 Hi guys, okay in this video I just want to show you an example of basically how to grow your company online and If you watch my other videos for example, right? This is not really a big case study or whatever it is. It's no point for me to show you like crazy outlandish numbers If the normal person on YouTube that I'm pretty sure you're watching on YouTube, right? You see those numbers and you think that it's not possible for me for me, right? So I'd rather show you small companies where if you look at the revenue if you look at the numbers that come in For example, you look at it and say hey, that is quite manageable. I I'm a person just watching a YouTube a random guy on internet Right and that seems possible for me, right? So I want to give you that perspective of when you operate from a small company, for example How how you could potentially do this for yourself make the time money for yourself and build You know the style of company as well as the business that you actually want Okay So let me show you an example of a customer that we help basically we run all the advertising They we run their Google their Facebook as well as the email marketing as well, okay But so I'm gonna, you know go back and forth with the screen just to show you for example Okay, but basically I have a few PowerPoint slides So stick with me on this video and then afterwards I'll show you a few numbers as well Okay So everyone wants to know the numbers first because you know numbers speak louder than words generally But you can see here, for example, let me refresh this for you. Okay, so just give to give you context, right? This is a business based in Canada, but then they sell to the US market as well as the Canadian market For example, okay, they are very very small company So imagine if someone The founders quit their job. They started this business basically during the pandemic and stuff and just tried to to grow it up Organically, okay, so at the start right they don't have any revenue coming in So most of it is coming coming from pure organic. Okay, so let me show you in the year 2020 For example, like a full year's perspective. Okay, a lot of the times we are in the internet marketing space, right? You're probably in this circle and echo chamber of like gurus and too many people talking So you're mostly you you think that hey, why am I not a millionaire yet? Hey, why am I not rich here stuff like that? Okay, but you need to think of it as you're building businesses here And businesses take time to mature and stuff like that. Okay, so in the first year, for example, I did I did not I was not here I did not help this business whatsoever. Sorry, so they did around a hundred K in gross revenue Okay, this is revenue and it's not profit at all. Okay, so obviously not not a big business at all Okay, and then for for example the following year Right the business basically for acts the business, okay? And so this is when I came in and basically, you know, try to pump true marketing and stuff Okay, but if you can see this this sharp drop off here from November December basically when you scale too hard and too fast Usually the supply chain cannot catch up and stuff like that And so if you know last year what happened, for example, there's supply chain issues It's very difficult to get raw materials and stuff like that So in December, we wasn't wasn't really able to sell any product at all today's video partner is Cinder Okay. Thank you, Cinder. 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Okay, so check it out Cinder below and back to the video Okay, so that's a bit sad on that part Okay, so you can see for example most of the time like people don't really understand what it takes to get You know to grow a company and to see its scale Progressively, right? They just want to think that hey revenue just comes overnight and a lot of the success that you see You know throughout in the world. It's like it's all overnight success Okay, I want to show you how it looks like when you ramp up the actual thing and Usually this happens right when you have product market fit Okay, product market fit is when you start marketing and you become very good at marketing And then you really really understand the customer such that when you put out a market Messaging on your ads and stuff decide converting like fire Okay, so I'm pretty sure a lot of you or some of you have experienced this before when you put down an ad right You it just rips It just like absolutely just gets tons of sales and the reason why that's happening right? It's because you're solving a very very painful problem in the market for example, okay So let me show you some of the Facebook ad site as well Okay, I'm good like this is boring stuff But I want to show you like a two month span because the two months when the scale is happening, right? So for example You can see that this is from October to November. Okay. This is Facebook ads, right? So on Facebook we only spend around 16k of spend throughout that month So obviously I do want to ramp up more aggressively and faster But a lot of the times the things you don't see which is the supply chain the supply chain You just cannot catch up with the demand stuff like that. Okay, and so okay Let me just show you this is basically the top of funnel This is the TOF campaign and this is the redargeting campaign So you can see we're spending almost 30 bucks to acquire one customer, right? So every single customer that comes in is spending at 30 right so getting around 500 customers Okay, if you don't if you have never been in marketing before if you've never been in an acquisition role You won't understand how difficult it is to get people buying a product at 30 Okay, to be fair some drop shippers can do it for very very small amounts and stuff But that's because they are probably selling low ticket items and viral products stuff like that This is not a viral product and this is not drop shipping and stuff. So I'll say it's a bit more difficult just to get the customer Okay, but people don't take that into consideration. Okay, so to get $30 cost per purchase obviously is good But more importantly, we only care about lifetime value. We don't really care about Upfront cost but just try to reduce the cost acquisition as much as possible. Okay, then on the Google ad site We're also running Google ads. This is not very aggressive as well, but you can see here This is October as well at the same time period, right? And you spend around 26k on Canadian so 26 plus 16, how much is that? I think it's around 40 plus around 40k So you spend around 40k or on two platforms to get back around 200k plus Okay, so you can kind of estimate the the row as based on that Okay, but this will not happen, right? If a lot of other things in the business like the value proposition everything else that is not ad related Okay, so people don't understand people think that if you just run ads, you make money That's not true. Number two is that people think if you have any product to sell for example You can just let it rip, you know Just just spend Facebook Google whatever and then the thing will scale But if you have ever ran ran ads in any platform whatsoever, you know, that's not the case, right? You actually do need to be good at what you do if you're not good at what you do You're not gonna make sales. Okay, so simple as that. Okay, so let me go into the PowerPoint presentation I think you can kind of understand the numbers and you can see here I if you think about it if you quit your job Whatever it is that you go from a business that just starts out, right? It's gonna be slow But if you build for the long term you can see growth and when you see growth You know that this business is legit, right? So for example, this technically what you're seeing here is a good month per se, right? But these guys have been working at the same problem for like 18 months So if you get 18 months to get to this point, is it worth it? I would think the answer is yes But a lot of the times most people quit at month 13 month 12 for example, okay So just to give you perspective and I don't want to cloud your judgment because you're watching a guy on YouTube, right? You're technically trusting a guy on the internet and stuff I mean, I'm real but you know, I mean take it with a grain of salt, right? So like the way I see things and the proposition is that if you look at a business and if you're running e-commerce or whatever it is Whatever venture it is, right? Can you make $150,000 per month from it? For example, because 150k for example, if you go to any ordinary person and you say you can make 150k this month, right? I would think any any normal person will look at that and say that that is a worthwhile investment That's a good business, right? Because people cannot think about 150k. It's a very big number for most people, right? So yeah, so yes, you actually can do it and you can do it very very realistically Even though you're not special or whatever it is. Okay, you just need to be very very focused. Okay, so an ordinary person thinks that's okay So let me go into my presentation. Give me one second. Sorry about that Okay, so my presentation is gonna be very simple gonna break it down into a few things So landscape of e-commerce some problems in my face as well as some Google ad strategies I've gotten quite decent. I'll say Google ads This past few months and stuff. So I just want to share with you some of the things that work and stuff, you know Okay, so the landscape of e-commerce let me show you so a lot of times, right? It always starts with a USP. Okay, the reason why a USP is basically a unique selling point if you don't have a USP, right? I just be honest with you. You're gonna get completely destroyed Okay, and so if you are doing a business, you don't get destroyed because if you're getting destroyed in the marketplace Your business is probably going to die out. Okay, so you must always start off with from the customer Okay, what is the value proposition? How are we different from our customers? And so if you think about in business school if you go to business school, for example, they call it potters five forces Whatever it is blah blah blah. Okay, but basically what is your competitive advantage? What is your mode? Okay, and how can you use your mode to differentiate against your competitors? Okay people in the make money quick online space There's like a convergence between the make money guru people and then the real people who are doing real business Okay, the real people doing real business right like the Google Amazon Facebook's right those people right they have extreme competitive advantage That's why they absolutely kill it in the market. However versus that versus like drop-tripping people or like short-term people, right? Most of the time if you see they never they never max out their revenue Okay, so they always like they can scale they have a good month and stuff like that But then they never reach a certain revenue level, right? A lot of the times you never seen people doing like 8 15 20 mil for example Because number one is very very difficult to do that and number two they don't have a USP Okay, so if you have a mode, right? You can scale past 10 mil per year quite easily Okay, if you don't have a mode, right? Normally you get stuck like a lot of the guys in the space you get stuck at like 1 2 3 mil for example And like after 3 mil you're unable to scale because you ran out of people that you can sell the product to basically Okay, so this is things that people don't talk about and when you sell short term products It's very very difficult to build a big business Okay, you start scaling right and because there's you start scaling your competitors see that you're making money in this space They come into this space and because you don't have a USP you don't have a mode, right? You get destroyed Okay, so that is what I don't know whether you've experienced this before but this is the mode the case for most people in the space Okay, yeah, they're selling very very generic stuff. Okay, so you don't want to do that Okay, so this case study here for example, I'm gonna show you it's like you have to look at things from a year to year perspective Okay, so are we growing month on month number one? Are we growing? From last for example, we look at this January last January. Are we growing month on month? Okay, so for example of this business, right? You saw just now. It was like 100k ref in 2020 Okay, it's not it's not really good not really bad but for a new business, right? I mean it's solid, right? The next year you four you 4x the business you go into 2021 Okay, and this year I'm pretty sure we can treat a 4x the business once again So you go from a 400 to a 1.5 mil ref for the year Okay, and so like if you think about it, right? You're just playing a game You're just trying to go big big bigger and bigger, right? But most of the time people uh, they they don't stick to it long enough for them to see this growth right here Okay, and this is generally where you see the the companies that grow very fast They are the the hockey stick companies, right? The ones that are just flat flat flat and then they just boom They just go up like that and most of the time because we are in an online space We are an exponential market, right? People cannot fathom exponential, right? That's why for example tesla stock for example, people don't understand why it goes up like this, right? Because they don't understand it's like the more people use it the more people talk about it The more people invest in it and then just boom it goes up, okay? So it's the same thing for e-commerce, right? And that is why um, if you are in if you are facing difficulty right now Just just don't quit really just if if you don't quit, right? You will win because if you quit you just lose, uh, if that makes sense, okay? Hopefully that makes sense to you, okay? But yeah, if you're running a business right now, right think of it as in years Are we you know, are we growing as a business year on year? Okay, and that that should be a metric of success stuff like that, okay? Okay. Yeah, as I said before, uh, if you stick to one thing for three years, right? Usually you'll win because number one usually everyone quits Okay, if you realize right if you see the people in the space for example You don't see them anymore because usually everyone quits they go to another space, right? I have friends who uh quit for example, then they go into nft stuff like that etc etc So, um, it's actually not too difficult if you just stick to one thing and you never never quit Okay, number two is like there's no way you won't win, okay? What I mean by this is like imagine every single day you wake up for like, you know In one year's time 365 days you work on the exact same problem at the end of the year, right? I'm pretty sure you are very very advanced and versed in that problem Right? You are the number one expert in the field in the world for that problem Right? Because you you put all your attention and energy into that problem So you probably know more than everybody else in the space if that makes sense, okay? The problem is most people don't have enough focus to actually you know stick at a problem And just continuously focus on one problem and solving it for long periods of time So I give you the analogy of for example like amazon, right? They've been trying to build fulfillment centers over time, right? The first time uh Bezos Jeff, right? He builds his uh amazon his warehouse He doesn't know how to build, right? Then he faces some problems and then he just builds and builds and builds And now they have like thousands of fulfillment centers and stuff around the world And stuff, right? And they just replicate that model and basically make it as good as possible So if you think about it amazon is the best in the world at producing And creating fulfillment centers There's no other company in the world, there's no person in the world That is better at creating fulfillment centers than Jeff, right? So so from the same way, right? Even in the econ whatever it is No matter what you're selling, right? If you know the product so well, right? You know the market and industry much better than everybody else Technically that is your competitive advantage as well, okay? Number three is you will know the product Yeah, like I said, you will know the problem more than anybody else, okay? So um especially when you are uh growing your company at first, right? I think I created a video last time where I mentioned to you like focus on revenue not profits, okay? A lot of times, right? Okay, if you go from a situation where you're broke and then you you come into business Obviously uh that one you need to focus on profit for example, right? But if you have a job, right? If you have some savings for example, you really need to focus on revenue And the reason why is because you need to have proof of model That people actually want to buy a product If you understand, right? If you know that, for example, people buy the product People actually are willing to give you money for this thing, right? You shouldn't be too worried because in the future You can just refine that process, right? Their revenue can become profit over time, right? But if you don't even have revenue in the first place, right? Then there's no point talking about anything else So that is why it's more important to try to focus on revenue first You want to try to get that hockey stick that their growth curve up Once you get the growth curve up, right? You already have money When you have money, right? You can hire smarter people than you And then they can figure out how to squeeze out profit How to increase and improve the business model Blah blah blah stuff like that Okay, a lot of the times, right? People don't make like a lot a lot of money on profits Okay, so what I mean by that is that If you see all the biggest companies in the world If you see their financial statements, right? They don't make money necessarily from the actual profit of the business So the business could be losing like 300 million dollars per year But the the company is worth like 12 billion dollars So on paper, the guy is worth 7 billion dollars But the company is losing money So how is that the case? And the reason why is because the money is made on equity The money is not made by profits Okay, but the thing is in the make money space The make money online, e-commerce, Shopify, drop shipping space, right? People think that you're making money by profits Which is actually the wrong thing to do Okay, you actually make money when you sell the business Okay, so that is why a lot of people The people in the space, right? They cap out They never scale beyond a certain revenue level Because they don't get it They just don't get it And they play a different game Okay, so just to let you know You gotta be doing this You gotta be building equity, not profits If you care about profit, right? You probably won't survive because you can't reinvest Okay, so let me show you one of the problems That a lot of brands are facing at this point in time Okay, so number one is like margin squeezing inflation So let me explain to you what's happening in the macro environment Okay, so like raw materials are going up COVID is happening Okay, China shutting down every city that COVID happens So if I want to manufacture a water bottle Or whatever it is, right? There's raw materials that the factory needs to get Right? And so that is squeezing That is squeezing the margin Because imagine Usually it costs $2 to create this water bottle, for example Right? Normally it costs $2 to make this thing Right? Now it costs $4 So that it means that the profit margins are shrinking Which means that the cost has to be passed to the customer as well So everything is going to be affected, right? Your profit margins, your gross margin is going to be decreased And not only that, it's going to put a lot of strain on the supply chain Okay? And that's the number two, right? The supply chain, it's hard to manufacture Okay? So when everything is closed Everything is hard to manufacture and stuff like that Right? The suppliers who actually can produce something Will jack up the price Okay? So these two things come in hand Okay, number three If you see Facebook, Google, Apple Right? The iOS thing is actually a big deal The iOS 14 stuff is a big deal to Facebook And the reason why is because Apple just has so many users on their phone A lot of people use the iPhone So if you have a lower ROI on your advertising campaigns You're going to affect everything in the actual business itself Okay? So companies who build their business base on the advertising channel For example, if you get a lower ROI, right? Everything else is going to be affected Okay? And then number four, the big dogs are here Okay? So I'm going to explain to you what this means Because most people on YouTube don't talk about this at all And hopefully you understand the situation Okay? So the problem with, it's not even in e-commerce I'm pretty sure it's in every single space Okay? Is that the big dogs are here So who are the big dogs? The big dogs are the guys who have, who are generally companies Who are venture funded So what I mean by that is that the companies who are fast growing They raise a lot of money as a startup, for example So in their cash, in their bank account, right? They have tons of money to burn They have tons of money to throw at Facebook and Google ads And you don't Okay? So these guys, right? Generally, they are public companies They are well funded They have more money, they are faster They are smarter than you and me Okay? So like in terms of that, you should be scared Because these guys know what to do Okay? Not only that They are probably operating in the same market as you Okay? So if they are in the same advertising channel as you They have more money They move faster than you What makes you think you can basically out-compete them? Okay? They also have a longer horizon than us So they actually don't care if they are row ass on Facebook It's like 0.5 Okay? If you are not profitable, for example, on Facebook You're basically screwed, right? But they actually don't care These guys just dump money into Facebook And they just let it be Let the campaign run They don't care Okay? Because they know that Lifetime value is more than cash As long as their lifetime value is more than the cost acquisition They are going to be in the green They honestly don't care And not only that If they continuously lose money And they do have enough money in the bank They can go to the public markets They can raise money once again And then money just comes into their bank account So they technically can kill anybody if they wanted to Okay? That is why You must think about how to survive Stash how to thrive Or like what you actually should do in this situation Okay? So let me show you Okay? So what is still working in e-commerce nowadays? This is my perspective You could have another perspective of your experience and stuff like that But I'm running campaigns every single day So this is what just let you know Okay? So mass market messaging That is effective amongst all the people that you target So what I mean by this is that For example, if you put down an ad copy That is working and stuff like that If it is not mass market messaging It's quite difficult to monetize Okay? So if you're selling something For example, like once again In this water bottle If this water bottle here right Every single person that you touch on your ad For example, you cannot extract money from them It's very very difficult to scale Because a lot of the times is that Because the iOS inaccuracies is decreased For example, the ROI on the campaign is decreased So if you're going into very very niche markets for example It could be good or could be bad or what What I'm saying is that Basically your cost advertising is going to go through the roof If it's not mass market appeal Okay? So the mass market appeal products And the viral products Are the ones that are generally working better Okay? Number two Is that yeah Every person you can hit you can extract and monetize Exactly the same point sorry Yep And number three is that something that incentivizes the person to buy Based on trends Okay? So obviously if you can If there's a trend in the market for example You can put ad copy in In that basically allows it to scale Because it's basically cheaper to acquire attention Okay? And so the cheaper the attention The cheaper your ads as well Okay? Simple Alright? Okay? So if you see Facebook and Google for example If you see their earnings right Which is basically their financial statements Okay? iOS The iOS 14 stuff is really affecting Facebook Okay? And you might be asking does Facebook work in 2022 Yes it still does They still have 2 billion users Okay? So 2 billion is 2 billion like come on like You know what I mean? So does Google work? Yes it does Okay? But the thing is on Google You still cannot really differentiate your product Because everything is a Google ad It's a search based ad Right? You're just seeing text for example Okay? So Facebook is still a very very viable acquisition channel Okay? Your product just needs to be exciting different Okay? You need to create video ads It's very very difficult to create photo ads nowadays And then like funny ads still work If you are really good at copywriting It's still good Right? But then yeah I feel that in order to just reduce your cost of acquisition You need to be different from other people I won't say better You don't have to be better You need to be different If you are different right The more you stand out The lower your cost per clicks So it's generally easier to advertise That's the experience that I have Okay? And don't think that this is only for pure like D2CE commerce You can even do this for like B2BE commerce and stuff like that Okay? So yeah Okay? So let me show you Okay? So which are the brands who will basically survive and thrive in this economy and stuff like that Okay? So the ones that are like extreme USP So for example if you sell chocolate everybody sells chocolate But imagine you sell like protein chocolate Okay? That's something that I have never heard of before Right? So that's a extreme That's a unique selling point Okay? Another thing that won't die I feel is the extremely high ticket stuff So the extremely high ticket stuff is the ones that are selling for over a thousand dollars For example And they normally have a back end So the lifetime value of the customer is probably like 5, 6K, 20K stuff like that The stuff that's super high ticket right The Facebook stuff is not affecting them at all Okay? Because they don't care They can just dump money into Facebook and they'll still be profitable Okay? That's the second thing And then the third alone thing is that The product alone right If you acquire one customer for example So just now I showed you on Facebook that we acquire a customer for 30 bucks right 30 dollars we spend to acquire one customer to try our products for example Right? So if the product itself if the customer buys consumes the product for example Right? And it's good enough for that customer to recommend the product to another customer You usually your company is okay Your company will survive Okay? Because if you acquire one customer just now you saw there were 527 customers That were actually being produced from our ads Right? Those 527 possibly they will refer 500 more people So technically I'm buying the equity of a thousand customers But I'm paying for 500 Does that make sense? It's basically you know what did they call it? They call it like viral acquisition loop stuff like that Okay? So these are these are a ton of companies who will survive If you are not doing either one of these things right I find it's very very difficult nowadays Or it's like not worth it It's not worth it to do it If you don't have either one of these things So in terms of like e-com stores Like people keep pushing e-com e-com e-com right If you're not good at business in general Right? If you're not good in business You're not going to survive in e-com It's basically the same thing It's just online transactions that's all Okay? So just just be a better entrepreneur Be a better business is what I'm saying Okay? Yeah okay so let me show okay So the final part of my presentation stuff like that Okay? Google ads Okay? If you have a good offer pricing Unique selling point and stuff like that Okay? I'm assuming you already have this Okay? Google ads is still a very viable channel Okay? Facebook is still very viable But I have a lot of other videos on the channel That talk about it Okay on Google ads Let me show you what I've been doing That I've seen so far Okay? A lot of times in the past I've learned about a manual bit stuff like that Manual bit gives you a lot of control I think Charlie brand uses to use it Stuff like that Okay? But a manual bit sometimes it gets a bit expensive Or if you are in a very very tight niche for example There's very little search volume and stuff like that Okay? So what I normally like to do nowadays Is I start off with a maximized click Okay? So I'm assuming you have a new You have a brand new Google ad account for example Or if you have a relatively young business Okay? You still can start with maximized clicks Okay? So maximized clicks Why I like it is because You want to try to open up your top of funnel As much as possible Okay? This is how you increase your customer base You want to go into cold traffic and try to convert them Okay? Cold traffic is the hardest thing ever It's like trying to attract and date a girl That you've never Sorry that you've never met before Right? Imagine you go to school or whatever And then you meet the girl the first time And you're trying to caught her And you're trying to get her to be your boyfriend or girlfriend Whatever Okay? Yeah And so that is like converting cold customers Is the most difficult thing So you want to cast your net as big as possible Right? You want to maximize the clicks Okay? As once the click comes onto your site Because you know for a fact They have search intent for example You know they are qualified traffic Okay? Once you know they have that right? Then you see how many conversions come in Okay? I'm assuming good offer pricing USB is already there Okay? And then after around 14 days or so Google is definitely much slower than Facebook You need to give it time to breathe Because sometimes it overspends Sometimes it underspends Okay? So you need to give it time to breathe Um You can go into broad match Okay? In the past I was quite scared To go into broad match I was just doing phrase and exact match But I feel I think broad match You still can open up your top of funnel And you know bring traffic in as much as possible Okay? So the keywords Right? That start converting after 14 days And then you can just change it To maximize conversions Okay? So you go from maximize clicks To maximize conversions And then you want to start identifying The keywords that have converted In the past from maximize clicks Right? So at the start launch max clicks Right? After 14 days See conversions come in See keywords that are converting Change that to maximize conversions And then you start identifying The converting keywords So for example let's see protein chocolate Right? So protein chocolate is a keyword It starts converting Right? You take that keyword You probably want to branch out into another campaign And launch it as maximize conversions And then you run that specific keyword for that Okay? And so like this is a risk free way technically Because you're going out there You're seeing what works and what doesn't And then you take whatever is working And then you just duplicate it whatsoever Okay? A lot of the times it's just People quit too early When you quit too early You're not going to see anything And any results Okay? So just to tell you that Okay? And afterwards you can do target rows as well Okay? So hopefully like this is a very very simple strategy If you have no idea what I'm talking about Go and watch my other videos on this channel Okay? But it's Google Ads It's not rocket science Okay? It's driving qualified traffic To an offer and landing page And basically you're just seeing the conversions To and fro, to and fro Okay? Google is obviously much more stable Than Facebook sometimes The thing is there are some days Where you can be spending money And see zero conversions at all Okay? So don't think of it as A complete replacement and stuff like that Right? Google is still Sometimes on some days it just doesn't get conversion Okay? This could be a multitude of different factors Okay? 10 Okay? So that is pretty much it from me For this video And hopefully you enjoyed it Yep I know I'm not very active on the channel and stuff like that But hopefully you enjoyed this video And given it some thought as well I know I don't create YouTube friendly videos technically Because a lot of it is not mass market Right? I know that if you're watching this You're probably an advanced marketer and stuff like that But hopefully you get real value Right? Not like some other videos and stuff like that Okay? Thank you so much for your time If you want check out the links below and stuff Yeah, put some links if you want to see or whatever And then yep hope to see you soon And yep Okay?