeah, exactly. Uh, I'm just saying like, that's the average, you know, for, for an agency is doing either seven or eight figures a year, uh, because they, uh, you know, they don't put as much time and energy into sourcing, you know, that talent. So, uh, I could go into it and a ton more.
I can tell you one secret, would you like, yeah,
I love, I love secrets. Yes, we
Have. There's two things. One is every Monday, everyone in the company comes on a call at 10:00 AM and we have a company culture meeting. We go through our core values. I go through them and ask everyone what is our, what our core values, you know? And I popcorn. What does a P stand for? What does R stand for? What does he stand for? What does it mean to you in your day-to-day work? And then I teach something. So it could be five minutes. It could be 30 minutes and I'll go through and I'll teach a concept that I want them to focus in on and think about that week. Okay. How are we going to collaborate? Because it's all about collaboration. It's not competition where they're working together. And then we have something. And I learned it from a good friend of mine. Uh, Kristoff he's wrote a book called the millennial whisper.
Now I don't have all millennials, but we, in one of their, he runs, he talked, he has an agency. It's one of the largest agent, oldest agencies in the Southeast United States. He's an executive there and he runs these same call snaps. And what we do is we give snaps and we read out the testimonials, the letters that clients say, thank you so much, Michael. Thank you so much. Thank you so much, Pedro. Thank you so much, Bob. I mean, Anna, etc. And then we go through and say, who on our team created these amazing results and what are they? So we share that. That's beautiful. We share that. And then what we do at the end of the quarter, the people who have the most snaps get a bonus. So, okay.
Yeah. So that's awesome. That's motivating. I think you're also a great identifier of talent too. Like it's not, you know, it's not just like curating it and cultivating your culture, but you also, you know, you know, your numbers, you know, what your client value is and you are like, I don't, I would almost like, you're almost like a sniper of like, uh, arbitrage town. Like you find like just, just great people that do good work. And um, I think that's important. I mean, it's, it is the business
Knock on wood. I don't have a lot of turnover. And one of the things that I look for in people that are looking for a long-term opportunity, they're looking for their work family. And I learned this from my grandfather. He had people I used to say, well, this person's lazy. I think that they're lazy. And this was me as a six, seven year old kid telling my grandfather and his business. And he said, I understand that you could feel that way, but I can trust this person. They're loyal. I could trust them with our money. I can trust them with my patients. And you know, so I balance everything. I want eight, a, a level talent fairs, and it will go to the end of the earth for our,
There. You have a man, thank you so much. You've been an amazing guest. Tell everybody a little bit about, uh, what you got going on right now
And how they can get in touch. Uh, well, if you want to check us out, you can go to business. nitrogen.com is this nitrogen.com. Um, you know, we are, as you heard today, a full service agency. So we do everything that we do has marketing funnels involved. So we look at the traffic to the funnels, to the conversion rate optimization to the email marketing to build that relationship that, Hey, just building your business. Um, we've got some, some new things that we're launching out right now. Uh, for some smaller companies I'm not involved at the project. My team created, I've got a friend of mine who actually had an agency added multi seven figure agency closed. It emerged this project in, and she's our lead on that. We're calling it leads on demand. It's for someone who they have a budget of $2,500 a month, someone that we normally wouldn't have been able to bring on we're now, uh, we're, we're now doing that. We've got a whole crew of people that are focused just on that, uh, and inexpensive lead generation funnel for because before, you know, most of our clients are, you know, 10, 15, 20, 30, $40,000 a month, clients that we're working with now for the smaller companies that want to be able to get involved, we created that new product, but a lot of fun things.
I love it. Thank you so much, David.
Speaker 6 (34:12):
I really appreciate it. Well, thanks for having me
So much for listening to another episode of the rich ed or ed podcast. If you're like me and listen to podcasts on the go, go ahead and subscribe on Apple podcasts, Spotify, YouTube, and rich ed [inaudible] dot com slash podcast. And if you absolutely love the show, go ahead and leave a review and a comment share with a friend. If you do take a copy screenshot of it, email me firstname.lastname@example.org. Show me you left a review. I'll give you a free copy of the rich add or add book. Learn more about the book. Go to rich ed for a.com to leave a review that a rich ed or ed.com/review. Thanks again.
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Jason Hornung is the founder and Creative Director at JH Media LLC, the world’s #1 direct response advertising agency focusing exclusively on the Facebook ads platform. Jason’s proprietary methods for ad creation, audience selection and scaling are responsible for producing $20 million + of profitable sales for his clients EVERY YEAR