I hope you enjoy reading this blog post. If you want my team to just do your marketing for you, click here.
I hope you enjoy reading this blog post. If you want my team to just do your marketing for you, click here.
Author: Jeremy Haynes | founder of Megalodon Marketing.
Earnings Disclaimer: You have a .1% probability of hitting million-dollar months according to the US Bureau of Labor Statistics. As stated by law, we can not and do not make any guarantees about your own ability to get results or earn any money with our ideas, information, programs, or strategies. We don’t know you, and besides, your results in life are up to you. We’re here to help by giving you our greatest strategies to move you forward, faster. However, nothing on this page or any of our websites or emails is a promise or guarantee of future earnings. Any financial numbers referenced here, or on any of our sites or emails, are simply estimates or projections or past results, and should not be considered exact, actual, or as a promise of potential earnings – all numbers are illustrative only.
Your customer acquisition cost is high because you keep starting from zero.
Every campaign, every launch, every offer – you’re going back to cold traffic, paying premium prices to convince strangers to care about what you’re selling.
Meanwhile, there’s a completely different game you could be playing. One where your acquisition costs go DOWN over time instead of up. Where each campaign feeds the next one, and your warm audience grows automatically.
It’s called the warm audience flywheel, and most coaches never build it because they’re too focused on short-term conversions to see the long-term leverage.
Here’s what I mean: Most people run ads, get some buyers, maybe retarget the non-buyers once or twice, then move on to the next thing. They treat each campaign as a standalone event.
That’s expensive. And it doesn’t scale.
The flywheel approach is different. You’re systematically building a growing pool of warm, engaged people who know you, trust you, and are progressively more likely to buy – all while spending less per acquisition each week.
I’m going to show you exactly how to build this flywheel. Not in theory. The actual mechanics of how warm audiences compound and drive your CAC down consistently.
Let’s break it down.
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Before we build the flywheel, understand why the typical approach keeps your CAC high.
Most coaches operate like this:
Run ads to cold traffic → Some convert → Stop advertising to the ones who didn’t → Repeat with new cold traffic next month.
This means you’re perpetually paying cold traffic prices. And cold traffic is the most expensive traffic there is.
Why? Because cold audiences require more touchpoints, more convincing, more education before they’ll buy. Marketing research indicates that it takes an average of 7-13 touchpoints before a prospect makes a purchase decision, with cold audiences requiring significantly more exposure than warm traffic. You’re starting the trust-building process from scratch every single time.
Here’s the problem with this approach:
No Compounding: Nothing carries forward. Each campaign resets to zero.
Wasted Warm Traffic: People who engaged but didn’t buy just disappear instead of being nurtured into future buyers.
Rising Costs: As competition increases on ad platforms, cold traffic gets more expensive while your strategy stays the same. Facebook’s average cost per click has increased by over 90% in recent years due to increased advertiser competition, making efficient warm audience strategies essential for sustainable growth.
Feast or Famine: Your revenue depends entirely on your current ad spend. Stop running ads and revenue stops.
The flywheel fixes all of this by creating a system where each campaign makes the next one cheaper and more effective.
Here’s how the warm audience flywheel works at a fundamental level:
Week 1: You run ads to cold traffic. Some people buy, most don’t. But everyone who engaged (clicked, watched, visited your site) becomes part of your warm audience.
Week 2: You continue running cold ads, but now you’re also nurturing last week’s warm audience with cheaper retargeting. Some of those warm people convert. Your overall CAC drops because you’re mixing cheaper warm conversions with cold traffic conversions.
Week 3: Your warm audience is even bigger now. You’ve got week 1 and week 2 warm traffic being nurtured. More warm conversions happen. CAC drops further.
Week 4: You’ve now got three weeks of accumulated warm audience being nurtured. The percentage of conversions coming from warm traffic (at lower cost) increases. Your blended CAC continues dropping.
See the pattern? Each week, your warm audience grows. Each week, a higher percentage of your conversions come from that lower-cost warm traffic. Each week, your overall CAC improves.
That’s the flywheel. And it compounds.
The flywheel only works if you have the right foundation in place. Here’s what you need:
You need content that attracts attention and creates engagement at scale.
This isn’t your sales page. This is educational, valuable content that cold traffic will actually engage with:
The goal of this content isn’t to sell directly. It’s to capture attention and add people to your warm audience.
Create 5-10 pieces of high-quality content focused on your core topics. These become the foundation of your cold traffic campaigns.
You can’t build warm audiences if you can’t track who’s engaging with what.
Set up proper tracking:
Pixel Tracking: Facebook Pixel, LinkedIn Insight Tag, Google Analytics – whatever platforms you’re using.
Custom Audiences: Create audiences based on behavior (video views, page visits, time on site, scroll depth).
Engagement Tracking: Track who’s consuming your content and to what degree.
Conversion Tracking: Know exactly who’s converting and from which warm audience segment.
Without proper tracking, you’re flying blind. Invest the time to get this right.
Not everyone will buy immediately. You need ways to capture contact information from warm audience members:
Each of these gives you another way to stay in touch with warm audience members even if they don’t buy right away.
Now let’s talk about how to use paid traffic to feed the flywheel.
Your cold traffic campaigns serve one purpose: Get quality engagement that builds your warm audience.
Run ads promoting your best content to cold traffic. Not trying to sell yet. Just getting people to:
Budget allocation: 40-50% of your total ad spend goes here initially. This is your warm audience building machine.
Target broadly at first. You want volume. As long as people are engaging meaningfully with your content, they’re entering your warm audience.
Most people optimize their content campaigns for reach or views. Wrong metric.
Optimize for meaningful engagement:
Quality engagement matters more than quantity. Someone who watches 10 seconds isn’t warm. Someone who watches 10 minutes is.
Structure your content campaigns to filter for high-intent engagement, not vanity metrics.
This is where the magic happens. The nurture layer is what transforms engaged cold traffic into warm prospects who convert at higher rates and lower costs.
As soon as someone meaningfully engages with your content, they enter your nurture sequence.
Day 1-3: Show them related content that deepens their interest in the topic.
If they watched your training on scaling a coaching business, show them:
You’re building authority and keeping the relationship warm.
Days 4-7: Continue providing value but start introducing your offers more directly.
Show them testimonials, results, social proof related to what they’ve been learning about.
Not hard selling yet. Just helping them see that the concepts they’re learning about are actually working for real people.
Days 8-14: Now you introduce your paid offers, but in the context of the value you’ve already provided.
“You’ve been learning about [topic]. Here’s how we can help you implement this in your business.”
These warm audience conversions cost 30-70% less than cold traffic conversions because you’ve already built trust and demonstrated value. Industry data confirms that retargeting campaigns typically see 2-3x higher conversion rates and 50-60% lower cost per acquisition compared to cold prospecting campaigns.
Not all warm audience members are created equal. Segment them for maximum efficiency.
High Engagement: Watched multiple videos, read multiple posts, downloaded resources, spent significant time on your content.
These people get your highest-budget nurture campaigns. They’re closest to buying.
Medium Engagement: Engaged meaningfully with 1-2 pieces of content but haven’t gone deeper.
Nurture them with related content to deepen engagement before pitching hard.
Low Engagement: Clicked or briefly engaged but didn’t consume much.
Light nurture to give them more chances to engage deeply, but don’t spend heavily here yet.
If you cover multiple topics, segment by interest area.
Someone who engaged with content about scaling shouldn’t see ads about starting from scratch. Someone interested in client acquisition doesn’t need content about team building.
Match your nurture content and offers to their demonstrated interests.
Create segments based on specific actions:
Each behavior indicates a different level of interest and readiness. Tailor your messaging accordingly.
Your flywheel should include multiple offers at different price points and commitment levels.
Low-risk, low-commitment offers that convert warm audience members into customers:
These aren’t meant to be highly profitable. They’re meant to:
Budget allocation: 30-40% of ad spend goes to promoting entry offers to warm audiences.
Your main offers – coaching programs, done-for-you services, high-ticket programs.
These go to your warmest audience segments:
Budget allocation: 20-30% of ad spend goes here, but these conversions are most profitable.
For existing clients, premium tier upgrades, done-for-you add-ons.
Don’t neglect your buyer audience. They’re your warmest traffic and highest lifetime value. Research shows that selling to existing customers has a 60-70% success rate compared to just 5-20% for new prospects, making customer retention campaigns highly profitable.
Budget allocation: 10-20% of ad spend retargeting existing customers with upsells and expansions.
Your flywheel shouldn’t live only in ad platforms. Email is a critical component.
Every warm audience member should be invited to join your email list through:
Your email list becomes a free distribution channel for all the content and offers you’re running paid ads for.
Create automated sequences that mirror your ad nurture strategy:
Engagement Sequence: For new subscribers, deliver your best content to warm them up.
Nurture Sequence: For engaged subscribers who haven’t bought, deepen the relationship with value and social proof.
Conversion Sequence: For highly engaged subscribers, present your offers directly.
Retention Sequence: For buyers, deliver value and present upsell opportunities.
These sequences run on autopilot, reducing your reliance on paid ads while still nurturing warm audiences.
Upload your email segments to your ad platforms as custom audiences.
People on your email list who engaged with your content but haven’t bought? They’re some of your warmest, cheapest-to-convert prospects.
Retarget them with specific offers while also emailing them. Multi-channel = better results.
You can’t manage what you don’t measure. Track these metrics weekly to monitor flywheel health:
How many new people are entering your warm audience segments each week?
This should grow steadily as you run cold traffic campaigns. If it’s stagnant, your content isn’t engaging enough or your targeting is off.
What percentage of your warm audience converts each week?
This should improve over time as your nurture sequences get better and your audience gets warmer.
Track CAC separately for cold traffic conversions vs warm audience conversions.
The gap between these should widen over time – warm conversions should get progressively cheaper as your flywheel matures.
Your overall, blended CAC should trend downward week over week as warm conversions become a larger percentage of total conversions.
If it’s going up or staying flat, something in the flywheel isn’t working.
Create a composite metric of how engaged your warm audience is:
Higher engagement = warmer audience = lower eventual CAC.
Your list should grow weekly, and engagement should remain stable or improve.
A growing but unengaged list isn’t helpful. Focus on both size and quality.
The flywheel improves through continuous optimization. Here’s the weekly review process:
Look at all key metrics. What improved? What declined? Where are the bottlenecks?
Are people engaging with content but not converting? Your offers or nurture messaging needs work.
Are people not engaging with content? Your content or targeting needs improvement.
Which content pieces drove the most quality engagement? Which fell flat?
Double down on what’s working. Replace or improve what isn’t.
Your content library should evolve based on real performance data, not guesses about what will resonate.
Look at conversion rates and costs by segment. Which segments are converting best? Which are struggling?
Shift budget toward high-performing segments. Test new approaches for underperforming ones.
Launch new ad creative and messaging tests based on what you learned earlier in the week.
Test new angles, new hooks, new formats. Keep what works, kill what doesn’t.
Step back and look at the bigger picture. Where is the flywheel strong? Where does it need development?
Plan next week’s priorities based on what will have the biggest impact on flywheel performance.
This weekly cycle keeps your flywheel improving instead of stagnating.
Once your flywheel is working, here’s how to scale it profitably:
As your warm audience conversion engine proves out, you can afford to spend more acquiring cold traffic.
Your blended CAC stays healthy because you’re converting warm audiences efficiently.
More cold traffic in → bigger warm audience → more low-cost conversions → ability to spend more on cold traffic.
Expand into adjacent topics that attract new audience segments.
If you’ve built a flywheel around “scaling coaching businesses,” add content about “starting a coaching business” or “premium pricing for coaches.”
Each new topic creates a new flywheel that feeds the others.
Once Facebook is working, add YouTube. Then LinkedIn. Then Google.
Each platform adds to your warm audience pool. People might see you on Facebook, engage on YouTube, and convert from a LinkedIn ad.
Create more low-ticket products that convert different warm audience segments into buyers.
More conversion paths = better flywheel efficiency.
Partner with complementary businesses to cross-promote to each other’s warm audiences.
Their warm audience becomes part of your flywheel, and vice versa. This accelerates growth without increasing ad spend.
Let me save you from the errors I see constantly:
Mistake 1: Selling Too Soon
Trying to convert cold traffic directly to high-ticket offers. Build the warm audience first.
Mistake 2: Neglecting Content Quality
Mediocre content builds a mediocre warm audience. Invest in content that truly provides value.
Mistake 3: No Segmentation
Treating all warm audience members the same. Segment by engagement level and interest area.
Mistake 4: Inconsistent Nurture
Running nurture campaigns sporadically instead of systematically. The flywheel requires consistency.
Mistake 5: Ignoring Email
Relying only on paid retargeting and missing the free distribution channel of email.
Mistake 6: Not Tracking Properly
Flying blind without proper metrics. You need to see what’s working to improve it.
Mistake 7: Giving Up Too Early
The flywheel takes 4-8 weeks to really get momentum. Don’t quit in week two.
Here’s a realistic roadmap for building your warm audience flywheel:
Set up all tracking infrastructure.
Create or compile 5-10 pieces of high-quality content focused on core topics.
Build out lead magnets and email capture mechanisms.
Launch campaigns promoting your best content to cold audiences.
Optimize for meaningful engagement, not vanity metrics.
Start building your warm audience pool.
Launch retargeting campaigns to your growing warm audience.
Test different nurture sequences and offers.
Start seeing some warm audience conversions (though volume will be low).
Analyze what’s working and what isn’t.
Double down on high-performing content and segments.
Refine your nurture messaging based on data.
Increase cold traffic budget as warm conversion efficiency proves out.
Launch additional content and entry offers.
See your blended CAC start dropping week over week.
Your flywheel is now self-sustaining and improving.
Continue optimizing but the core mechanics are working.
Focus on scaling and expansion into new topics or platforms.
By month six, your CAC should be 30-50% lower than when you started, even as you’re spending more in absolute dollars.
Here’s what’s possible once your flywheel is fully operational:
Your warm audience grows every week. Thousands, then tens of thousands of people who know you, trust you, and are progressively more likely to buy.
Your CAC keeps dropping as warm conversions become a larger share of total conversions.
Your ad spend becomes more efficient. You can outspend competitors because your blended CAC is lower.
You can test new offers and products with lower risk because you have a warm audience to launch to.
Your email list becomes a major distribution channel that requires zero ad spend.
You build a brand that has real momentum. People see you everywhere because your content is reaching cold audiences while your nurture reaches warm ones.
That’s the power of the flywheel. It compounds. It improves. It creates a sustainable competitive advantage.
But it only works if you commit to building it systematically instead of chasing one-off campaigns.
Most coaches will keep running cold traffic campaigns, hoping for better results while paying higher costs.
You’re going to build a flywheel that makes every week better than the last.
Start with great content. Build your warm audience. Nurture systematically. Track religiously. Optimize constantly.
That’s how you build a warm audience flywheel that lowers your CAC every single week.
What I can teach you isn’t theory. It’s the exact playbook my team has used to build multi-million-dollar businesses. With Master Internet Marketing, you get lifetime access to live cohorts, dozens of SOPs, and an 80+ question certification exam to prove you know your stuff.
Now go build yours.
Jeremy Haynes is the founder of Megalodon Marketing. He is considered one of the top digital marketers and has the results to back it up. Jeremy has consistently demonstrated his expertise whether it be through his content advertising “propaganda” strategies that are originated by him, as well as his funnel and direct response marketing strategies. He’s trusted by the biggest names in the industries his agency works in and by over 4,000+ paid students that learn how to become better digital marketers and agency owners through his education products.
Jeremy Haynes is the founder of Megalodon Marketing. He is considered one of the top digital marketers and has the results to back it up. Jeremy has consistently demonstrated his expertise whether it be through his content advertising “propaganda” strategies that are originated by him, as well as his funnel and direct response marketing strategies. He’s trusted by the biggest names in the industries his agency works in and by over 4,000+ paid students that learn how to become better digital marketers and agency owners through his education products.
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