Numbers Rock Star Ricky Baldasso Talks Scaling Benchmarks & Tracking TRUE LTV Over Time

Zach Johnson

Dylan Carpenter

Ricky Baldasso

Episode
72
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1

Ricky Baldasso

,

Director

Metric Driven Marketer
Apple PodcastsGoogle PodcastsLive on SpotifyLive on Youtube

Ricky Baldasso is the founder and CEO of Metric Driven Marketer and specializes in strategizing and building evergreen marketing funnels that produce a positive ROI on paid traffic at scale. You can check out his blog and follow him on his Facebook profile directly.

Episode Summary

TAKE AWAYS

  • Going from an accountant to a ROCK STAR in the ads game
  • Testing long form copy and seeing what hits
  • Understanding TRUE LTV at different customer windows

RESOURCES/CONTACT:

Transcript

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Episode
72
Transcript

Zach (00:00):

In this episode, we talk with Ricky bell. Dasso about tracking your LTV over day one day, 30 day, 60 day 90, and how he organizes all this with calculators and spreadsheets for his clients. You're going to absolutely love it. Plus, he's going to give you a proven ad template that he uses for several different clients in several different niches. That's again, long form creative, as well as a quick tip around how to think about image selection. When it comes to your Facebook ads, enjoy let's dive in

Ricky (00:38):

Based on my projections, that my cost per click will be a dollar 50 and my opt-in rate will be 30 cents. And my attendance rate will be X and my close rate will be Y et cetera, based on that model, I'll be able to see, okay, if I hit these numbers, my earnings per lead is going to be wild.

Speaker 3 (01:05):

[inaudible] you're listening

Zach (01:06):

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, Dylan, how you doing today? Do doing pretty good, man. Ready to get this party started. Yeah, man. Today we got a former accountant on the show and no, this will not be boring. This is actually going to be amazing. It's very rare that you actually see an accountant turned marketer.

Zach (01:55):

So I think we're in for a pretty, pretty sweet treat. You excited. Ooh, I'm ready. I'm ready. Let's do it. Yeah, man. So, gosh, I think I've known our guests here for a couple years at this point. Um, he's probably one of the most metric driven marketers, uh, that I know of the guy, uh, is an analytics beast. And you can pretty much count on every single conversation you have with him to know every single important stat there is in terms of customer acquisition, CPA, LTV over time cashflow the whole nine yards. Uh, so I've been incredibly impressed with, um, this guy's spreadsheets, uh, at the final level. So now, uh, I think he's gone from accountant to consultant to now. I think he's really done a great job of making the jump that a lot of agency owners and consultants want to ultimately make, which is running your own brands and owning your own products and, and being partners in several different companies, rather just a kind of a gun for hire. So without further ado, let's get Ricky bell. Dasso on the show. Ricky, how are you doing? I'm doing great,

Ricky (03:08):

Man. Thanks for having me. It's great to be here.

Zach (03:11):

Yeah, man. I love it. Where are you at in the world right now? Right now,


Ricky (03:15):

Poland, I'm actually from Australia, but I managed to, uh, get over here. Uh, my, my girlfriend's Polish and luckily my mom was born in Poland. Then I have the European passport. So I'm able to be here right now, which is pretty cool.

Zach (03:30):

Cool. That's cool, man. Well, I'm excited to have you on the show, give everybody a little bit of a backstory here in terms of the three different brands that you're working on today. I think one of the things I didn't even say in your intro, Ricky, is I think that you also really understand what it means to niche down, like better than most people. Uh, when you talk to Ricky about the niches that he's in, you're like what that is. That's a thing. Uh, so kudos to you, man. So tell everybody a little bit about what you're up to.

Ricky (04:04):

Cool. So, um, the three businesses that I am partnered on right now, one is called roping.com and roping is a, it's a niche sport within rodeo. So in rodeo there's a six main sports and roping is one of them. So yeah, roping.com is one. And then another one, which, uh, was launched actually only a few months ago is a venting training.com. So eventing is another equine sport. Um, it's not rodeo, but it's, um, you know, it's a, it's a different, uh, horse related sport. And then the other one is, uh, so those two businesses, I'm an, I'm a part owner in, and then there's a third business that I, um, I run the marketing for on a performance basis. So I get a share of profit. And if the business happens to sell, I get a percentage of the sale, but I'm not technically an owner, but you know, structurally it's, it's, it's different, but it's essentially a SIM law and that's actually in the farming nation. Um, I probably won't mention that website, um, because it's, you know, it's quite a large site and it's not really publicly known that, um, uh, kind of behind the scenes marketer of that, but it's in the farming

Zach (05:26):

Niche, farming niche. All right, cool. That's a niche that I'm not familiar with, but Hey man, you know, you know, the game, this is the rich ad poor ad podcast, right? So I'm excited to dissect your rich ad campaign because I know Rick, it's going to bring like every metric to the table on why this thing works. So are you ready to dive into it? Show a man, let's do it. All right, break it down for us. Let's let's hear about this rich ad. Cool. I'll give it a,

Ricky (06:02):

A little bit of backstory behind how this ad came to be so early roping.com. We had a, um, we had a DVD that we launched, um, which was actually a documentary with a world champion, a seven time world champion in this niche. And it was a documentary a day in the life of Jacob barns. And Jake Barnes is this world champion. And we had like a really high production value, um, video crew, go there, film everything and create this 90 minute documentary, which is probably the highest production thing we'd ever done. It could literally go on Netflix and you would end to the quality would be kind of up to standard. And we have this really amazing three and a half minute video trailer that is just like as high production as it gets. It's incredible. And we're running this ad as a video ad and, um, and then the sales page was quite simple.

Ricky (06:57):

It also had that same trailer video on the sales page, had a headline, had a little bit of copy and then the call to action button and, uh, you know, for the order form. And it actually wasn't profitable. And I was thinking, are you crazy? Like if something's wrong here, because we've got a seven time world champion, it's a day in the life documentary, it was a $20 offer. We had high production value and incredible trailer and it wasn't converting. And I was like, so confused. So then I spoke to one of my marketing buddies and he was like, man, you need to put more copy on the page because it, you know, from the creative standpoint, it looks really cool right now, but there's not enough copy here to, um, to, to close the sale and, and build desire for the product. And in such a niche market like roping it's, it's not the easiest thing for someone to write copy for unless they understand the market.

Ricky (07:52):

So my buddy who gave me this advice as a copywriter and I was like, okay, well, what do you suggest? And he's like, let's just do some bullets. And he came up with a, um, idea to just write some boards for what people will learn. So he went through the product, uh, the, the 90 minute video and just started riding boards for every couple of minutes in the, um, the product. So then we had a whole bunch of boards and we put a headline, which was something like 33 things you will discover in the new Jake Barnes documentary. And then we had the boards. So we had that as copy on the sales page. And then we kept running the video trailer, add to the sales page. And then all of a sudden it started converting. The CPA, went from maybe $40 on a $20 offer down to below $20.

Ricky (08:47):

I can't remember exactly what it was, but essentially it was profitable. And then we'll able to, uh, to scale that. But then when things really kind brushed, it was when we took that copy and we made it an ad rather than using the video trailer as the ad, which had incredible engagement, had thousands of likes and shares hundreds of comments because it was a really great trailer, but it wasn't converting that well. Then when we took that bullet point copy and we made the ad itself 33 things, you would discover in the JAG, new Jake bonds documentary. Um, and then we just had the copy as a lot of, you know, the boards as a long form, as a long form copy. And then we just took an image and had an image ad. Uh, then the CPA instantly like overnight went from maybe like 16 or something like that, literally to less than $5 and a generated hundreds of styles.

Ricky (09:40):

And then cause it's a small market over time that ad fatigued as well. And the CPA went up, but that I generated at least, I would say at least four times as many sales as the original ad, um, and profitably. And then since then I've been able to take that exact same format. And for every single offer we release, I always have an ad. That's like, you know, 17 things you'll discover in and then I'll put the product there or sometimes I'll make it even more specific and say, if the product, for example is about something specific like horsemanship or have an ad that will be like 21 things you will learn about horsemanship in, and then I'll put the name of the product and it's been something I've used in other markets as well. And it just seems to consistently work and especially as a retargeting ad, um, that's something I'd recommend for anyone. Like if you, um, have a product like online course or, um, something like that or a book, I would definitely recommend trying this ad as a re-targeting ad and then you can potentially take it to cold traffic as well. And, um, you know, it's worked really well for me and hopefully it works for anyone else that tries it out,

Dylan (10:54):

Man, Zach, this is two for two on long form copy, man, this is I'm loving it now. Yeah. You know, this, this stuff takes time to put together. Some I'm like literally reading through all, all these, these, these bullet points here. I mean, this is.

New Speaker (11:09):

quite a bit where do you think this only works for selling info or how would you execute on this for, for somebody that's not selling a course or a training or consulting?

Ricky (11:23):

See if you were selling a physical product, do you mind, um, you might just be able to rework it to something like 10 reasons why our customers love, insert the product name and then just talking to the benefits or the, you know, the features or a mix of both maybe talking to the results, just like putting anything in a bullet list and then creating a headline that kind of creates context for that bullet list. I think it's worth testing. At least I love it. Oh yeah. Big time. Yeah. That's super juicy.

Dylan (11:59):

The creative team to kind of along with it. I mean, I love the angle. I love the, the, the copy on it. What did you learn in terms of the images or the videos he tested to go with?

Ricky (12:09):

Yeah. So we've used this out a few different times for different offers and, um, typically I'm just like if it's a static ad, which is usually what we'll do for these types of ads, as opposed to a video is just any kind of, um, action ad where it's like a still frame shot of something in action. So in the roping example, it is, uh, the creative that we used initially was just a still frame, like shot of the video, where it's like midway through the guy practicing, um, the technique of the sport, where essentially he's throwing a rope out like a, um, fake cow thin on the ground, which you practice on, which is called a dummy. And, um, you know, in other, in other industries, just like if it's golf, for example, it might be a steel frame shot of the guy about to hit a golf ball and it might show it just kind of in some ways showing something to do with the technique.

Ricky (13:14):

Um, cause that kind of creates that curiosity loop of like, you're going to learn something about technique. And then in this case it was like 33 things you would discover in, you know, the product. So yeah, you could probably test a few different things, but I think that just something relevant to, um, what they're going to learn. So if it's sport, like the case here, something to do with that, if it was something to do with marketing, maybe it could be, um, like a screenshot from like a software tool or like a, like a screenshot from the Facebook ads manager and maybe like some like, you know, blow it out, being with a circle around it to create some mystery or something like that. I'm sure you could get creative with it. But I think really the, what makes this ad work is the, is the concept and the copy as opposed to the creative.

Dylan (14:08):

I think that there's still a principle that you shared here around just how to think about creative, right? Like taking a, still of some of something in action.

Ricky (14:20):

I think that's a pretty solid piece of advice right there.

Dylan (14:23):

So next time you're on Getty images like that. At least that'll at least help you segment out like 90% of the stuff, uh, what you're trying to figure out. Uh, you should run so good stuff, man. This episode is brought to you by funnel Nash's add card, the only charge card exclusively for your digital ad spend. And if you're an ad agency that manages seven or even eight figures a year in media and ad spend for your clients, and you're looking to double your profits over the next six to 12, then check out ad card, see the typical agency model is this, you charge 10% of your spend. We make 10 to 20% margin at the end of the day. So that's really one to 2% of your clients spend that is profit in your business. The easiest way to double that is a really find a way to earn in that one to 2% cash back of the card that is on file of your clients as ad account.

Dylan (15:18):

And before ad card we had to do was invoice all your clients for their ad spend up front. She's really difficult on a cash flow basis and very difficult ask. And then you had to put the card on your own Amex or whatever card of choice to get that level of value back into your business with add card it's entirely different in streamline. You simply get your clients on add card and make yourself the agency of record and you'll get the cash back. As long as you're managing the ad spend, it's a great way to double your profit without doing any additional work.

Ricky (15:53):

Check it [email protected] All right. You ready to roast this? You ready to dive into it? Yeah, let's do it. It's good.

Zach (16:08):

And check that email. Let's go ahead and get your initial reactions to this bad boy, because we have done this one and I absolutely loved it. So I want to get this right back on because this guy just looks disgusted, disgusted

Ricky (16:24):

Getting to refill the water bottle. Dehydration recover faster from dehydration caused by working out and heat exhaustion.

Zach (16:33):

Are you into it? Are you sold? Are you going to convert? What's what's the deal? Yeah,

Ricky (16:38):

I'm just a little bit weirded out by this face is just the initial reaction. Um, and um, getting through refill the water bottle dehydration, um, just the cut on this. I'm not so sure about this so far. I kind of feel like it's not solving a real problem. It's like if you're dehydrated, just fill your water bottle up and have some water, you know? So I don't know about this one. Um, this is, uh, this is a no from me. If I'm on shark tank, you know, that's a no from me.

Zach (17:17):

I love how you're just looking at the product with that face. I think that was brought up last time, but you know what? You're trying to flex on a product and you have a guy looking at it, like he's just disgusted. Like I do for the, you know, do we really want that?

Ricky (17:30):

It looks like a disgruntled customer. If it, if anything, just

Dylan (17:35):

By the creative alone, I thought this was promoting

Ricky (17:37):

Like a, uh, like this, this powder that you add to water to get rid of diarrhea.

Zach (17:46):

Yeah. A laxative ad, if anything, I mean that face is like guys struggling. Well, that was fun. Thanks for entertaining us. Ricky, send some product your way. So let's dive into it, man. I think you've got some interesting insights on some unique, uh, cashback and funding strategies, uh, to share with the audience, but let's, uh, let's dive into it, man. I know Ricky, Ricky, you're never going to let us down. And when it comes to financial principles, uh, I, when it comes to ad, so let's hear it.

Ricky (18:25):

Yeah, man, sir, I've got a couple to share. Oh, I'll start with one. That's relevant to everyone. And then I'll talk about one that's specifically relevant for people living in Australia or potentially relevant for people that, um, uh, hiring an Australian agency. So, um, the first thing I want to talk about is just the metrics and um, with advertising and you know, most of what I do is recurring revenue. So it's low ticket membership websites, you know, similar to Netflix, but niche based and you know, where it's a monthly subscription or people can pay for example, quarterly or yearly and the first. So with that model, and even if you're not running that model, but you just have a front end offer and then you have other offers that you can offer your customers or clients. What I'm really looking at with advertising is I'm looking at my ROI or my return on ad spend on day one and then day 30.

Ricky (19:29):

And then over time. And essentially what goes into the ROI or return on ad spend is, is the cost to acquire a customer, you know, which we call CPA. There's your average order value, which we call AOV, which is the average amount that someone spends on the first transaction or the first day as a customer rather. And then there's the lifetime value, the LTV of that customer at the time. So I'll give you an example of like with, um, with roping.com. So ours is, um, our memberships $30 a month or $75 a quarter or $240 a year. So what'll happen is if 80% that sign up, take the monthly option and 10% take the quarterly option and 10% take the yearly option. Then our AOV is 0.8 times 30 plus 0.1 times 75 plus 0.1 tons 24. Now off the top of my, I don't know that off the top of my head, but if I go to calculator out or a spreadsheet and I just quickly did that formula, I'd figure out that the average order value, the average amount that someone spends is going to be about $50.

Ricky (20:46):

I don't know exactly what it, I could get the, do the math, but let's say it's about $50. So now I know that even though 80% sign up at $30 a month, if I have 10 buyers and eight by 31 by buys at 75 and one buys it, um, two 40, if I add up all that and then divide it by the 10 customers, the average is going to be about, say $50. So then what I'm thinking is, okay, when it comes to my advertising, if I have an ad that costs me $40 to generate a $30 sale, that might seem as on losing money, but by the time I've generated 10 sales, if the average sell, if the average cost per sale was $40, remember the average customer will spend about $50, which means that on average, on profitable on day one. So if my average order value is $50, I'm actually happy to spend up to $50 to acquire a customer because then I'm breaking.

Ricky (21:48):

Even I've essentially generated customers for free. And then, um, all of those monthly, quarterly and annual people will get billed at their next billing date. And then especially those monthly ones will get billed every single month, which is going to then increase my lifetime value. And then all my profit is going to be made on that lifetime value. And then if you really want to scale and go, go reach a broader audiences in your market, um, then you can even look to at what's your lifetime value after 30 days. And then you can even look to spend on customer acquisition up to the amount your LTV is after 30 days, because then essentially the, the formula resists. It's like, if, if I said to you, Hey, you gave me, um, $70 today. I'll give you $50 straight away. So you're at a 20 minute $20 loss today, but then in 30 days from now, I'll give you that 20, $20 back.

Ricky (22:52):

So you were breakeven and then 30 days later, I'll give you another 20, 30 days later, I'll give you another 20, 30 days later. I'll give you another 20. It's an obvious decision to, um, be happy to take that small loss upfront because you know that within 30 days you're going to be breaking even. And then every 30 days after that, you're going to be getting, um, more revenue, which is going to mainly be profit, especially if it's something like a membership or a subscription service, for example, X software or something like that, um, where the marginal cost of each fulfilling on each customer. Isn't, um, isn't massively increased if you know what I mean? So that's a bit of mindset stuff to think about when it comes to, um, your numbers and, you know, one thing that I'm always looking at, and you mentioned it earlier, Zach, about me and my crazy spreadsheets is before I launch any campaign, um, I'm always getting familiar with the metrics in a spreadsheet before I even launched the campaign before I even turn an ad on.

Ricky (23:55):

I want to know how, how my opt-in rate influences my, you know, my, um, my CPA and my ROI and things like that. So I'll have a spreadsheet where I'll look at, let's say it's a webinar funnel. I'll look at what's I'll forecast my cost per click. My opt-in rate, my attendance rate, my close rate by price point. If there's a payment plan, I will look at the price point of my payment plan. I'll look at what percent of forecast, what percent I think we're paying for what percent we'll pay on a payment plan. And then I'll forecast what percent of those payment plans I think will succeed on the rebills. And essentially I'm going to like create a model, like a financial model where I can see, okay, based on my projections, that my cost per click will be a dollar 50 and my opt-in rate will be 30 cents.

Ricky (24:47):

And my attendance rate will be X and my close rate will be Y et cetera, based on that model, I'll be able to see, okay, if I hit these numbers, my earnings per lead is going to be $12, um, on, on the webinar. And then if I'm looking at even post webinar automations, maybe my earnings per lead after a seven day email sequence might go from $12 to $15 and then so on, then promoting other offers on the backend and if do it really, it offers and whatnot. It might go up to 20 and higher, sorry, but let's just say that the day one earnings per lead is $12. Then if I'm my forecast is okay. If I hit these numbers, my earnings per lead is going to be $12. Then when I get the funnel set up and I watch my ads, then I'm happy to spend up to $12 for a lead.

Ricky (25:36):

And then I'm monitoring those metrics on the funnel. I'm comparing it to my forecast. And then maybe my opt-in rate is higher than expected, but my cost per quick is lower than expected. Uh, also higher than expected and whatnot. Like maybe some, um, steps in the funnel perform better and some perform worse than I forecasted. And I get familiar with the relationship of those, what I call optimization metrics with the end result, which is ROI. And then I get familiar with it. And I say, okay, right now my earnings per lead is $10. And my opt-in rate is 20%. If I increase my opt-in rate to 25%, how is that going to influence my earnings per lead? And I just get familiar with those numbers so I can systematically optimize the funnel and then, um, know how it's going to affect my ROI. And, you know, one thing I want to say final thing I want to say about this is that, um, there's been, there's been a handful of times where I've had, um, a friend or a, another marketer, um, have me audit their, and they kind of start the conversation quiet, um, quiet, like disappointed in the performance.

Ricky (26:51):

And they're like, yeah, it's not converting. I just, you know, can you look at it and let me know if you see anything I can, I can optimize, but they kind of have this defeated mindset where they're like, it's not working, you know, for every dollar I'm spending, I'm making 70 cents back. And then I look at it and I'm like, man, if you increase your opt-in rate by 20%, this is a profitable funnel. Or, you know, if you can, if you can get a high percent to pay in full, rather than on a payment plan, this is going to be a profitable funnel. So the more familiar you get with those optimization metrics, you become empowered to realize that if you just change this one part of the funnel and you give it this small boost, then it's going to change the whole outcome of the funnel. And you know what they say, small hinges, swing big doors. And that's exactly what I'm talking about here. So yeah, just getting familiar with those metrics, having the mindset of being happy to break even upfront and then generating profit on, on the rebills and the backend offers, that's going to set you up for the scale and, and ma and destroying your competition. If you have that mindset and they don't, you can really make advance.

Dylan (28:01):

We get our hands on one of these spreadsheets.

Ricky (28:06):

Well, you know, man, there's, there's a few different, um, there's a few different funnel tops like, and like the one you're looking at right now, I think it would be cool in the show notes.

Dylan (28:20):

Uh, if you, you pulled out some of the numbers, of course, and, uh, maybe there was a Google sheet or something like that. We can give people in the show notes or maybe a link to where I'm sure you probably it this way as a download.

Ricky (28:33):

Well, you know, I actually used to use spreadsheets with people and, um, but people can get overwhelmed with spreadsheets. So I actually built a pretty cool tool on my website where there's a whole bunch of different calculators there, and people can do drag a all goal thing and where they can increase or decrease the cost per quick, they can increase or decrease the opt-in rate. And then it's just going to straight up populate the earnings per lead, the return on ad spend on day one, the return on ad spend off the 30 days, et cetera, where all the formulas are already built into the tool. So if people want to check that out, they can go to metric driven marketer.com and just click on ROI calculators and the now bar. And other than that, if someone really wants to get their hands on a spreadsheet, they can, uh, they can probably just hit me up on Facebook and, um, I'll try and get them the most relevant one for them.

Dylan (29:28):

Is this your rule of thumb, like break even on ads and then profit in 30, 60 days, because there are some marketers that will hear this and they'll, they're willing to go negative right. For 30 days or for 60 days

Zach (29:42):

If they got the bank roll. So what, like, what's, what's your risk tolerance here or really the risk tolerance of your clients in terms of how long they're willing to, to push that break, even number back in, uh, in subscription businesses. And I think this varies, you know, in SAS funded startups, subscription e-commerce, and then like info membership sites, because everybody has like different retentions and LTVs, but particularly for your subscription, um, businesses and info, what do you think?

Ricky (30:18):

Yeah, so I'm happy in general to average breakeven. Um, and for my small niche sites, typically what will happen is if we have a campaign that's working initially, it's going to be profitable. It's going to be turning a dollar into $2 or three or a dollar 50, and then there's going to be a period where it's breaking even. Um, but then if it goes from being profitable to breaking, even it's still going to average out is profitable. So then I'll usually let it run negative for awhile until it kind of averages add it break even. And that's when I kind of am like, okay, this funnel generated, you know, 200 customers profitably. And then it generated, you know, a hundred, you know, at break even plus or minus kind of five or 10%. And then it generated another hundred at negative. And that's kind of how I like to do it.

Ricky (31:14):

So it averages out at breakeven and because I'm in small markets, by the time I've done that, um, I might as well just launch a new offer, which is then going to go through that sequence again, of being profitable, breakeven and negative, and then averaging out at break even. But what I would recommend is that you just make it relevant for your objectives. Like, like you said, first SAS company, like most SAS companies that are backed by venture capital, they would, if, if their DCS knew they were quiet, acquiring customers at breakeven, that would be like the biggest dream come true ever. And they would just pound more and more money at it. And that most species would be happy to go negative for quite a few months. Um, and you know, I would think especially, um, you know, because it's like, if you've got, let's say you've got $10 million in venture capital, and if your AOV is like a hundred dollars and your LTVs over a thousand dollars spending $300 and waiting for, you know, two or three months to then make that back.

Ricky (32:19):

But then you know, that the LTV is going to be over a thousand. So many people would be happy to do that. So you just going to make it relevant. But I do know that the Mo you know, some of the biggest businesses in the world that had been built on paid traffic will go three to six months, or even up to 12 months or longer negative, but that's only, they can only do that because they have enough data to support the LTV. If you're a brand new business, you don't know what your LTV is in three months, six months, 12 months. But if you've been around for five or 10 years, and you know, and you've dialed in your churn and you have a sticky product and whatnot, and you have more data to like rely on, you can make those decisions to go negative, because you can rely that it's going to read you, those rebuilds are going to come in and you're going to be profitable, but if you're starting out, um, like we launched our venting site only a few months ago, we've only at this point, got our first at about 50 members right now, the roping site and the farming side a lot bigger, but with the eventing one it's new.

Ricky (33:24):

So right now I'm kind of thinking, okay, I just want to acquire it break even, and now we've started to have some rebuilds come through. We can save it. Our LTV is going to be a certain amount after 30 days, a certain amount after 60, and now we're going to be able to go a lot more aggressive with it. So you just going to make it relevant to the situation.

Zach (33:44):

And do you use any analytics tools for this? Yeah,

Ricky (33:48):

Yes, I do. So we use a tool called hieros, which is essentially essentially tracks the LTV over time, per source of per for a campaign per ad set. Um, we S we use that for the farming site, um, and, uh, the vending side, it's just new. We actually haven't got that tracking yet, but,

Zach (34:09):

And like transaction data from like Stripe or how, how do, how do you push in the revenue data for the LTV metrics? So

Ricky (34:17):

[inaudible] integrates with Stripe, and it just shows you right in the dashboard per campaign or port per ad set, um, you know, what's going on. Um, but you can, you can easily just look at your, um, Stripe numbers and run some exports and spreadsheets. If you're a kind of nerdy spreadsheet, dude, like me, it doesn't take, it's not that hard to do it, but, um, and I'm sure there are tools that make it easier, but I've always just been a spreadsheet dude. And I like to kind of crunch the numbers myself. And I actually find that when I spend more time in spreadsheets, I get more familiar with what's going on. I'm not just looking at a dashboard that populates everything is a dashboard will show you the end result, but it's interesting to be able to see, cause for example, if your LTV, let's say you have a $20 monthly subscription and your LTV is, um, a hundred dollars.

Ricky (35:08):

So the average person is six, five months. For example, it's one thing to see on an, on a dashboard, you know, LTV is a hundred dollars, but it's another thing to kind of get into the spreadsheets and look at how many people stayed one month. How many people stay two months? How many people stayed three months, because then the average might be a hundred, but that doesn't mean that like, everyone's going to be a hundred, some people we're going to show them the first month. Some people are going to have an they're going to stay for years and hundreds dollars with you. So I actually kind of like to get pretty nerdy with it and really know like, because another thing is like with churn, some people might be like, yeah, a monthly churns 5%, but the more you kind of get into the details, you might realize that on the first month, your churn is 15%.

Ricky (35:54):

And then the second month, it's 8%. And on the third month at 6%, and then the fourth month, it's, you know, 5%, fifth months, it's 4%. And then maybe on the six months, six months or something like that, maybe it jumps again. And you can kind of see the churn like month by month, and then you can average it out. Um, so yeah, for most people they're going to be satisfied just with like seeing it on the dashboard and there are definitely tools for that. Um, but I, even though I have, you know, a dashboard set up, um, I do like to kind of geek out and get familiar with it all.

Zach (36:33):

I'll do a, I'm going to do another native advertisement here for, for ad capital. But, uh, I mean, this is, so I think most marketers use default to analytics in terms of diagnosing this, this will say marketing problem. And then the main solution really, or actually there's two levers as a marketer that you traditionally have had to fix this, right? One is fix your funnel, increase AOV or LTV, fix your ads, decrease CPA. And I think that more marketers are starting to get a little bit more sophisticated on the finance side as a third lever, which is like, Hey, you breaking even at 60 days is like, if I can either get enough float, right from my card, right. A little promo for ad card, or I can get enough funding either. It's, you know, venture, like you mentioned, or debt, then I can scale with the numbers that I have, uh, currently, right?

Zach (37:35):

Because I think a lot of folks that in the space they're, they're break even at 60, 90 days. And they spend the next year trying to get like maybe, maybe two years, like trying to get those incremental gains before they scale. And sometimes it's just like, Hey, if you really just get your cash flow right. To where you're deferring those payments or getting that funding, you know, for that 60, 90 day float, that's another lever that's faster. And in some cases even easier. So this is, I mean, this, what you just described is literally how FunnelDash came full circle the last several years. Right. Of like building the tool to track that LTV over time, essentially what Jairus does now to then realizing that like, okay, we're diagnosing the problem. Well, how do you then fix it while you can optimize your funnel? Like Ricky saying, you optimize your ads and where FunnelDash ultimately landed was like, Hey, we maybe like money can just solve this problem, that capital.

Ricky (38:37):

Um, so thanks Ricky for, uh, laying that one up for me. I appreciate it.

Zach (38:44):

Well, cool, man. Thank you so much. This has been amazing, uh, podcasts. What, uh, what are you up to next? How can people get in touch?

Ricky (38:54):

What am I up to next? I'm I'm just excited to be growing my own brands now off to kind of working as a consultant for a number of years. And, um, so yeah, just working on those three sites right now, and I'm particularly excited about the farming one, I think that it's, uh, you know, the, the roping and inventing, I, you know, they're just kind of niche businesses that I happen to get involved in, but actually think farming is really cool, like empowering people to be able to grow their own food. Like, I love food. I love being able to eat fresh, like homegrown food. So I'm like really excited about that. And yeah. If anyone wants to get in touch with me, uh, they can just find me on Facebook. It's Ricky bell duster, R I C K Y and then bell DASA is B a L D a w S yeah. Just hit me up and I'm happy to answer any questions and, um, yeah, that's about it. Awesome.

Dylan (39:49):

Love it. Thank you so much for

Zach (39:51):

Thanks guys.

Dylan (39:57):

Well, thanks so much for listening to another episode of the rich, add more at podcasts. If you're like me and listen to podcasts on the go, go ahead and subscribe on Apple podcasts, Spotify, YouTube, and rich poor [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 [email protected] Show me you left a review. I'll give you a free copy of the rich add or ed 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

Zach (40:31):

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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