GSD 194: Your Patience Is The Key To Scaling An Online Business

Welcome to today’s episode of GSD Daily. Today we are going to talk about something vitally important if you’re trying to grow a business online, and that is impatience. The simple truth of creating businesses, especially online, is that patients will get you everywhere. When you are impatient and you try to test 40 different versions of ads on $50 a day in ad budget, you won’t get anywhere. Nothing’s going to work because you’re not giving a chance for anything to work.

So little story, way back in the day, when I first got into digital marketing, I had this bright idea to create a product a month for 12 months. Now, I did well. I was able to get to about four months where I created a product a month for four months. Now, this is before I was into paid advertising. I had an email list. We were doing a lot of SEO. I was broadcasting a bunch of the email list, but I was like, you know what? I’m going to launch a product in a month. It was ambitious. I learned a lot. I learned how to get done fast.

But at the end of the day, I was hitting the same groups of people for product one. Then a month later, product two and a month later, product three and a month later, product four, I couldn’t get anything right towards month three, month four, month five, and I’ve just burned out the list. I burned myself out because I’m not only trying to do this thing here, but I’m trying to fulfill the previous two things that I did, and it just became a nightmare.

Here’s the thing, when you start throwing a bunch of shit on the wall, some of it is going to stick. Some of it will land on the audience that you’re trying to make it land on. And our funnel is just a simple one. We’re going to do a landing page to a sales page to upsell. Now, all in all, very, very simple. Landing page, sales page, upsell. Now, what happens when we start testing? So let’s say we have a hundred people who are going to go through this process and then through the landing page down to the sales page, we get 40 people to optin. Now, from the sales page to upsell one, obviously great big drop-off here.

And let’s say that the sales page is converting at 10%. So we have four sales, which means four people are moving to upsell one. Now here at upsell one, if we have a 25% conversion, that means we’re going to get one buyer. So all in all, it takes 100 people to get 40 leads and four sales and one upsell. Now, that’s math that we can start putting into a spreadsheet. Now, here’s the thing though. When you take that a hundred people and you have landing page one, landing page two, landing page three, now you’re looking at 25 people going to this one, 25 going to this one, 25 going to this one, 25 going to this one.

Now, if this page doesn’t convert for shit, and this page doesn’t convert for shit, and this page is by far and away the winner beating the control, now you just sacrificed 50 users to find that that page was shit.

Now, the same with the sales page, SP one. So we go SP one, SP two, and we send these people. Now we have 12 and 12. All of a sudden we take that hundred people, the hundred visitors, and we start sending them all down very drastically different paths, and that’s an issue. Now, the only way to combat this is two spend more money on traffic. We need 10 times more money to get some sort of people moving through these funnels the way that they should properly be tested. So 10 times more traffic means we’re getting a thousand visitors or clicks. So each of these is closer to 250 website visitors.

That’s a properly tested funnel, but you need 10 times more traffic to test the different variations. So the moral of the story is that when you increase testing, you also need to increase the budget. And if that doesn’t happen, then you’ll get diminishing returns. So if we are only able to spend $50 a day and we have 1000 variations of ads plus four variations of pages, that’s a lot of variability on only $50 in ad traffic. That’s A lot of variabilities. It will take a tremendous amount of time.

I’m not saying it won’t work, it will work, but we’re going to need, I don’t know, a hundred days to get 5,000 dollars in ad spend to properly test all of these variations. Or do we need $5,000 upfront? So either way, it’s either time or money. And that’s the thing about paid traffic is it’s either time or money. You’re either going to be spending time in the number of days to accumulate the budget because it’s only so many clicks or it’s money. You’re going to be spending the 5,000 on day one to rapidly test a bunch of different variations. So it’s no different than free organic traffic. Free organic traffic is the same way. It’s time. So you don’t know if that search engine optimization is going to work or not until you start getting traffic. So it’s time.

The money you put into it is the content you’re writing or the content you’re paying to have written. Again, time, low dollar in terms of investment. It’s high time-wise, you know what I mean? So it just takes a lot of time. So split testing is the only way, actually the next video we’re going to do. What happens when your sales funnel looks like it’s failing? What happens when it looks like it’s failing? What do you test, what do you look for? So we’re going to walk through that in tomorrow’s video, but today I wanted to walk through the split test thing and just really get into this idea that you need patience for this thing to work. You need patience.

It doesn’t just start burning because you think it should start burning. The only way to start a business and go from zero to 60 is if you have distribution, meaning you have a follower list on Instagram of 200,000 people. You have an email list of 60,000 people. It’s the only way to get immediate results without spending a fortune. That’s it. Just be patient with offers. Be patient with traffic. Not only is it budget and time, but it’s also algorithms.

I mean, Facebook has an algorithm. Google has an algorithm. They all have algorithms that power their ad platforms now anyway, so it’s all based on machine learning. There’s a lot of complexity in advertising in general and making sure that your ad shows up to the most amount of people. Now, think about this. I’m going to get off on just a random small tangent. Facebook wants you to advertise as a conversion campaign, which Facebook loves because what that means is if Facebook can pinpoint your exact conversion, doesn’t have to be a buyer, it can be a landing page view, it can be a lead.

But if Facebook knows exactly who to show your ad to, that means that it will get you the result that you’re looking for while also showing the ad to fewer people. So that means that they’re able to charge you more because you’re getting the result you’re looking for, but they also have more ad inventory that they can show ads to everybody else. So, you get the result you’re looking for that maximizes their profitability per impression. That’s what they’re looking for. That’s why right now, in most of our campaigns, we went from conversions back to clicks because the conversion campaigns are ridiculous in terms of what they’re charging.

But if you pull it back to a traffic campaign, you’re able to get those conversion costs way, way down. That’s how ad platforms are working. So if you liked this video, subscribe, and comment below, with any questions that you’ve got. Subscribe to the platform that you’re in, and if you would like to learn more about what we do or get tips and tricks like this in your email, go to doneforyou.com/gsd. If you would like to schedule a call with us where we talk through your campaign, we talk through your sales funnel, go to do for doneforyou.com/start and I’ll talk to you soon. All right, thanks. Bye.