How Beau Creates Road Maps to Spend $100k+/day For His Partners/Clients

Zach Johnson

Dylan Carpenter

Beau Haralson

Episode
78
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Beau Haralson

,

Co-Founder

ScaleThat
Apple PodcastsGoogle PodcastsLive on SpotifyLive on Youtube

Beau Haralson is the co-founder of ScaleThat. Beau has over a decade of experience launching products and building brands both big and small including Google, Traffic & Conversion, DigitalMarketer, OfficeMax and many others. Over the years he’s worked with celebrities such as LeBron James and Arnold Schwarzenegger, and entrepreneurs that deserve to be celebrities, doubling over 15 businesses along the way.

Episode Summary

TAKE AWAYS

  • How to use a stock video and scale it to 6 figures
  • Keeping it simple and not trying to get complex on a strategy
  • Setting proper expectations for clients on HUGE spending days like Black Friday/Cyber Monday.

RESOURCES/CONTACT:

Transcript

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,
Episode
78
Transcript

Dylan (00:01):

On this episode of the rich dad, poor ad podcasts, we have some very special guests from scale that.com bill Harrelson and Alex. This one is just super juicy. All we dive into a killer rich ad that generated well over multiple seven figures with shoot about 650 K spend behind it. That's been running for over a year. If you want to hear that story and make sure to tune in on the poor ad side, we roast a very terrible keto friendly ad that they had no idea what they were doing. Super, super solid and super fun to roasts. On the more financial side, we kind of dive into, you know, their larger budgets, where they could have clients spending anywhere from a hundred to 200 K a day, you know, for black Friday, for example. So we kind of dive into how they're setting proper expectations up for their clients and how to kind of create a roadmap of success and not face any roadblocks. If that sounds interesting, make sure to tune in, cause you don't want to miss this one.

Beau (00:57):

Cause I would go for perfection all the time. I mean, I've shot video with LeBron James and Arnold Schwartzenegger and blah, blah, blah, and Nike like big brands and yes, you probably should go for perfect and that scenario, but like at the same rate, you need to get data. And so I think like if I have to look at like, like we're doing a launch right now for a big brand, um, in the food, the food space, they sell food. Um, and uh, at any rate it's interesting cause we're, we're doing both ant, right? So we have some creative that is kind of keeping it simple, stupid, just like, Hey, go find this product at this place, right? Like really simple ads. And then we have the high end of things. That's going to be like the brand Anthem piece. [inaudible]

Zach (01:49):

Listening to 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 is your host, Zach Johnson. I'm with the one in LA DC, Dylan Carpenter. How are you doing today, Dylan? Good man. I'm ready to roast some ads. Yes, yes. I'm excited for today's guests. It is the, uh, founders co-founders of scale that, and uh, these guys collectively manage about 30 million a year of media and they really work with about a, let's say half a dozen to a dozen private clients a year.

Zach (02:47):

And um, and also have a platform where they're connecting, uh, clients and brands with, uh, the right customized strategy with the right, uh, team. So it's pretty cool in the sense. Um, they're bringing together a lot of the different vendors. That's just a slew of that exists out in the marketing world and really only bringing them in when the strategy matches it up. Uh, I originally dealing, I got connected, uh, with our guests today via digital marketer, I think was the match.com uh, here. And, uh, and so, um, yeah, I'm excited to have him on, so let's bring on Bo and Alex from scale that welcome to the show guys


Beau (03:32):

What's happening and thanks so much for having us.

Zach (03:35):

Yeah, man, I, uh, I'm, I'm pumped to be here. I, uh, I feel like, Oh, you've been in the agency game for, for quite some time, Alex, you've been, uh, just putting up numbers and setting records on the media buying side. And so I feel like it's, it's really fun to have both of you guys on, uh, in terms of like the magic dude here. We've got Batman and Robin here when it comes to scaling like a media agency. So this is gonna be fun, man.

Beau (04:03):

I'm more Robin than Batman for sure. Alex is the man in black that like mysteriously makes magic happen. So, uh, and anyway, but, but yeah, both Alex and I are industry veterans. We've been doing this for, you know, uh, more than 10,000 hours for sure at this point and both vaccinated, um, previous agencies, which was both fun and terrifying and um, you know, not healthy as well. I think we, we both gained like 20 or 30 pounds throughout that Alex has lost that weight. I've lost like half that way, but yeah, I mean, we've done, we've done the big agency thing and we, we appreciate that, but this new model was scale that we're particularly excited about because it just kind of eliminates the bias that comes with having 20 or 30 people on staff and having to build a solution to match those people versus building a solution that matches the brand's actual needs.

Beau (04:52):

Um, not to say that there's not agencies that could try to eliminate that bias, but just having carried that burden for a long time. I know that it's a lot more fun for me to develop a customized team and my network and Alex's network lends itself to that, uh, to be able to do that. And at the end of the day, what you're looking for on the brand side is the right strategy. Um, and so we happened to be decent strategists, I think, um, that's been validated a few times so we can figure out the right strategy for the right brand and then match them with people that are vetted, that we know like, and trust, then that's a win-win for everyone involved. And so that's, that's kind of why we've in our retirement. We've kind of, you know, kind of, um, gone to this model for sure.

Zach (05:36):

Trademark this phrase solution bias, uh, tm.com/scale that slash book.

Beau (05:44):

Yeah. Say that anyway.

Zach (05:47):

I love that. I love it. I mean, it just, it just nails it on the head in a sense it's like, Oh, Hey, what do I have to sell today? That's the solution that everybody needs. Uh, yeah. So, um, that's awesome. I, you know, just to entertain some of the agencies listening to this show, I, uh, I would love to know what your thoughts are in terms of exiting an agency. My perspective of this is that it is there's a lot of agency valuations in general are not worth like all that much. And, you know, relative delicious say other categories being, you know, let's say in SAS or, you know, fi like there are other categories that to say that have higher valuations, for sure. Now going into scale that for the second time around how much is exiting an agency really part of your, your goal now, or is it like, okay, we got that out of our system.

Beau (06:46):

I mean, there's a reason we're building the model we're building for sure. And some of it's informed, but I think probably, you know, I got to speak to your, your past in terms of, of saying, I think that's an important thing to note, um, in terms of what it takes to exit an agency and what to prepare yourself for it. Yeah. I think you kind of hit it on the head. There is that because you know, my, my first agency, that was my first four as my first, first time entrepreneur entrepreneur, and I think a lot, like a lot of first time entrepreneurs, I was pretty naive in that sense of like, of what agency multiples are actually worth. Right. And, um, it's, uh, my goal was just to get as big as possible, grow the top line revenue as high as possible. And, uh, I guess in some sense, I actually see it succeeded in that goal.

Beau (07:30):

I mean, we were number one 59, 500, our first year eligible near four. So I went from zero to 20 employees. I'd like to be highly, that's like, that's the big list? Like this isn't like the Denver business journal, no offense, Denver, Denver there's like the list. But at the end of the day, like, you know, especially in that model where it's like, you know, we were taking on some pretty small advertisers and it was a big team, lots of advertisers and lots of dollars, you know, revenue wise. But, um, you know, your, our average client revenue is like four grand a month or something to us. And, and that model just, it starts to break when you're like, again now going to have 20 media buyers to manage a hundred accounts. And now you gotta, like, you gotta be super dialed in your SOP SLPs and your processes or your quality of work.

Beau (08:17):

Doesn't go down now, you're hiring junior media buyers just out of college and throwing them on five accounts and they don't know what they're doing. And it was a mess to be honest. So I learned a lot from that experience. And, um, yeah, to your point, I think I did get that out of my experience. It, I got that out of my system in some sense, it's like, okay, talk it up as a way. And I can put that down as like, that was a goal to like build an exit a company, but this time you can do a little bit different and that's what Bo in our buildings and it's actually more scalable and we still, we're still taking direct clients. That's our skill that select where we take, you know, half a dozen to a dozen clients a year. Um, but our margins are much better because it's just, Oh, and

Beau (08:56):

I'm managing those. And, um, and that allows us to be on the front line of things change quickly. So, you know, we're still in there actually doing this, not just teaching, but actually getting your own doctrine, so to speak. And then second is, it tastes good some days it doesn't, but yeah, I think like, I think the note is there that like we can say no more in this phase of life. And I think like you actually, the number one way to grow, I think a service business is actually to learn how to say no and learn when to say no. Um, and we'll get into that even in the rich ads and the poor ads, right? There's certain like things where my spidey sense I'm Spiderman. Anyway, it goes up. Maybe that's the, maybe that's the data duo Spider-Man, but anyway, but you know, I think that's the thing is like, I'm really, really proud of those hours and that time that I put into my first agency, and I think you would say the same and I'm proud of the exit and then the experience, but like at the same rate, um, you know, the elusive like, like, you know, pot of gold at the end of the rainbow is you're like thinking to exit a service, a service business, I would say is going to be built on your processes and your operational strengths and your network.

Beau (10:10):

And if you can get those things dialed in, you, you will, and you could have a successful like joint venture partnership or something that looks like an exit or feels like an exit. It will not be like five X of EBITDA or like crazy, you know, 10 X, whatever multiples you see in the tech space. So not to like pop that balloon, but that's, there you go. So it's interesting, you, you know, success leaves clues, but that doesn't mean that, you know, you should go do the exact same thing the next time. Right. So I think that's the interesting thing and getting to know serial entrepreneurs, I'm always like, tell me about your first exit because you typically learn the most about that person from that.

Zach (10:49):

Excellent. Yeah. You guys have kind of gone before us and you've done the road less traveled and you're back here to share with us, uh, with a new model. And I feel like that's, what's so cool about your backstory of scale. That is like, Hey, we went down this path, you know, and here's everything that we learned and we're going to create a new model where there's really two sides. We're not going to scale that skill, that select, we're only gonna take on 12 clients. Right. And really, uh, creating this second part of that, which is, um, really focusing on matching the, the, the talent and the, the, the different solutions, uh, with the right strategy at the right time. And, uh, I, I, I love it. So let's dive into this rich ad, man. I want to know, uh, what's working now, uh, tell me all your secrets, um, how

Beau (11:50):

I'll start from like the 30,000 foot level. And Alex can kind of speak to like the ground level, what we see like day to day, but like, here's, here's the number one thing I'm seeing in all ads right now is either you go big. You're like, you actually like spend the money, you do the creative a hundred percent. Right. And you go for something that's going to be wildly impactful. Um, and I'll, I'll list some examples of that. Or you go small, like you go really analog. You do like, okay, great. That we have an iPhone video from someone walking and talking about the product. Like let's, let's see what happens there. The middle is kind of where you go to die. Like, it's just not interesting to like the modern day consumer, as we scroll through our feeds and look at our things. So I think like if I could offer one piece of advice, it would be like, start small, get comfortable being analog, being a little bit more like I'm going to open up my iPhone and film me talking about this video or this product.

Beau (12:42):

Yeah. Your rhetoric has to be on point and the way you do that has to be on point, but your production value can be low. And then like broken in that with significant efforts that drive significant results. Um, the in-between just kind of start to look like the same. It's like a sea of same. So the irony of that is like, we looked through our ad library and comes with like all of our ad sets and, uh, looked at our like single highest performing ad. And it's definitely more on the low end of things. So Alex will show

Beau (13:16):

It's actually a stock video, 15 seconds stock video. But, um, and I should clarify too. And when both says best performing it lets the longest running it's been running for over a year now where we have spent over $650,000 on it in the last 12 months. And the great thing about that is it just, it just accumulates conduct and it's got like 10,000 comments

Speaker 5 (13:42):

On the rights to the stock video,

Beau (13:45):

Like literally 253 million impressions at this point and has driven the multiple seven figures worth of revenue for the client. Right. 15 seconds stock video, again, with the right call to action with battle-tested copy, if you will, you know, like we, we, you know, we're not, yeah.

Beau (14:05):

And it wasn't an active, he just made us like throw stock video and be like, Oh, let's go spend, you know, several thousand dollars a day on this. It was, you know, there was lots of AB testing in the early stages, you know, only hundreds of dollars across dozens of ads. And then

Speaker 5 (14:21):

So break down the ad for us. What is it? You know, we'll, uh, for every listing we'll, we'll put it up a picture of it at rich ed pro.com/podcast, you know, in the show notes, but like wa walk us through what is in this stock video.

Beau (14:35):

One of our products is in the hair loss space. Um, particularly they help women that are experiencing like hair thinning hair and those types of things. So literally this happens to be an image of a woman with gray hair, um, taking her hair about right. And like, kind of like her hair and like re like that's, that's essentially a L'Oreal commercial with gray hair. And like that 10 seconds of the gray hair woman just kind of have access to stock video libraries, which is everyone. It will be okay. Like you can, they're like this, that's a funny thing. And I think like, if anything, that I, as I sit down with a new brand or anyone in like a sales context, as I'm getting to know them, usually what they're lacking is just confidence to try things and to be okay, putting some stuff out there.

Beau (15:29):

And like, you know, there's all sorts of like trite kind of sayings around like perfection is the enemy of whatever. Good. And anyway, you get the general idea. And I think that's, that's somewhat true in advertising. And sometimes we just have to be like, Hey, it's going to be okay, let's throw it like let's yes, we might light a thousand dollars on fire for the first week or two. But if, when it hits, it hits and it's fun. Right. And, uh, and, and all data is good data for the most part in the context of advertising, you just have to have the thresholds and the confidence to spend the money, um, to get that data. And that's usually more of a mindset thing than a creative thing, um, the brand. So, um, we could probably kind of re like, kind of get over there and the third chapter of this chat around just kind of economic principles and things like that.

Beau (16:14):

But I think as it relates to creative more is better than less and simple is better than perfect. Right. And like, there was a time in my career where I would, I would be really, it would pain me to say that because I would go for perfection all the time. I mean, I've shot video with LeBron, James and Arnold Schwartzenegger and blah, blah, blah, and Nike like big brands. And yes, you probably should go for perfect in that scenario, but like at the same rate, you need to get data. And so I think like if I have to look at like, uh, like we're doing a launch right now for a big brand, um, in the food, the food space, they sell food. Um, and, uh, at any rate, it's interesting. Cause we're, we're doing both ant, right? So we have some creative that is kind of keeping it simple, stupid, just like, Hey, go find this product at this place.

Beau (17:03):

Right. Like really simple ads. And then we have the high end of things. That's going to be like their brand Anthem piece. And, um, I'm not losing sleep over that. That's the perfect strategy. And that's going to go well for them because they need both, you need brand awareness assets that are going to really build the brand. And then you need direct response assets that are just going to play in work. And just kind of be your like, you know, three and four yard like hits, right. You're just like, cool, that's great. And then you might need to air it out sometimes too. So now we're getting into football. But if you get your idea,

Speaker 5 (17:34):

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Beau (18:52):

Oh, actually I wouldn't do it earlier. In my last company, I lost like 20 pounds and I did it through keynote. So I'm a big fan of, but now all of a sudden I get all these keto ads and some of them are, um, something that some of you guys may know what I'm referring to, but there's a lot of sketchy keto companies out there that, um, try to pretend like their product goes on shark tank, even though it definitely was not in this one example. Um, not only though they do some, uh, poorly the core Photoshopping to prototype pretend that it was on shark tank. Then I thought on this whole idea, I don't really know where to start like the copy with looks.

Speaker 5 (19:32):

So let me help you out. It's a keto fast. All right. And it was like a little pill that pops in the water and then like, uh, uh, Laurie, uh, granary. They basically photo-shopped her in like four seconds into the video with her, like holding the product. But then they Photoshop their product in her

Beau (19:53):

With like fake badges of like something amazing that she's holding it. It's like a gala copy real quick. It says keto works very well. One cup before comma two 55 to one 12 without rigorous training. I don't, I don't even know what that brand's name is in Mandarin. You know, the page that's being advertised in the bathroom. Isn't like a man. And then the call to action is one cup at nine O clock in the evening, arts heart emoji contraction of the admin today, 85% off limited edition Quito,

Speaker 5 (20:31):

You know, the next version of poor ed segment, I feel like we just need to go find the brand owners and bring them on the show. Right?

Beau (20:42):

When you guys sat in a room and figured this one, why are you spending money on maybe what should do is

Zach (20:48):

When we have our guests on the show, we'll just go on the ad library. If we could just pull their entire history and just roast them. We're talking about all your crappy ads to that. That's a good way to just like, not get people to on the show. So, uh, honestly

Beau (21:05):

It's probably going to fill it or something. That's going to

Zach (21:08):

Block blogger.com a lot of authority there. That's good. Good, fine. So it's the recap. Think about it. Think about your creative a little bit

Beau (21:20):

More than this, but don't get too romantic about it. Like, cause I think like the other thing is it's tough to look at a single ad out of the context of how we build out an account structure and those types of things. So that's the other note, I think that's important in terms of building out ads is like when we use the five stages awareness, um, I always forget the author's name that was written at backend. Yes. Thank you. Eugene Swartz wrote this book that highlights the five stages of awareness. So in general, when we're building out our creative, we want to build our creative symmetric, all five stages. So what you don't see in a single ad is that that could be that intentionally waited. Like we might wait on that ad for the third touch, with, you know, with the brand versus the first touch. So I think,

Zach (22:01):

You know, somebody is like a really good media buyer and they're managing over eight figures of media. If they quote Eugene Schwartz on the podcast, that's a good general rule of thumb. If you're a brand you're looking to hire an agency, just go through rich ed, poor ed transcripts, if they mentioned Eugene Swartz, or just go to scale that.com and get matched with the right strategy,

Beau (22:21):

Eugene. Oh gee man. Like I think he is, he's a legend. It's so good. I love it. Nearly what is being said on stage is when we had stages pre COVID, but um, it, the DNA of it, the good stuff is typically from Eugene or Ogilvy or someone like that OGE in that camp. So you might as well just go back and read the good stuff.

Zach (22:39):

Exactly. So Beau you're like the King of, uh, of winning budgets. I, uh, I feel like we could have a, you on a whole nother show where we just talk about where the hell do you find these like massive brands and like, Hey, you know, you guys like you guys aren't cheap. Okay. And, uh, and so I feel like there's a whole masterclass here on just Bose BizDev skills, um, and how you pull that off. But for the sake of, uh, you know, our add and, and attempt to repair this, let's stay focused on the format of the show, which is why I want to dive into some financial principles for advertisers. And for some of the, the, uh, the folks listening they've, you know, had this ongoing conversation with their clients, which is, Hey, this is going really well. You should spend more on ads.

Zach (23:29):

And then the client says, yes, we should do that. Let me get back to you. And then they say, no, we're not going to actually do that. So you've, you've been in the game long enough. I feel like you, you've got to have some pretty amazing, uh, mojo in terms of how you go about navigating these conversations very strategically and, uh, and winning budget over because after all you guys are going to be managing 25, 30 million a year of media, and I'm gonna imagine, you know, if that's just with like 10 or 12 clients, like those folks are scaling like pretty aggressively,

Beau (24:08):

No it's average daily budget for a single client, like in scaling season.

Beau (24:12):

Oh, do it like during, like for daily budget, I mean 36, 36, or more than black Friday black Friday along, we spent $200,000

Zach (24:26):

Josh. Hey, can we get that on the ad card? That'd be amazing.

Beau (24:31):

An interesting point is like, how do you, how do you, like, we always get the questions? Like, how do you go from like spending 10 K a month to like that? Right. And get to that in a second. Let me answer the first question real quick. And I'm just gonna channel, like my Gerrit my inner Jerry Maguire, because if I'm writing out my sales process, it's helped me help you think like it is like, and I think that's the reality is like I just come at every conversation from like a, and this is, this has been used before is like, how can I help? Because if you don't, if you enter the conversation, wanting to talk about yourself, guess what? You're not going to fit like that conversation finished before it started. So if you're getting to know and your brand, it's just like, tell me about what your guys are up to.

Beau (25:10):

I ask typically three questions, wherever you found success, where do you want to go? And where you come from. And usually between those three questions, I can pretty much triangulate what is going to help them cross that chasm between where they're at now, to where they want to go. And usually it's not what they've been doing. Right. Usually it's something that needs some fresh eyes and some fresh inspiration on, and then I just off start offering all of that stuff for free. Like, I'm like, fine, let's go. Like, you want to dream up a 62nd spot. Let's talk about that. Right. And so, yeah, like a lot of people talk about adding value in the sales process and a lot of trite, things like that. But I think what, what I've learned separates that conversation, which the majority of my peers are having, versus the way I would have that conversation or train someone to have that conversation is to push back on that brand in a very thoughtful and kind way.

Beau (26:02):

And to actually protect them from themselves and say, Hey, there's a high probability that you have too much going on. Let's eliminate two or three of these things and focus on one of them. That's working from what you've told me, this thing is working. So how can we help you make that thing work better? Right. And usually that's a different conversation than they've had with the average agent agency. Um, and usually I've made them a little bit uncomfortable in that process because I'm literally jumping right into their business and talking about their business model and not just their advertising efforts or their marketing, or do they have tracking pixels set up or whatever. Like, that's, that's fine. That's well, it's good. But we don't, we're not in the business, we're in the growth business. So in order to find like the way to grow, usually I want to talk about and figure out where that looks and where, where, where to help them out with that. So that's my very condensed sales and, you know, class one Oh one. Yeah. That's a whole different conversation in itself. And I think helped me help you is probably the easiest way to condense it

Beau (27:10):

A little bit of his manifesto in my system as well. Cause I just, I think that, I think anyway, that goes back to being accountable to the numbers. And unfortunately not a ton of our peers are as, as excited to get into the numbers as people in the Dr. Space or people that really, really want to be on the hook for, you know, a few million dollars worth of spend a month and making sure if that goes well for everyone. So

Zach (27:33):

How do you think you guys will have those budget conversations leading up to like a black Friday, right. When you tell somebody that this may be spending like five or 10 K day right now, and it's like, we want you to spending 200 K on black Friday, what is the financial conversation there? It's like, Hey, uh, is your Amex limit like high enough for this? Or like, cause you just have to really start planning financially, like that is going to pull a ton of cash out. They're going to have a ton of limits across the board. How are you tackling that financially?

Beau (28:06):

Yeah. I mean, we're already having those conversations now most of our clients start two to three months ahead of time and start with forecasting. So a lot of it, sometimes it's starting with just, Hey, what's your goal? What is your forecast? What would you, what would the success look like for you in this, you know, Q4, how about what's your rubbing goal? And so starting on a macro level, um, and then kind of backing that down to just a single channel with justice, Facebook and what are we going to do to help support that? Correct.

Zach (28:37):

Yeah. And in terms of hitting that level of scale, just to bring that down for a second, right. Great. Start with the goal. Right. But if I'm, if I'm, if you're expecting me to like deploy that amount of capital, do you have conversations about like, Hey, what's your cash position look like? What, you know, what are some of the limits, you know, that you have on the card? Or are you like helping them, you know, put some capital solutions in place or do you guys just kind of say, Hey guys, hope you have that figured out because we're going to spend your budget. Like by 9:00 AM.

Beau (29:11):

See, I mean, like obviously you pressure tested things at that point, uh, going into Q4 and going into everything and kind of in that season. And so I think like in general, we typically don't work with clients that only have a season like a selling season and they usually have evergreen ads at that point that we've helped scale to a certain point. So yeah, we're going to crank it up to 11, you know, during black Friday. But at that point we've typically already printed up to like seven or eight or nine. So we've read pressure, tested the business if you will. And, and we've run people of inventory for sure. We're not perfect in that break, you have to be ready to scale. And, uh, ideally we've hit a few guard rails along the way, or we've just planned ran people out of stock on accident.

Beau (29:52):

I was going to say, I mean, we don't actually want to bring on a new client. That's one of the first questions we ask then is like, what level of sales per day would break you? Like, okay, you're doing a hundred, a hundred sales a day. Like if I, tomorrow I give you a thousand sales, like what would happen? And so a lot of times the conversations, a lot of times the conversation starts more inventory I'd say, and for forecasting and how much they can fill it per day. And then finances are tied to that. Um, Beau's point we normally, I do, like we would already have found that either have found it prior, prior to going into black Friday for any commerce client, um, or we already have a good sense of we've had those conversations with them. Um, you know, well in advance.

Beau (30:37):

Yeah. And at the end of the day, if a brand that we're having that we're working with directly, doesn't have their acquisition costs dialed in and their understand their lifetime value. And then the third number is like understand the threshold of time between that initial acquisition, to that, you know, lifetime value. However, they want to define it being realized and they have the cashflow to like sit on that for two and a half months or whatever that takes to like realize an eye like a really, really positive, you know, ROI position. They're probably not ready to scale at the level that we're going to provide for them. And I don't mean that with any ego, it's just like we, so we just consult. Right. We're just gonna help you get from point a to point B and help you figure out how to get there and then work with financial partners like you guys to go, okay, cool.

Beau (31:24):

Like, so you can cashflow this thing two and a half points out. What are your cash reserves right now? And if they're like 30 days and we're like, cool, you got to go open up a line of credit, you've got to get a car. You gotta like figure some things out. Um, and there's credit cards that help out with that are not here to get people leverage, but you can see how the numbers, if you know your numbers. Well, it's a pretty easy math equation to go, yeah, three months from now, this is going to feel better and you're going to be on a treadmill. That's sustainable. That's just going to keep moving faster and faster. Um, so it's never too early to plan for scale. Um, and I think the key question is, you know, what will scale break you? And then the key chasm to break over is how do you maintain your acquisition costs at scale? And that's the real question that we hear from agencies and brands alike. And I wish that that was a formula, but probably Alex can give you some like two or three core principles that like you see as you try to like maintain an acquisition costs and scale.

Beau (32:21):

Yeah. Maybe we could do a whole podcast. I would say some, some quick tips, um, in terms of what I'm saying right now, as we mentioned that, um, is working well for us, it's been running for a year. One of the reasons we've been able to do that and run it for so long is because it's targeting such a broad audience, um, literally targeting all women in the United States. That's true. Um, so, you know, we're seeing like 10%, you know, even just a year ago, it was like, you know, 1% lookalikes now it's like 10% lookalikes or just fun targeted broad audience. And what Facebook can do a lot of that optimization or finding the right person for you. If you're optimizing for conversions is where we're seeing a lot more success right now.

Zach (33:01):

Well, I'll jump in for you, Alex. Um, when, when y'all are spending, you know, a hundred to 2200 K a day on, you know, for black Friday now Zach was mentioning cards getting capped out or something, are you doing this from one ad account? You pumping out an extra ad account just to play a safe, I'm kind of curious on how you're executing that with maybe a single ad account or multiples.

Beau (33:21):

So this is a that's across, you know, several advertisers. So, but each advertiser we worked with only has one ad account, but we're also working with some larger brands that they all actually, all the brands they have a line of credit with Facebook helps a lot. And I know, I don't know for smaller brands that doesn't help because it's typically hard to get into kind of an invite only situation.

Zach (33:47):

You know, there's only 6,000 people on Facebook credit. There's 6 million advertisers, only 6,000, the good terms. And most of those brands, I'll just say like, if the, at the, you know, they're, they're having to pay that balance back, you know, like they're not getting a whole net 30 at that level of scale for a lot of them. Um, yeah, guys, this has been fun. Uh, thank you so much for, um, just opening up the kimono here and, and sharing with us that stock photography really does work. We're going to, we're going to get that in the highlights here, learn how Alex, Alex and Beau are spending 30 million a year with stock photography and you can too. Oh man, it's always a pleasure. Uh, Bo tell everybody where they can get in touch, what you guys are excited about next. And, uh, yeah,

Beau (34:49):

Appreciate it. I mean, simply go to scale that.com. We've got a quiz on there that just helps people understand if they're ready to scale. Um, so if you've like, you want to like kind of get in that mindset or even just get like a quick audit for your business, just going through that quiz, um, is a good like report card for yourself, right? And, um, worst case scenario, you have a 30 minute call with me or Alex and we kind of, you know, point you in the right direction. That's not a bad thing. So that's, that's our shameless plug. Um, you know, but other than that, like we genuinely just want to help people. And we don't like, we're in a spot where, you know, we want to help the right people. And I have no problem talking to anyone at this point. Cause I I'd rather people do the right things, then just do a lot of things. And that's the number one thing I see outright out there right now. It's just doing a lot of things and just wearing themselves out, wearing their out, you

Beau (35:38):

Know, like just, you know, I mean this whole thing called online advertising is supposed to, to, you know, help you achieve some balance in your life. Not, you know, like run you into the ground. And so, um, so anyway, if you want to see how I achieve balance in my life and I'm just kidding. No, but it's an interesting thing. Cause like, I think that's the number one thing that Alex and I probably would say to anyone is like really take the time to figure out the right things to focus on and scale that let's wrap up there. Let's wrap up there

Speaker 5 (36:12):

Guys. Thank you so much. It's been awesome. Appreciate it guys. Thanks guys. Thanks so much for listening to another episode of the rich dad, poor dad podcast. If you're like me and listen to podcasts on the go, go ahead and subscribe on Apple podcasts, Spotify, YouTube, and rich dad, poor dad.com/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 [email protected] Show me you left a review and I'll give you a free copy of the rich add or add book to learn more about the book. Go to rich ed for a.com to leave a review that a rich ed or at.com/review. Thanks again.


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About The Podcast

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

Zach Johnson

Zach Johnson is Founder of FunnelDash, the Agency Growth and Finance Company, with their legendary Clients Like Clockwork solutions. Under Zach’s leadership, FunnelDash has grown to over 5,000+ agency customers managing over $1 Billion in ad spend across 41,000 ad accounts on. Zach’s private clients have included influencers such as Dr. Axe, Marie Forleo, Dan Kennedy, Dean Graziozi to name a few. Zach is also a noted keynote speaker and industry leader who’s now on a mission to partner with agencies to fund $1 Billion in ad spend over the next 5 years.

Dylan Carpenter

Dylan Carpenter

Dylan Carpenter will be diving into what he and his team are seeing in 200+ accounts on Google and Facebook when it comes to trends, new offerings, and new opportunities. With over $10 million in Facebook/Instagram ad spend, Dylan Carpenter had the pleasure to work with Fortune 500 companies, high investment start-ups, non-profits, and local businesses advertising everything from local services to physical and digital products. Having worked at Facebook as an Account Manager and now with 5+ years of additional Facebook Advertising under my belt, I’ve worked alongside 60+ agencies and over 500+ businesses. I work with a team of Facebook, Google, and LinkedIn experts to continue to help companies and small businesses leverage the power of digital marketing.

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