If you are thinking about embracing content marketing to help grow your business, I hope that what I’m about to share with you will motivate you to begin immediately.
At 9am one morning last week, I hosted an online meeting with a prospective client in need of the type of help that we offer via our consulting company, Groove Digital Marketing. There were three people on the call from the prospect’s company: the owner, their copywriter, and their marketing/technology pro.
At 11:45, the call was finished, and without the need of a proposal, the owner said, “At this point, I cannot see why we will not be proceeding with you.” Two hours later, they’d made their first payment of $5,000 and we had a deal.
How Did This Happen?
Now that you know the outcome, I want to give you the back story. My hope is that when you see what happened, you will realize how powerful content marketing and marketing automation can be.
On November 5th, Brian (their technology/marketing guy) somehow found BrightIdeas.co as a part of his search for a solution to their marketing and operational challenges.
When he found my site, he decided that the free offer I make on the home page was valuable enough to become a subscriber.
The “lead magnet” I offer on the home page is access to my Conversion Tactics 4 part video training series. (If you would like to see the videos in this series, just go my home page and enter your details.)
This offer is the #1 way that I use to fill the top of my marketing funnel. Once in the funnel, subscribers are sent video #1 on day one, video #2 on day two, etc…
In Brian’s case, he watched video #2 on November the 8th and video #3 on November 9th. He watched 100% of video #1 and #2 and just 75% of video #3. I know this because I am able to track how much of my videos that each subscriber watches. In fact, the emails a subscriber receives from me actually differ, depending on how much of the videos they watch.
After watching 75% of video #3 Brian, who was unknown to me at the time, emailed me to ask if we could arrange a time to chat. I replied with a “yes” an asked him to book a time via my online calendar.
Houston, We Have Contact
Brian and I’s first call happened on November 18th and during that call, he gave me an overview of their business. He also took time to describe the problems and challenges that they wanted to overcome. Upon hearing these challenges, I knew that I could probably make a huge impact on their business over a period of time, and asked Brian to arrange another call for he and I, as well as the owner of the company.
Brian concluded by saying that his boss was a “very tough sell”, so I suggested that he have his boss listen to a few of the podcast interviews I’d done with other entrepreneurs whose businesses were more automated than Brian’s.
Houston, We Have Touchdown
The call with Brian’s boss (Paul) was a very long call and I spent most of the time asking questions. One of the challenges with conversations like this is that, with so much to talk about, the conversation can “wander around” for quite some time – and not necessarily lead to the desired outcome.
To avoid this, I decided to use a Lifecycle Marketing self assessment as a framework for the discussion. By using this framework, we were able to have a productive conversation about each area of their business. More importantly, I was able to learn a lot about Paul’s needs, wants, and desires in a very short period of time.
I was also able to learn a fair amount about Paul’s values and quickly realized that he was very passionate about his product and wanted to give his customers the best possible experience.
It probably took me a solid hour or so of questions before I ever got to the point of making any suggestions. In fact, after asking Paul to rate himself on each of the steps of Lifecycle Marketing, I would ask if he believed a change needed to be made or not. The goal of the self assessment and “is that really important to you?” questions was to figure out what Paul was most motivated to fix first.
Getting the Deal
Many inexperienced salespeople think that “closing” requires all sorts of fancy techniques and magical statements.
The truth is exactly the opposite.
The “close” is the logical conclusion to the consultative approach to selling – which is a fancy way of saying, to sell, you must ask questions – and lots of them.
The more questions I asked Paul, the more he began to trust what I had to say – and as time went by, enough trust was eventually built up for Paul to decide that we were the right fit for what he needed – so he made the decision to move forward.
Key Take Aways
Regardless of what you sell, there are always people looking for your product or service. The key is to let them find YOU. This is the primary goal of content marketing.
For over a year, I have been dutifully creating and publishing content that would help my target market to solve their problems. Had I not been publishing and promoting my content, Brian would have never found my website.
Once Brian did find my site, if I wasn’t capturing leads with a free offer (called a Lead Magnet), it would have been impossible for Brian to become a subscriber, and had he not become a subscriber, he would have never been exposed to the three videos he watched prior to reaching out to contact me.
Video is extremely powerful on the web. By using it, I was able to give Brian a first hand look at my personality and communication style. Had he not been exposed to these videos, I doubt that his motivation to reach out and ask for my assistance would have been nearly as high.
Marketing automation also played a huge role because Brian didn’t watch video #2 or #3 when I first sent him the links. He, like everyone else on the planet, was probably too busy on the day that these first emails arrived, so it wasn’t until he received a few reminders that he actually took the time to watch them. Had I not created the reminders in my funnel, it’s unlikely that I would have a new client today.
Want to Get Results Like This?
There is a very specific process to achieving success with content marketing and marketing automation and in today’s post, I have given you a glimpse of the results that can be achieved when you get the formula right.
If you have not yet implemented content marketing or marketing automation, I strongly encourage you to start today. To help you do that, I have written a book called the Digital Marketing Handbook: The Ultimate Small Business Guide to Putting Client Attraction on Autopilot that will be available for sale on December 10. If you get on the early bird list today, you will be notified the day the book is released and you will be given a coupon code to get 25% off the price. Go and register now!
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https://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.png00Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-11-26 06:00:062015-12-07 17:32:20How Content Marketing and Marketing Automation Led to a $5,000 Retainer Client
Toby Jenkins is CEO and co-founder of Bluewire Media, a successful marketing agency located down under. Bluewire has a great digital marketing strategy, with a combination of proven standard methods and outside the box thinking.
I learned a lot during this interview, from their unique tools and templates to their co-branded content with David Meerman Scott.
Toby also shared their impressive landing page conversion stats (see them below, just under the Resources section).
And for you solopreneurs who want to build an agency, be sure to listen to the advice Toby has especially for you (it’s near the end of the interview). (For more agency Bright Ideas, check out our other posts that are especially relevant to marketing agencies.)
Listen now and you’ll hear Toby and I talk about:
(3:40) Introduction
(6:00) Reviews of results
(6:40) Overview of his co-branded content with David Meerman Scott
(10:40) Overview of templates and tools
(17:40) How they are a driving traffic (reverse engineering search terms)
(20:40) Overview of blogging strategy
(23:40) Description of the Niche they focus on and how they use the funnel to identify them
(26:10) How speaking at events fits into their client attraction strategy
(30:40) Overview of how live events have fit into their marketing
(32:40) How they engage with a client
(35:40) How they overcome objections in the sales process
(37:40) How they are using LinkedIn
(40:40) Overview of a revelation in their landing pages
(44:40) Overview of how they segment and nurture their prospects
(48:10) Overview of how they manage service delivery
(56:00) Best advice for solo-consultants that want to build an agency
WEB STRATEGY PLANNING TEMPLATE LANDING PAGE
Landing Page Conversion: 32.01%
WEB STRATEGY SECRETS E-BOOK
Landing Page Conversion: 60.44%
WEB STRATEGY PLANNING TEMPLATE HOME PAGE
Landing Page Conversion: 4.8%
SOCIAL MEDIA GUIDELINES
Landing Page Conversion: 52.75%
SOCIAL MEDIA PLANNING TEMPLATE
Landing Page Conversion: 40.97%
More About This Episode
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
He and business partner Adam Franklin collaborated with bestselling author David Meerman Scott to create the free Web Strategy Planning Template. They focus on clients who are dedicated to being #1 in their market niche.
The best place to get in touch is on twitter: @Toby_Jenkins. Please say hi!
https://brightideas.co/wp-content/uploads/2013/11/Toby.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-11-04 06:00:362020-09-10 05:45:22Digital Marketing Strategy: Lead Gen Secrets from an Agency That Generated 5,500 Leads in 12 Months
If you’re a marketing agency owner who’s struggling to get traction, how would you like to hear from an agency owner who was very successful early along? Chris Handy built a $400,000 two-person agency in just 24 months, and he has generously agreed to share what worked with the BrightIdeas audience. (For more agency Bright Ideas, check out our other posts that are especially relevant to marketing agencies.)
Chris has excellent strategies for lead generation, LinkedIn and other social promotion, lead nurturing and more. In addition to the ThinkHandy digital marketing strategy, Chris shares ideas on how to select a profitable niche.
Listen now and you’ll also hear Chris and I talk about:
(5:00) Introductions
(8:50) His background with eBay
(12:30) How his exposure to process has molded his thinking
(14:50) Overview of #1 lead generation
(15:30) Overview of how he’s using LinkedIn
(19:50) Overview of how they are blogging for leads
(24:20) Criteria for selecting a profitable niche
(26:30) Overview of lead nurturing
(31:00) Overview of retained income and how assessments lead to it
(40:00) Overview of how they systematize the deliverables
(43:30) How they are using client interviews to create blog posts
(45:00) Overview of deliverables given for retainer
(51:00) Overview of social promotion strategy
(56:00) Advice on how to get started at content marketing
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Trent: Hey there, bright idea hunters. Welcome to the Bright Ideas
Podcast. I am your host Trent Dyrsmid and this is the podcast
for marketing agencies, marketing consultants and entrepreneurs
who want to discover how to use content marketing and marketing
automation to massively boost their business without massively
boosting the number of hours that you have to work every week.
As a matter of fact, the goal is to help you reduce the number
of hours you have to work every week. The way that we do that is
we bring proven experts onto the show to share with us what’s
working for them. When I say a proven expert I don’t mean a guru
or a theorist, I mean someone who’s actually using this stuff in
their business and they’re getting significant results by doing
so.My guest on the show today is a guy by the name of Chris Handy,
and he is the Founder of a marketing agency by the name of
ThinkHandy.com. He and his wife are actually the two people that
are behind that agency. He launched that in the beginning of
2011 and here we are just not even two years later he’s at
$20,000 a month in recurring revenue from retainer business.
They’re on track to do $400,000 in revenue this year and as you
can imagine with no overhead and only he and his wife as being
the two key employees that also translates into a very
profitable business venture.In this interview I get Chris to share all sorts of stuff with
us in great detail. For example, I want him to, or get him,
rather, to explain how he’s using LinkedIn to generate leads and
he does something that’s very unique and interesting. It’s
different than what I do and I’ll go so far as to say it’s
smarter and better than what I am doing so of course I need to
adjust my action as a result. You’re going to hear that at
roughly the seven to nine-minute mark and then after that we
start talking about his criteria for selecting which niches that
he pursues and that is a real key part of his business strategy
is choosing those niches correctly because as he points out not
all niches are created equal. Some are going to be a whole lot
more profitable for you than others.Then we walk through his four-step process for taking a lead
that goes through the funnel and requests an assessment then
there’s four steps that he does to convert them to a client and
it was very interesting as he shared the details on that because
the one thing that he doesn’t do is he doesn’t ever go and meet
them face to face. The really wonderful thing about this is no
matter what town you’re in or where you live you can get clients
that are anywhere if you listen to this interview and you
replicate the process that Chris explains.His background involved a lot of work with process improvement
and process automation and that really shines through in the
systems that he’s using to run his agency. We talk about that as
well. When a client says yes, how efficient you are or aren’t in
delivering the work that you’ve promised to them is going to
make all the difference between whether you build an agency with
lots of revenue and no profit or you build an agency with lots
of revenue and lots of profit. You really need to get good at
this whole systematizing and process management and in this
interview Chris shares a whole lot about that.Finally, towards the end of the interview he shares one of the
biggest mistakes that he made early on and the lessons that he
learned as a result of that. Do make sure that you stay tuned to
the very end and check that out.We’re going to welcome Chris to the show in just a second, but
before we get to that I want to very briefly tell you about a
new book that I’m working on and how you can get an advance look
at it, some free chapters and a discount when it comes out if
you go to BrightIdeas.co/book all of the information will be
there and this is going to be a book that covers extensively
everything that I’ve ever learned plus everything I’ve learned
from all the guests that have been on the show about two really
important topics, content marketing and marketing automation.Why are those topics so important? Because in this day and age
that’s the magic sauce that gets you all the business and all
the clients and the growth and the profits. I didn’t really have
a name for the book yet but if you go to BrightIdeas.co/book
you’ll see there a landing page that I created and you’ll be
able to opt in and get all the things that the landing page
says. With that said, please join me in welcoming Chris to the
show. Hey Chris. Welcome to the show.Chris: Thank you, Trent. Great to be here.Trent: It is a thrill to have you on. Just from what we were talking
about before we hit the record button we have a very good
interview coming your way so for the listeners who have not
heard of you please take a moment, introduce yourself, who you
are and what you do.Chris: Sure. My name is Chris Handy. I’m in Fort Worth, Texas, and I
operate a company called Think Handy and we’ve really decided
against putting anything as a definer on the end of that name
because we were kind of in marketing sales and operations and
we’re a consultancy in helping people streamline those and get
more out of their marketing dollars, but also integrating sales
and service into that.Trent: In the last, so you started this firm at the beginning of 2000,
and we’re going to get into your background and everything in a
minute, but I want people to know the results that you’ve
achieved in a pretty short period of time. You started in the
beginning of 2011, correct?Chris: Yes.Trent: Here we are, 2013 now. Middle, I guess fall and in the last, so
you started off from zero. Nothing. Right?Chris: Started off from zero. I took a few freelance web design
projects in 2010 and really proof of concept is, we were just
trying to see if we could get clients and found out that we
could so in 2011 went ahead and took the plunge and got started
and it was a slow ramp up. We’ve grown quite a bit in revenue
and in recurring revenue specifically so this year we are on
track to do about, hopefully about 400,000 by the end of the
year.Trent: In the last six months you said, off air you said you’d done
200.Chris: That’s correct.Trent: That’s pretty good. Your recurring revenue is at how much per
month now?Chris: We’re at about $20,000 in retainer relationships for each
month.Trent: That’s pretty fantastic. It makes, when you run a lean business
like you do with virtually no overhead, then 20,000 a month
coming in on the first day of every month makes for not a whole
lot of stress of, ‘Hey, where’s our next meal coming from.’Chris: It’s definitely improved our quality of life a little bit. Not
having to worry but we’re investing a lot back into the business
and in our marketing. Really we’ve spent a lot of time figuring
out where we go. We can obviously grow now so which way do we
grow? That’s very important to me. I want to make sure that when
we do make that next hire, who’s it going to be? What’s that
role going to be for and how can we make the most of our future?Trent: I have a lot of people who listen to my show based upon the
emails and so forth that I get that are solopreneurs. A lot of
marketing consultants, [freelance] web designers and I think I
speak for the when I say they all want to grow up. They want to
get, they want to make their firms bigger. They want to get more
recurring revenue. They want to be able to hire some more
employees and they want to use some more resources. They want to
grow like every other entrepreneur on the planet.I really want to make this episode for them so let’s, I want, I
really want to walk through kind of how you made that transition
from that first freelance client and I know there’s a lot of
people who listen to my show as well who maybe aren’t even in
business yet and you talked earlier how you kind of did a little
project with some freelance work to see if you could even get
clients. I want to talk about that.Before we get into both of those things I want you to tell a
little bit about your background because you have this rather
unusual background, this eBay consignment thing. You want to
talk a little bit about that so we have context?Chris: Sure. A lot of people bring up the 40 year old virgin when I
bring that up because you’ve seen that movie. The girl that
Steve Carell was going after, she managed an eBay store and what
an eBay store is is where you walk in and you hand the item to
the person at the counter and say, ‘I’d like to see this on
eBay.’ What they do is they take the item back and list it on
eBay or another online sales channel and basically sell it on
consignment so they’re going to take a commission and give you
the rest. Email you a link to the auction so you can see
everything that’s going. I was in that business which was
definitely interesting and that business has kind of, that whole
industry’s changed a lot in the last few years obviously.Started off in a small shop and then was recruited to the big
boys of the eBay consignment world, and I found myself managing
a distribution center that we routed trucks and went out and
picked up items from different people’s homes. We had five
stores in the Dallas Fort Worth area, that’s where we’re located
so all over the Metroplex. It’s a really large area so we had a
lot of ground to cover.I found myself routing all these trucks, managing the creative
team. Working on marketing these items. Actually getting them
listed onto eBay, working with software, working with people.
Managing a lot of people, customer service. Really just
everything that you could possibly think of with that business.
I was the operations director but that just included all these
different things. I learned a lot from the upper management
there. A lot of the people that were in management there were
former executives at Radio Shack and they had some great
processes. That was one of the things I really picked up during
that, what I called boot camp for sales and marketing and
operations.I was taught there that you don’t have to manage people as long
as you can manage the process and that was the most important
thing that I learned. We would create detailed process books for
everything. Now when I say everything I mean this is what you
say when you answer the phone. Scripts are easy to identify but
we encourage people to riff on those, obviously but also this is
what happens when an item comes in. Let’s say we get an item
from a person who wants us to sell something for them. This is
exactly where it goes, this is the process here, here, here.All the steps are detailed on an online document that everyone
can see. What we found was if ever there was a situation where
the, where something went wrong, rather than saying, ‘How, why
did you mess up or how did this happen,’ you simply say, ‘Well
did you follow the process?’ Either yes or no. If they did
follow the process, well, then you change the process. You don’t
have to do anything with the person because it’s not their
problem. That if they follow the, or if they didn’t follow the
process then it becomes a situation where, ‘Hey, here’s our
process book.’ You point to the book and you don’t have to
really do any disciplining of any kind. It’s just letting the
process manage the business for you so manage your team.Trent: Now being a guy that runs a marketing agency, how did all that
exposure to the importance of processes, how has that influenced
how you’re building and running your business, right, the way
from, and we’re going to go into detail on all these things but
just kind of at the high level right the way from lead
generation all the way to delivering your service. How has that
influenced you?Chris: Well it’s kept me, kept my eye on the prize of duplicating
myself and making sure that I don’t have to be the one pushing
all the buttons and following all these processes. If I work to
build these processes as we grow our agency then it won’t be
very difficult at all to manage people and every agency owner
wants to grow. Every agency owner wants to have a team of X
number of people. We have our own growth goals and I want to
make sure that we’re ready when we get there and that we have
detailed processes in place.We use a lot of online tools to get there so you have to kind of
come up with a process before you build the tool. That’s been
really important in our marketing process and then everything
that we do as far as client service.Trent: Where do you store all these processes?Chris: Well we use a project management system called Podio, but many
of them can do similar things. I found that this one works for
us because we can customize certain things with regards to
marketing campaigns specifically we can trigger actions based on
creating an item. We have a very detailed process on how we run
campaigns so if we have a client we know that we need to create
a downloadable offer for that client and we know we need to
create some blog posts to promote those downloadable offers.Every time we come up with a marketing persona to market to we
know we need at least one marketing offer and at least eight
blog posts to promote that marketing offer. As soon as we create
that persona, all these other tasks are created automatically so
it helps manage me. I’m extremely ADD. I don’t know what’s going
on.Trent: Join the club.Chris: If I don’t have it written down or if I don’t have somebody
bugging me to do it then I’m going to forget. There’s no
question. I built the software and built it on top of the
software basically just to keep me in line.Trent: My wife does that for me along with software. Let’s go back to
the thing, I want to talk about lead generation here because I
think a lot of people really struggle with it. Can you tell us
what you’re doing? What’s your number one method of generating
leads?Chris: Number one method of generating leads has got to be creating
content. I’ve had the website for two or three years now and so
I’ve done a lot of, before I really got into inbound marketing I
did a lot of SEO work, so I spent time making sure I was getting
found for some local stuff here in Fort Worth. That really
doesn’t bring me any business to be honest.Now our focus has been to get global and to not worry about
local because our best clients are not anywhere close to us so
we got away from that and really started getting active in
social networks. I think LinkedIn is the best place to promote
our content that we’re creating. [inaudible 15:45]Trent: How do you promote your content on LinkedIn? I want to see if
it’s similar to what I do.Chris: Gotcha. We’re writing blog posts that promote offers. That are
behind a form so that we’re gathering leads that way. I’ll look
for conversations where information we’ve written about is
applicable. I’ll go and I’ll say, ‘Hey we wrote this. Maybe this
can help you out.’ I’m a member of a lot of different groups. We
do have some verticals that we target and we’re always looking
to figure out what the best verticals are going to be for us to
go after. We’re still defining that.We’ve done a lot of construction marketing and home contractor
marketing which is interesting. It just kind of found us. We’re
testing out a new market right now and I’m involved in some of
those groups and I’m starting to kind of get in on those
conversations and help people. I think that’s the number one way
is helping people. Eventually they’re going to either need your
help or need more of your professional help or they’re going to
refer you to someone who does.Trent: How much of your time do you spend going into, how many groups,
first of all how many groups are you a member of?Chris: I think I’m a member of 45 right now. I had to delete myself
from some groups that I just wasn’t all that active in in order
to pursue some other ones in the verticals I want to see.Trent: Define specifically your activity in these groups. When you
produce a blog post on your blog, like when we do, we can put a
check mark in every group and say Add to group and it puts a
link to your post and your little intro. It’s not really like
one on one discussions. How do you do it?Chris: Sure. We use HubSpot for marketing automation. It does the same
thing and I think that’s the number one mistake people make when
they go in and they see this fancy social media tool, and they
can just check all the group boxes and then they end up spamming
everyone in their LinkedIn feed. That’s not good for anyone
because everyone sees that you just posted in 15 different
groups and that really doesn’t add any personal value.I really do spend time watching the groups and figuring out who
the influencers are there. Then when a conversation is heating
up and someone actually has something that I can add to, so
there’s a question about marketing in that particular instance
and I have something that’s of value to them I’ll add it into
the conversation manually. I will go ahead and automate some of
the posts, like when I do a new post on the blog. We’ll put that
out there to everyone on LinkedIn but I’m not spamming it into
groups. I really do consider it spam if you just add it to
everyone’s group. That’s how we do it. Even though it’s
marketing automation I think you really need a very human touch.Trent: I agree. I don’t think the way that we’ve been doing it is
ideal. It was, I had a past guest on the show was a LinkedIn
expert author of a book and that’s what she told us to do and so
we’ve been doing it since.Chris: That’s how you do it. I’m sorry.
Trent: No. I don’t mind. This is how we get better, we see what other
people are doing. How much time per day do you spend on LinkedIn
monitoring these conversations? Because with 45 groups, I mean
dude, you could spend like four hours.
Chris: You have to pick your battles. I’m not active in 45 groups. I’m
a member of 45 groups right now. Some of them are professional
groups. Some of them are places we’re targeting so maybe four or
five different groups really right now I’m active in and
actually helping people, and I spend maybe an hour throughout
the day monitoring LinkedIn. It’s one of the first things I look
at when I get up in the morning just to see because I get the
emails of what was going on yesterday, the hottest
conversations, that kind of thing.
Trent: So you . . .
Chris: I just look for anything that I might be able to help add value
to.
Trent: Do you subscribe to a daily email for every group that you’re a
member of?
Chris: Some of them. Yes.
Trent: Some. You wake up in the morning and you check and see what
people are talking about and say, ‘Can I add value to that
conversation?’
Chris: Correct.
Trent: That’s a good way to do it. I should probably do that too. What
other things are you doing for lead generation?
Chris: Aside from LinkedIn, just creating content around those
personas. We do a lot of keyword research. Now we’re trying to
actively solve problems. I prescribe to the Marcus Sheridan
school of blog topics. Marcus Sheridan made his pool business
grow by answering his customers’ questions online. I know that
you’ve interviewed him before.
Very much inspired by his process. Let’s just figure out what
questions our customers are asking and each one of those is
going to be a blog post. I look for questions that have not been
answered in the industries that I’m targeting and I answer those
questions. Simple as that.
Trent: Is that working well for you yet?
Chris: It is. Absolutely. I’ve got a few blog articles that are just
machines. They’re bringing in more leads than I need. A lot of
them we have to qualify throughout with some nurturing sequences
and stuff like that because it’s bringing in more than I
probably need to but you need to kind of cast a wide net at the
top of the funnel and then figure out who’s going to be a fit.
Trent: Absolutely. What types of lead magnets do you find are working
really, because you’ve got your blog posts and people are
getting there via either LinkedIn or search? They’re reading the
article. Are you using one lead magnet across all your posts or
using ten different lead magnets? How many do you use?
Chris: We rotate them out. I’ve got a few. I’ve got one that’s Inbound
Marketing 101 that is a really nice go to for the top of the
funnel and for some of our more basic blog posts. We categorize
our blog posts by three levels, introductory, intermediate and
advanced. I try to make sure that people that are visiting see
that, ‘Hey, they’re on an intermediate article, or they’re on an
advanced article.’ I’ll have it even suggest introductory
articles to folks who found us on an advanced just in case it’s
above their heads because this is an education game.
People need to understand when we’re talking about marketing
automation or even sales process improvement they need to
understand a little bit more about how we work so we’ll always
suggest a previous post to try to educate them along the way.
To answer your question I’ve got probably 15 different offers
that we’ve got and we use five or six of them more than all the
others. We kind of refined those fringe ones every once in a
while and repost it every once in a while.
Trent: What would you say is your number one lead magnet for top of
the funnel?
Chris: I’ve done this really interesting thing. If you’re familiar
with Facebook marketing you’ll have a cover photo at the top of
your Facebook page. I found myself always going and Googling the
dimensions to create a custom Facebook cover photo for my
clients and for me. We create a new one all the time. I found
there wasn’t any great place to find it, so what I did is I
created a Facebook page that is called Facebook Cover Photo Size
Helper.
In fact, if you Google Facebook Cover Photo Size it’s like
second or third result. What it does, it puts the actual cover
photo shows all the pixels on it so you can see exactly how to
build a perfect cover photo for you. Then I link to, I
constantly post some of our articles, and I link to a landing
page where you can download an even bigger guide on how to build
Facebook cover photos.
Trent: What’s the, I just did that search criteria. What is the URL
for your particular?
Chris: It’s Facebook.com/coverphotosize.
Trent: Yeah, okay, number two.
Chris: Right behind Facebook’s Help article.
Trent: Smart, smart, smart. Look at that, 9,643 likes.
Chris: And growing.
Trent: That’s a smart idea. I might even have to call that one a gold
nugget.
Chris: Sure. It brings us 15, 20 leads every single day.
Trent: How many of those, because not every lead, not all leads are
created equally of course. Do you, how many of those leads are
converting to customers?
Chris: I’d say we’ve gotten two or three referrals off of that.
Trent: You mentioned earlier that you are targeting a few different
niches. Can you talk a little bit about the criteria that you
use to analyze the viability of a niche?
Chris: Sure, Trent. I think that, especially when you’re talking about
a retainer relationship, now we really shy away from projects
but every once in a while we’ll take a project, if it’s a
referral that we think is going to help an existing relationship
we’ll do a project. That is different criteria but if we’re
going to go after someone that we think can be a pretty sizable
monthly retainer with a multi-year agreement or 12-month
agreement, we’re looking for something that is a large decision
purchase so it’s a business that has to do a lot of education
before a sale can be made. Maybe something that has really long
sales cycles.
I would not go, we found ourselves doing some construction
marketing and home contractor marketing. That’s just kind of how
we grew. That’s some of the first projects I took on so I keep
getting them, but I would not, today target those industries
because they are kind of one time and the need for recurring
services is not there. I want something like a big software
purchase or a managed IT company, something like that that
targets maybe huge facilities. Just an example of something that
is really a big decision and they need to have a lot of
expertise in any particular field.
Trent: Interesting that you mention managed IT. That was the industry
that I was in before and I’d never want to deal with those guys.
Once you get your leads into the funnel I’d like you to talk
about how you are segmenting them and if you’re using mid-funnel
lead magnets. Because where I’m going here is, as I said before,
not all leads are created equal. There are, and even if they
have the same need they’re at different phases in the buying
cycle. Some people are early. Some people are ready to buy. How
do you handle all of that using automation?
Chris: Sure. Everyone that signs up for any one of our offers is
automatically subscribed to our blog. I’ve had people give me
different feelings on that, whether or not you should just put
everyone on your blog but I find that it really works because we
get a lot of social shares. That’s something that immediately,
they’ll see everything that comes in every week. [inaudible
27:10]
Trent: I’m sorry to interrupt you. Do they get an email for every post
that you publish?
Chris: I choose to have it go out once a week.
Trent: A weekly summary?
Chris: Sure. Weekly summary. We’ll do three or four or five blog posts
every week. In a perfect world we’d have one for every day or
two but right now we’re producing about three or four every
week.
Trent: They get those on Sunday morning.
Chris: Mm-hmm. I find we get the best open rate then. I’m sure once
this thing goes live if you have enough listers that now
everyone’s going to be coming through on Sunday morning and
we’ll need to change it to another day. There’s no hard and fast
rule I’ve found. People will tell you it’s Tuesday at noon.
Well, it really is just when your audience is getting up. I find
early in the morning is great for me. No matter which day.
Trent: What type of, what are some, how are you segmenting? Just kind
of walk us through that. I opt into your funnel. What happens?
Chris: Now you’re signed up for the blog and if you click on any of
the links in those blogs I can identify that you’re somewhat
interested. That’s the only criteria I have to go into an
automated list. I’ve segmented that list off then I will segment
off the agencies because there are a lot of other agencies that
read our content. Then I narrow it down further and I look and
see where people came from. I’ve got some other smart lists that
tell me where they came from. If someone came from that Facebook
cover photo size helper and they’re not an agency then I send
them more introductory content on basic marketing and I look at
that as a way to get more social shares, more cheerleaders out
there because not everyone that comes through there is going to
be a fit for large scale retainer services.
Once I kind of siphoned off all of those other folks, I look at
everyone by industry and I’ll try and send something very
specific. We’ll create new landing pages all the time with
webinars because I can write a webinar. If I see that I’ve got
five different, for instance, managed IT companies that have
come in and filled out forms I might decide to try out a
webinar. I’ll say, ‘We’re going to do a sales and marketing
alignment webinar specifically for the managed IT companies.’
I’ll send them all an email and if somebody signs up, I do the
webinar. If somebody doesn’t sign up, I don’t.
It’s just something else out there a lot of times that we do, we
do end up getting that. I’ve got a real quick process on
launching new targeted landing pages and so we do that all the
time.
Trent: Define all the time. How often would you say you do it?
Chris: Once every week. Probably creating a new vertical just checking
it out seeing what comes up and then it’s another page out there
on Google to be found. Especially, we do have a field on all of
our forms that’s biggest marketing challenge. I think I saw that
on several different marketing automation software original
forms and so I started doing it. It’s kind of my gauge on what
questions to ask folks.
I’ll go and create content around that and make sure it’s in the
weekly email coming up. Even if it’s not a direct, ‘Hey,’ I’m
targeting this person,’ it is something that I can answer and
I’ll find that, let’s say managed IT, I’ve got ‘How do I build a
workflow for marketing automation with a managed IT company?
I’ll build that blog article. I’ll make sure it’s in the next
week’s weekly RSS email that gets sent out. Oftentimes those
folks click on those and then they go straight to an assessment.
Our bottom of the funnel’s always that request a free
assessment.
Trent: That was going to be my next question. What’s the main call to
action? You mentioned that you’ve been particularly successful
to the tune of $20,000 a month in generating clients that pay
your retainer. How long did it take you to get from zero to
20,000 a month?
Chris: Actually only about four months. We had all the pieces of the
puzzle we just hadn’t put it together really until early this
year. I read a book called the, god. Is it “The Agency
Manifesto”? I think it’s, “The Marketing Agency Manifesto.” I’ll
make sure that you can have a link to this but it’s basically a
quick read but it has 12 proclamations. Unfortunately, I’m
unable to think of the author’s name right name but basically
one of them is, ‘We will specialize.’ One of them is, ‘We will
charge for our services.’ I just really was inspired by that and
a lot of different things that is said in there is how can we
charge more for our expertise?
We really don’t accept projects anymore unless, like I said
earlier it was a referral or it’s something that we think will
further our business. We’re just very steadfast on that. I’m not
sending out proposals. I will flat out tell you I’m not in the
proposal writing business because I don’t want to spend my days
writing proposals. We are right now a two man shop and we can’t
do that. We really want to do business. Make the verbal
agreement that we’re going to go forward at that time a contract
will be signed and we’ve eliminated the proposal process
entirely. I think that’s allowed us to spend most of our sales
time on getting quality clients and then weeding out those that
must present a proposal to a board and all those extraneous
steps that end up getting in the way.
Trent: What is the average size of your retainer right now?
Chris: Right now it’s about $5,000, $6,000.
Trent: You’re talking roughly four clients that you have on retainer.
Do these clients all go through your funnel and do the call to
action for the assessment that’s at the bottom of your funnel?
Chris: They all filled out the assessment. Some of them were referred
straight to the website and one of them just called me actually
but in equality I guess he requested an assessment. But two of
them came all the way through the top of the funnel.
Trent: When you do this assessment, so I want to make sure that we,
the listeners and myself understand what this assessment is. Is
that them filling out a form on the website with lots of
questions or is that you on Skype with them asking them a bunch
of questions? What is the assessment?
Chris: Sure. I’m really just wanting their information with that form
and then it’s a 20 to 30 minute conversation. We run a
consultative sales process. It’s very defined. I’ve got four
steps basically in the process. Starts with the assessment. I’m
going to identify what your goals are, ask questions. That’s
really a question and answer session. Sometimes if we need to do
a little coaxing to actually do the assessment once we get on
the phone after they fill out the form we’ll set an appointment
for this assessment. The way it’s positioned is that we’re going
to give you some tips on things you can do online, things you
can do in your sales process to improve. No obligation.
It’s just an opportunity for me to give them a few things that
they could change right now and either get more visits to the
website or drastically improve things and it’s an opportunity
for me to really interview the client and understand if it’s the
right fit. Start to identify some of the questions I’ll ask in
the next call.
Trent: All of this stuff is done on the call? You don’t get face to
face with your clients to do this?
Chris: I try not to, even here in town because what it does is it
takes another hour out of my day to go and drive across town and
get in front of someone and it’s just a big waste of everyone’s
time especially with that first call. I really refuse to even
have people out to my office for that first call because I just
want to get a feel for what they’re after. If the first question
they ask is how much does it cost, I know that that’s going to
be a big factor in the whole relationship and it might not work.
Trent: Do you do these calls with video like you and I are doing right
now where you can see each other?
Chris: Typically, what we’ll do is we’ll use Go to Meeting, and I’ll
have their website or lack thereof up on the screen and we’ll do
a screen share.
Trent: If that’s step one. What’s step two?
Chris: Step two, after we have an assessment we’ve identified their
goals, we’ve identified that there is a need and they’ve
identified that they would like to continue talking with us. We
go to a goal setting call where I send them homework beforehand.
They’re going to fill out a lot of different questions. Here’s
where they fill out a lot of questions and it’s basically just a
spreadsheet that asks them the frequency of marketing and
different channels. How often are they blogging? How often are
they performing these X marketing activities and it’s designed
to do a few things to give us an end result of an arbitrary
score, sort of holistic score based on their entries.
Also the process of that prospect filling out this form and
saying, ‘No, I’m not doing any of this stuff,’ it’s a
psychological trigger and it’s sort of an “aha” moment. ‘Oh my
gosh, I’m not doing any of this.’ That’s been really effective.
Trent: Is there any chance that you would share that spreadsheet that
we can make as a downloadable from this episode?
Chris: I can give you a PDF copy of it, yes.
Trent: That would be wonderful. Thank you. For my show notes, what am
I going to call that?
Chris: Let’s call that an assessment questionnaire. This will be
homework between my assessment call and my goal setting call.
Trent: Very helpful. Thank you for that. That’s very generous of you.
What’s number three after that goal call?
Chris: After the goal setting call we get on the phone and we’ve
identified, ‘Hey, we want to increase revenue by $1 million next
year and it’s going to take us three big projects to do it.’
We’ve kind of gone through the process of, ‘Well how many visits
do you have to your website right now? How many more are you
going to need to get? How many leads are being generated by your
website?’ We can reverse engineer a number of visitors that we
need to bring to the website so we’ll have to put together a
plan. That plan will vary based on how effective their website
is right now, how many calls to action we need to add. Are they
doing anything or do they have any offers? Do we need to create
some? That will all kind of go into the last call [inaudible
38:03:]
Trent: What do you call this third call?
Chris: Sort of just a deal presentation or a solution presentation. I
won’t write up a 20-page document but what I will do is, I have
a PowerPoint presentation that has some of this stuff in it
already. I will just manipulate that to show what our plan might
look like. It’ll detail out the services that we would perform
on an ongoing basis and it’s really a visual meeting so we’re
screen sharing that and we’re talking about, ‘Hey, this is the
plan that we’ve put together. Based on the things you told me
this is what we think we can do and this is how long it’s going
to take us to get there and here’s the cost.’ Only after they’ve
said, ‘All right, let’s do it’ will I go and actually draw up a
contract.
Trent: That’s the fourth call?
Chris: Yes. That would be the fourth step.
Trent: You just review the contract, get them to sign it and send it
back to you?
Chris: That’s right.
Trent: How do you collect payment for retainer? Credit card or direct
debit?
Chris: I require a credit card, recurring payment. I found that when
we did not do that they’d come in late, they’d come in early,
they weren’t as reliable. I don’t mind taking a hit on the fee
because it’s peace of mind. There’s no question it’s going to
come in.
Trent: Absolutely. That’s been very interesting and so now you’ve got
to the point, and I promised early in this conversation, at
least I think I did, that we were going to talk about process
automation and how it’s fitting into your business because I
know that having run a service business myself in the past and
now launching another one how efficient you are or aren’t in
your service delivery can make the difference between being
wildly profitable and making no profit whatsoever.
I think a lot of people especially the solopreneurs or even
people who haven’t started yet maybe haven’t had that experience
and they just assume that if I get more revenue I’ll naturally
have more profit. Doesn’t always happen. Can you describe to us
and let’s stay on the thread of a retainer client, so you’ve got
this spreadsheet, you’ve got a solution, you’re going to need to
do all these things, how do you then systematize the delivery of
the deliverables so as to maintain your efficiency?
Chris: During the process of the sales process we’ve already detailed
out exactly what we’re going to do. Typically that’s going to be
creating offers, promoting those offers and then working on lead
generation. I’ve got in my project management system, which they
have access to, I’ve got built in templates for all these things
so once I launch the new marketing persona that we’re going to
craft for this client, let’s say they are managed IT and they’re
performing managed IT services to let’s see, theme parks, right?
You have to solve very specific problems for that theme park IT
manager.
We want to create a construct of that person so I said all that
to say once we create that persona we know we need to deliver an
offer for that persona to download on the website. We work
backwards. I don’t start with the blog posts. I start with the
offers; I start with the personas then the offers, the promoting
blog posts.
I’ve built my project management system the same way. When a
persona is created we know an offer needs to be created. When an
offer is created we know a blog post needs to be written, in
fact eight to ten. It’s automatically going to create all those
tasks for me. This helps me keep in line because I’m prone to
forget things and I have to have a system that allows me to go
back and make sure we’re on track.
The number one thing we’ve done is make all this open to our
clients so we have complete visibility. The clients can see what
we’re doing all the time. As we create these offers they can
comment, like. They can add files; they can contribute as we’re
working. This makes our meetings so much more productive because
we’re not having to recap, ‘Hey here’s everything we did this
week.’ They know what we’ve done this week. That’s already been
established. Let’s just talk about our strategy for next week.
Let’s talk about the results so that we don’t have to spend so
much time educating them on what we’re doing.
Trent: You’re using Podio to make all this happen?
Chris: That’s correct.
Trent: Do you speak to your retainer clients? Is there a weekly
meeting with them just as though you’re their director of
marketing?
Chris: Yes. Weekly or bi-weekly. That’s how often we meet and we
structure our meetings based on the week number so we’ll have a
different style of meeting at the beginning of the month than
from the end of the month. Then during the middle of the month
we’ll have what we call interviews so we are talking about
topics that we’ve identified are going to be good keywords for
them to target. We’ll put an outline out there and just have
them talk about it and we’ll record the session on Go to
Meeting, come back and use that interview content to actually
build the blog post so that each blog post will be in the voice
of that particular business owner or marketing director.
Trent: That is an excellent idea. Did you think that one up or did you
learn that from Marcus?
Chris: Marcus definitely talked about that and we had already been
doing it for a while when I heard him say something about that
and it’s been a great thing. Once I heard him giving it I said,
‘We’re on the right track.’ We implemented processes around
that. Now it makes our meetings a lot more fun, we don’t have to
spend as much time digging up, ‘Oh god, what are we going to
talk about this week’ because I know a lot of agency owners that
have to speak to clients on a regular basis.
You might find yourself struggling to come up with, ‘What are we
going to talk about?’ That was genuinely a problem I used to
have. Not much has changed. We’ve gone up a little bit. This is
really where we thought we were going to be as far as visits,
leads and sales but we have this meeting on the books. Now we
have something to talk about for these meetings and it’s way
more productive and way more fun honestly because people love to
talk about what they do. It makes them happy.
Trent: Let me feed this back because I want to make sure that myself
and the audience has understood this. In these meetings you come
into the meeting with an agenda of keywords that could be
targeted, correct?
Chris: Yes. They’re framed in the form of a question.
Trent: Like give me an example.
Chris: I have a client that is an HVA, commercial HVAC contractor.
People have questions about how to better cool a commercial data
center. ‘How do I keep my data center cool?’ We’ll just come in
with that and have that business owner share their expertise.
Trent: Your team knew that that was a keyword that you should target?
You then do this meeting with them and you ask them that
question, you record the answer so now you have it in his voice.
You transcribe it and edit it and turn it into a post.
Chris: That’s correct.
Trent: For these clients that are paying you the $4,000 to $5,000 per
month, how many posts per month, like what is the deliverable
that they’re getting for the $5,000 a month?
Chris: It depends on the level of retainer, but we don’t suggest
having any less than ten blog posts every month. There are some
graphs that I’ve got in my presentations that show when you get
to 30 blog posts a month, which we’re not even at, but when you
get to that point the leads start coming in like crazy. It’s
just all about having more content out there on Google but we’ll
have anywhere from ten to 20, in some cases 25, blog posts per
month.
Trent: That’s a lot of posts.
Chris: It’s a lot of posts. That’s what it’s all about though is
creating content that is going to get found.
Trent: You’re doing these, so in one of these calls then, if you’re
doing this once per week you must have to have four different
blog posts in mind that you’re interviewing them for, and so
four questions and they’re giving you the answer to those four
questions and those four questions become four different blog
posts.
Chris: That’s right.
Trent: Tell me what the process that goes from recorded answers
through to finished blog posts and are subcontractors playing a
role in any of this anywhere?
Chris: In some cases yes, we use a content marketplace to fill out
questions, if we didn’t have a chance to do interviews and we
look for experts. For instance I have a client that is in the
hockey space and we found a contractor who is awesome at writing
about hockey and he just knows hockey better than I do. We’re in
Texas. I don’t know anything about hockey. It may be different
from up north but we’re Cowboys football, Rangers baseball down
here. We have the Starts, but it’s just not as big of a deal so
we really struggle in that area but we’ve been very successful
with the content we’ve been able to create because we found an
expert to help us. We do have a few contractors in different
verticals.
Trent: Going back to the first part of that question, you’ve got the
recorded answer. You’re not going to use a contractor so do you
then pay a transcription service to transcribe it and then you
or your wife edit that into a post?
Chris: We don’t pay any transcription services. I take a lot of notes
during so I’m bulleting things out and I do this in Podio where
the client can see so as I’m typing they can see all this stuff
go down. Then we have the transcription so that by the end of it
we’ve got a nice bulleted list of maybe 15, 20 bullets of things
that they hit on during the conversation and then we also have
the recording to fall back on. We can go in pretty soon after
that meeting, we like to go ahead and just type it all out. Get
it ready; get it into a finished format.
We might go over one or two passes as an editorial pass and just
clean it up. Make sure we’re matching it up with the right offer
but we’ve typically come up with that offer and matched it up
well before the interview even takes place.
Trent: How long are these posts typically?
Chris: Six hundred to 800 words is our normal rule of thumb.
Trent: If you’re doing, you said ten of these a month or 20 a month
per client?
Chris: Depending on the client it would be minimum ten. I don’t think
we’re doing only ten for anyone but 15 to 25.
Trent: Let’s just use a number of 15. You’ve got, say five clients
doing this. That’s 75 posts per month?
Chris: Yes.
Trent: Written by just you and/or, well not written, edited, crafted
because it’s already there in the transcription.
Chris: Correct.
Trent: That just seems like a boatload of work.
Chris: It’s a lot of work. We’re putting together a growth plan right
now. We don’t envision us doing that forever.
Trent: I was going to say because that doesn’t scale very well is my
thinking.
Chris: Not for the business owner or the agency owner, for sure, but
what it does it doubles as service. You spend this time client
facing, they’re talking about something they love to talk about.
They’re seeing their ideas realized. They’re seeing the results
they’re getting based on that content. It’s a very positive
experience so that client time spent is actually helping us
produce the content so we’re overlapping a little bit there.
Client service.
With our software being so open they can see everything we’re
doing. We minimize the time on the other side of constantly
struggling to prove your worth. I know that a lot of agency
owners are constantly trying to prove their worth so I’ve tried
to eliminate that step by making everything as transparent as
possible.
Trent: I think that’s very smart. That was a big challenge that we had
back when we ran the IT company because if the computer network
didn’t break, why am I paying you $10,000 this month? Well,
because it didn’t break but it was challenging at times. Where
do I want to go next? Yes, so what strategies do you do to
promote all of this content that you’re creating for clients? Is
it purely an SEO strategy or are you going to town on social
networks?
Chris: We go to town on social networks. I’ve got very specific
numbers of posts for each client that we’re going to make on
each day. For instance our own, we treat ourselves as a client
so the exact same processes you’ll see for our clients are being
used for us. I’ll interview with my wife. My wife and I co-own
the agency together, we work together so we’ll have interviews
together just to kind of extract this content. We find it’s the
best way but for our business, our Twitter account, we post 20
to 25 times a day. Almost every hour and I found that when we
did that we increased now, month over month, 20 percent every
single month in followers. That same growth in my retweet reach,
so our reach is growing at the same pace. If we drop down to 15,
that growth lessens quite a bit. I found that’s optimal for our
business.
Trent: What tool do you use to schedule Twitter posts and get
analytics?
Chris: We use HubSpot for pretty much all of our marketing automation.
That’ll be different for each client. Sometimes the client
preference is simply, ‘I don’t want to have that many posts go
out on my Twitter account.’ That’s understandable. We can show
them, ‘Hey, this is how you get results,’ but we can’t always
convince 100 percent.
Now Facebook’s a different story. We found three to five
different posts every day is appropriate for some and then in
some cases it’s only one.
Trent: Are you sharing other people’s content like in your own Twitter
account, are you only tweeting out your own stuff or do you
share other people’s stuff as well?
Chris: We do both and there are a lot of different schools of thought
on this. A lot of people will say, ‘Share 80 percent of other
people’s content and only 20 percent of yours.’ I found honestly
that’s not the way to go. We’ll schedule out 18 to 20 posts of
our 24, of our own content. We’ll spend time interacting with
other people as sort of an alternate to that plan of sharing
everyone’s content. We’ll retweet. We’ll reply to people’s
tweets. We will generally share the love online but tweeting out
other agencies content, we’re not doing that. I generally don’t
want, I’d rather get the leads. I don’t believe that’s selfish.
If somebody writes a really good article that I used, I found,
‘Hey, how do we use this marketing automation tool in this way?’
If I found value in that, absolutely I’m going to retweet that
because I found personal value but typically we’re going to
write about things as we discover them and that’s the content we
want to promote.
Trent: You guys are doing a lot of writing.
Chris: You have to. It’s content marketing, right Trent?
Trent: Absolutely. You know what? Writing’s better than cold calling.
Chris: That’s true.
Trent: I gave a talk here in Boise just last week. I was given zero
notice. Guy calls me up the night before. He had broken his
tooth and he was supposed to speak and I had lunch with him that
day, just met him. He said, ‘Can you go talk for me?’ There was
like 80 small business owners that were in the room, mostly I’m
going to say three person companies and fewer. A lot of
solopreneurs in there.
The beginning of my talk I asked, I said, ‘How many people here
know what content marketing is?’ What would you guess, let’s
just say there was about, about 70 people in the room. How many
hands do you think went up?
Chris: I’m going to say not many, right?
Trent: Like six. Then I said, ‘How many people here are cold calling?’
Three quarters of the room put their hands in the air. I said,
‘How many people here receive cold calls?’ About half of the
room’s hands went up. I said, ‘How many people who receive them
like getting them?’ Nobody’s hands went up. Then I said, ‘Of
those of you who are making them, how many are getting results?’
Nobody’s hands went up. I’m like, ‘Stop. You’re just pissing
people off and you’re not getting results.’
Chris: Exactly. You’ve got to make warm calls, right?
Trent: Absolutely. So much more I could talk about that, but I’m going
to make a blog post actually about that, that talk that I gave.
Folks will be able to get that at BrightIdeas.co. Let me look at
my questions here and see where I want to go with this.
For the folks who are listening to this and they’re thinking,
‘This is content marketing and marketing automation thing seems
like it’s a pretty good idea, but man oh man does it ever seem
overwhelming. There’s like so much stuff to do.’ A lot of times
people get overwhelmed, they don’t do anything. What advice
would you give, Chris to someone who wants to get started? Who’s
the cold caller and they want to stop being the cold caller and
become a content marketer.
Chris: Start answering folks’ questions online. I will not shy away
from spreading Marcus Sheridan’s advice there. That’s the big
thing because it solves a few problems, well, it solves your
customer’s problems, right? It also solves the problem of what
do I write about? That’s the biggest challenge that I had at the
beginning. I’d write about what my customers are asking me and
you should do the same. Start writing. Don’t worry about what
domain name you’re going to use. Don’t worry about getting a
logo. Don’t worry about getting business cards. If you’re trying
to start a business don’t let any of that get in your way and
just pick something. Just put something out there. Don’t worry
about the design because Google doesn’t care about the design.
[inaudible 57:16]
Trent: You can host it on yourname.com.
Chris: Sure. Anything. That, ultimately it doesn’t matter because
that’s not what people are going to be typing into Google. If
you’re truly going to attack content marketing you’re going to
be attacking questions people type into Google or phrases people
type into Google. They’re not going to be Googling for your
website address, at least that’s not going to be the effect
content marketing has for you, so start writing. Start answering
questions and pick a vertical. Pick an industry that you want to
target because there are a ton of content marketing agencies, if
we’re talking to agency owners, there are a lot of content
marketing agencies, inbound marketing agencies. It’s becoming a
saturated market. It’s not a differentiator anymore so pick a
vertical.
Trent: Absolutely. Is there anything that you thought we should have
talked about in this interview which I’ve neglected to ask you
about? Anything that has worked exceptionally well for you or a
big mistake that you made that you learned a lot from? Anything
at all that we’ve missed that you think we should talk about
before we close out?
Chris: Sure. I think that the biggest mistake I made at the very
beginning was relying on marketing automation and not
remembering that each piece of automated action and all that
stuff really requires a human touch. That’s why I spend so much
time on LinkedIn personally answering questions. You can’t just
set it and forget it. A lot of material online would lead you to
believe that. Remember that each person that you’re trying to
get as a lead is also a real person and they’ve got their own
challenges, their own problems that need to be solved. Start
identifying with them.
Speak with these folks, even if they’re someone who’s not
qualified pick up the phone every once in a while and ask them,
‘Hey, how’d you find us? What did you find valuable in the
content that you read and that you downloaded?’ I do some of
that. I like to spend time just speaking with people even if I
know it’s not a good fit, just understand what challenges they
have and really work with them to better understand. That helps
me build out better lead nurturing sequences, helps me send
better emails. It helps me identify better prospects and that’s
what you have to do over time to improve your efficiency is to
spend time with the folks who are going to be a better fit for
you.
Trent: Absolutely. Those are your biggest cheerleaders and with the
80, 20 rule they’re also going to be responsible for 80 percent
of your revenue.
Chris: That’s right.
Trent: Chris, thank you so much for making this time to be on the
Bright Ideas Podcast. It has been a good time to interview you,
rather a lot of fun to interview you. Download [sounds like],
the episode number of this but I’m just going to pull it up and
so I can rattle that off. Actually I’ll put it in the, I’ll do a
recording here just after you and I are finished so again,
thanks so much for being on the show.
Chris: Cool. Thanks man. I really appreciate your time.
Trent: All right, so that wraps it up for this episode. To get to the
show notes where you can download all of the things that Chris
and I talked about, go to BrightIdeas.co/80. It’s just the
number 80. Then the other thing that if you could do is go to
BrightIdeas.co/love, there you will find a prepopulated tweet
and you’ll also find a link that will take you to the iTunes
store where you can leave some feedback for the show.
I would really appreciate it if you take a moment and do that
because the more feedback that the show gets, of course the
higher it goes in the iTunes store and the more exposure that it
gets and the more entrepreneurs that we can help to massively
boost their businesses with all the bright ideas that are shared
by my guests here on the show.
That’s it for this episode. I am your host Trent Dyrsmid. Thank
you so much for being a listener. I’ll see you or hear you or
we’ll see you again in another episode very soon. Take care.
About Chris Handy
Chris Handy is the Founder & CEO of Thinkhandy, a sales and marketing alignment consultancy in Fort Worth, TX.
Clients working with Thinkhandy find a helpful partner dedicated to shortening their sales cycle and generating more qualified leads.
We create a much more efficient business development environment with an aligned marketing and sales strategy.
https://brightideas.co/wp-content/uploads/2013/10/chris.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-10-28 06:00:262020-09-10 05:30:08Digital Marketing Strategy: Chris Handy on How He Built a $400K 2-person Agency in 24 months
The software business – like so many others – is extremely unpredictable. If you’re not careful, it can suck up more time and money than you ever thought possible, and never generate enough cash flow to even get off the ground. But it can also be one of the best businesses, with the potential to progress very quickly from cash-guzzling monster to cash-generating machine.
If this is a business model you’re considering, you’ll want to learn from others who have already had success. Someone like Brennan Dunn, who has taken his Software as a Service (SaaS) business from concept to launch in under four months.
Brennan shares his story, as well as valuable insights for other new businesses (software or not). He provides insights on how to come up with an idea worth developing, how to attract potential buyers and generate cash flow even before your product is ready, and how he structured his marketing automation so that once he started paying for traffic, he got a 10 day ROI on his investment.
Quite impressive!
Listen now and you’ll also hear Brennan and I talk about:
(5:00) Introductions
(7:00) An overview of Planscope
(11:00) How to come up with a software idea
(14:00) How he developed his minimum viable product
(17:30) How to build software if you aren’t a developer
(20:30) How to attract leads
(26:00) How to generate cash flow before the product is ready
(30:00) Lead generation that doesn’t scale
(33:00) How he created his newsletter each week
(36:00) How and why he wrote his first book
(40:00) Why he was able to charge for content that he also gives away
(43:30) How he’s using drip email to generate leads
(45:30) How he’s structured his funnel to give a 10 day ROI with LinkedIn paid traffic
(48:30) Why he chose LinkedIn for paid traffic
(57:00) An overview of his concierge service product
(58:00) The biggest benefit of using Infusionsoft vs Mail Chimp
(1:03:00) An overview of an experiment he’s running for SaaS signups
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Trent: Hey there, bright idea hunters. Welcome to the Bright Ideas
podcast. I am your host, Trent Dyrsmid. I am so thrilled to have
you on the show with me today. This is the podcast for marketing
agencies, marketing consultants, and entrepreneurs who want to
discover how to use content marketing, and marketing automation
to massively boost their business. The way that we do that is we
bring proven experts onto the show to share the details of how
they became successful. I don’t have people on here who are
gurus who aren’t doing it. Everyone on the show is living,
eating, and breathing it.On the show with me today is an entrepreneur by the name of
Brennan Dunn. To say that he is doing well online is just an
understatement. He is bringing in multiple six figures from a
variety of sources, all of which we talk about to a certain
degree during this interview. He has authored a couple of e-
books that are being sold. He has consulting training at $1,800
a pop. He’s got a SaaS application called Planscope, and we’re
going to talk in detail about that during this episode.This is also an episode that is absolutely stuffed full of
golden nuggets. Now those of you who haven’t heard my episodes
before, a golden nugget is one of those ideas that makes you
want to pull over and write it down, because you know that the
second you hear that idea you can put it into action and start
to see immediate results in your business. You are really going
to enjoy this episode. There is some really good stuff. At about
the six-minute mark, we are going to talk about how he came up
with the idea for Planscope, his software as a service
application. At the nine-minute mark, we’re going to talk about
how he came up with a minimum viable product, so if that’s not a
term that you are familiar with, you definitely want to hang
around and learn what that is.If you are not a software developer, and you’d love to develop
some software as a service, he’s going to talk to you about how
you can get that done. Just to give you an idea of how good this
business can be, by the way, he is doing just over $10,000 a
month from that one product alone. It takes him about two hours
a week of his time to maintain that particular business. In the
episode, we are going to talk a lot more about what he is doing
to grow it, but as you can see the profit margins are really
crazy. You don’t need millions of customers. You figure $50 a
month, 500 customers-that is a pretty phenomenal business.When we get to the fifteen-minute mark, we’re going to start
talking at length, we spend about half an hour about how he is
attracting leads. There are so many people who have come up with
software, but they don’t sell any, or they don’t sell enough,
and so the business ends up not being successful. So if that’s
you or you think that might be you, and you are struggling with
how to attract more customers for your business, you are going
to love this episode, because we go into a lot of detail on
which social networks he’s using, how he is incenting them. He’s
given specific examples of landing pages, landing pages by the
way with opt in rates of 30% and 40%. One of them he said was
47%, which is phenomenal. We’re going to talk a lot about that.
Then we are going to talk about the specific tools that he uses
to generate leads and how he has structured his sales funnel so
that he can get a ten day ROI on his paid traffic. He’s using
LinkedIn for that paid traffic and we are going to talk about
how he does that as well.Finally, we are going to talk about how he’s using InfusionSoft
to automate a whole bunch of the portions of his business so
that he is not working a gazillion hours a week, and he can
still be a husband and father of two. This is really going to be
a wonderful episode. When you get to the end of it, and enjoyed
it, please head over to iTunes and leave some feedback, because
that really helps the show out.With all that said, please join me in welcoming Brennan to the
show. And one more thing, I am a big believer in masterminding,
because it is a way to surround yourself with other like-minded
entrepreneurs, and Bright Ideas now has a mastermind available.
It is called mastermind elite, and you can learn more about it
at brightideas.co/mastermind.Hey Brennan, welcome to the show.Brennan: What’s going on, Trent?Trent: Just sitting here recording a podcast with another successful
entrepreneur who has a very good story to share. Welcome aboard,
and I’m really happy to have you here.
Brennan: Awesome, looking forward to it.
Trent: For the folks who are listening, who don’t know who you are or
have never heard of Planscope, just very briefly take a minute
or two to introduce yourself, who you are and what you do, and
then we will dive into the meat of what we are going to talk
about today.
Brennan: Sure, so my name is Brennan Dunn. Planscope is probably my
primary business, though I have quite a few different things
that I am working on. I’ve written two books, Double your
Freelancing Rate and The Blueprint. I also teach two online
workshops, and I write a weekly newsletter that is targeting
consultants that just passed 7,000 subscribers. I am juggling a
lot of different things, I guess.
Trent: Yeah, no kidding. One of the questions that I wanted to get to
eventually, but I will bring up now, because it seems so
relevant, is VAs. Are you using a lot of VAs in your business?
Brennan: The only real assistant that I have is somebody that helps me
with the coding of Planscope. I still handle all of my front
line support. I still book all of my interviews manually. That
is getting better now that I am doing some automated things to
send out booking requests and everything. When it comes to
person to person communication it is still just me.
Trent: Here is what we’re going to talk about and why I asked Brennan
to come on the show with me. I want to talk about his company
Planscope, because so many people, myself included, want to make
a success of a software as a service business, because the model
is so compelling. For the folks that aren’t familiar with you,
let’s go right to the results. Well first of all, let’s say what
is it and how well it is doing financially right now?
Brennan: Planscope is a project management app for specifically for
freelancers and consultants. There is Base Camp, there are a lot
of different, it’s a very saturated market. It’s a very niche
project, and it’s doing very well actually considering that I
don’t even work on it full time. We just crossed five figures a
month in recurring revenue. One of the benefits, I’ve done SaaS
and I have quite a few different transaction products like books
and workshops. The amazing thing about SaaS, and I think the
thing that attracts most of us to it, is that I’m going to wake
up October 1st, and I’m going to know how much money, at a
minimum, how much money I will be bringing in through Planscope.
Trent: How much is that going to be?
Brennan: There’s no restart. With books, you kind of always need to be
promoting, or doing something to keep sales up. With a SaaS app,
you have a churn rate, meaning a cancellation rate, and a growth
rate, and as long as churn is less than the growth, it is just
going to keep moving up and to the right.
Trent: Which is right where you want to go. How much comes in on
October 1st for you?
Brennan: It’s going to be, it’s hard to predict, but it will be about
$10,500-ish, I would imagine.
Trent: That’s not bad. Now is there much cost in running this
business?
Brennan: My total overhead, if you include my time, or if you don’t
include my time rather. I put up a challenge, kind of like an
apprenticeship challenge, and I have a part-time developer that
is at $1,000 a month. I also have my webserver that is at $80 a
month. Then I have a few different monitoring apps and
everything. My total is probably about $1,200 or $1,300 a month
in expenses.
Trent: How many hours a month of your time does it take to operate
this business?
Brennan: The baseline is most likely two, maybe three hours a week.
That’s for maintenance. Right now I’m working on a lot of high-
touch sales with bigger, more enterprise, great clients. That’s
requiring a lot of phone time, but if I were to do nothing and
keep the standard trajectory that we’ve been at for the last
year and a half, I could get away with two hours a week. That’s
really just support, and something that I could eventually
delegate out to a VA, to do at least the front line “how do you
do this,” copy and paste jobs.
Trent: That’s pretty phenomenal. One thing I hope the listeners take
away from this, and we’re going to talk about costs and how he
funded it and the whole thing, but you don’t need this world-
changing idea and you don’t need a gazillion dollar marketing
budget to make a very, very nice-I guess I’ll use the word
lifestyle business for lack of another word, for yourself that
you can run from anywhere in the world, and Planscope is a
really awesome example of that.
Brennan: Thank you, like you said, actually I just started doing paid
advertising. That’s sort of just retargeting, so it doesn’t even
count as much. If you know what you are doing, and know what
problems people have, and can build at least the minimum to
solve it, you can get something off the ground, usually pretty
quickly.
Trent: Absolutely. That seems to be a big stumbling block for a lot of
people. They say, “I don’t have an idea.” What would you say to
them?
Brennan: I would say look online, and find people that are willing to
pay for problems to be solved, and look for consensus. Look for,
or do a Google search for, “Why Base Camp sucks,” and find what
people are talking about, or what a certain segment of people,
or what I like to call a cash flow of people, that is people who
are all willing to pay money to solve the same problem. Look for
consensus. The way I look at it is my price point is between 24
to 200 a month. My average customer monthly recruiting revenue
is about $50. So it is about $50 a make on average per paying
customer. I don’t need more than 500 of them to do pretty well.
500 people on the whole wide Internet is not a lot of people.
Trent: And that makes for a very nice life. By the way, with respect
to discovering that idea, is that what you did? Did you start
off with “why Base Camp sucks?” Or was there a more specific
process, or did you have experience in this space already?
Brennan: I built Planscope largely for my own consulting business.
Before Planscope, I had an eleven person consultancy. I was just
frustrated with the tools we had. Specifically, I was frustrated
by the fact that I couldn’t find any project management app that
actually cared about money or cared about budgets. I wanted to
build one that took into account, is this project going to get
done for the money that we are hoping to get it done for? That
was sort of the core premise that I built Planscope around.
What was nice about having that pain of knowing that myself and
a lot of other people I talked to and a lot of other consultants
that I have talked to were frustrated by the fact that there was
a disconnect between invoicing and project management. I wanted
to build the minimum viable product, and it’s a cliche term, but
it’s an accurate term, that somebody would pay for to solve a
part of that problem. As I’ve developed Planscope, it’s
continued to solve more parts of that problem. I think the
biggest hang up that people have is that they look at a mature
product and say nobody will buy it unless it rivals this company
with 20 full time developers working on it. They just give up,
because it’s such a big undertaking.
Look at an app like Buffer. It was a simple, plug in a tweet and
we will post it at a certain time. Now it is much more complex,
but at its beginning, and this is true of just about any product
you find on the Internet, at its beginning it was much different
than what it is today. I think people get hung up on the whole,
it needs to be huge, it needs to be perfect, it needs to do
everything that the competitors do.
Trent: So the minimum valuable product. Let’s go back in history. When
did you decide okay, “Hey, I’m going to build something?” Then
how long did it take to get your MVP, your minimum valuable
product, out the door and how much did it cost?
Brennan: Okay, so I have two things going for me. The first is that I’m
a developer and designer in one body. The second is that I ran a
team of ten other people at my consulting firm who effectively
paid my bills for a few months. I bootstrapped it. I’ve never
taken any outside funding, and I really don’t plan to. I decided
to break ground on it in late October 2011, and I had my first
customer February 1st. We’re looking at about four months or so.
Trent: So four months of development or was it sort of two months of
digging around, making sure that the idea was really accurate,
talking to a lot of people. What did that phase look like?
Brennan: It was really all at once. Development really has never ended.
What I would do, first off was to put together a one-page
landing page. The benefit of when you’re not focused more on the
idea, but on the problem that you are solving, you don’t need to
put up screenshots, you don’t need to put anything up really
about the product. You just need to say, this is the problem
that you have that I empathize with and here’s the solution that
I’m proposing. If you’re interested, put in your email and I
will keep in touch.
I had that kind of opt-in page, and I develop each week, and
then sometime during the week I would email that list as it grew
and let people know what I would be working on next and solicit
feedback with real life examples of how a new feature that I
might be working on to build the app, and if it was a worthwhile
thing that they had a problem with. I kept a conversation going
at scale, and I learned specifically about what I could do
either make a company money or make it lose less money, because
those are the two big things that if you nail one or two of
those, people will pay you if you can make them more money or
you can help them lose less money than they’re paying. That was
the big focus for me.
Trent: That’s not unlike the focus of my old business where we helped
them to lose less money and we built a couple million a year
revenue as a result of that. I will say, though, that having
been in two businesses, one where I help you to lose less and
one where I help you to make money, it’s a whole lot easier to
sell something that people believe will help them make money
oddly enough.
Brennan: That’s right.
Trent: Now, I’m not going to turn this into a call about the technical
of how it was developed and so forth, you already said you were
a developer and designer, and obviously if someone isn’t a
developer, do you think that that should stand in their way?
What advice would you give them?
Brennan: I was in the business of building SaaS products for non-
developers. That was my consulting firm. That’s what we did. I
saw a lot of them that never took off. The reason that they
never took off wasn’t really a product or technical issue. If
you pay a competent developer and point them in the right
direction and let them know what you need, you can get what you
need built built.
A lot of my clients had an issue with shipping. As a non-
developer they had a very binary perspective of products, I
think. They either saw a product as not done or done. The issue
that I would see time and time again was that we would build
something and they would keep tweaking little bits and just
never getting it out and never launching anything.
One of the most depressing parts of my consulting career is how
many clients I had that we put months into their project and
they never shipped it, never put it live. I think just
understanding the, it’s kind of a black box for a lot of people,
software. If you don’t know how to write your own software it
can be intimidating I think. I think the best thing that you
could do is go to Treehouse or one of these online coding
platforms. Don’t even necessarily, the goal isn’t for you to
write your own app necessarily, but the goal is for you to know
how to program out a problem that then you can at least have a
little more context when working with a developer that you hire.
That’s what I would do.
In terms of design, you can go to Theme Forest and find a really
good looking landing page for nine bucks. Most buyers don’t know
necessarily that it is a template, and as long as the copy and
the messaging and everything else is good, it probably shouldn’t
matter. Copy writing is one of those skills that I think, it’s
somewhat a technical skill, but for the most part-learning
Photoshop requires a lot of time, learning how to code requires
a lot of time-good copywriting just requires knowing the English
language and knowing enough about sales, persuasion, and things
like that I think.
Trent: Yeah, there’s definitely a format to follow when producing
sales copy. Just as a side note for folks, I used to be really
intimidated by building software. Start small. I went to
freelancer.com and I put up this description of this WordPress
plugin I wanted to get built, and miraculously it got built, and
I’ve sold almost $20,000 of it so far. I really encourage you
not to let limiting beliefs, by the way, I only paid $1,000 to
develop that thing, so commercially it’s been quite successful,
and it taught me a lot. If you’ve never done software before and
if you are listening to this thinking you could never do that,
banish that thought from your mind, because you can do anything,
and if you have enough vision, and you can get your MVP
developed on the cheap, you will also be able to find investors,
because it is a compelling model. Building it is great, but if
you don’t have any customers, then who cares, right?
Brennan: That’s the reason, I think, 90% of startups fail is that you
focus too much on the product and that idea that you completely
miss first of all, how do I find people? And secondly, am I
actually solving a viable problem for them. For me, the way I
found customers and the way I find them still to this day is to
engage with them more on the product as it relates to their
company. What I mean by that is, when starting out, I would just
loiter around Internet forums where consultants hang out.
There’s a sub-Reddit for freelancing. There’s a lot of these
different community sites.
Trent: Can you list a few of them off? I want to put them in the show
notes.
Brennan: Yes, there’s freelanceswitch.com. They have a somewhat active
message board. There is Hacker News. It’s not exactly a
consultant community, but there are enough consultants on it
that it was viable. Then there is Reddit slash freelance I
think, which is a sub-Reddit dedicated to freelancing I think.
Trent: So that first one was freelanceswitch.com?
Brennan: Yes. So I would just kind of hang out here, and I would look to
see what kind of problem, the thing about Internet communities
is that the same topics keep coming up again and again. What’s
the common stuff that people keep talking about? Considering I
had a lot of experience when it came to consulting, having built
an eleven-person business, I decided to start writing about
those topics. I put together a blog, for Planscope, and just
started writing general purpose consulting and freelancing
articles.
Usually what I would do is instead of replying in the community,
I would reply, and I would put in a few sentences of copy and
then I would say that this relates to something that I wrote in
my blog and I would include a link to my blog or to the article
in question that relates to that topic. It definitely was not
scalable, but starting out it helped me build up an announcement
list of about 300 people, and when I launched within four months
I had people ready to go.
The biggest mistake that you can do, and I see this all the
time, is that you collect an email address and then you sit on
it until you are ready. So six months later you vaguely
remember, but don’t really know who they are and why you should
care. Then all they do is talk about themselves and say, “We are
ready, us, us, us,” but you just delete the email. I really
build up the conversation each week, while building Planscope,
and by the time I was ready to go, people were eager to get in.
Trent: That’s very good advice. I’m writing like mad on post it notes
for stuff I need to do for my own SaaS application, which we are
coding like mad right now, and I have not yet put up a squeeze
page, shame on me.
Brennan: You’re violating the number one law of selling anything online?
Trent: I’ve done a different thing. I obviously here with the Bright
Ideas podcast have a fairly sizable audience of marketing
agencies, and I have done demos, because we developed a mock up
for $500 to get a mock up done and Twitter bootstrap, and I have
been showing that mockup one on one with people for some time to
validate, “Hey, are we actually solving a real problem? Would
you pay for a solution to this?” You can sort of get a feel from
the tone of peoples’ voices when they see stuff. For one portion
of the application, we actually have a desktop version that is
fully coded and we’ve sold quite a bit of it. People say that
it’s awesome and you know that it is resonating.
Brennan: You know what I would put on top of that, I would say, “Okay,
would write me a check for it now.” The thing that I’ve
discovered, and I know from talking with a lot of people about
this is that people don’t want to be critical, necessarily. When
you can actually put them on the spot and say, “Will you pay for
this? Great, pay me now.” You can learn a lot about really what
people think and if it something that they would actually pay to
implement in their business.
Trent: I can hear the collective limiting beliefs of a few of the
people in the audience, and I’ll throw, myself under this camp
as well. They say they don’t have anything for sale yet, how can
I ask someone for a check, so what do you do?
Brennan: I didn’t presell Planscope, because I didn’t know enough about
preselling back then, but I have presold both of my books and
all of my workshops. Workshops are kind of a no brainer. You
typically collect payment and then you have a workshop some
point in the future. With a book, though, the way that I was
able to establish that early cash flow, with both my books.
I’ll talk first about my first book, because at that point I
didn’t have an audience. The second book was a little easier,
because once you’ve already written a book and successfully
delivered it, people trust that you are going to be able to do
it again. But with the first book, the same rules applied. I
talked about pain, I presented a solution, I countered
objections through just knowing about why people would buy this
and talking with a lot of different people about how to set your
rate. I knew kind of what common things people kept throwing
back at me when I pitched the book over Skype.
I had this long-form sales page. At the bottom, I had a
prepurchase link. With my first book I did a discount, so I did
20% off. On my second book, instead of doing a discount, I kept
the price what it would be on launch but I included an exclusive
one-hour webinar. If you preorder the book, you get the book
first before I go public with it, and a seat in this webinar
that you and all the other preorder people would get. Both sold
very well. The benefit was, for me at least, when there’s money
sitting in your account, and it’s really a liability, because
you need to actually deliver something, otherwise you are going
to get charge backs. It really lights a fire for you to get it
out there; wrap it up, get a production ready and ship it. I
really focused on that and having preorders was a really smart
move on my part.
Trent: I’ll echo that, because maybe a year ago, I think I did a
mastermind group for some people and I had about $12,000 in
preorders, and I hadn’t developed any of the content, but then I
knew that I was going to really knock their socks off with the
content that I promised. It was only twelve people, but they
paid $1,000, so I wanted to make sure it was really good. When
you already have the money, it makes it so much easier to put
the time in, because you’re like, “I’ve been paid for this now.
I have to make sure that I come through for everybody.
Brennan: Right, it’s a good solid move and the best proof you can get of
your product. It’s much better than an email address.
Trent: Yes. Okay let’s go back to… Here’s the thing in case
listeners want to know why they should keep listening. I want to
cover a little more on generating leads and converting those
leads to customers. Then we will talk a little more about
outsourcing. Brennan, do you use InfusionSoft?
Brennan: I do.
Trent: We will probably spend some time on how you are taking
advantage of all of the horsepower that InfusionSoft offers. If
time permits I also want to talk about some of the paid traffic
that you’re using, if you’re using any, to sort of ramp things
That’s where we’re headed.
With respect to lead generation, you did this thing, you said it
didn’t scale, but it did work very well. Every startup, I wish I
could give credit to the guy who I’m about to quote. He was a
very well-known VC in the valley and he said, “In the
beginning,” I think it was Dan Morris that sent me this article,
“you need to focus on stuff that doesn’t scale.”
Brennan: That was Paul Graham’s article on doing stuff that doesn’t
scale.
Trent: Thank you. Exactly. That’s what you did by hanging out on
Freelanceswitch and Hacker News and Reddit in the beginning.
What did you do after that?
Brennan: It lasted through Summer 2012. It was in the Summer of 2012
that I started writing my book. The thing you’ll discover about
SaaS, if you eventually get one, it’s very slow to ramp up.
Twenty percent growth rate month to month when your income is
$100 is a very slow growth. But given the law of time, give that
three years and it becomes a very large investment.
What I realized is that I wanted to do a lot of things. I wanted
to go to a conference in Europe and I just didn’t have the
money, so I decided to write a book. Actually doing this was
probably the best marketing decision for Planscope I ever made.
The thing that I’ve learned about building a B2B heavy duty SaaS
that people need to convince themselves to use, and, in my case,
then switch their team and clients to it, is that isn’t an
impulse thing. You’re asking for a lot. If you’re sending
traffic to your marketing site, you probably don’t have any
rapport built up with that person yet.
What I ended up doing was I started really promoting this book I
was working on, and the thing about a book is that it is an
impulse buy. You spend $50 on an e-book, and you get the value
within a few hours. You read it, you get that value out of it,
and it’s done, and there’s very little risk, right? There’s very
little risk for will you extract value out of it. So I did a
book.
Trent: Brennan, I’m sorry to interrupt you, but the dog barking in the
background, is there a door or anything you can close?
Brennan: It’s downstairs. Let me get the nanny and tell her to put the
dog outside. Can you hold on for one second?
Trent: And we’re back, no more dog.
Brennan: What was I just talking about?
Trent: So the question that I’d asked you which got us going down this
path was how long did you focus on things that didn’t scale?
Then you talked about the book.
Brennan: So I started really writing this book and building excitement
around the book. I did the same thing I do with Planscope, I
started writing the book. In this case, the book prepurchase
list grew weekly, and I felt like I had to then. If they already
paid me money, I don’t want to take their money and disappear
and come back in the future at some point with a book. I just
started writing them about what I was writing about in the book.
I would just kind of extract chapters and sum it up in a
newsletter format. And after launching the book, I just kept
doing it. I realized I could stop, the book was out, and my duty
was done, but I converted it into a newsletter.
Trent: Paid or free?
Brennan: Free newsletter. By buying the book, you get on the newsletter.
Eventually, people outside of the book wanted to get on the
newsletter, so I started putting opt-ins on the Planscope blog.
The thing about a newsletter is that if someone just reads a
high-quality article of yours and you say that you deliver
things like that to an exclusive list, I mean my opt in rate for
my newsletter squeeze page is something like 40 or 45%, which is
something I’m very happy with and frankly could be higher.
Trent: What is the URL for that?
Brennan: That is freelancersweekly.com. I would send a lot of traffic
there and have opt-ins on my blog posts. I just started building
a list and started writing to them weekly. These weekly emails
weren’t kind of your typical graphic heavy newsletters. They
were more or less plain text-ish from me to them. I just kind of
built up a relationship with people over time.
What ended up happening was, I would drop very soft and subtle
relationships to Planscope like, “Here’s my thoughts on
estimating, and I actually built into my product Planscope,
things that actually correlate or complement this philosophy
towards estimating.” Actually, these days, more than 60% of my
new Planscope customers come from my mailing list first. They
are usually on it for months. They will sit on my list for
months. They might buy my book a month into it, then my second
book a few months later. Then they sign up for Planscope and
then six months down the road they buy my $1,800 workshop.
The thing is, what I’m doing, I’m able to really, everyone on my
list and all of my products focus on consulting. They focus on
freelancers and consultants. They’re all just different facets
of it. The Planscope, my SaaS, focuses on helping consultant be
more transparent with clients, and be basically better at
managing their projects. My first book, Double your Freelancing
Rate, helps consultants price higher. My second book helps them
deal with inbound marketing better.
All of my products are complementing a different part of
somebody’s business. For a lot of them it’s sort of natural
like, okay I paid Brennan $50 and he helped me raise my rate,
and I’m making $10,000 more a year this year. I’m very open to
spending more money on him and his SaaS business or SaaS
product, and expecting that same sort of investment to output
ratio.
Trent: So your book, without going into a ton of detail, I’ve never
heard of anybody say I needed money to go to a conference so I
wrote a book. Most people say I went out and got a new client or
something like that.
Brennan: I could have done that, and I’ve thought about that for a
while. What I realized is when you’re working with a client
project, I compare it all the time to crack cocaine. It’s
immediate gratification. You work an hour and you get paid for
that hour. With a book or any sort of product, the delay is
longer, if that payoff even ever comes. Secondly, you’re
building equity in something long term. By focusing on the book,
and making that money through presales, that I could have made
through consulting, I built up more long term equity that to
this day I still sell a few copies a week. I’m really not doing
much to make that happen. Secondly, it’s building up my personal
empire of consulting products, which further strengthens things
like Planscope.
Trent: But a book. Isn’t that a big deal? How many pages are we
talking here?
Brennan: So it is about 110 pages. I did it in about a month. I focused
on writing daily and making it a habit.
Trent: Like an hour a day, or six hours a day?
Brennan: I want to say I spent about 100 hours total, so we’re talking
about an hour per page. I mean I’ve been so comfortable with
blogging a lot that writing this stuff wasn’t really, I wasn’t
needing to pull teeth. It was things that I’ve been talking
about to a lot of people over email and phone calls and things
like that. The material was all up in my head. I just needed to
commit it to paper. I did it, and I’ve got great reception. I’ve
sold something like 3,000 copies. I don’t know specifically what
it is off the top of my head. So 3,000 times 40 to 50 a piece
depending on whether they had a coupon code of it was during
presales. I mean that is still, for 100 hours, and that’s just
as it is right now, and I’m still bringing in at least 1,000 to
2,000 in revenue from it.
Trent: That’s very nice passive income. How big was your list when
you started to do presales for the book?
Brennan: I had the Planscope list, but they thought they were on a list
for a project management app, so I didn’t really have a list.
The book started my list. I heavily cross promoted to my
Planscope list, which at that point had about 2000 people on it
at that point. Through Twitter, and really through a lot of
content. I would just extract the best parts of my book as I
wrote them, convert them to a blog post, and promote them. And
people would go on the different aggregator sites and… I’m not
afraid to put my best content forward for free as a way to
generate leads.
Trent: That’s a very good point, and I am so pleased that you brought
that up, because I know that when I first got online, and I know
a number of listeners can relate to this, I really struggled
because I had a membership site, “Well, what do I put on the
blog for free versus what I put in the membership site that is
not free?” Can you talk about with a book, or anything that’s
behind a paid wall of any kind, why do people pay for stuff that
they can get for free? And is it unethical to charge for stuff
that you make freely available in some other format, somewhere
else?
Brennan: I don’t think so, and here’s why. I think when you are selling
something to somebody wearing the hat of a business owner or
wearing the hat of a general business, there is no such thing as
free Internet research anymore. The best example I’ve ever heard
of this is my friend Patrick once said he put together a video
course on life cycle emails, and he got a lot of rebuttal from
people from Hacker News and other websites saying all this stuff
is available for free online. He said sure if you want to go
around and Google and get hit or miss articles for two weeks, go
for it. Or you can spend $500 and get a very curated, to the
point, start to finish overview of life cycle emails.
He put it in the business perspective that you are trying to
sell a CEO on having one of his developers implement a life
cycle email campaign. The CEO does not want to write a payroll
check for $10,000 for two weeks of this person’s time that has
in the memo field, “reading free information online.”
There’s two things. First off, you’re able to put it into your
own voice and into your own way of thinking about a problem.
Secondly, it’s up to you, as a content provider, to organize it,
make sure it’s relevant, make sure it’s cohesive and so on. I
say this all the time. When I’m confronted with a problem, do I
want to Google around for a week finding articles that might be
crappy, or outdated, or whatever, or would I rather pay $50 and
get the concise guide to it that I’ll have all that info pretty
immediately?
Plus, I back everything of mine with a money-back guarantee. If
you don’t think it’s worth more than the $50 you paid, write me
and I’ll gladly refund you. I think I’ve had 3000 sales and only
five total refunds. It’s a great way to kill an objection people
might have and a worthwhile thing to include I think.
Trent: This is kind of a parallel to the best way to attract the best
clients is to raise your prices. That might sound unrelated to
this, but what I’m trying to say is that by charging for stuff,
you are going to attract people who really and truly understand
the value of their time, and therefore your time, and those are
the ones that are the most enjoyable to deal with. And in your
book about how to raise your prices, I’ll bet that’s probably in
there somewhere.
Brennan: It’s almost funny. The people in the highest tiers of
Planscope, the people paying $200 a month, they hardly ever
reach out for me when it comes to support, or anything like
that. A lot of the $24 a month people can be very persnickety.
Trent: Yep, so very true. Are there any other ways that you are
generating leads, because we are still actually on that thread,
for Planscope that we have not talked about yet?
Brennan: Yeah, I have a drip email campaign that I have set up. This
kind of crosses into the paid advertising realm, but I’ve done
two different ways of acquiring eyeballs, I guess. The first is
something I started doing a long time ago, which was drive,
through LinkedIn ads, traffic to my page because I saw it had a
high conversion rate. If that rate was consistent, I could make
a pretty good return, probably, from LinkedIn advertising. I did
that and it paid off pretty well. I got about a five to one
return and still do to this day off my LinkedIn ads. That is
really just driving people to my newsletter. I don’t really have
a lead [magnet] or anything, I just have the opt-in page. I get
a pretty good amount of people who sign up through that and then
I have about one out of every ten people who join . . .
Trent: Let me interrupt you, you’re sending paid LinkedIn traffic to
freelancersweekly.com?
Brennan: That’s right, yep. I do have an auto-responder sequence set up
that actually asks three questions. The first email that I send
out says this is who I am and this is why I think I am qualified
to talk about consulting and freelancing. The second email is,
what is the number one problem you have right now with your
freelancing business? The third email is, here’s what the number
one problem that people have told me is and that happens to be
about undercharging, so I promote my book there, and I get about
a 10% conversion rate just then off of paid traffic to buy my
book. Considering what I pay to get the click, I pay about $5 a
click, I’m basically breaking even when it comes to acquiring
people through LinkedIn.
Trent: Yeah, but you’re doing that in a week, you’re getting your
money back in a week.
Brennan: Actually ten days. But the benefit of that is that the book is
just a stepping stone, I guess. I have a more expensive book
that gets up to $250. I have Planscope, where my average
lifetime value is between $200 to $1,000. I have my $1,800
workshop. I’ve had people who I’ve spent $5 a conversion on who
I broke even on with the first book, but I’ve had products
waiting in the wing that were contextually relevant to them that
then they bought and everything was pure margin, I guess.
Trent: That’s a very nice sounding funnel. You’ve mentioned earlier
that it was okay to save people research time by packaging up
knowledge and putting it all in one place so long as it was done
high quality. You have a lot of products, so I think some of the
listeners are thinking it might take me forever to create all of
those products. Do you think it’s okay for somebody to say, “I’m
going to produce a report on whatever, and I am going to go and
do all that research, and I am going to curate like mad, and
give credit where credit is due of course, and assemble my
workbook, for lack of a better term, that is the result of all
of my research on whatever topic it is, and I’m going to sell
that?”
Brennan: I think that if the deliverable is going to measurably impact
somebody’s business in such a way that it outweighs the cost of
getting that product in their hands, then I don’t see any
problem with that. I would just complement that by-it’s so easy
for a virtually 100% margin product for a book or an e-book to
put a money-back guarantee, that look, if my product doesn’t
help you, I only want you to buy this if can deliver $500 in
value to you. I think that’s a great way to do it, and if
somebody doesn’t take value from it, don’t take their money.
Trent: Its’ really about being clear with setting expectations up
front and backing it with a guarantee.
Brennan: That’s right.
Trent: For people who have not yet bought any paid traffic, why did
you choose LinkedIn over any number of other sources like
Facebook, Google PPC?
Brennan: Okay, so I actually have done Facebook also. I did Facebook and
LinkedIn. LinkedIn was a little better overall. So I phased out
a lot of the Facebook ads. I’m using Facebook, now, for
retargeting, which is amazing actually.
Trent: You should explain to people what is retargeting.
Brennan: Retargeting is when you go to a website that is using a
retargeting advertising provider, what happens is, when you go
to another website, like Facebook, you will start seeing ads for
the website you were on before. It’s kind of like when I was on
a gardening website, and I saw SendGrid, which is like an email
service provider, ads. I knew that SendGrid is not spending ad
budget on a gardening site by default. But because advertisers
know that if you have been to their website in the past, you’re
more than likely in their demographic, so you have a higher
click through rate for them, which means more money in your
pockets. But for the advertiser, it’s more money in your pocket
ultimately.
I heavily used Facebook retargeting. Now that they have newsfeed
ads, which if you’ve been on Facebook and you see advertisements
in your newsfeed, that also are websites that you’ve been to,
that is why. Those ads, I get 4 to 5% click through rates
sometimes on that. A good click through rate is sub 1% usually,
so I am kind of using both.
Trent: Are you using AdRoll for retargeting, or is Facebook itself got
its own retargeting service?
Brennan: I’m actually using a service called Perfect Audience, which is
a [Y-combinator] startup, and they do display ads, so they do
your general website banner ad retargeting, but they also do
Facebook ads. One thing I like about them, I don’t know if
Adderall does this, is that they allow for email for targeting.
Considering that I have a big email list, I’m able to put in my
email template the pixel ad for Perfect Audience, which will
then start retargeting for my list.
You can also segment that list to say not to show ads to people
who already have an account or already bought this, then you can
make it so that only the right people who, so if you have a free
newsletter, instead of hammering your newsletter with book
stuff, you could have your newsletter have this tracking pixel,
and then in somebody’s Facebook feed, you put a free email
course that directly relates to your book. You put your picture
and your name on it, and they already know you produce awesome
content. They join that email course and the goal of that course
is to sell them on the book, which is one really clever way to
sell your products through a newsletter.
Trent: So everything that you just explained in the last three minutes
or so, you can achieve using Perfect Audience, is that correct?
Brennan: That’s correct, yep.
Trent: So you don’t have to be some coding genius to be able to figure
out to do everything.
Brennan: No, if you are able to put Google analytics code on your
website, you will be able to figure it out.
Trent: Okay, and folks, the show notes for this episode where I will
be putting all of these links is going to be found at
brightideas.co/77. That’s just the number 77. All right unless I
missed something, I think we pretty much talked about how you’re
attracting leads. Is there anything else that you are doing for
lead generation that we have not talked about?
Brennan: It’s pretty much give away great content. Get people into, what
I call, my ecosystem. You know, get them to know who I am. The
amazing thing is when people reach out to me with support
requests for Planscope, they almost always start out with, “Hey
Brennan” comma. People know that I’m behind Planscope. I make
that a very public thing. It’s just a different medium. The
books are one medium, Planscope is a different medium, but they
all achieve that same goal, which is to help make somebody have
a better consulting business.
I have a have a very stepladder approach, where at the bottom is
my newsletter, and from then on up it goes to my impulse buy
with the book, and then bigger purchases, and ultimately
Planscope and my workshop. People sell segment. If somebody
spent $50 on you and got a great return, those people are more
than likely to spend $1,800 on you for an even bigger return.
It’s funny, I can go to my workshop customer database and plop
any of their email addresses into my CRM, and all of them bought
a book of mine a few months ago, or something. I could drive as
much paid traffic in the world as I want into an $1,800
workshop, no one will register. There needs to be a gradual
approach to doing that.
Trent: How much do you spend on advertising in a typical month?
Brennan: I spend about total, I want to say, maybe 400 or 500 a month.
Trent: Okay, and what would you say your annual run rate for your
revenue is right now?
Brennan: So my workshop, I do now just about every other month, and
that’s $1800, and I sell 14 seats, so whatever that would be.
That’s about $20,000 or so. I usually consistently sell them
out. My books bring in total about $3,000 to $3,500 on
autopilot. Planscope just passed five figures. It’s hard to say
for Planscope, because that one keeps growing, which isn’t a bad
thing.
Trent: No, definitely not, so somewhere between 25,000 to 30,000 a
month.
Brennan: About that, yeah. That’s pretty consistent.
Trent: For a business with one programmer, and only $500 a month in
advertising. You’re doing pretty good.
Brennan: It’s funny, when I was consulting, I was billing $200 an hour.
If I was full time, I would be bringing in $32,000 a month. I’m
actually making less than I would at consulting still, but it’s
a lot better.
Trent: Because your income is not so directly tied to the amount of
hours you work now.
Brennan: That’s right. If my primary client fired me, I’d be out, but if
one person decides to quit Planscope, it’s whatever.
Trent: Right, no big deal. Do you still have the 11 people in the
service business working for you? Did you shut that down, or
sell it off? What happened?
Brennan: What I did is promote my business development guy to run it in
my absence, and I basically converted everyone to a 1099,
because if I was inactive, I didn’t want to deal with having a
fixed, expensive payroll each month. Some of them still relate
to us, but for the most part, a lot of them are just kind of
independent consultants now, so it’s intentionally gone
downhill, but the goal wasn’t to keep it alive.
Trent: The service businesses can really be wonderful. I interviewed
another guy by the name of Sam Ovens-that’s at brightideas.co/69-
he also has a SaaS business, but he, like you, funded it on the
back of his consulting business. So service businesses can
really be wonderful. I’m doing exactly the same thing. Bright
Ideas makes money from doing services in our agency and we are
taking that money and reinvesting it in assets and recurring
revenue products, because ultimately that’s where I’d like to
have the money come from.
Brennan: Yeah, I actually think that there’s a lot of room for what we
think of as turn-key products like SaaS businesses to have more
concierge services to it. If you look at something like, Rob
[Walling] who has a new project called DripOut, which is a very
simple throw this job description on your page and you will have
an email course option widget on the bottom of your screen. One
of the things he’s doing is have a concierge service where yes,
he has a platform that will help you plug in all of your email
courses, but you can pay him X amount and they will write them
for you. It’s kind of like consulting, but it’s kind of your own
marketplace in a way. You have the product that people are
paying you monthly for, but you have these transactional one-
offs that allow you to charge significantly more to deliver
personal value, I guess.
Trent: And what website should people go to for that?
Brennan: That is getdrip.com
Trent: Okay, I’ll put that in the show notes as well, so if you’re
driving, don’t try and write that down. All right, I’m such a
big InfusionSoft fan, I can’t help but ask you some questions.
We’re going to finish up the interview with how InfusionSoft
fits into all this, so if you don’t care, you’ll probably have
gotten all out of this that you wanted to, but InfusionSoft is
some of the most amazing marketing software on the planet, so
we’re going to talk about it. What do you think is this biggest
benefit to your business of using InfusionSoft versus AWeber,
GetResponse, iContact, all the cheapies?
Brennan: So for the longest time, and still to this day, I haven’t fully
transitioned everything yet. Before I was doing everything
through MailChimp. Kind of the pain for that was, there wasn’t
really, I have one massive list, while you can’t segment or
group something out, it’s very hard to say something like, “Hey
I’m putting together a workshop on recurring revenue next month,
if you’re interested, click this link.” The only way to really
do that with MailChimp would be to drive people to a landing
page where they would then need to type in their name and email
address again, submit the form and opt in for a new list.
Right now, I’m using InfusionSoft for all of the life cycle
emails for Planscope. It’s kind of nice, because you can do
things like, well the first email they get from me is, what’s
the number one thing you want me to help you with? The three
options are, I want you to help me estimate, I want you to help
me better manage my clients, or I want you to help me better
manage my team. I ask them to click one. It’s the standard where
I have a goal that is to click on a link. Depending on what they
choose, it creates a task in my InfusionSoft account, where then
I will follow up with them manually and ask how I can help them
estimate.
Again, if I had a thousand new accounts a day, there is no way I
could keep doing this, but what I’m doing is actually using this
to build out an eventual email sequence for each of these three,
so eventually clicking the I need help estimating will spin off
a sequence that’s all about estimating that’s going to be based
off of the conversations that I’m having now. That’s one cool
thing that I’m able to do.
When somebody activates or pays, I tag them, and then I have
certain sequences kick off from that; likewise, when somebody
churns. The biggest thing for me is having a centralized CRM,
where I can know this person that just bought Planscope bought a
book three months ago. Before that was a very manual operation.
I had to cross reference things to figure that out. I can better
do things like when somebody joins my newsletter, if they happen
to stumble upon the Planscope website, using the web analytics
InfusionSoft capabilities, I can then start getting in touch
with them selling them Planscope.
It’s a very nice, from that point of view, where everything is
in one place, and I don’t need to have multiple lists and juggle
things around it. Instead of having a Planscope list, a book
buying list, a general newsletter list, and a workshop list, I
just have one list, but I’m better able to kind of know who on
that list has done what.
Trent: And what enables this is called tagging. Tagging is I think it
is the greatest thing ever with respect to InfusionSoft, because
it allows you to categorize the people that are in your
database, it allows you to trigger automation based on their
activity. I could probably do an entire podcast just talking
about examples of how I’m using tagging, and it’s pretty awesome
stuff. It’s so much different than, like you said with
MailChimp, where you have a list for this and a list for that
and it’s really painful to get one person from one list to
another and there is a lot of friction, whereas, with
InfusionSoft, it’s effortless.
Brennan: That’s right. Considering that the value of a team account,
where a bigger enterprise account is so much more valuable to me
than a freelancer account. When somebody says, “I need help
managing my team,” I prioritize that task. That’s permanent. Now
I know that this person is probably running a team. Then they
are the ones that I promote my higher value, more team focused
products to versus the college student who is moonlighting some
additional revenue on the side.
Trent: Absolutely. That’s right. All right, I think we are at about an
hour here, and I could ask you so many more things, but in the
interest of keeping my episode to just an hour, I think we are
going to stop here. Before we finish up, is there anything that
I have not asked you about, which you particularly stoked or
want to talk about? Number one.
Brennan: I could talk about an experiment that I’m running now if
anything is interested. It’s a sort of SaaS logistics. So before
I was doing a credit card up front sign up process, where you
would need to sign up, put in your credit card, and you would
have a two-week trial. If you didn’t cancel in two weeks you
would get billed. I did this for a while and it worked well. I
was having a 40% conversion rate from trial to paid.
What I’m doing now, I kind of have a squeeze page for
Planscope’s website. Instead of having a full blown marketing
site, it’s really just type in your email address and a password
and jump directly into Planscope. What I do is I have a very big
on-boarding process that has like an interactive video. At the
end I ask somebody to create their first project for a client,
because when somebody is using Planscope on a client project,
they are deriving business value out of it. It’s no longer about
seeing if the interface is friendly for them or whatever else,
and what I do then is capture their card then and bill them
immediately, but I put a 60-day money back guarantee.
I launched this on Friday. I don’t have enough data yet, but my
earlier site would get maybe a 1% conversion rate to trial and
now I am getting about a 10 to 11% trial rate, which means more
email addresses that I can build up relationships over time
with. So fewer drive-bys right? A lot of people, they stumble
across Planscope and they don’t know who I am, they’re not going
to give me their card, any of that stuff. Now it is much quicker
to get in, but I charge you immediately, so if you’re going to
be using this for a client project, I’m going to charge you
right now, but you have a full two months to ask for your money
back. I’m excited to see how this will work.
Trent: Are you doing this right from the homepage of planscope.io
right now or is there a different landing page?
Brennan: No, so you go to the homepage, planscope.io, there’s really no
navigation except for signing in, type in your email and
password and get started. I’m getting an 11% conversion rate on
this page.
Trent: Is that connected to InfusionSoft?
Brennan: Yes, it is.
Trent: Is that just an InfusionSoft form behind the interface or is
there an API?
Brennan: I’m using an API to do it. The form actually submits to
Planscope, and creates an account and inserts a bunch of stuff
into my database, and then I’ll replicate it over to
InfusionSoft.
Trent: Okay, so if someone says, “Hey, what’s my password,” you would
be able to tell them, because it is going to be stored-obviously
you can get it out of Planscope-but it’s in InfusionSoft, yes?
Brennan: I don’t put password info in InfusionSoft. I actually encrypt
all the passwords so you’d need to reset your password if you
were locked out. All I send to InfusionSoft is their email
address. Once they activate I get the account name and the first
and last name, so I’ll update the record then, but for most
people I just get the email.
Trent: Okay, I’m going to ask you one more question. How on Earth do
you manage your time? I know for me it is a massive struggle.
There are so many projects on the go, so many things you could
be doing, from tweaking the sales funnel, to testing sources of
paid traffic, to split testing landing pages, to creating a
podcast, to getting a guest, to writing a post, and on and on
and on. You seem like you get a lot done.
Brennan: I work fast. I like to say I live in organized chaos. I think
the best thing that I do is I usually get up at around 5:00 or
6:00am. I’ll start before the world is awake, I guess, and I’ll
just bang stuff out. I’m trying now to really focus on bucketing
where I’ll have a certain day be Planscope day and another day
be newsletter day, and another day be new product day. That in a
perfect world would be ideal, but the biggest issue for me right
now is how much my day is spent in my inbox. That’s actually the
biggest problem that I have because one of the things that I ask
people with a lot of my newsletters are, “Reply and tell me what
you think about this.” And I label it all in Gmail, and it’s
great for-one great marketing lesson is throw people’s words
back at them. So if you know how people describe in their own
words a problem, and you reflect that on your marketing site,
it’s better overall for sales.
Now that I’ve got quite a few thousand people, I send out an
email and say, “Tell me what you think about this,” I might get
200 or 300 replies. And I tell people, “I’ll reply to everything
I get.” That is starting to get pretty hard.
Trent: I want to offer up a resource for that. Chris Ducker did an
interview with Amy Porterfield. Her last interview on
AmyPorterfield.com, and Chris is actually going to be on my show
coming up soon too, and he’s the guy behind Virtual Staff
Finder. He actually describes at length in the interview how he
outsourced his inbox, and he has a VA do the first round of
filtering because he’s much like you. He says, “I want to get
people back answers,” but many time as I’m sure you’re aware,
the answers are the same or more or less the same over and over
again. So you can absolutely train a VA, or even have something
like [YesWare] installed on your browser, so your stuff is
already prewritten and someone else can go through that first
round for you, so when you log into your inbox, it’s only the
stuff that nobody else could actually answer for you.
Brennan: It’s a great idea. I think there’s a benefit in that it’s the
author’s own voice replying to you. Frankly, there’s a lot of,
especially if somebody’s emailing me about spending $1,800 in my
workshop, I’m going to talk to them as myself. I’m not going to
hire a VA to do that.
But I think you’re right. For at least delegating to me what’s
important or what needs my focus is a great idea. I’ve never
been good with delegation admittedly. It’s one of those things,
I’d love to be much better at it than I am now, but it’s more of
a mental hurdle I think for me.
Trent: I think it is for a lot of people. You eventually get to the
point where you decide I can have either massive growth or
massive control, but I can’t have both.
Brennan: That’s a good point. That’s a really good point.
Trent: You just can’t do it all. There are not enough hours in the
day. Brennan, thank you so much for doing this interview with
I learned a whole bunch and got lots of notes going into the
show notes here. There is going to be a transcript. Again folks,
you going to be able to get to that-I’d like to say, “If you’re
just tuning in . . .” But that doesn’t happen with a podcast,
you’re either here from the beginning or you’re not here-at
brightideas.co/77. All the stuff we talked about will be right
there.
Brennan, if people want to get a hold of you what is the one
easiest way for them to do that?
Brennan: Easiest would be my personal website, that’s brennandunn.com or
I’m the same thing on Twitter, @brennandunn.
Trent: Okay, terrific. Thanks so much for being on the show. I look
forward to crossing paths with you again soon.
Brennan: Awesome, thank you, Trent.
Trent: So that’s it for this episode. To get the show notes and all
the links that Brennan and I talked about head to
brightideas.co/77. And please do me one other small favor, head
over to brightideas.co/love, there you’ll find a tweet you can
send out, as well you’ll find a link to go ahead and leave
feedback in the iTunes store. So if you thought this was a
valuable episode and you found some golden nuggets, I would
really love it if you would take the 60 seconds or so that it
takes to fire up iTunes and go leave a five-star feedback for
the show. When you do, more ears get to hear the show in the
future because iTunes ranks it higher and the more entrepreneurs
that we can help to boost their business with all the bright
ideas that are shared here by guests like Brennan.
So that’s it for this episode. I am your host, Trent Dyrsmid. Thank
you so much for tuning in. I really cannot wait to produce
another one of these fabulous interviews for you in the future.
If this is your first exposure to the show, you want to make
sure you never miss another one, head over to brightideas.co, go
ahead and opt in, and you’ll make sure you get notification of
every episode we ever produce. Thanks so much. Have a wonderful
day.
About Brennan Dunn
Brennan Dunn provides great software and products to freelancers and consultants.
He is founder of Planscope, a project management software for contracts and freelancers; author of “Double Your Freelancing Rate“; and owner of We Are Titans, a consulting company that focuses on improving their clients’ profits.
https://brightideas.co/wp-content/uploads/2013/10/brennan.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-10-07 06:00:412020-09-10 04:45:21Digital Marketing Strategy: Brennan Dunn on How He Launched His SaaS Business in Under 4 Months
This podcast is a real treat. Robert Rose is the second guest I’ve had from the Content Marketing Institute (CMI), which is virtually an institution of knowledge on content marketing. Robert is CMI’s Chief Strategist there, and I definitely learned some new strategies taht I’m looking forward to sharing with you!
CMI’s stated goal is to advance the practice of content marketing, and one of the ways they do this is by training their consulting clients.
Robert walks us through the process they use to turn a brand new lead into a paying client, including details of their funnel and what they do if a prospect doesn’t buy.
He also shares some strategies that can significantly inflate the reach of your content as he walks us through how and when to use press releases for posts, and how to cross post influencers’ content.
That’s not all. When you listen to this interview, you’ll hear Robert and I talk about:
(2:45) Introductions
(4:45) An overview of how they are attracting consulting clients
(10:00) An overview of how they track where their leads come from
(11:55) What happens if their consulting leads don’t buy
(17:45) An overview of how to structure an agency funnel
(20:30) The different types of registration forms and how to use them
(22:45) An overview of the BrightIdeas funnel, and how it could be improved
(29:45) How a secondary call to action mid-funnel can improve the buyer journey
(31:45) Traffic or conversion, which is easier to increase?
(35:15) How to attract other writers
(38:45) How to engage a new contributing writer
(40:45) How & why to do a press release for a new post
More About This Episode
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Robert is the author of the book Managing Content Marketing, which spent two weeks as a top ten marketing book on Amazon.com. As a recognized expert in content marketing strategy, digital media and the social Web, Robert innovates creative and technical strategies for a wide variety of clientele. He’s helped large companies such as 3M, ADP, AT&T, KPMG, Staples, PTC and Petco tell their story more effectively through the Web. He’s worked to help develop digital marketing efforts for entertainment and media brands such as Dwight Yoakam, Nickelodeon and NBC. And, he’s helped marketers at smaller organizations such as East Harlem Tutorial Program, Coburn Ventures and Hippo to amplify their story through Content Marketing and Social Web Strategies.
He is a featured writer for the online magazines iMedia Connection, Fierce Content Management and CMSWire and also a featured author in the book “Enterprise 2.0 How Technology, E-Commerce and Web 2.0 Are Transforming Business Virtually.
An early Internet pioneer, Robert has more than 15 years of experience, and a track record of helping brands and businesses develop successful Web and content marketing strategies.
https://brightideas.co/wp-content/uploads/2013/09/robert.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-09-30 06:00:432020-09-10 04:28:05Digital Marketing Strategy: Robert Rose on How the Content Marketing Institute Uses Email Marketing to Land Consulting Clients
If you want proof that you don’t need decades of experience and a huge Rolodex full of clients in order to start a marketing agency, look no further. Andrew and his colleagues at Guavabox launched an agency right out of college, and by all measures are on track to have a tremendously successful business.
Guavabox does an impressive job of generating content marketing. And, more than almost anyone I’ve spoken with, they not only understand the importance of list segmentation, but they provide an overview of how they’ve segmented their list, and how this segmentation has helped them identify their hottest prospects, and appropriately nurture and convert their leads into paying clients.
In addition, Andrew explains the thinking behind, and validation of, their business model, sharing insights helpful to any startup. There was so much goodness in this interview that I had to break it into two parts.
If you missed Part 1, you’ll want to check it out to hear Andrew and I talk about:
(3:30) Introductions
(5:50) Why the old model of web design doesn’t scale
(8:30) An overview of financial results
(10:00) His business philosophy and how it played a critical role in their launch
(13:30) How they validated their business model
(16:30) How taking on a new client went wrong
(21:00) How they picked their niche
(25:30) How they are generating leads
(27:30) How blogging plays a role in lead generation
(29:30) How they developed their personas
(35:30) An overview of outbound marketing
.. And be sure to check out Part 2 below, where we discuss:
(3:00) An overview of various nurturing campaigns
(7:00) An overview of how they’re using personas to segment their list
(13:00) An overview of when and how they decide to follow up with each lead
(16:30) An overview of how they are changing their business model to a retainer fee model
(21:00) An overview of their retainer plans
(12:40) How they report results (traffic & leads) and what they’re planning for the month ahead
(25:00) How they manage client expectations
(28:00) How they are producing blog content
(31:00) How they are using contractors
(33:00) An overview of how they are in track with their goals
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Trent: Hey there bright idea hunters, welcome to the Bright Ideas
Podcast. I am your host Trent Dyrsmid, and this is the podcast
for marketing agencies, marketing consultants and entrepreneurs
who want to discover how to use content marketing and marketing
automation to massively boost their business without massively
boosting the amount of hours that they have to work every single
week.On the show with me today is Andrew Dymski, and this is part two of a
two part series that Andrew and I did. If you missed the first
part, you can get to it by going to BrightIdeas.co/74, and in
this episode we’re going to continue the discussion that we had,
where he is explaining to us how he is building, very
successfully I might add, his marketing agency GuavaBox.In this second part we’re going to be talking about the very creative
and intelligent ways that he is nurturing and converting his
leads to customers. We’re also going to be talking about how he
know when to follow up with and who to follow up with out of all
the leads that are coming into his funnel.We’re going to talk about an overview into how they’re changing their
business from a fee based business, rather like a fee per
project based business to a retainer fee income based business
and how that’s having a wonderfully positive effect on your cash
flow as you might imagine, and we’re also going to talk about
how he reports to his clients all the good stuff that they’re
doing for them so that those clients have a high level of
motivation to keep on paying that retainer on an ongoing basis,
to produce that long term client relationship of course that we
all want and need to make our businesses grow.So before we get to that just wanted to very quickly talk to you
about a Bright Ideas product, if you are at all struggling when
it comes to business to business lead generation, that’s an area
where I have extensive experience and I’ve created a product
called the Best Buyer Formula.You can get to the sales page at BrightIdeas.co/BBF, and in that
video based course, it’s delivered in a membership site, that
you’re going to see just a treasure trove of content that
explains to you exactly how I built my last business and how I’m
building this one in terms of lead generation. Like with all my
products I stand behind it with a 100% money back guarantee, so
if you get access and you think that it’s not for you no
worries, just send an email to my team and we will give you a
refund, no questions asked.So with all that said, thank you so much for tuning in and please
join me in welcoming Andrew back for part two.All right Andrew welcome back for part two of this interview with
Bright Ideas and yourself, for your firm GuavaBox which is an
inbound marketing agency. If you missed part one folks you can
get at it by going to BrightIdeas.co/74, and in part one we
talked a whole lot about how Andrew and his two cofounders
launched his business, how they picked their niche, how they
launched with what we call the minimum viable product, how
they’re generating their leads, there’s a whole bunch of really
good stuff in there in that half hour interview, and now we’re
going to pick up right where we left off.
So you mentioned that you’re getting leads, a lot of leads from your
blog. You also mentioned from referrals and some other things. I
don’t imagine that everyone is ready to buy right away.
Andrew: Sure.
Trent: So what’re you doing to nurture and convert? And if you like
you can also talk about how you’re doing this for your
customers, because I imagine it’s not terribly different than
how you’re doing it for yourself.
Andrew: No it’s not. Again just following the same line that we
prescribe for our clients is we’re HubSpot partners and we use
their workflow tool to kind of lay out lead nurturing sequences.
And the way that HubSpot is built if anyone isn’t familiar with
their product, but it’s a marketing database first so you, as
leads come in they kind of fill into this marketing database and
then it kind of watches their behavior and tracks the different
content that they’ve looked at the content that they’ve
downloaded, emails that they’ve clicked on and clicked through,
all these different data points to help create a smart marketing
system.
So we can go in and set different life cycle stages within the
software, so if someone downloads a what to expect in a
partnership with GuavaBox eBook, we’re going to respond probably
with an email right away, just introducing ourselves, a more
personal touch. But if someone downloads Inbound Marketing 101,
kind of a higher level offer, based on some of the form fields
they will be entered into, just a lead nurturing sequence, just
an email drip sequence basically, like you could set up through
MailChimp or any other email tool you may use. So we use the
nurturing to kind of follow up with people and keep our finger
on the pulse of what they’re clicking through, what’s
interesting them, so that’s how we nurture right now.
Trent: Okay so let me make sure, I want to feed that back and make
sure that I understand and we’ll go to the website here. So
someone on your sidebar, it says subscribe to the GuavaBox blog,
when an email address goes into there, what happens? Are they
just getting blog updates from that point forward, because
that’s its own follow-up sequence correct?
Andrew: Correct. So there, when someone subscribes from our blog we’re
only going to send them blog articles, so that’s a really top of
the funnel lead in our system, so from a follow-up standpoint
there whenever you get a new blog post from us you’re going to
have an opportunity to download an eBook from us, right now it’s
Inbound Marketing 101, kind of a brief overview of what
Inbound’s all about, and gives them more detail.
So if they’re reading our blog, they’re probably going to be
interested in Inbound 101, and that’s kind of the generic first
offer that we offer people who come to the site. And then if
someone downloads say Inbound 101, now they’re kind of a
marketing qualified lead in our funnel and they’re going to get
a different sequence of responses from us, and again it’s based
on those personas. We’ve got a best describes me field in our
form.
And it’s a CEO is looking to increase sales, a marketing manager
who’s looking for a boost, other marketing agencies so depending
on what that field result is right there, they’re going to get
entered into a different lead nurturing sequence and that’s how
our system’s built right now.
Trent: Okay, so this is the offer that I see at the bottom of . . .
I’m assuming it’s every blog post, that green box with a red
button, get started with the free guide correct?
Andrew: Well the offer’s going to change a little bit depending on what
the blog post topic is, so if we’re writing about personas it’s
going to be kind of a buyer persona guide that we have down
there, we cycle between three and four top of the funnel offers
at the bottom of our blog post.
Trent: Okay, and so when your segment, because segmentation’s
unbelievably important, your segmenting by number of employees
and this field called best describes me, so speak to that again
if you would. So let’s say that I choose marketing manager who
needs a boost versus CEO slash owner who needs sales, how is the
experience in your funnel going to be different for me as a
result of one or the other of those choices?
Andrew: Okay, let’s think back to our personas again, if we’ve got
cutting edge Chris, Chris is the CEO of a company, it’s a
pretty, it’s a young and growing company that’s looking to
expand, they’re looking for a new source of leads that’s going
to help throttle their growth and a company that we can scale
with as well. So what kind of information is he looking for?
He wants to know return on investment, he wants to know what kind of
leads he can expect, far more metric driven, straight to the
point kind of stuff, so our content to Chris is usually shorter
than our content would be to the marketing manager. In the
marketing manager we share more tactical information, because
they could be attempting to do inbound on their own right now,
maybe they’re a HubSpot customer, [Marketo] or they’re just
trying to use WordPress by themselves, whatever it is. So
they’re going to be interested in more like how are you driving
leads to our website, whereas the CEO just wants to know are you
driving leads to my website and what kind of return am I going
to see from the money that I’m giving you. So that’s how we use
personas to kind of break up the type of message that we
communicate to our leads.
Trent: Now that’s pretty smart by the way, so bravo to you for that.
Andrew: Thank you.
Trent: Now the content that you’re delivering, is it, are you
basically just writing short emails that then direct them back
to specific posts which would be relevant to the persona that
they selected, or is all of the content delivered in an email so
they don’t have to click through?
Andrew: No we’re typically, we have some emails that are just within
the email, but we’re primarily linking people back to landing
pages, providing them another opportunity to convert on our
website. Another powerful that HubSpot gives you is progressive
profiling in their forms, essentially what that is, is if
somebody has downloaded an offer from your website and they’ve
entered their first name, last name, email address, their
company name and their company URL. We don’t need to ask what
their company name and company URL are again.
If we want to keep the number of fields shorter, we’re going to ask
them a different set of questions. So it’s, their database looks
at we can build out ten questions and if three of them are
already answered they just kind of bump the next three up so
then we might get employee number, or the biggest marketing
struggle, questions like that that help us to get more
information and identify their pain point more clearly through
the automation process.
So we want to take them from the email to a landing page and
sometimes we’ll send them back to a website but the primary goal
is to get them to a landing page to offer them another piece of
content that can help them solve whatever problem they’re
facing.
Trent: Can you give me an example of one of those landing pages? Let’s
say have you got one that you could rattle off for the CEO-owner
persona.
Andrew: Yeah. Well we don’t structure the landing pages. They’re going
to be structured pretty much the same, in the way that we lay it
out. But the email copy is what we vary based on the persona.
Trent: Okay.
Andrew: So an email, we want to get say a CEO to click through, we
might only have three or four sentences, break it up into like
three paragraph breaks with only a couple sentences on there,
and then that is going to get them to click through and then,
I’ll pull up one of our pages, one of our landing pages right
now and kind of walk you through how we use personas to
construct that.
So if someone just goes to GuavaBox.com, and you can go down to the
bottom, in free marketing resources section and click on all
online marketing sources, here’s just a collection of all the
eBooks. Everyone’s just welcome to download as many as they
want, I hope they can help you out.
Trent: Right. I’ll make sure if you’re driving in your car right now
don’t worry about writing any of this down, all you’ve got to do
is come to the post which for this part two episode will be at
BrightIdeas.co/75, and I’ll put links to all this stuff.
Andrew: So when we build a landing page, we understand the personas are
going to read things differently, so in our like H1 tag we want
a straight to the points text that a CEO is going to relate
with. So he’s just breezing through, so in our Inbound Marketing
101 landing page, which is like I said our top of the funnel
offer, the H1 tag is reach new customers with inbound marketing.
That’s going to relate to a marketer but it’s also going to
relate to a CEO because at the end of the day that’s what they
want their marketing to deliver, is new customers.
And then when you drill down into the H2 copy it says learn how an
inbound marketing game plan can bring all marketing efforts into
focus and grow your business. So that helps more of the
analytical thinker, helps them understand more precisely what
this eBook’s going to help them deliver, and then you go down.
And we’ve got bullet points that break down specific tactics
that the marketer’s going to want to understand on how this
value’s going to be delivered.
Trent: This is a lot of content to produce, all these eBooks. Were you
able to take generic eBooks that HubSpot produced and then just
put your branding on them?
Andrew: We have, some of them, their partner program is Out of Sight,
and I recommend every marketing agency at least look into it
because the support that they provide to you is outstanding
beyond just learning their software, they give you offers that
you can convert and co-brand with them. So I’d say about half of
our offers are cobranded offers, and then we have original
offers that we have just created out of problems that have seen
arise.
Trent: Interesting. What does it cost you a month to have HubSpot?
Andrew: We are on the professional package so it’s $600 a month, for
Obviously that’s a number that’s going to scare away or just
chase away smaller agencies, but we were able to pace up towards
And then once you begin to get clients who are using
HubSpot, they have basically an affiliate referral program where
you get 20 percent back from any package that you’re able to
sell. So if you’re able to sell, you’re able to basically get
your portal for free after not too long.
Trent: Yeah, okay. All right so when people are downloading these
various . . . you’ve got all these offers that are in your
funnel, and then I would imagine that you’re doing some type of
like, where I’m going with this is how do you know when to
follow up with who?
Andrew: Great question. When you’re getting started and leads are just
flowing into your system, you don’t really have time for the
lead nurturing sequence to go all the way through. You know if a
company downloads Inbound 101 and we click over to their website
and every day we’re going through the leads that have converted,
and so we see their website we see their in our niche or they’re
a company that we wouldn’t mind working with then we’re just
going to give them a call. You know reach out or send them an
email, say, “Hey, this is Andrew from GuavaBox. I notice that
you were on our website yesterday and downloaded Inbound
Marketing 101. Just wanted to follow up and see if you had any
other questions or if there’s anything I can help you out with.”
And you know that gets a conversation started.
Sometimes people deny that they’ve ever been there. They say, oh I
don’t know what you’re talking about or . . . it’s crazy. But
other times you’ve got people who are really open to having a
conversation with you and that can kind of move the sales
process along just by reaching out. And that’s why we’re in the
inbound marketing is because there is that connection, you can
understand what pages they’ve looked at, you can look at the
type of offer that they’ve downloaded and that from a sales side
that gives you an insight into the kind of problem that they’re
facing. So then as a salesperson you can really offer some
legitimate value to their business, you’re not just interrupting
them with a cold call.
Trent: Absolutely. So I noticed that you do ask for, especially for
your lead magnets that are further in the funnel, you do ask for
phone number and URL.
Andrew: Yeah.
Trent: Have you split tested at all to see the effect on your
conversion rate by asking for those two extra pieces, because I
see that you make it mandatory?
Andrew: Yeah we do, because at the end of the day if someone’s not
willing to give me their company name or their phone number,
it’s not really a lead that I’m ready to follow up with at that
point. So we have like a 30 percent conversion rate, average on
our landing pages, and that’s bringing a good amount of leads
right now that we’re comfortable with. And so if someone’s at
the point where they’re ready to put in their phone number,
that’s great you know and if they’re not at that point yet,
that’s not a lead that we want in our funnel right now.
Trent: But let’s be clear for the people that are listening, people
can get into the top of your funnel with just first name last
name and email.
Andrew: Exactly.
Trent: So they’re only seeing these deeper offers if they are either
reading the emails that you’re already sending to them, or by
their own effort are coming back to your blog and then clicking
the calls to action at the beginning of a blog post, and then
“opting in” again to get this lead magnet that is deeper into
your funnel. So it’s not as though you’re not getting the lead
at all, you just want, and it’s very smart. You’re basically
saying I don’t want to actually talk to this person until
they’ve provided me with more than their name and email but
you’ve already got their name and email.
Andrew: Correct. And I’m going to communicate with them with the
information that they give me, so essentially they give us
permission to market to them through email but not phone, and
we’re just going to market to them through email, until they’re
ready.
Trent: Smart, smart, smart. All right. So very, very early, I think it
was in part one of the interview or it might have even been
before we hit the record button, you talked about how you’re
transitioning the services that you’re offering from you know
just web design to, I want you to describe what it’s going to.
Andrew: Sure. So we started out, again it was a yes-man business where,
“Can you guys do website design?” Yeah. Can you understand
twitter? Yeah. Can you do YouTube videos? Yeah. We did viewer
production, kind of the whole gamut of isolated online marketing
activities. And then as we continued to learn and grow we found
out that none of these activities really drive ROI until they
can be connected together into a system that makes sense, and
that’s going to drive new business in a smart way.
So we wanted to shift to a retainer model business, and that’s kind
of where we started exploring different partnerships and we
ended up going with HubSpot because they provided the best
support, the best technology to help us facilitate that
transition.
So essentially what it is, is we were just a website design agency,
we would do basic WordPress web design, we would do Twitter
strategies, Facebook strategies where we would just write up
basically smart stuff like, just, not smart just whatever you’d
find, like best practices that sort of thing, and apply them to
the client and deliver those sources to them in a way that would
help them kind of do their own marketing.
We would tweet for some clients, we would post on Facebook for some
clients, we would do Facebook design, Twitter design, YouTube
background design, all that kind of stuff, but now the shift
into inbound marketing is really . . . it starts with the
philosophy and it’s no longer a project based system but now
you’re trying to sign up with customers for six month to twelve
month retainer relationships.
So now you’re really aligning yourself as a partner instead of just a
repairman or you know a painter basically who’s coming in and
painting one room and leaving. We want to work alongside with a
company to help on kind of the 50,000 foot level, establish the
growth goals, the revenue goals, get on the same page and figure
out where they’re trying to grow their company, where
opportunities are, and then create a marketing strategy that
helps them get there, and then deliver that strategy over the
twelve month relationship. So that’s kind of what the model
looks like, and then…
Trent: Go ahead.
Andrew: So that’s the model and tactically, where sometimes it is a
website redesign, sometimes it’s just putting a HubSpot portal
on a sub-domain of a client’s website and just starting to blog
and create landing pages and create emails and stuff like that,
it can kind of, we haven’t completely lost our website design
roots yet and that’s been a good skill to have when you
augmented into a retainer relationship.
Trent: Okay so I’m on your retainer pricing page and I see fast,
faster and fastest which I love so much better than bronze,
silver and gold. One is 3000 a month, one is 5000 a month and
one is 10,000 a month. When did you start offering retainer?
Andrew: We started offering retainer just over a year ago. And it took
. . . it’s a learning curve for us and it’s a selling curve as
well because it’s a lot easier for someone to sign up for a one
time $2000 website than it is for someone to sign up for 10,000
a month to work with a company that they don’t really know yet.
And so when you’re just getting started in a new line of business,
it’s basically restarting the business for us because we had to
prove a different line of value to clients, and we really
started just by doing it to ourselves and being like we can show
people our blog at least and show them what it looks like.
And so essentially the pricing model is built off of, we want to
direct it more and more towards value delivered, right now it’s
very activity driven, we don’t think that’s, that’s kind of the
next stage of where we want to go is more value driven, to focus
again on the growth that that CEO really cares about at the end
of the day. So again get it up and get it out but our pricing
model is something that we’re continuing to modify and push
forward as we grow.
Trent: I remember when I had my technology services company I went
through the same transition that you did, at the time in the
industry the common way to bill was per hour to go and do
technology projects, and I realized that that wasn’t ever going
to build me a company that I could sell for any meaningful
amount of money, because there’s no ongoing, recurring revenue
and so we switched and it was painful in the beginning.
We didn’t know exactly how to price things and selling it was a lot
harder but years down the road when we had $80,000 a month
coming in the front door on the first day of every month that
made life a whole lot easier and ultimately why I was able to
sell it for the amount that I did, which was a good amount for
sure. So I applaud you for doing this, because it’s going to
absolutely make your life so much better down the road. How’s it
going so far, have you sold any retainer stuff yet?
Andrew: We have. We have three clients up and running on our retainer
model, which is awesome.
Trent: Is that on which level? Fast, faster or fastest?
Andrew: That is fast and faster.
Trent: So you got eleven grand a month coming in the beginning of
every month.
Andrew: Yeah. It’s transformed our business.
Trent: I bet.
Andrew: And it’s exhilarating too because the clients that we have
we’re delivering results for and so they’re happy. And when you
deal with a bigger ticket client, one who can afford that kind
of price tag per month, they’re going to be less nit picky about
the little things, they’re going to trust you more because I
don’t know when you charge more for something people seem to
think you’ve got your act together more than when you charge
less.
Trent: Absolutely.
Andrew: So they’re going to trust you more, and everything’s seems to
flow smoother once the prices start to go up.
Trent: So how do you, because people get excited in the beginning and
sure, yeah they sign up, but then you’ve got to keep them,
you’ve got to retain those clients. How are you reporting to
your client the value that you’re delivering for fast, the fast
level or any of the levels for that matter? What specifically
are you sending to them?
Andrew: Touch points is huge, having a point of contact that you can
get in touch with on a regular basis that makes time for you,
and setting that expectation up front is something that we’re
going to continue to do a better job of. But at the end of each
month we get together and we look at traffic and we look at
leads, we outline what we’re going to do in the next month,
based on the strategy that we put together at the beginning.
We’ve got to start everything with an inbound marketing game plan
that outlines based on the terms that they want to be known for
and the keywords that they want to rank for and stuff like that.
We put together a blog strategy, and then as we go and we see
what works and what doesn’t work very well we kind of tweak that
along the way.
And obviously we haven’t run someone, we haven’t had a twelve month
client yet so we’re still tweaking those game plans as we go and
they’re getting smarter with every month. But essentially we
review traffic and we review leads, because we’re not a sales
augmenter, we’re a lead augmenter and so at the end of the day
it’s our client’s responsibility to close those sales, so we can
deliver higher quality leads than they used to get, and those
leads just get more and more qualified as time goes, and we
understand their business better and understand the way that
visitors act on their website.
But visitor traffic and traffic to lead ratios are big for us,
looking at individual landing pages to get visitor to lead
conversion ratio, and optimizing calls to action and stuff like
that to try to improve click through rates, we kind of hit on
all of those different areas, all of those key metrics and key
performance indicators.
Trent: Now I would imagine that each of the three people that you have
on retainer now probably weren’t doing much in terms of digital
before they engaged with you. Is that correct?
Andrew: Wide, wide gamut. One client didn’t even have a website up, the
other one was spending like 5K a month in PPC, and just not
seeing any quality results from that spend.
Trent: I’m guessing that’s the guy that signed up for the faster
level?
Andrew: Yeah, I mean they already, they understand the value, and
they’re online and they just know that they need help, and
that’s a good place for us to start.
Trent: Okay, so for the folks that didn’t even have a website and here
you are showing them traffic and you’re showing them leads and
you’re showing them all this stuff. What’s their reaction when
they see that relative to the three grand they’re paying you?
Andrew: It depends, and it leans back on that expectation that you set
up front and this is another part that we keep rolling with and
saying we’ve got to do a better job of that next time is just
outlining what they should expect. Because sometimes it’s like
well I’m not getting any calls just yet like what’s going on,
well we’ve only been working for two and a half months, we
started from zero, we need time because we do everything
organically, right now we don’t have any paid elements of our
offerings, not against PPC or Facebook ads or anything like
that, just it’s not part of our offerings right now.
So just setting, well having honest conversations because again if
we’re going to be marketing partners and work with you over the
next 12 months we need to be able to be transparent and honest
with each other and just be able to communicate authentically
essentially.
Trent: Setting expectations is such a valid point because if somebody
were to hire you as an employee to be their marketing person, no
one would expect that within a month of hiring you that you had
radically transformed their website and traffic and leads and
blah, blah, blah. And yet, obviously enough, some people that
hire a marketing agency expect that within 30 days, they’re
going to be just cranking.
Andrew: Exactly.
Trent: Why do you suppose that is and how do you manage that? What
conversation do you have at the beginning to make sure that you
don’t end up in that hole?
Andrew: We like to set the vision that it’s going to be four to six
months before you start seeing any real results from this. So I
mean from the beginning of our sales process, we’re linking back
to the growth goals, where the company wants to be in 12 months,
what dreams are associated with those goals, why do you want to
get to that point, what happens if you don’t get to that point.
And so then when we start delivering with a client we can lean
back on those numbers, and really it begins to point more and
more towards an organizational change and setting mutual back
and forth expectations at the beginning.
That’s part of our contract to is here is here’s what we’re going to
be delivering to you as a marketing partner and here’s what you
need to deliver to us, because it’s a two-way relationship. If
you want to make real change and grow as a business, that’s not
going to happen over night and you’re going to need to change
the status quo, that’s going to need to be altered and we need
to know do you have enough skin in the game here to make a
strategy like this work.
Trent: Yeah, if they’re not going to change what they’re doing and
they’re just going to sit back arms crossed and say okay magic
boy do your stuff, that’s probably not going to work.
Andrew: No, it’s not and that’s the type of client you get when you
just do one off projects. But if you want to shift to a retainer
model, that’s the kind of client that you need to be comfortable
enough in yourself and in your business model to say you know
what, I can refer you to a couple people who might be able to
help you out but I don’t think we’re the best fit right now.
Trent: Yes indeed. And when you’re doing your inbound marketing
yourself and these people are coming to you and they’re raising
their hand by downloading various reports that’s going to
obviously make converting that sale a whole lot easier.
Andrew: Exactly because the expectation there, I mean it’s a small
expectation set but still they’re the one coming to you for the
information and so inbound marketing at the end of the day
positions companies and agencies as thought leaders and the way
you structure your sales process following that can even lean in
more on that fact and position you instead of a sales person as
more of an adviser into their growth model.
Trent: How are you doing in terms of blogging for your clients?
Andrew: So we batch all of the titles based on keywords, and then we
work with our clients to get kind of the guts to most of those
blog posts, whether that’s bullet points or we’re going to start
experimenting with just audio recordings, so having them like
record a quick clip on their iPhone or something like that,
talking about a subject that we want to write a blog post about,
and then we send those out to different contract writers that we
work with.
And then they take the content, they do some research, and then they
tweak it into like a 400, 500 word blog post, and then we send
that to the client, get the review, and when they give the okay
it gets scheduled to get posted on their blog.
Trent: Okay. So how many clients, so right now I guess you’re
producing blog content on an ongoing basis for your three
retainer clients, yes?
Andrew: Correct.
Trent: Okay. The system that you’re using to manage the producing, the
blog content and the editorial calendar and getting it approved
and pushing it out to the clients blog, I mean is that kind of
spreadsheets and email right now?
Andrew: Right now that is we use [Podeo] internally, it’s an awesome
free platform where you can kind of spin up your own custom work
spaces, and structure your workflow the way you want to. That’s
gone pretty well for us, from the client side it’s just email.
We’ve experimented with Basecamp, but haven’t stuck wit that as
a long term solution. We’re actually working on our own custom
software solution right now that would facilitate client
communication and contractor communication.
Trent: Well at the risk of plugging my own products, I am a cofounder
in a software company and we have an app that is going to solve
that exact problem so I’m happy to show that to you after we
record if you like.
Andrew: I would love to see that Trent.
Trent: Are you using any curation for your clients?
Andrew: Not at the moment, we’ve looked at a couple options, but
haven’t really integrated it well into our strategy yet. That’s
a topic I need to circle back with [Gray and Brennan] and figure
out if that is going to add some value. I think it adds a lot
even for ourselves. We’re kind of the guinea pig for our
marketing strategies and so we tried it out on GuavaBox first
and if we see results then we send it out towards the clients.
Trent: Yeah. Okay, well we’ll cover that when we go off air here. All
right, services offered, service, oh contractors. Can you just
give an overview of the type of contractors that you’re using?
Andrew: Yeah, we’ve done a couple different models and you know there’s
websites out there where you can kind of submit to a pool of
authors and then they can bid on your work or submit trials,
that takes a lot of time to manage that but sometimes it’s a
good way to start. At the end of the day, you need to pick a way
that you can establish a relationship with a writer that you can
trust and so sometimes Elance is a good way to do that.
We’ve done some writing, more like design work through Elance than we
have actual contract writers but that’s been a good source for
Relationships, networking, one of our best content writers
is just someone who went to college with us and who freelances
on the side, so don’t throw that model out. But Zerys is a good
platform.
Trent: Zerys? How do you spell that?
Andrew: Z-E-R-Y-S I believe. You can just Google them and they’ve got a
good pool of writers on there. Content Launch is another one
that we have tried out and has had some good results, and
ClearBloggingSolutions.com is another one that we’ve used with
success.
Trent: Okay. Well my pen just ran out in the middle a name.
Andrew: Perfect timing.
Trent: Luckily, luckily I have another one in the drawer.
Andrew: That’s good.
Trent: Hang on I’ve got to, there we go. Don’t you love this audience
from the hosts, holds up the show because his pen runs out of
ink? Okay, so you got a couple of resources which I will include
in the show notes, clearbloggingsolutions.com, Zerys.com.
All right, I think it’s time. What have we missed? What do you think
for the intended listener here is someone who is you six months
ago, who got a start at an agency and then you know want to make
a success of themselves, what have we missed? What would you
talk about for that person?
Andrew: You’ve got to set goals. You’ve got to know where you want to
Because if you’re just running on a treadmill, I mean
starting a business is hard work, that’s why so many people
quit. But if you want to start an agency and you want to go
somewhere and you want to add value, set some goals for your
self, set goals each day, each week.
We set like 12 week goals at GuavaBox on how we want to perform
across finance, marketing, sales, operations, and we strategize
those metrics and we try to hold each other accountable for that
and we’re a small agency so it’s easy to let each other off the
hook. But again if you want to grow and you want to scale a
business to the point where you want to sell it, you’ve got to
kind of pick a spot on the horizon and start running towards it
in a way that you can measure against yourself.
Trent: I’ve got a resource that I want to throw up as well, it’s one
that I was reading this morning, it’s one of Jim Collins’ early
books, it’s called Beyond Entrepreneurship or Beyond
Entrepreneur or something like that, chapter two. So folks if
you want to grab yourself that book, it talks a lot about a
specific strategy for laying out, and you’ve heard this before
this is not new but it’s incredibly important, your mission
vision, your core values and your beliefs.
And I’m not going to hijack this interview with why talking about
that is important but if you read chapter two you will figure it
out and it’s something that I’m doing in my businesses, because
especially when it comes to attracting the kind of customer that
you want to deal with and attracting the kind of employee that
you want to work with, if you don’t have this stuff defined,
you’re going to end up with culture problems down the road.
Andrew: So true.
Trent: And so I’ll leave it at that. All right, I think this has been
a really terrific interview and we divided it into two parts so
a half hour each. I hope everyone enjoys it. Again, if you guys
who listen to my podcasts regularly think dividing it into two
sucked, definitely let me know, as I cannot exist without your
feedback. But like I say in my effort to attract new listeners I
thought smaller, more bite sized chunked pieces of content would
be less intimidating for them to download.
know that when I look at a video and I see that it’s an hour long I
go, “Ugh, I don’t know if I want to watch that whole thing.” But
if I see something that’s shorter than an hour I’m more inclined
to give it a go and that was the thinking in dividing this
episode into two parts.
So Andrew, thank you very much. For those folks who want to get a
hold of you the best just rattle off one if you would please,
what is the best way to do that?
Andrew: Best way to get a hold of me is on my email that is
Andrew@guavabox.com.
Trent: All right, terrific. Andrew thank you so much for being on the
show. It has been an absolute pleasure this has been I think a
terrific interview that I look forward to publishing.
Andrew: Thank you so much Trent for the opportunity and for all the
work you’re doing, doing great stuff, inspiring entrepreneurs
and hats off to you.
Trent: Well thank you very much, I appreciate that. All right to get
to the show notes for today’s episode go to Brightideas.co/75.
If you really enjoyed this episode, I want to ask you a little
favor please go to Brightideas.co/love and there you’ll find a
pre-populated tweet which you can send on out to your followers,
as well and even more importantly there’s a link that can take
you to the iTunes store so that you can leave a five star rating
for this particular episode. It really means a lot to me when
you guys do that because it really helps this show to gain a lot
more exposure and the more people that hear it the more people
that we can help.
So that’s it for this episode, I am your host Trent Dyrsmid and we’ll
see you in another episode soon.
About Andrew Dymski
Andrew is the a co-founder of GuavaBox, a web design and inbound marketing agency. Guavabox helps clients in the industrial space reach new customers through inbound marketing.
https://brightideas.co/wp-content/uploads/2013/09/andrew-1.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-09-24 06:00:182020-09-10 04:11:29Digital Marketing Strategy: Andrew Dymski on How He Launched a Successful Marketing Agency Right out of College (part 2)
If you want proof that you don’t need decades of experience and a huge Rolodex full of clients in order to start a marketing agency, look no further. Andrew and his colleagues at Guavabox launched an agency right out of college, and by all measures are on track to have a tremendously successful business.
Guavabox does an impressive job of generating content marketing. And, more than almost anyone I’ve spoken with, they not only understand the importance of list segmentation, but they provide an overview of how they’ve segmented their list, and how this segmentation has helped them identify their hottest prospects, and appropriately nurture and convert their leads into paying clients.
In addition, Andrew explains the thinking behind, and validation of, their business model, sharing insights helpful to any startup. There was so much goodness in this interview that I had to break it into two parts.
When you listen to Part 1, you’ll hear Andrew and I talk about:
(3:30) Introductions
(5:50) Why the old model of web design doesn’t scale
(8:30) An overview of financial results
(10:00) His business philosophy and how it played a critical role in their launch
(13:30) How they validated their business model
(16:30) How taking on a new client went wrong
(21:00) How they picked their niche
(25:30) How they are generating leads
(27:30) How blogging plays a role in lead generation
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Trent: Hey there, Bright Ideas hunters. Welcome to the Bright Ideas
podcast.
I’m your host, Trent Dyrsmid, and this is the podcast
for marketing agencies, marketing consultants, and entrepreneurs
who want to discover how to use content marketing and marketing
automation to massively boost their business without massively
boosting the number of hours that they have to work every single
week.
And the way that we do that is we bring on whip-smart
entrepreneurs to share with you the tactics and the strategies
that are working so very well for them, and that is exactly what
we’re going to do in this episode today.
On the show with me today is a fellow by the name of Andrew
Dymski. He is one of three co-founders of a new marketing agency
called GuavaBox, and they are doing some really impressive
things which we’re going to get into in this two-part podcast.
So in Part Number One, which you are now listening to, we are
going to be talking about how they launched the company, how
they picked their niche, and there’s some real key takeaways in
how and why they picked this specific niche that they did. We’re
going to talk about how developing a minimum viable product fit
into their business model and how it made figuring out what they
should sell and who they should sell it to so much easier than
it would have been if they had gone the traditional route of
building their portfolio of services and then trying to figure
out how to sell it.
We’re also going to talk about how they validated that business
model very, very early on so that they didn’t waste a whole
bunch of time going down with the wrong product for the wrong
customer in the wrong direction, and losing all that time and
losing all of that money.And we’re also going to talk about how they are generating
leads, and specifically, how they’re using, very successfully, I
might add, content marketing to drive more leads to their site.And then in Part Two, we are going to talk about what they’re going to do with those leads to convert them into customers. But
tune into Podcast Episode Two, and we’ll talk more about that.So before we welcome Andrew to the show, I just want to tell you
very quickly about a Bright Ideas product.
It’s called the Best Buyer Formula, and you can get it at brightideas.co/bbf, and it
is the lead generation formula that I used and use. I built my
last company with it, which was a company that got up to just
shy of $2 million a year in sales, which I ultimately sold for
over $1 million, and it’s also the very same formula that I am
using to build the Bright Ideas Agency, which we focus on
dentists with that agency. So if you are struggling with lead
generation and are looking for solutions, go check out the Best
Buyer Formula. And of course, like all my products, there is a
100%, no questions asked, money back guarantee. So if you don’t
like it, you can easily get all your money back.So with that said, please join me in welcoming Andrew to the
show. Andrew, welcome to the show.Andrew: Hey Trent, glad to be here.
Trent: It’s a treat to have you on. I’m super excited to get you to
tell the story of how you’re building your company, because just
based upon what we talked about before I hit the record button,
yours is a story that’s really going to resonate with the new
entrepreneurs who are just in the very early stages of building
their agency and are maybe under $100,000 or just over $100,000
in revenue, somewhere in that range, and maybe even the folks
that are doing larger ones, because I think that you’re going to
have some pretty interesting ideas and stories to share.
So before we get to all of that, please just take a moment, a
minute or so, and tell us who you are, and just a little bit
about your company.
Andrew: Sure. I am Andrew Dymski. I am a co-founder of GuavaBox. We are
an inbound marketing agency. We help companies, particularly in
the B2B space, industrial manufacturers, create a high-quality
lead generation machine through their website that helps them
scale their business in a way that they hadn’t been able to
before. We started out as a traditional web design shop. It
didn’t take us long inside that model to notice that it wasn’t a
model that could scale very well. So, over about the past year,
we’ve been putting the pieces in place to transition ourselves
from a one-off project work based company into more of a
specialist marketing services delivering firm that we feel like
can scale beyond just myself and my two partners.
Trent: So, I want to get you to talk about your financial results in
just a second, but before we go there, you hit on something that
a lot of new entrepreneurs don’t foresee – and I experience this
in my own business – and that issue of scale. You said that the
web design business isn’t going to scale very well. Can you
expand a little bit on what you meant by that, because that’s
causing a major shift in how you’re running your business,
correct?
Andrew: It definitely is, and if you just look at the way the sales
process has to work, when you want to close someone as a web
design client, there’s an extended sales process there and
you’re going up against a ton of competition where it’s really a
race to the bottom. Unless you have a relationship established
upfront with the prospective client or partner, at the end of
the day, it’s going to be a price war.
And we looked around and we said, you know, we’re spending all
of this time selling. We spend four weeks, eight weeks putting
the website together, and then it’s have a nice day, and walk
down the road. We do website hosting and we manage all of that
stuff, so that’s kind of a source of recurring revenue. But when
we started this business in college, we looked at it and said,
okay, we want to start families and kind of grow this business.
We can’t predict our income beyond two months out max. And so we
kind of walked back to the drawing board and said what do our
customers need and what services would we like to be able to
supply to them but we can’t because we’re constrained by this,
you know, put up a website?
We wanted to be able to showcase return on investment to these
clients, but if all you can do is just build a website and put
it out there, but then not control the content that gets pushed
through that system that you spent all this time selling and
building, then at the end of the day, you can’t show a return on
investment because the system is not in place. So we saw that,
and we knew that there has to be a model that we can build off
around this pain point.
Trent: And did you think about, in your shift from a non-scalable
business to a more scalable one, did enterprise value or an exit
strategy factor into that thinking?
Andrew: Definitely. No clear picture at the end of the day on where we
want as an exit philosophy, but from the start point, the three
of us are friends, and an idea that we had is we want to be able
to build a business that hinges off of the lifestyle that we
want. And so we looked at the lifestyle we wanted, and we said
we don’t want to be building WordPress websites and scheduling
tweets for the rest of our life, so how can we structure this
thing in a way that will facilitate a more hands-off approach
down the line so we’re free to spend time with our family, to
travel, to volunteer on sports teams, those sorts of things. So
it definitely played in.
Trent: So would you classify your business as a lifestyle
business?
Andrew: No, I would not right now, not in the sense that you can travel
the world and do this thing at the same time. But I see the
processes that we’re starting to put in place to get the agency
to the point where we could sell it if we wanted to if we wanted
to pursue the more hands-off lifestyle. It’s definitely a
location-neutral business, and for the first two years of our
existence, we operated location-neutral, three different states,
using a lot of GoToMeeting and Google apps. But no, I wouldn’t
say it’s kind of a lifestyle based business.
Trent: Okay. Alright, for the folks that don’t yet know how much
revenue you’re doing, how big you are, because I want to make
sure that the right people are listening to this interview
because we’re already a couple of minutes in, how much revenue
are you doing per year right now, and how many people are on the
payroll?
Andrew: Sure. On our team right now is just the three co-founders, so
it’s myself, Gray MacKensie, and Brandon Jones, and we are on
track to do about $150,000 – $160,000 this year.
Trent: And how many years have you been in business?
Andrew: This will be the end of year three.
Trent: Now, was this a full-time venture in years one and two, or were
you guys juggling college and doing this at the same time?
Andrew: So, when we started, we had two seniors and one sophomore, and
right after Gray and I graduated, Gray jumped in full time. I
went and worked at a PR firm for about nine months, and Brandon
was still in school obviously. So it wasn’t until this past May
when Brandon graduated from college and then I jumped on board
probably a year-and-a-half ago. So we’re only running full power
since May, with all three of us going full time.
Trent: Since May of 2013?
Andrew: Correct.
Trent: Okay. In my research on you, you talked about having a specific
business philosophy, and I want you to expand a little bit on
that because I think it played a role in how you started your
company.
Andrew: Yeah, it definitely did, and it started in college. Gray and
myself, we were on the same freshman hall, and so we were good
friends kind of from our freshman year all the way through. We
were on the lacrosse team together, we joined the same
fraternity, and that’s how we met Brandon as well. He was two
years behind us, but same fraternity and on the lacrosse team
together.
So Gray and I had decided from our freshman year that we have to
find a way to do business together. He was a business management
major and I was a marketing management major at Grove City
College, and we had a good friendship and we just wanted to find
a way to work together. So senior year rolls around, Brandon,
Gray, and I were all on the Officer board for our lacrosse team.
It was a club sport at Grove City, and we were all very
passionate about it. We had built up a machine really that we
launched the team’s first website. We put together the first
successful social media campaigns, email campaigns to reach out
to folks, and got connected with media and everything. It was
really successful, and we said, well, we enjoyed doing this on
the team, we’re graduating now, can we find a way to turn this
into a business?
We kind of put our heads together and we started the business in
the spring of our senior year in the dorm room after classes,
after homework, after lacrosse practice. We’d huddle around a
card table and kind of sketch out the idea.
But it started with the relationships first. You know, you hear
all the time don’t do business with friends, but really, the
friendship is what has saved this business through the dark
times and the ups and downs. We’re not really sure what the
model is going to look like. We’re not really sure where the
revenue is going to come from. We’ve leaned on that friendship
first and we kind of put a line in the sand and said this
friendship is going to get our business through and it’s not
going to tear it apart. And we’ve been blessed to come through
that with our relationship even stronger than it was when we
started.
Trent: An MVP is also a part of your launch philosophy or your
business philosophy, is it not?
Andrew: Can you break that down a little bit more?
Trent: Minimum Viable Product.
Andrew: Yes. So, we could build websites. I understood Twitter and
Facebook and what it took to build a following there. So we
said, great, we can kind of take this out and see if anyone
wants to hire us with this. And so we worked our connections and
found a website project first, and then a Twitter strategy
project after that, and so little by little, we build it up. We
figured out how you build a website, how do you charge for it
when you’re still learning how to build stuff on WordPress and
you’re still learning how to get your hosting account set up and
stuff like that.
But we didn’t build a business plan. We just got together. We
knew we wanted to be in business together, and we found the
minimal viable product that we could offer to people that would
still have value. And those were friends at the beginning, so
they knew where we were in our development stage. We were honest
with them and said, hey, we’re just getting this business going.
Can we build a website for you for $500? Is that something that
you would be interested in? And one or two of those, you pick
them up and they have friends, and that’s how we got started.
Trent: And so when you first launched, I’m assuming you didn’t have
the beautiful website that you have now. You didn’t have all of
the fancy stuff. You just decided, hey, we’re just going to go
and talk to people and say we’re looking for work, this is what
we know how to do. Are you interested?
Andrew: Exactly, yeah. Leaning on the friends and family, and the
fools, I guess, is the third piece. But yeah, that’s how we got
started.
Trent: I dwell on it because it’s an important point. I get a lot of
emails from people, and I’m thinking of one person in particular
right now, and I won’t mention this person’s name to protect the
innocent, but they’re overly caught up in getting ready to be
ready. There’s an expression that I did not originate, it’s
called ‘Version One is better than Version None’. And it’s so
incredibly important, because you don’t – and I want you to
speak to this, but you didn’t really know what it was that you
were going to do or who you were going to do it for until you
started to do it, right?
Andrew: Exactly. You know, they say that success sits just on the other
side of failure. You’ve got to go through failure a lot until
you get to that success point. And so we just decided to plunge
in and say let’s see how this goes. And it’s hard at times
because you’re still trying to figure it out as the clients are
demanding things, and as a young company, inevitably you want to
make everybody happy. So that’s caused some setbacks for us
along the way, but also some really valuable learning
experiences.
So you can’t sit around and wait to build what you think is a
perfect business model because you might get out in the market
and realize that nobody wants what you think is perfect. And so
at the end of the day, the best way to value your time is say,
hey, here’s an idea. Let’s go see if someone will buy it, and
that’s how we kind of build up.
Trent: And I want to reference another entrepreneur that I interviewed
here for the folks that are listening, because Sam Ovens was a
really, really good example of also starting a business, and his
business is crazy successful now. You can get to his interview
at brightideas.co/69. And he really didn’t have a clue what he
was going to do in the beginning, but he went out and instead of
building something and then trying to sell it, he went out and
talked to customers and said, what problem are you having? He
talked to enough of them to identify a commonality in that
problem, and then created a very basic solution and showed it to
them, and his business literally took off.
So, I bring this up when I ask these questions because if you’re
one of those folks out there who are spending time getting ready
to be ready, I would encourage you to start shooting, see who
falls down, and go over and look at what’s available for you as
far as feedback and information.
Andrew: That’s great advice.
Trent: All right. So, let’s talk about – you mentioned you made some
mistakes. I think that’s another thing where people, they are
unnecessarily paralyzed by their fear of making mistakes. But if
you talk to any experienced entrepreneur, they’re all going to
tell you that mistakes are a natural part of the going forward
process. So I’m sure you made some. I think we talked about
something, it was an old-school newspaper company – and I want
to pre-frame this by saying that the lesson I’m hoping people
get from this is that saying yes to everybody all the time isn’t
necessarily the best strategy. Can you tell us, Andrew, a little
bit about what happened?
Andrew: Sure. This was shortly after graduation, we had a really good
friend who worked at an old-school newspaper company, it was
like a weekly mailer, and they were looking for a way to get
this mailer online. I was like, well, this is going to be a
really good opportunity. I think it’s something that we can add
value in. So I was kind of the point of contact here. I mean, I
can build a WordPress website, but when it comes to kind of the
technical back-end of setting stuff up and integrations and all
of that, I have to check to my buddy Gray. He’s the genius
behind the machine.
So, the problem started – I was kind of the project manager and
the salesman, promising things to the client because we’re a
young business, and this is a big company, and I would love to
sign this contract. I think it would be good for us. So I’m out
there promising things and setting their expectations really
high, and it was kind of doomed to fail from the beginning
because their level of technical understanding wasn’t very high
at that point, and they were kind of asking for features and
wanted things to happen with little disruption on their end on
how they produce this paper and wanted to get it online, and I
was saying, oh, yeah, yeah, we can get that, that’s no problem
at all.
Trent: So you were selling flying toasters?
Andrew: Exactly, because I just wanted to make them happy. I wanted to
get the deal signed. Even after the deal was signed, for some
reason I wanted to just keep them happy. I think that’s great to
want happy clients, but sometimes a happy client is a client
that you need to say no to or a client that you need to reset
the focus, because I was promising yes, and then I turned around
to Gray and said, hey, can we do this? And we were living on the
opposite sides of the state at this point, and so there was
conflict within our company because of the way I was handling
this as a project manager.
We grew through that in a tremendous way, thanks to just honesty
and transparency, and again, that friendship we were able to
lean back on, and get us through this tough project. And it was
a great stepping stone because it kind of elevated the level of
client that we worked with but also helped us learn how to
manage a bigger team on the client side. So it’s not really a
small business owner anymore, you’re dealing with a whole crew
inside a company and you have to manage expectations across kind
of a whole organization. The biggest lesson we learned was don’t
overpromise and make sure that you’re lined up with your team
before you go out and start promising what they can do.
Trent: Absolutely. And do you think that you – you mentioned before we
started to record that you’re going through a shift in your
business model. We might talk about that now, but we’ll probably
cover it more later, but do you think that that shift to more of
a retainer model is going to help you avoid selling flying
toasters in the future?
Andrew: I do, because we’re an inbound marketing agency, and there’s a
specific methodology that we want clients to follow. And
obviously, it’s going to be a little bit custom for everybody,
but when you break it down to activity, it’s creating blog
posts, and it’s writing emails, and it’s creating awesome
content offers, and so there’s a more defined process to what
we’re trying to tackle now.
I think in the beginning, people had a problem or they had low
budgets and high ideas or big dreams, and they wanted to be able
to have all these shiny features on their website, and now we’re
able to sit back and say, you know what, that’s really not a
priority right now. You want to be able to structure your post
like this, or you need to include these kinds of conversion
points in your website. We kind of lean back on that methodology
a little bit harder than we did at the beginning when it was
just like, what do you want? We can go make it happen.
Trent: And we’re going to talk more about that, but I think what you
just communicated as well that I want to emphasize is you would
not have been able to figure out that you needed to deliver your
services in this way if you were getting ready to be ready.
Like, interacting with customers and falling down and getting
skid marks on you is what enabled you to define, hey, here’s a
better way that we need to deliver our services so we don’t sell
flying toasters.
Andrew: Exactly. It’s like sports. You can game plan all day long, but
until you get out on the field and you run a play, you can’t
look at the tape and diagnose something that hasn’t happened
yet. You’ve got to get out there and break the huddle and go
make a play and then make your adjustments on the fly. Keep it
lean.
Trent: So, in the beginning, you talked about you have targeted a
specific niche, B2B industrial manufacturers. Now, picking a
niche is something that in my course, the Best Buyer Formula, I
spend quite a bit of time really trying to drive that point
home. At Bright Ideas, we actually have our own agency and it
focuses on dentists because there’s very specific reasons for
that. What are the reasons that you decided, and how did you get
there to focus on industrial manufacturers in the B2B space?
Andrew: The journey, it was kind of happenstance, again, just by going
out, relationships started there from a website design
perspective, from video production. We had some really good
relationships with some industrial manufacturers, and so we just
kind of stumbled into it. We’re in western Pennsylvania right
now, so this is old steel country, and Marcellus Shale is really
making a big impact on the economy out here. There’s a lot of
folks inside the manufacturing industry, fabrication shops,
machining organizations, those sorts of things, who are trying
to get their toe into that pool.
We really recognized an opportunity where we looked at, okay,
we’ve had some success with these kinds of folks, and it’s
really low-hanging fruit in a way because not a lot of
industrial manufacturing companies have an awesome online
presence. There are some that are doing a good job, but most of
them, even who are present, let’s say they have a blog or
they’re on Twitter or they’re doing some YouTube tutorials,
consistency is really a problem. And so that’s part of our value
proposition is we are a marketing partner, so we’ll come
alongside even if you’ve got a couple of marketing people within
your organization, we augment that. We don’t compete with them.
So we can help provide that consistency in there.
We identified the market and said, we need to find a focused
approach, because there’s only three of us, and so as we craft
content, as we work on our positioning statements and refine our
sales process, it’s going to be more valuable for us to be able
to showcase success stories to companies who are similar to the
people we’re talking to on the phone so they can relate to them.
We’re still young guys, and so when we get on the phone with
people or we’re talking to them on a GoToMeeting or something
like that, there’s still a large amount of credibility that
needs to be built based on our age. And so that’s something that
we learned early on too is how can we find ways to position
ourselves as experts, and focusing on a niche is a way that we
see to really help that out along the way.
Trent: Now, was this niche, do you think that it is – like, one of the
things that I talk about in my blog posts and in my products is
pick a profitable niche, because when you do, if you pick a
niche that has – like Sam, for example, in his interview with
me, when he launched his agency, he focused on B2B as well, high-
ticket items, and the reason was is because he could charge so
much more to do the same amount of work because an individual
customer to his client was worth $50,000 to $100,000. Did that
factor into your decision process as well?
Andrew: Absolutely. I think it’s really surfaced after looking back and
saying, wow, if we can work with companies who, if they make a
sale, it’s a $50,000 sale, and they’re signing a $50,000
contract with us for the year, we can deliver ROI way faster
than if they’re selling a $40 widget. So let’s go after the
companies that make manly stuff at a big ticket price, because
that’s a niche that we think we can thrive in. So that
definitely guided the decision.
Trent: All right. So, audience, here’s what’s coming up. We are going
to talk next about how Andrew and his team are generating leads,
and then when we come back in Part Two of this particular
podcast, I’m trying something new here. I’m going to break my
podcast up into half-hour podcasts instead of hour long or hour-
and-fifteen long podcasts to see if it is more popular with the
audience. So if you have an opinion on that, please make sure
that you leave it in the comments that will be down on the
bottom of this post.
But in Part Two, we’re going to talk about how they’re nurturing
and converting their leads into customers. We’re going to talk
about services that they’re offering and how they’re delivering
those services, and how scale fits into that, and how they’re
billing, and how they’re shifting from one-time projects to
retainer fees, and how they’re delivering their services. So
there’s a lot of really good stuff coming in the second half.
But before we get to that, a lot of people really struggle with
lead generation, so I would love it, Andrew, if you would go
into as much detail as you would like on how you guys are
generating leads.
Andrew: Sure. You’ve got to walk the walk. We are a marketing company
that encourages people to create awesome content on their
website and offer that value to their prospective buyers, and so
we’re trying to walk that walk and create regular blog posts on
our site that are targeted to our geography, that are targeted
more and more towards our niche industries. So we do get a good
number of leads through our website right now. I mean, you can’t
ignore referrals, so if you have a customer right now, if you
have a group of customers that you’re able to showcase success
for, don’t be afraid to ask them, do you know anyone else who
could use this? Some of our greatest clients have come from
other clients, and so it’s kind of an old-school, offline way,
but, I mean, it’s tried-and-true, and it works. So, go to
referrals…
Trent: Let’s talk a little bit about the blogging that you’re doing,
because referrals are going to become part of – I mean, there’s
things that you can do to stimulate getting more referrals, and
if you have specific strategies to share, please make a little
note to yourself and we’ll come back to that in a minute. But in
the beginning, when you don’t have any clients, it’s tough to
get referrals, so I am really interested on the strategies
and/or tactics that you decided to do with your blogging. And
you could even talk about what you’re getting your customers to
do, because like you said, you have to walk your talk. So how
are you making blogging work for you?
Andrew: Again, the industry, it kind of starts with that persona first.
We have four buyer personas right now that we try to base all of
our content off of and to speak to them, and then from our
marketing strategy, lean into our sales process as well to
figure out what kind of questions are these people are asking,
because a second-generation owner of a manufacturing company is
going to have a very different set of questions than say an
inside sales manager or a director of a sales team.
So we try to outline what kind of questions each of these people
are asking, because content, if you want it to be guided and if
you want it to be closed loop in a way to unite with the rest of
your strategy, it needs to start with the customer in mind at
the end of the day. You want to put yourself in their shoes. And
so we’ve invested a ton of time in looking at our current
customers and what has gone well, and what kind of personalities
and positions we want to stay away from, and we’ve constructed
those buyer personas. So that kind of guides our blogging
strategy.
So then we take a look at the persona and then we do keyword
research off of that and figure out what kind of keywords we
want to target, what kind of keywords we want to rank for.
Obviously, we want to be found when someone Google’s ‘inbound
marketing agency’. That’s really big for us, and so we spend a
lot of time optimizing and creating valuable content around that
keyword.
As an example, in a pretty competitive market, when you’re a
marketer trying to create an online blog, some people even
advise you don’t even worry about marketing for yourself online
because it’s so competitive, but I would shy away from that.
Again, lean into the industry. This is definitely an area where
we’re trying to grow into, but be the source for marketing
information for whatever niche you’re targeting. For us, it’s
industrial manufacturers, and even that is a wide swath. There’s
a ton of different companies that can fall into that. So
continue to break down your niche, and the more focused you can
become, the more personalized the content, the higher the
conversion rate is going to be and the greater the value that
you’re going to deliver is going to be.
Trent: So, how did you develop these four personas? I think that is an
area where people will get stuck as well.
Andrew: Yeah, as a buyer persona, you just want to just develop an
idealistic picture of a potential client. And so we looked at
the clients that we had, and there’s obviously clients that, you
know, we want to work with more people like this. This is how we
want to scale our business. These people are responsive, they
don’t sweat the small stuff, they give us the freedom to make
decisions. They’re also there when we need to ask them
questions. So those are the kinds of people we want to work
with.
Then there’s – we call them Bob the Builder. He is an owner of
his own company. He’s kind of grown it up from absolutely
nothing. He knows that he needs to be online and have a
presence, but he doesn’t really want to invest anything into it.
He just wants to pay someone to get the website up, and that’s
So that Bob the Builder persona is someone we worked with a
lot when the company got started, but not the kind of person we
want to continue with. So if we get a referral or if someone
contacts us and says, okay, we’ve got a Bob on the phone right
now, that’s the kind of lead we want to pass up. We still
explore it, but have that persona in your mind to say this is
not the type of client that we can scale with, and have the
courage to say no in that situation.
Trent: And are there tools or resources that you use that help you to
develop your personas, or did you simply get the whiteboard out
and look back at the people that you had spoken with or had done
business with and sort of describe as best you could the persona
that you thought represented that person?
Andrew: Both, really. We’re HubSpot certified partners, so they create
amazing content, and one of the pieces they have is a buyer
persona template. It has a great starting point to go out there
and help you. It asks the right questions to get you thinking
about that person on a more personal level. They’ve got a
PowerPoint download that you can get on their website. We also
have an e-book on GuavaBox.com that you can go and get that has
a similar template in mind to help you build up personas like
this.
But really, it starts with trying to put yourself at their desk.
What kind of pictures do they have sitting on the table? What do
they do on the weekends? What kind of music do they listen to?
So it’s not really like what’s their job title or how much they
make a year. Those things are important, but you really want to
ask questions that can put you inside their shoes as best as
possible.
Trent: And the reason for that is because you want to make sure that
you use words and phrases and content that they will relate and
respond to?
Andrew: Exactly. So some of our clients in the manufacturing space,
they’re selling to maintenance managers who are on the floor all
day in the shop and they might have just a high school diploma,
but they’re also selling to engineers who are drawing blueprints
for a new power plant. So those two personas are buying the same
product, but they’re asking incredibly different questions.
So from a client delivery standpoint, it helps us out a ton as
we’re trying to learn a new industry and learn a new set of
terms and stuff like that. Get those buyer personas cranked out
right away. Ask your clients, what does a typical buyer look
like for you, or if you could describe three typical buyers that
you sell to or that you’d like to scale your business towards,
what do they look like? What kinds of questions are they asking?
What do they do on the weekends? What kind of pains or questions
are they asking, those sorts of things. That really helps us
create content geared towards the people they’re trying to sell
to.
Trent: And when you talked earlier on about creating content that
answers questions, obviously, you know Marcus Sheridan. He’s
been on my show, it’s brightideas.co/27, and he kind of became
quasi-famous as a result of river pools and spas because he
decided to create a lot of blog content that answered the pre-
sales questions of people who are considering getting a pool. Is
that an approach that you took?
Andrew: Definitely. Marcus did an awesome job with that business of not
being afraid to address with confidence questions people have.
You know, what’s fiberglass versus concrete, those kinds of
questions for pools. The same sort of thing approaching your
marketing, approaching your client’s marketing, what are
questions that everybody is asking that no one is answering.
And that can be – maybe you take at the beginning of a campaign,
just take a half day and call, or have your clients get in touch
with 25 or 50 of their customers and figure out what kind of
questions were you looking for, what kind of questions you
continue to have. Do a little bit of market research on the fly
almost, but just reach out and figure out, maybe it’s surveys or
something like that. Just get a finger on the pulse of the
customers that have already converted with you and figure out
what kind of questions or pains that they have. If you client
has a sales team, always talk to them and figure out what kind
of questions are people coming to you with? What question do you
answer ten times a day that you wish you could just hit copy,
paste, and send a reply back to, because that’s an instant blog
post right there. There’s no shortage of content out there, you
just need to be able to ask the right questions to the right
people.
Trent: Now, I’m going to finish up Part One here with two more
questions. The second one is going to be are you doing any
outbound marketing, but the first one, I noticed you mentioned –
you said you were a HubSpot partner. Your blog is on WordPress,
and I know that HubSpot encourages people to use their blogging
platform as opposed to an independently hosted WordPress site.
Can you briefly speak to why you’re using WordPress?
Andrew: We redesigned our website probably six months ago, and HubSpot
had not spun out their new COS, which, if anyone is unfamiliar
with that, it’s a Content Optimization System that they have,
and historically, their CMS wasn’t very user-friendly. WordPress
is obviously incredibly user-friendly, and it’s open source, and
there’s an awesome source of plug-ins and stuff like that. So we
went with the WordPress theme because we had more flexibility on
the design side. We could spin out the design much faster than
we could with HubSpot, and we also knew that the COS was coming
down the line, and so to redesign on their CMS and then have to
redo it six or eight months later, it wasn’t something that we
were really excited about.
Our next design is probably going to be on that COS on HubSpot
because it is pretty powerful. They encourage it, but at the end
of the day, as long as you’re creating content, it doesn’t
matter.
Trent: Okay. Last question then for the first part of the interview,
outbound marketing. Are you guys making cold calls, are you
doing direct mail, are you doing any paid advertising? What
other things are you doing to generate inquiries?
Andrew: I think cold calls would be the closest to outbound that we
get. We don’t do a ton of cold calling. We like to do it just to
continue to hone our positioning statements and stuff like that,
and if an opportunity comes through, that’s great. But we really
haven’t had a lot of success with it, so it’s not something that
we’re going to lean into if we haven’t had a lot of success.
We like to think kind of creatively around the marketing,
obviously, and how can we add value with content through maybe
traditional off-line methods. So even if we do a press release
or – we’ve got some partners, like, we’re in a technology
incubator right now, we moved into this office space at the end
of May, and they’ve got a press release that goes out in a print
newsletter to the community here, and so we created a content
piece that was kind of about what GuavaBox is, but wrote it like
inbound marketers in a way that could help a potential business
owner who might read it, understand the value of inbound
marketing and the potential that’s out there and the lead
machine that they could create, those sorts of things. So, just
applying inbound methodology through outbound channels is as
close as we get. We try to remain pure.
Trent: And it’s not just trying to remain pure, like there’s something
uncool about outbound marketing, but with respect to cold calls,
they just don’t work as well. People don’t like making them, and
people don’t really like receiving them, so I think why would
you do that?
All right. So that wraps up the Part One of this interview. I
tried to keep it to about a half-hour. I went over by just a
couple of minutes. So as I mentioned, in Part Two, we’re going
to dive deeper into how we’re nurturing and converting leads,
what services are being offered, how they’re being delivered,
how leads generate in retainer’s fees, and probably a whole
bunch of extra things that I’ll ask as a result of the answers
that Andrew gives us. So we will see you in Part Two.
So that wraps up Part One of this interview with Andrew. You can
get the show notes at brightideas.co/74. Now, if you really
enjoyed this podcast, I would absolutely love it if you would
take a moment to go to brightideas.co/love, and when you get
there, you’ll find a pre-populated tweet that you can send out,
as well you’ll find a link to go to take you to the iTunes store
so that you can leave some feedback for the show. And if you
would be kind enough to go give a five-star rating, I can’t tell
you how much I would appreciate your taking a moment or two to
do that, because it really does make a huge difference to the
show.
So that’s it for this episode. I’m your host, Trent Dyrsmid, and
I look forward to seeing you in another episode, and for sure in
Part Two.
About Andrew Dymski
Andrew is the a co-founder of GuavaBox, a web design and inbound marketing agency. Guavabox helps clients in the industrial space reach new customers through inbound marketing.
https://brightideas.co/wp-content/uploads/2013/09/andrew.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-09-23 06:00:582020-09-10 04:00:04Digital Marketing Strategy: Andrew Dymski on How He Launched a Successful Marketing Agency Right out of College (part 1)
If you want to learn marketing from someone who knows his stuff, you could do worse than to talk with Meny Hoffman, CEO of Ptex Group, a growing marketing agency with 27 employees.
Unlike many marketing agencies that haven’t reached the size of Ptex Group, Meny’s company has multiple divisions. Ptex supports their clients with everything from strategic planning and branding; to specific design, print and web development work. They even have an in-house call center that can answer phones on behalf of their clients.
Another unique offering from Ptex Group is their “Let’s Talk Buisness” conference, a one day live event that sold out of seats at 650 attendees.
There are a lot more goodies in this interview. When you listen, you’ll hear Meny and I talk about:
An overview of his lead generation strategy
How to generate leads beyond referrals
The details of the compensation plan for his sales reps
An overview of a marketing funnel, and why it’s so important to focus on the human touch
An overview of a ‘Project Awarded’ campaign
Why he has a call center division
An overview of their business conference, including how they generated sponsorship revenue
More About This Episode
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Meny Hoffman is the CEO of Ptex Group, an Inc. 500/5000-ranked marketing and business services firm headquartered in Brooklyn, NY. A longtime entrepreneur, he specializes in creating strategic marketing solutions and business-boosting tactics to help small businesses achieve higher levels of success.
To learn more, follow Meny Hoffman on Twitter or email him at meny.hoffman@ptexgroup.com.
https://brightideas.co/wp-content/uploads/2013/09/Meny.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-09-09 06:00:112020-09-10 02:36:20Digital Marketing Strategy: Meny Hoffman on How He Built a Highly Profitable Marketing & Business Service Agency
Do you think you need a fancy website, and business card, and plenty of startup capital to start a business? If you do, you’re dead wrong.
Do you think you need a fancy website, and business card, and plenty of startup capital to start a business? If you do, you’re dead wrong.
Sam Ovens started his marketing consulting business with no clue of what he was going to sell, no idea who would buy it, no idea how he’d actually deliver the work, and with no savings to speak of.
In this interview, you’ll hear Sam and I talk about:
(4:37) His number of customers and revenue
(8:00) His background, and how he got started
(10:30) His start as a marketing consultant
(13:00) How he used email to get his first clients
(16:00) How success led to more success
(19:00) How he made $10,000 sales, and closed $20,000 deals with $3k/mo in retainer fees
(23:00) How he used lumpy mail to find his leads
(25:30) How he delivered services using elance
(30:30) How he transitioned to a trusted advisor
(34:30) The difference between a service business and a product business
(38:30) The cons of a product business
(40:00) The cost of version 1
(42:00) His Big Business mindset
(48:00) How he used Idea Extraction to get his rich niche to tell him their pain
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Trent: Hey there, bright idea hunters. Welcome to the Bright Ideas podcast.
I’m your host, Trent Dyrsmid, and this is the podcast for marketing
consultants, marketing agencies, and entrepreneurs who want to discover how
to use content marketing and marketing automation to massively boost their
business.On the show with me today is an entrepreneur by the name of Sam Ovens. Sam
is the founder of a very rapidly-growing company by the name of
SnapInspect. Just over a year ago, Sam barely even knew what an
entrepreneur was. He literally had to actually Google the term when he
first discovered it and that was a little bit longer ago. With that said,
this interview, if you are a new entrepreneur looking for a business to
start or you are already a marketing consultant looking to grow your
business, this interview is going to be absolutely a mind-blower for you.I don’t want to sound too hype-y, but I took so many notes for myself when
I was doing this interview with Sam that I absolutely promise that if you
invest the time to listen to it, you are going to come away from this
interview with some of the most valuable insights possible that will
literally be for you, as they were for Sam, massive game-changers.His app, his company, SnapInspect — so a year ago, nothing, didn’t exist.
He had to figure out how to find the idea, how to get it built, how to pay
for it, and then how to turn it into a very healthy six-figure business and
he did all of that in just over a year. And keep in mind, beforehand, this
guy barely even knew what an entrepreneur was. So get some pen and paper,
sit down. You are absolutely going to love this interview.Before I get to it, I want to really quickly tell you about something if
you’re listening, if you’re not yet a Bright Ideas subscriber, I’ve got a
new four-part video series called the Conversion Tactics Toolbox. It
teaches you — shows you, actually; it’s free–exactly how I get bright
ideas to add so many subscribers every day to my newsletter list and
therefore my marketing funnel and, of course, that causes products to sell.
Go sign up at brightideas.co.So, with that said, get ready, here we go. This is going to be a really
good one. Please join me in welcoming Sam to the show. Hey, Sam, welcome to
the show. Thanks for making the time.Sam Ovens: Glad to be here.Trent: So for the folks who don’t yet have a clear understanding of who you
are, take a minute and just please briefly introduce yourself. Tell us who
you are and what you do.Sam: Okay, so I started a software as a service company called SnapInspect,
which is basically a property inspection app for property management
companies. They use it to inspect rental properties and create reports.
Yeah, so that’s basically what I did.Trent: Is this your first entrepreneurial venture?
Sam: First successful one, yes, but including the failed ones, it’s
probably my third or fourth.
Trent: Okay.
Sam: Yeah.
Trent: All right, so you’re at a point now where you’re having quite a bit
of success. So let’s talk a little bit about where you are today and then I
want to back this up to the process that you went through and how you
started off as a marketing consultant and used that money to fund this and
where there’s a whole lot of really good stuff I want to get into. But so
that people know where you’re at, because you’ve accomplished quite a bit
here in the last year since you launched the product, I really kind of want
them to know the conclusion first, so maybe we can talk about number of
customers and revenue, how’s that sound?
Sam: Sure.
Trent: All right, so how many customers and how much revenue?
Sam: So, last time I checked, we’re around 1,400 paid customers and revenue
is around about $400,000 annually.
Trent: Very nice. And on a software business, how much of that is making it
to the bottom-line? Quite a bit, I would think.
Sam: I mean, our expenses run roughly right now about $16,000 a month, so
you could do the maths on that.
Trent: The point of it is — and this is what I wanted people to get —
because here you are, this guy who fell on his face a couple of times
beforehand and then finally, when you got it figured out, within a year
you’ve made a massive transformation to your life as a result of this
business. Would that be an overstatement, do you think, or do you think
that that’s pretty accurate?
Sam: No, I think it’s pretty accurate. I’ve tried to be an entrepreneur for
probably, I think, three years now, maybe not quite three but close to. Two
of those years, I was practically just spinning my tires and then when
things sort of clicked for me, which was about a year ago, it just all
moved so rapidly. SnapInspect is one year old in August. SnapInspect is
only one year old and all of my business stuff has really snowballed in the
last 12 months and it’s been a pretty crazy 12 months.
Trent: And a lot of fun, too, I’ll bet.
Sam: Oh, yeah. It’s fun finally making money.
Trent: Yeah.
Sam: Instead of just finding ways to get more to spend.
Trent: Yeah, funny how that is. Being an entrepreneur is so much more fun
when you’re making a profit. All right, so let’s talk a little bit about
your background and then how you got into this and how you were a marketing
consultant, because a lot of my audience — and I really think this is
going to be a great interview for them — they’re either a new entrepreneur
like you were before this success came your way or they are a marketing
consultant looking to grow their business to the point where it’s providing
a very nice level of income for them and maybe some of them are at a point
where they’re already there and they’re thinking, “Well, how do I take my
business to the next level?” The pieces of your story, I think, will speak
to all of those people, so let’s kind of dive into that.
What did you take in college? What did you do before this? Were you born in
this entrepreneur whiz-bang family with a big silver spoon or is it
something other than that?
Sam: Sure. No one in my family is an entrepreneur or even in business. My
mum’s a teacher and my dad’s a builder and none of my friends are even
entrepreneurial. I think back home in New Zealand, I don’t even think I
know another entrepreneur and I never really was entrepreneurial. I mean, I
was obsessive with things, like if it was a hobby or a sport or whatever it
was, I’d always have something I was quite obsessed with and spend all day
and all night thinking about it and something like that.
Those are the only early traces I could think of what’s led to today
because I remember my parents and teachers always said to me, “If only you
could just get obsessed with school or college or doing something
productive instead of,” because my obsessions used to be race cars or go-
karting or something like that and that was me spending money and taking
time away from studying, so my grades were always below average and
everything.
Then I don’t know when the click was. I think it was, I went to a friend’s,
her dad was a very successful businessman and I went away to their island —
the guy owned an island — and I was sitting there and I was like, “Oh my
God, this is so awesome,” and then when I got back, I was like, “I want to
do that.” I think the first thing, my first move was Googling, “What is
entrepreneurship?”
Trent: No kidding, wow.
Sam: Not even kidding, just trying to get a definition on it because I’d
asked this girl, “What does your dad do?” And she’s like, “Oh, he’s an
entrepreneur,” and I was like, “I want to be one of those.” So I went back
and I Googled it and I bought a bunch of books and I guess that’s where the
journey began and that was roughly three years ago.
Trent: Wow, that’s cool. All right, so you fell on your face a few times
and we’re going to skip past those just because there’s so much good stuff
that I want to talk about what’s worked for you.
Sam: Sure.
Trent: Then you, at some point, started working for yourself as a marketing
consultant, is that correct?
Sam: Correct.
Trent: Okay, so when was that?
Sam: I joined The Foundation in October of 2011 and I learned a lot there
about how to start a software company from scratch. I got the idea for
SnapInspect and we started developing it, but I quickly realized I’m going
to run out of money. Development builds were coming in because we had
milestones with the original developers and I never even knew how I was
going to pay the next milestone, so I was constantly trying to figure out
ways, see which banks were offering student credit cards, trying to just
come up with money any way just to pay the development bills.
Then I was looking, I was talking to my developer like, “What do you think
server costs are going to be?” He gave me some numbers and I was adding up
the numbers and I was like, “Oh my God, I’ve got an awesome idea for a
company. This company’s going to work, but I don’t know if I’m going to be
able to keep it alive long enough for it to actually gain traction.”
So I quickly realized that I’m going to need a source of income to support
starting SnapInspect. At that point, I knew a bit about marketing and I
figured, “Well, these skills are probably helpful to other business,” so I
decided that I’d help consult other businesses on marketing and basically
sell my own services and use that cash to help get SnapInspect started and
survive through the early stages.
Trent: So let’s talk about how you did that. You’ve got no customers,
you’ve got some marketing skills which you’ve acquired as the product of,
presumably, your failures along the way. You’re out there trying to figure
out how to do stuff, it’s all on the line and you can’t help but learn
things. Then you made a decision, “Well, I’m going to go get some clients
because I need some cash flow or my business is not going to succeed,” so I
want to know what did you do — and I’m sure my audience would like to
know, especially the new entrepreneurs who are thinking, “Man, this guy’s
story sounds like mine,” — what did you do to get those clients?
Sam: Sure. My first attempt, like any of my first attempts, was pretty
weak. I just reached out to people I knew because I didn’t even know what I
was selling. I was like, “I know all of this stuff,” but I couldn’t put
into a sentence what I was selling. So it sort of started out with getting
a few cheap $2,000 or $3,000 website deals where I’d essentially just be an
order taker and help a business rejig their website and that’s how it
started.
Trent: These were all people initially that you knew? But you didn’t have
any credibility with them as a marketing or a website developer, did you?
Sam: No, not at all. I just reached out via e-mail. They knew I was in this
whole online space, which most people don’t understand that most business
owners, outside of the tech and San Francisco space, they actually don’t
know anything about websites and so you don’t need to know much to be an
expert. In fact, most of the people that probably had the ability to find
your content and listen to it probably know more than enough to actually be
valuable to 95% of the businesses in the world. You don’t actually need to
be that much of an engineer to help other people out. Now I’ve side-tracked
myself, what was the question?
Trent: It’s okay, it’s okay. I couldn’t agree more. I think that is
something people overestimate or maybe underestimate, I don’t know what the
right word is, but they think they need to be this guru before they could
ever go to a small business owner that runs any kind of small business
that’s in your town and say to them, “I can help you with your marketing.”
So limiting belief number one that hope Sam has just smashed for you guys
is that you already know enough. If you found my site and you’re listening
to this interview and you know what WordPress is and you know what hosting
is, you already know enough.
Okay, so you sent some e-mails, you got some clients, $2,000 gigs, $3,000
gigs here and there. Is that about right?
Sam: Yup.
Trent: What happened next?
Sam: So that was enough money. From what I was making, that was a big
change. I mean, $2,000, $3,000 compared to zero? Pretty sweet, so I was
pretty happy with myself and I did quite a few of those and then I guess
the more I thought about it and the more of these little deals that I won,
the more confidence I got and I sort of found my foothold and my market in
exactly what it was that I did. So instead of being a consultant that
literally would do anything for money, I now had a very specific thing that
I did for a specific market.
Trent: Which was what?
Sam: So I would help B2B companies, so B2B companies that had high-ticket
priced items generate more leads with their websites.
Trent: Okay, so did you do that by helping them to do better conversions or
more traffic?
Sam: The beauty of this was that it was so much easier than doing even the
$2,000 deals because essentially what I would do is I’d put just such basic
stuff, like their websites would have headlines and basic copy which,
instead of saying, “We are the best. We, we, we,” it would talk a little
bit about the other person, the customer and what pains they’re
experiencing. So I’d rejig the copy, put a headline in and I’d create some
sort of lead capture system, which would just be usually a like a MailChimp
opt-in form for a free consultation or a pricing booklet or some sort of
information thing that they had. Most of the time, they had these in their
business; they just weren’t putting them to work.
Trent: So this is really basic stuff for us but, again, for these small
business owners, they had no idea how to do this stuff. So how much were
you able to charge to do this?
Sam: Well, so, my average–to do something simple as that, I would charge
$10,000.
Trent: $10,000?
Sam: Yup.
Trent: To tweak a headline, fix sales copy, put a lead capture form on,
presumably write some kind of autoresponder sequence on behind-the-scenes,
and get them to take some content they already had and turn it into a free
report/lead magnet, $10,000 for that?
Sam: Yup.
Trent: I hope, my beloved audience, this is sinking in for you guys.
Sam: Well, you’ve go tot understand that they didn’t know that they needed
that. If they knew that they needed that, they could do it themselves or
they could hire someone on Elance to whack it together for a couple hundred
dollars, but . . .
Trent: But they don’t know that.
Sam: It’s the advantage of not being an order taker but an advisor or an
expert and knowing exactly what you’d do because the beauty of B2B high-
ticket item companies is one sale to them is usually worth $50,000 to
$100,000.
Trent: Yup.
Sam: They’re already making plenty of sales and they’re making them through
their website with people going to the “Contact Us” form and filling out,
like, 15 fields, which was hard to find and I was thinking, “My God, if we
could remove some of this friction, rejig the copy, even if I just got them
one more in a whole year, it’s still worth it for them to pay me $10,000.”
Trent: Absolutely.
Sam: And I did. They got way more than one a year so as far as they were
concerned, they were away laughing. They only had to pay me $10,000 but
that’s the thing about pricing on value instead of cost.
Trent: Mm-hmm.
Sam: The whole time, I anchor my deals on what’s a new client worth to you.
They know it’s $50,000, $100,000 and if we can get at least one or two more
of those a month, they’re sorted. That’s the advantage, that’s why I picked
that as my niche and as my specialty because once I had one of those under
my belt and I could get a testimonial, I just started reaching out to more
of them that were in the same situation and it was easy. I’d put retainers,
I started to build retainers in and I started to charge more.
I did contracts where I’d implement a CRM system too. For example, a
company, it would need the website rejigged, it would need testimonials —
which I’d have to find — it might include lead capture, basic
autoresponder, and then it would have to feed into a CRM system, which you
wouldn’t even believe that a $10 million a year company didn’t even have a
CRM.
Trent: They probably didn’t even know what it was.
Sam: I put a CRM in place, showed the team how to use it, we talked about
all of this new stuff. It was fun. I learned a ton doing it. The owner
loved it, the company profited wildly from it and that was a $25,000 deal
with a $3,000 a month retainer and still not even touching on any of the
stuff that the guys in your audience know, like split-testing and what
button colors convert. Forget that! This is simple stuff, right?
Trent: I’m loving that you’re sharing this because this is a perfect
example in this video that I mentioned to you before that’s on YouTube that
I get all these views on and we talked about before — I talk about my
green dot theory and it’s more or less the best way to succeed in business
is to be in business. Because once you start — and this is what I hope
that my new entrepreneurs who are listening to this will understand — you
don’t need a great idea to start, you just need to start. Then along the
way, like what happened to you, Sam, is the byproduct of the journey is
that you start discovering these rich niches that I talk about, the
importance of selling to businesses that have a high customer value, and
you discovered all the stuff. You didn’t think this up on a whiteboard and
say, “That’s what I’m going to do,” right?
Sam: Oh, so far from it, it’s ridiculous.
Trent: Yeah, fantastic stuff. Okay, and how, by the way — because I know
some people are probably thinking this — how did you find these companies
to go and you contacted them via e-mail always to begin with, was that
correct?
Sam: I tried lots of things and over time, again, I adapted my process. In
the end, my secret weapon was lump e-mail.
Trent: I love so much you just mentioned that because that’s one thing that
we’re starting to do, as well.
Sam: Yeah, that was my secret weapon in the end. I could send out pieces
and I knew that I was going to get a new client. I knew what my conversions
were off that and it worked, it really worked and I never paid for any . .
. I never used AdWords, never had Facebook, never had a blog. I mean, I
didn’t have anything. I didn’t even have a business card.
Trent: Did you have a website? You had a website?
Sam: Well, I mean, if you looked at samovens.com, it’s one static page that
just says “Direct Marketing Consultant.” The website took me five minutes
to build.
Trent: Mm-hmm.
Sam: It pays to note I don’t even know how to use WordPress. I built my
website using Unbounce.
Trent: I love it.
Sam: I still don’t know how to set up a WordPress website.
Trent: I love it. So how when you were actually working with these clients
and you wanted to fix a headline and improve copy and put the webform on,
did you just give them the code for the webform and have their team make
the tweaks on their own sites?
Sam: That’s a really good question. That’s the other part of it: I never
did any of the actual work. So I would win the deal — that part is
important — I put a lot of my effort into winning the deal and that was
where I spent the bulk of my time. Then I would sit down with the business
owner and I’d ask him questions to learn about how we’re going to rejig the
site and how we’re going to generate leads.
Generally, he would give me all the information I needed and then I would
set aside a day or two to write the copy and I’d design all of the pages,
I’d just write them up in either Keynote or later on I used Unbound, but I
started out using Keynote, and I had a guy that I hired from Elance who
would do all of my implementation.
So I’d essentially win the deal, create a list of what needed to be done,
jump on Skype with my guy from Elance, brief him. He’d go and do it all —
like build the website, put the code on, do the style, all of that stuff
that I didn’t know how to do — and we had an awesome arrangement where he
charged a flat fee regardless of how long it took: $200 to do the
implementation.
Trent: $200. So you’re selling a deal for $10,000 and it’s costing you $200
to deliver it, right?
Sam: Yup, yup.
Trent: I hope there are people listening to this podcast right now with
their jaw hanging open and then kicking themselves in the butt because
they’re doing too much analysis and too much paralysis before they get
going.
Sam: It sounds illegal, right? But what people aren’t understanding is that
I’m not selling the doing. If these people knew what they wanted, they
could go directly to the Elance guy.
Trent: But they don’t.
Sam: I’m the one that’s telling them what they need, like I’m creating the
real value. The real value isn’t in doing. The real value isn’t in typing
the code or putting the MailChimp form on the page. There’s no value in
that. That’s a commodity. You can hire people all over the world on Elance
that’ll do that for next-to-nothing. The real value is in knowing how to
get the client more customers.
Trent: Mm-hmm, and knowing what the client needs when they don’t know
themselves.
Sam: Yeah, and the best part about it is you get treated with so much more
respect when you’re not an order taker.
Trent: Mm-hmm.
Sam: Back in the day when I did $2k and $3k website deals, I mean, I’d show
them the site and they’d send me back a list of, like, 50 things to change,
like “move the logo a little bit to the left, a little bit to the right,
color of the font doesn’t look right,” just stuff like that and it killed
me because you’re essentially an order taker — you’re not an adviser or an
expert — and they don’t listen to anything you say because you’re
essentially just that Elance guy except a more glorified version that gets
paid $2,000 instead of $200.
That’s essentially what I was but when you’re the adviser and the expert,
they don’t fight you on anything. You never hear about a logo placement or
a color because what they’re hiring you for is the added revenue they’re
going to get, the customers. They don’t care about anything else and that’s
the way it should be. So, honestly, it really changed how I did the whole
marketing consulting thing because I went from busting my ass doing $2,000,
$3,000 deals to doing $10,000 to $20,000 deals where I was treated like
someone that was valuable and also not having a fight with the customer
over the color of a logo.
Trent: Just so that I make sure myself and the audience is crystal-clear on
the difference, the differences between starving consultant Sam and getting-
rich consultant Sam — and we haven’t even talked about your SaaS yet,
which we’re still going to get to — is you decided, number one, to focus
on a different niche, the rich niche, these high-ticket B2B companies. Then
you used your lump e-mail to get in touch with them and you positioned
yourself deliberately through the questions, I’m assuming, that you asked
them as a trusted adviser. Is that pretty much the difference between
“starving” and “getting-rich”?
Sam: Yeah, so, first of all, I mean, I would target companies that had
money to spend and I’d target companies where I honestly believed that if I
was to do what I wanted to do to their website, that they would value from
it more than what they would pay me. Because a lot of the deals I did early
on when I was what you’re calling a “poor consultant,” I honestly thought —
and there was no real added value to the company. I mean, sure their
website looked nicer, but I didn’t feel, I felt like this is a waste of
their $2,000, $3,000; it just looks prettier.
But with these other companies, I was happy to charge $10,000 or more
because they got the value from it. It sounds criminal and I used to feel a
little bit shady doing it but then when I really thought about it, because
a lot of the time after I had these big customers with $10,000, $15,000,
$20,000, $25,000, I felt guilty. I was like, “Oh my God, they’re going to e-
mail me two months later and they’re going to be like, ‘We want our money
back.'” But it was the exact opposite.
They told other people about me and I started getting referrals and they
loved it. They were like, “There’s a big difference,” and the people I did
$2,000 or $3,000 websites for, they still call me today because they say
something like their website isn’t loading fast enough. I mean, the
difference is I can’t even define.
Trent: Well, you’re doing a pretty good job of it so far and I hope that
the incredibly valuable message that you are sharing right now is sinking
in with the people that are listening to this. Folks, if you have
questions, there’s going to be a comment form on the blog post where this
interview is published. Make sure you use it and either Sam or myself will
answer them.
All right, so I kind of want to transition the interview now to the
SnapInspect story. So, obviously what you’ve shared with us so far has
communicated how you got some cash flow so that you could build this other
business, which has a bunch of pros and cons. Before we get too much into
SnapInspect — and this is something that when I was a new entrepreneur, I
didn’t know anything about — there are some pros and cons to a consulting
business and there are some pros and cons to a software business. I don’t
think many people, especially in the beginning, even have the belief system
that they could ever possibly even create a software business.
So, very quickly, just tell us the pros and cons of the consulting model
and the pros and cons, mostly what you just told me before the interview,
the pros and cons of the software model.
Sam: Consulting is one specific example but it’s really the pros and cons
of any service business and the pros and cons of any product-based
business.
Trent: Sure.
Sam: But in my specific example, I’m going to use consulting and SaaS. The
pros and cons of a consulting business or a service business is, the pros:
you can get into business immediately. All you really need is a laptop and
a cell phone, plus the barriers to entry, there’s none. You don’t need to
build a product, you don’t need to invest in development and it doesn’t
cost anything or really anything. You can get into business straight away.
The other pros of the consulting business is you start to make decent money
pretty quickly so I started to make $3,000 where I had to pay my developer
$200. That was still $2,800 and while that’s not much money, that was a lot
to me back then, more than what my product business could do at the time,
so it can generate cash pretty quickly. Within a year, the consulting
business got pretty big. I grew it up to $35,000 a month.
Trent: Within a year.
Sam: Yep.
Trent: Fantastic.
Sam: It’s still at that today and, yeah, that was quick. It grew to $10,000
a month so much faster than SnapInspect did and the profitability of it was
much higher. It was very profitable. It was pretty much a cash business.
Now, the cons of a service business or a consulting business: firstly,
there’s no asset value. If you’ve got a consulting business, someone’s not
going to come along and acquire it because you are the business. It doesn’t
have an asset value, it doesn’t have a multiplier. You can’t say, “Well, I
earned $100,000 this year and using a ten times multiplier, the market cap
for my consulting practice is a $1,000,000.” That doesn’t work.
Trent: I do want to interject, though, from my own experience, I did have a
service business but it wasn’t just me — I had a dozen employees and we
had a lot of recurring revenue, MRR, monthly recurring revenue — and I
sold it for $1.2 million because the asset value was the recurring revenue
with the people behind it to do it all, so I just want to make sure that
the audience understands that service businesses can have an asset value if
you build them correctly. Not as good, necessarily, as software, but–
Sam: You want to make sure you are not the business.
Trent: Correct.
Sam: But I was the business, so if you can make your consulting or service
business run without you and it’s got some sort of reliable income that’s
predictable . . .
Trent: That doesn’t depend upon you.
Sam: Yes, then, absolutely, that’s a real business, that’s an asset. But
most consulting, it’s essentially the person, it’s just them and people buy
because it’s them and you can’t leave. So, yeah, you’re right, thanks for
correcting me, but my one was I definitely had no multiplier.
Trent: Mm-hmm.
Sam: And so–where was I, that was my con . . .
Trent: Yeah, now you’re going to talk about, I believe . . .
Sam: And also scaling.
Trent: Okay.
Sam: To scale a consulting business, there really is only two ways: one is
to charge more; the other is to work more hours; or the other one, which is
actually hiring more people, and there’s a limit on how high you can scale.
Now, on a product business, the cons: there’s barriers to entry. You have
to have a product. To do that, you need to develop it, you need to work
with developers, you need to pay money to build the product, test it, all
that stuff. That takes time, so speed-to-market, cost-to-enter is high, and
then also when you launch, you’re not making much money.
I mean, I had about 10 customers when I launched, paying around $150 a
month, that $1,500 a month. That’s still pretty good but my costs were
higher than that, so I was losing money and I was losing money for quite a
long time. Eventually it starts to pick up and scale but by the time it
gets out of that trough, it’s sucked up a fair bit of time and money.
Trent: How much do you think you burned through before you achieved
breakeven?
Sam: I don’t want to scare people — to get the product to market, version
one to market with 10 paying customers, cost me about $10,000.
Trent: Okay.
Sam: To build it up to where it is today, it’s not that same $10,000
product. There’s been a developer full-time on it for over a year now,
developing every single day. We’ve really built it out and invested in it.
I mean, it’s more than six figures — I don’t mean more than six figures,
but in the six figures range.
Trent: Mm-hmm.
Sam: So it’s under $300k but above $100k.
Trent: Yeah, it cost me probably close to $300,000 and several years before
my service business — which was not just me, it had a staff, so it had an
asset play achieved to break even. It’s expensive.
Sam: Yeah. Now, and also I don’t want to scare people off of the product
business costing that much. To get in there and to start selling, $10,000,
but I grew it without investing much money to a pretty decent income where
it was profitable pretty quickly, within six months. But I had this
realization that I just didn’t want a six-figure product business. I really
wanted a big business, like multi-millions, and so I figured, all right,
it’s time to turn the company into a loss and start making a loss with a
plan to scale.
Trent: But you had your consulting revenue to cover the loss for you.
Sam: Precisely, so I’ve always been a massive fan of big business. A lot of
people like lifestyle and all that sort of stuff but me, I’ve always been a
massive fan of just big business and so I’ve always followed people like
Warren Buffett and J.P. Morgan and Rockefeller and all of those guys and
been fascinated with how they think. I was reading the letters of Warren
Buffett–have you ever read those?
Trent: No, I have not.
Sam: Letters he writes to his Berkshire Hathaway . . .
Trent: Oh, yeah, the shareholders’ letters. I have.
Sam: Yeah, yeah, the shareholders’ letters and I was reading them, I still
read them. In it Buffett and Munger, Charlie Munger, were talking about
this concept of cash float, which is they use insurance companies such as
GEICO and I think they’re the largest insurance company holder in the
world, and they use insurance companies to generate cash float. So GEICO
and other companies, they charge the premium up-front, so you pay the 12-
month premium up-front and generally there’s 12 years before a client will
make a claim. So let’s say someone pays $1,000 a year over 12 years,
Buffett and Munger essentially have $12,000 of cash which they can invest,
and so they call that cash float. The reason they love insurance so much is
it produces huge amounts of cash that Buffett and Munger can take away and
invest in companies that need start-up money and money to get to scale and
get into profitability.
I was reading this and all of this clicked that my consulting business was
generating quite a bit of cash and I sort of thought of that as my GEICO,
my cash float business. So I started shifting the revenues from my
consulting business into SnapInspect to help it scale more rapidly. I could
get very detailed here, even into the tax things — but if you have a group
structure, you can shift revenue from one company to another company and
expense it in another company and it’s expensed against the revenue in the
other and it’s amazing how powerful it is.
You can essentially take money out of your service business, invest it in
your product business, and get a 10 times ROI on it. So let’s say you make
$10,000 in your service business. Shift it into your product business,
invest it wisely, get a 10 times ROI: that’s $100,000. That’s essentially
what Warren Buffett and Munger did and that’s why they’re so successful. I
use that same strategy today to scale SnapInspect, so shifting revenues
from my marketing consulting business into SnapInspect to help it scale.
Trent: Thank you for sharing that because I think that that type of
thinking is not commonly talked about, especially in the “Internet
marketing communities”. People there are all talking about getting rich
quick and a fast buck and all that stuff that is more or less a load of
crap.
Sam: Well, I found the perfect mix is to mix Internet marketing, like all
of this IM stuff, in with the big thinking that the big guys have and sort
of see ways that you could do what they’ve done in the traditional old days
and into today’s thing because Internet marketing, it’s very tactical. It
really lacks any form of where are we going with this. You know what I
mean? Like what’s the 10-year strategy? That doesn’t exist in the IM world;
it’s about making a buck today.
Trent: I couldn’t agree more. I have a course called the “Best Buyer
Formula” and right at the very top of the sales page, it says, “What would
you rather build: a business that’s going to make you a couple of quick
bucks or something that’s going to be around for years that you can one day
sell to somebody else for a big pile of cash?”
Sam: Yeah, well, I mean, yeah. I was broke for a long time and I lived at
home with my parents up until 12 months ago and my office was in my garage
and all I’d dreamed about was making that quick buck, because it would be
very nice to go to a restaurant and actually have a car that maybe had
leather seats, after being poor for so long. I mean, I can definitely see —
but as soon as you make that quick buck, like as soon as I was able to buy
a nice car and stuff, it gets old so fast that you immediately realize that
this is a long-term thing and you’re looking to build something. The quick
buck isn’t attractive any more.
Trent: That’s so true. I used a subject line once — and this got one of
the highest open rates that I’ve ever had — is “How to Build a Business
You Can Be Proud Of.” That’s the problem, I think, with a lot of the quick-
buck businesses, is that it’s not something you necessarily would want to
hang your reputation on and tell your family all about even though it’s
putting some money in the short-term in your bank account.
Sam: Yeah, I honestly think if you can’t tell your friends and family about
your business without cringing, then you’re never going to do well in it
ever.
Trent: I agree. All right, so let’s talk a little bit then about — I want
to talk about how you found — because I think this is a huge hang-up for
people, as well, and this applies to both people who are listening to this
who are thinking about starting any type of service business, as well as it
does to people who would be interested in potentially starting any kind of
product business and that’s how do you get the idea?
I want to give a shout-out to Dane Maxwell because I’m pretty sure that you
learned from him, he calls it “idea extraction.” Do you want to talk about
that?
Sam: Yeah, this is big. This is actually how I took Dane’s thinking and
applied it to, basically, consulting to even find the market and what to
sell. This is a really powerful thing which Dane, I’d never heard anybody
else mention it before Dane. It’s called “idea extraction” and it’s
essentially picking a market, a decent market — so, I mean, most
entrepreneurs go out and they just target everyone. That’s failure number
one. You have to pick something specific and you have to make sure those
people have money to spend and it’s a decent market where money can be
made.
So step one is pick a market, step two is talk to the market and find out
what their most painful problems are. Instead of coming up with an idea of
what you believe might help them or what you believe might be “cool,” I
mean, you don’t assume anything; you talk to them and you talk to them
about what the most painful part of working in that particular market is
and once you’ve found an extremely painful problem, you essentially build,
you come up with an idea to solve that problem.
I picked the market property managers and I started e-mailing and calling
property managers and asking them what the most painful part about their
job was and they said “property inspections.”
Trent: Sorry to interrupt you, but why did you pick property managers?
Sam: A lot of people ask me that and I wish I had a cool answer but it
literally was just in my mind. I mean, I had been at a dinner two nights
before, a family dinner, where there was a guy that owned a property
management business there and I was asking him questions about it and it
was doing really well. I mean, he had an Aston Martin so I figured this
dude was the man.
When I thought about, “What’s a profitable business to target?”, well, I
thought, ‘”This guy has an Aston Martin, he’s in property management, it’s
going good. This must be a good market.”
Trent: Okay.
Sam: I wish I could give you some sort of science to it but that was how I
came up with it.
Trent: But the thing I want people to understand is you didn’t get lucky
because some dude showed up in an Aston Martin. Because property
management, if you don’t go and do what you’re about to explain in a
second, you still didn’t or would not have come up with the idea for
SnapInspect, so what happened next after you saw an Aston Martin and
thought, “Okay, property management must be at least profitable?”
Sam: Sure. I did some other things to figure out whether it was a good
market to target because my old mindset was very doubtful, like I didn’t
just start looking into property — I mean, this thought was lingering for
two weeks and so I was looking at job websites and seeing what industries
were posting the most jobs available because I figured if people are
hiring, then industry must be good and I was Googling things like “what
industries are going well” and all sorts of things.
But property management still seemed to be good, I hadn’t ruled it out, so
I decided, “Oh, I’m going to look into this. This is my market to start
with,” and I basically jumped into Google and started searching for
property management businesses and started building a list of them in
Microsoft Excel, just going to their “About Us” page, copy-pasting the
company name, copy-pasting a couple of contacts from the business into
Excel and I built a list of 100 people and then I sent out one e-mail,
blasted it to all 100, subject line was “Strange Question” and I go, “Hi,
my name’s Sam Ovens. I’m currently doing some research on the property
management industry and the most painful problems in it.” Then my question
was, “On a day-to-day basis, what is the most painful task-related problem
you face as a property manager? I’d love to hear your answer, even if it’s
just one sentence. Thanks, Sam.”
I blasted that out to 100 people, got maybe 20 responses with people giving
me a couple of different answers. Then I e-mailed back those 20 people and
I said, “You sound like you know your stuff in this industry. Would you
mind jumping on the phone with me for just 5, 10 minutes so I can ask you a
couple more questions?” I think about 10 people said yes, and so I called
them up and we had deeper conversations. I think it was my third phone call
where someone told me property inspections were their most painful problem
and that’s where it all started.
Trent: I hope that the audience is understanding the gravity of what you’re
explaining and I’m going to repeat it because I think it’s so incredibly
important. You sent 100 e-mails to people who did not know you from Adam —
anybody can do that. You didn’t try to sell them anything in the e-mail;
you just asked them a question. Then you got 10 conversations out of that
and then you got an idea out of that.
Sam: Yep.
Trent: So that is the big golden nugget, folks. I mean, there’s been many
golden nuggets in this interview, but that has got to be one of the top two
or three.
Sam: Oh, if there’s a way to start, I mean, I might have got a bit too
advanced with the whole “cash float” concept and stuff, but this was the
major breakthrough, I think, for me, in the beginning, was you didn’t have
to come up with ideas in the shower or be a creative genius. You could just
find problems and build solutions to them. I think even Mark Cuban said
recently, “Innovation is dead. You just solve problems.” I’m pretty sure he
said something exactly along the lines of that, like you don’t need to be a
creative genius; if there’s a painful problem that someone has, you have a
solution to it, they’re going to buy it.
In business, people don’t buy things that are “cool,” people buy things
that solve problems and the more pain associated to a problem, the easier
it is to sell a solution to it and that’s true. I applied that same
thinking of idea extraction into my consulting business, so step one, which
is a pick a market, pick a profitable market, I picked a profitable market,
which was high-ticket B2B companies.
Then the next step was, “Well, find out what their most painful problem
is.” I started talking to a lot of these people and they just wanted more
customers, more leads. They wanted more in the pipeline and I figured,
“Well, instead of building a software product to solve that, I could just
provide this service.” So it’s not just for SaaS, and it’s most certainly
not just for SaaS and it’s most certain not just for products. That line of
thinking can be used to sell anything in the world.
Trent: By the way, folks, if you don’t know what SaaS is, it’s “software as
a service,” software that’s hosted on the web that people pay a monthly fee
to use.
Sam: Mm-hmm.
Trent: Sorry, I didn’t mean to cut you off. I just wanted to make sure that
people didn’t get confused by that terminology.
Sam: Yeah, no, that’s no problem. So, I mean, yeah, I used that same line
of thinking to come up with my service business and I still use that same
line of thinking today. I’ve got some other businesses and investments that
I’ve got going on on the side now, too, because of that cash float. Once I
understood that concept, I wanted to put it in more places and I’ve still
used that same line of thinking to pick good markets, find painful
problems, and provide solutions to them.
Trent: Let’s talk about mistakes, because I want people to understand that
you’re not like this thousand-IQ rocket scientist and, “Hey, I can’t do
what Sam did. He’s way smarter than me, blah, blah, blah,” because that’s
just a limiting belief that inexperienced entrepreneurs let get in the way
or some of them do, let get in their way. I’m willing to bet that, just
like me, you made a truckload of mistakes along your way.
Sam: Oh, man, there’s a lot. See, that’s the danger of people listening to
me now. They might think, “I can’t do that. I can’t do this. He sounds like
he knows so much.” Well, geez, you should have heard me a year ago.
Honestly, a year ago, I didn’t even know what a lead was. I didn’t know
what SaaS meant. I actually Googled SaaS. I didn’t know about headlines, I
didn’t know about copy writing. I honestly knew nothing. I didn’t know
anything about software, I still know nothing about software. I mean, I
didn’t know anything, literally.
My other businesses were like a daily deal website that failed and a job
board website that failed. I mean, they were just the sort of businesses
that people start because they see a couple of other ones that are doing
well. There was no good thinking or logic behind starting those businesses.
Trent: No idea extraction.
Sam: Yeah, and so all of this, big mistakes I made, biggest mistake in the
world I made was starting a business before talking to the customers. For
example, I started my first business, which was a job board website, I
started it, I didn’t talk to a single person because I thought they’d steal
my idea. Even when I talked to people about it, like talked to my developer
at the time, I’d close the windows. I thought I was sitting on some sort of
Facebook version two thing, and that was bad because it never got any
oxygen and I never talked to a customer about it. I mean, it took me a year
to build. I spent $10,000 of my own money on it, which I had to sell my car
to get that, plus all of my income at the time and then we launched it and
there was just crickets. No one joined, so I thought, “Oh, hell, I’m going
to have to do the unthinkable and talk to some customers.”
So I started talking to some customers and they’re like, “What is this? I
don’t need this,’ and I thought there was something wrong with them but,
no, everyone just said that. So the business just died because no one
needed it. It didn’t solve any problem, it was just some cool thing and
cool things don’t sell. Well, that’s not true. I mean, I guess you could
say an iPhone’s cool but I guess an iPhone solves a lot of painful problems
that people used to have. But if something’s just got some little “cool”
factor to it and you’ve invented it just out of your own head without
solving any problem or talking to a customer, it’s going to fail.
Trent: Unless it’s a game or something like that.
Sam: Yeah, I mean, there’s always exceptions to the rule but talking about
the bulk, I mean, yeah.
Trent: Mm-hmm.
Sam: What’s another big mistake? I guess building something without first
trying to sell it. So, my second business solved a problem and people
thought it was good. I talked to the market, they said this was a problem,
they thought this was a good solution. They said they’d use it but I never
tested whether they’d actually pay for it and you’d be amazed at how many
people, even the customers in a market, will tell you that they’ll use
something and that something’s awesome and, yeah, they’ll pay money for it,
they’ll even say they’ll pay money for it, but when you actually get them
to pay money for it, it’s a very different story.
It’s like playing poker with no real money. I mean, I’m sure everyone’s
done that and watch the dynamics of the game; no one is sensible. They’re
all-in every hand and they don’t care sometimes. Pretty much, the game
never finishes because everyone just leaves because it’s so boring. But put
real money in, even just $10 a person, and everyone is dead serious and no
one is going to do any moves that aren’t sensible.
It’s the same in business. As soon as you bring money up and try to sell
it, people start squirming in their seats and you get the real
conversation. So talking about money and trying to sell something before
building it is huge because what I always thought is think about what’s
going to happen once I’ve built this product. So with SnapInspect, I
thought, “Once I build the product, I’m going to have to sell it to people
and then when I talk about money, they might not want to buy it,” so I
figured, “Why don’t I have that conversation now before building the
product?”
That was huge. I got to see the real responses and the real squirms and
objections and things of the market before building it and that would be my
second major thing, I’d say.
Trent: And those are two pretty common mistakes, absolutely.
Sam: Yup, for sure.
Trent: All right, we are coming up on an hour here and I generally like to
keep my episodes to about that length of time. So unless there’s something
else that you think that we should talk about, I think we produced a really
fantastic interview here, Sam. I want to thank you for that. So before we
sign off, again, is there anything else that you wanted to talk about?
Sam: No, I think I’ve covered pretty much my whole story from when I got
started in business.
Trent: Okay, so if anyone wants to get in touch with you, I’m assuming they
can just go to samovens.com because I can see your e-mail address right on
it, so I will link to that website from the podcast or rather the post on
brightideas.co and at the end of the interview — I don’t know what the
shortcode is — but I’ll give the exact path to get to this interview.
Sam: Yeah, samovens.com is my website and sam@samovens.com is my e-mail and
if the e-mails are short and they actually have a specific question in
them, I typically reply to them.
Trent: Okay, terrific. Well, Sam, it has been absolutely wonderful to speak
with you, to have you on the show. I just want to give you a huge round of
applause for going out and Googling “entrepreneurship” and then becoming a
very successful one. I think that your family is undoubtedly exceedingly
proud and you should be, too, and I think it’s just fantastic what you’ve
accomplished and thanks for sharing your story.
Sam: No problem.
Trent: All right, and you can come back on the show any time you like. As a
matter of fact, I may reach out to you as I may want to do another
interview more devoted to your SaaS app because I’m sure there’s another
whole other hour or so of conversation that we could have around that, but
for now I think we’ve got it covered.
All right, to get to the show notes from today’s episode including the
transcript, head over to brightideas.co/69. Now, if you’ve really enjoyed
this episode, I need to ask you for the smallest favor ever: just head over
to brightideas.co/love where you will find a link to leave us a rating in
the iTunes Store. I can’t stress how important it is and how much I
appreciate it every time a listener takes that moment to fire up iTunes and
go and leave us a five-star feedback and some comment because it helps the
show to get more exposure and the more exposure we get, the more folks like
you that we can help to massively boost your business.
So thank you very much. That’s it for this episode. I’m your host, Trent
Dyrsmid, and I look forward to producing the next one for you. Take care
and have a wonderful day.
Announcer: Thanks very much for listening to the Bright Ideas podcast.
Check us out on the web at brightideas.co.
About Sam Ovens
Sam Ovens is an Entrepreneur, Marketing Consultant and the founder of SnapInspect – a property inspection app for property management companies.
Sam started as a marketing consultant and used the money from his consulting business as “Cash Float” to start and scale his main business SnapInspect.
https://brightideas.co/wp-content/uploads/2013/07/sam.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-07-29 05:00:162020-09-10 01:40:22How to Start a Marketing Consulting Business and Go From Zero to $35,000 a Month in Only 12 Months – with Sam Ovens
Do you know exactly which pieces of content are producing the most revenue for you?
If you did, you do think that would help you to better understand the needs and wants of your audience?
Of course it would. As a matter of fact, getting that kind of insight would be hugely valuable because it would allow you to create even more of the types of content that are driving the most revenue in your business.
How to Tie Revenue Back to Content
Using Analytics tracking links and custom campaigns is incredibly valuable when it comes to giving you insight into which pieces of content are producing the most revenue and new subscribers. To see a specific example of how to do this, have a look at this post.
When you listen to this fascinating and informative interview, you are going to hear Katy and I talk about:
(03:54) How La Costa Increased revenue by 65% via Social Media
(7:00) How Katy uses Google Analytics to track revenue and tie it directly to content
(14:20) How Katy is split testing Facebook ads
(21:20) How Katy’s team increased revenue from email marketing by 54%
(24:00) How Katy segments her mailing list
(25:00) How Katy is managing her editorial calendar
(28:00) How Katy is using re-targeting to increase revenue
(32:00) How Katy is using Twitter chats to increase engagement
Below is a screenshot of La Costa Resorts custom campaign tracking.
Below is a screenshot of Katy’s editorial calendar for email.
Below is the screenshot of how we use Google calendar to manage our editorial calendar. Green items are done. Red items are “to do” and yellow (not shown in this screenshot) signify “in progress”. Oh..and blue signifies Liz and I’s wedding :)
More About This Episode
The Bright Ideas podcast is the podcast for business owners and marketers who want to discover how to use online marketing and sales automation tactics to massively grow their business.
It’s designed to help marketing agencies and small business owners discover which online marketing strategies are working most effectively today – all from the mouths of expert entrepreneurs who are already making it big.
Listen Now
Leave some feedback:
What should I talk about next? Please let me know on Facebook or in the comments below.
Katy Harrison is the Online Marketing Manager at La Costa Resort and Spa in Carlsbad, CA. She manages the luxury resort’s website, email campaign, social media and online presence. Originally from South Shore, MA, Katy moved to San Diego for the year-round beach weather in 2007. Prior to her role at La Costa Resort, Katy honed her PR and social media skills working at a reputable downtown San Diego PR and advertising agency with clients including The San Diego Museum of Art, Del Mar Racetrack, NTN Buzztime and BillMyParents.
https://brightideas.co/wp-content/uploads/2013/07/Katy-Harrison.jpg7202200Trent Dyrsmidhttps://brightideas.co/wp-content/uploads/2020/06/Bright-Ideas-logo-1030x255.pngTrent Dyrsmid2013-07-08 05:00:482020-09-24 07:19:13Digital Marketing Strategy: How the La Costa Resort Increased Revenue from Social Media by 65%
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