Fitness Business School – Making Money with Ads

Full Transcript

Hey, Pat Rigsby, and in this episode, I want to talk with you about making more money with your ads. So I’ve got a lot to cover, and I think it’s going to be a different angle on this than you’re probably used to. So let’s get started.

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So when it comes to advertising, there’s probably not a week that goes by. I don’t talk to somebody asking about the perfect ad for a particular social media platform. And you know, what, what can I do to get an ad? That’s going to bring in a flood of people into whatever program they’re trying to sell. Well, if you want to generate more revenue with your ads with, with every ad dollar that you’re spending, I think the best way to approach this is look at this with the end result that we’re seeking and work our way backwards. So I’m going to kind of talk to you about all the things that happen really outside of the, the ad itself. And if you figure out these other things that are happening is going to make every ad dollar that you spend that much more effective, that much more profitable.

So the first thing that, that I would tell you is really think in terms of building an audience. If you have listened to the episode where I talked about the, the milestones, when it comes to marketing, the first thing that we have to do is create awareness, right? People need to know who we are before they’re ever going to trust us, to help them solve their problems, to invest with us, to reach their goals. So we need to build an audience. We need to start there. And a lot of times, you know, we see people jump ahead and they think, well, Hey, I’m going to put this ad in front of somebody and they’re going to make some massive financial and time commitment to me, even though we’re not thinking about the way the people actually view ads. I mean, ads on social media platforms for all intents and purposes are commercials, right? They are an interruption in the flow or the feed of what somebody has gone to that platform to actually do.

So what we’re trying to do is get somebody to raise their hand and say, you know what? I’m interested in, what you have to offer. Now, I use lead magnets to do this. I give away something of valuable or something valuable to people that might be in my target market might be a fit for what I do. So I can start to build this audience of people who are prospective clients. But, you know, if you don’t want to use a lead magnet, you can certainly create videos and you know, build a re-targeting audience, that sort of thing, but you want to build your own audience. And then the next step is we want to build a relationship with this person. We want to get multiple impressions. We’ve seen this when it comes to marketing and advertising for years, people would talk about, you know, you needing to have anywhere from seven impressions with somebody to well over 50 impressions with somebody before they make a purchase. So when you are thinking about an impression, really, it’s just one more way to connect with somebody, to build a relationship, because we want this person to know us, to like us, to trust us because it’s going to make it easier to sell when that time comes, we’re going to have to do less convincing because they’re going to what to do business with us. They’re going to know more about us. They’re going to feel more confident in our ability to help them solve their problems and reach their goals and the relationships also gonna lead to more profitable clients, because there’s going to be less concerned about risk. If there is more trust, there is to be a likelihood of a more meaningful commitment. If they feel like they already know us, there’s probably going to be less probability of buyer’s remorse because of impulse buys, because we can be authentic and honest instead of trying to prey on desperation.

So building relationships, the second thing that we need to do, if we want to make more than our ads, the third is sell recurring revenue based programs. Now sure we can. So some one-off stuff early on, but we need to move people into recurring revenue programs as quickly as possible. I can’t tell you the number of people that I’ve seen put out front end offers, whether it be 14 day programs, 21 day 28 day program, six weeks challenges. And they think that it’s just going to magically route people or funnel people into this long-term program. It’s not the way that it works. If we want to sell the long-term program, then we have to make this front end offer this challenge, a vehicle that moves people towards this recurring revenue program. The entire time we have to understand the goal of the front end offer is to get a recurring client, not just to sign somebody up for the front end offer. So making recurring revenue, the priority of anything that we’re moving our clients into our prospects into is a sample or a first impression of what we do.

And then the fourth is increasing the transaction size, increasing the, the monthly value of every client that we serve. So, you know, if you are somebody who sells a group training solution for $150 a month, is there a way to move the monthly transaction size for every client up to 160 up to 170, 80, 90? Can we, can we raise our rates? Can we have an upsale of a more personalized service or more accountability? Can we augment the training with something additional like nutrition? Can we have a solution where maybe people upgrade to doing semi-private or one-on-one or something like that, but can we increase the value on a monthly basis? So cumulatively over time, the lifetime value of the clients that we bring into what we’re doing. And then finally, I would tell you, if you want to make more with your ads, you need to do the math. And, you know, I think a lot of people see ads as an expense, but in all actuality, I see all this stuff as an investment, right? Let’s say that you adhere to this approach and you use the, the approach that I take, where you have a lead magnet. And let’s say that you get a hundred opt-ins and you paid $500 to get those opt-ins. So you paid $5 for everybody who opted into your list, but $500, a hundred opt-ins well, over the next 12 months, let’s say just five of those people who opted in become a paying client. And let’s say that the average paying client for you is worth a thousand dollars, which I think is a pretty conservative number for, for clients in our industry. I would say that the average client that I serve their clientele on average is probably worth twice that thousand dollar Mark. But let’s say that just for simple math, you get five clients in the next 12 months from that bundle of a hundred opt-ins and each of those five is worth a thousand dollars to your business. Well, now we’ve generated a 10 X return. Now I understand that’s gross revenue. That’s not profit, but I mean you’ve made $5,000 back over 12 months for the $500 you spent. I don’t know about you, but I don’t know of too many investments where you can get that kind of ROI, but that’s not the way that most people think about ads, right?

Most people think about immediate gratification. Well, Hey, if this lead didn’t sign up within the first seven days, then this ad didn’t work well. If you see this with a much longer time horizon, and you say, Hey, over the next 12 months, if just one out of every 20 opt-ins sign up for this program, this is what my cumulative return is going to be. So if I employ this behavior day after day, week after week, and think of it this way, overall, my business is going to thrive. So there’s some thoughts on how you can make more with your ads, how you can really make ads an investment for your business and not see them as an expense. And frankly, it’s just a great mentality to employ if you want to grow your business. So making money with that.

Thanks for listening. I’m giving away a bundle of my bestselling books, the ideal business formula, the fitness entrepreneur handbook in the path. All you have to do is go to patrigsby.com/podgift to get it. Also, make sure to subscribe to The Fitness Business School with Pat Rigsby so you don’t miss an episode and you get yourself on the fast track to creating your ideal business.