Which of These Four Levers You Need to Pull to Make Your Paid Ads Actually Profitable

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We’re going to be talking about the four main levers if you’re struggling to make more money with your paid advertising process currently.

There are four main areas in which you have the most leverage to get more revenue out the other side of whatever it is that you’re currently spending that money on and struggling with.

All we talk about around here is hitting million dollar months. Not one off months. We like it to be plural.

If your business is already generating $100k+ per month, My Inner Circle is where you break through to the next level. Inside, I’ll help you identify and solve the bottlenecks holding you back so you can scale faster and with more clarity.

Why Your Ad Strategy and Campaign Structure Determines If Your Paid Ads Will Ever Be Profitable

Number one, ad strategy. This in my opinion is one of the easiest levers that you can pull when you’re struggling with getting the right people through, getting people through that are taking too long in your sales cycles, just struggling to convert buyers overall.

It can all originate from what kind of ad strategy you’re running.

If you’re just doing standard direct response, that can be very problematic in terms of the outcomes it’s going to produce for you.

You’ll start to hear your sales team complain about the quality of leads that are showing up to calls. They’ll be complaining about the differences in the paid ad leads versus the organic leads that they’re consistently dealing with.

They’ll say they’re too cold. They’re not ready to buy yet.

And they’re right. They’re absolutely right.

If you’re running standard direct response and there are no content marketing campaigns incorporated with what you’re currently doing, they’re right to complain because your organic sales process has a lot of additional supplementing that’s occurring, some nurturing that’s occurring prior to the actual conversion event happening that you are currently neglecting to replicate in your paid advertising process.

We’ve talked time and time again around here about strategies like the hammer them campaign as an example, which now also has recently been revamped to incorporate long form content in addition to the 30 to 50 pieces of short form content that it incorporates.

That’s why we call it the hammer them sequence by the way. You are hammering people that just booked that call, that just opted in for that webinar, that just filled out that lead form, that just DM’d your business, whatever the key action is that you want people to take.

You are blasting them with content prior to them actually getting to the conversation with your salesperson.

That helps a ton when it comes to the awareness, the framing, the warmth. You’re trying to replicate your organic sales process. You have to incorporate content and content marketing into what you’re doing on the paid ads side.

But it all starts with your advertising.

Sometimes I see people that you know to be fair like they have good messaging right, but they have an awful campaign structure. Like they’re using really old tactics. 

Research shows that campaign structure determines how fast you can optimize advertising performance, with proper keyword grouping and alignment to user intent being critical factors. The average Google Ads conversion rate is 4.29%, but structured campaigns with tight thematic organization and proper bid management consistently outperform poorly structured campaigns.

I’ll give you an example. I get people that show up, they bought something from us and they’re ready to learn paid advertising, like current tactics that are working literally right here right now today to make clients money and themselves money.

They’ll hit me up and they’ll be like yeah man, I’m using this strategy I saw from like a video from 2017 from like whoever and they tell me to duplicate out my ad sets at low dollar values to scale in a cost effective way.

I’m like yeah, well how’s that going for you?

Then they say the obvious answer which is well yeah, it’s absolutely destroying me. I mean I’m seeing no consistency in my paid advertising performance. I’m only seeing inflated cost per results every additional ad set I’m duplicating out.

They just don’t have like modern advertising strategies.

So sometimes it’s literally just the campaign structure. Sometimes people don’t understand machine learning. Machine learning and taking the time to understand that the ad platforms, the account, the campaigns, the ad sets, the ads within those ad sets, they’re all a machine learning model.

So when you take no knowledge of machine learning into advertising and you just try to get good results, you’ll hurt yourself every time because you don’t understand what a machine learning model is and how it’s playing into the performance or lack of performance thereof in your campaign structures.

You got to understand like simplicity. There’s this concept that you can look up and go on Google right now. Type in the Facebook Power Five. That was their original best five best practices. Now they call it the Meta Performance Five.

You can Google both of those things and read yourself what Facebook currently endorses as best practices on their ad channels.

Guess what? If you don’t trust ad channels, you’re not being smart. These are multi hundred billion dollar companies. You do not know better than them and you are silly to think that you do.

Sometimes Facebook reaches a trillion dollar market cap and you, a little advertiser that’s barely profitable spending tens of thousands of dollars, thinks that you’re smarter than Mark Zuckerberg himself and his fleet of extremely well paid engineers and developers.

These engineers and developers probably get paid more than what you net out in a year and you wonder why you struggle. You don’t even trust the ad channel that you’re operating on.

Looking up their actual transparent best practices and following them for once instead of applying outdated lessons that you’ve learned on your own at low levels of spend is probably a better idea.

Ad strategy is a great place to start as a lever that can create or destroy your revenue potential on these platforms.

How Switching Your Conversion Mechanism from Call Funnel to Webinar Can Triple Your Revenue

Let’s go to lever number two, conversion mechanisms.

Sometimes you just have a sales team that can only close layup deals. That’s all they’re ever going to close. They don’t stand a chance to ever close anything else.

You aren’t a sales manager. You don’t have a sales manager. You don’t even do sales training with your team currently. You barely talk to the guys. 

Research shows that companies providing effective sales coaching can see up to a 16.7% increase in revenue, with 77% of companies reporting improved sales performance as a direct result of coaching. Additionally, 83% of companies report that coaching helps new hires become productive more quickly, making sales training a critical revenue driver.

If you do talk to the guys, you’re not actually training them. You’re just doing like little check in calls. You’re essentially micromanaging your people if you’re just doing check in calls and not actual training.

You haven’t invested into a sales training course in who knows how long. On top of that it’s like just to be clear, you’re still trying to force strategies that just don’t make sense for that type of team onto your team.

You might have gotten you know maybe the low couple hundred grand a month through your organic sales processes and just given them layup deals. But now that you’re trying to incorporate paid advertising because you reached the ceiling of organic and you’ve got to make paid advertising work, you’re still not rolling over the entirety of your ad strategy which needs to be replicated in full to get the organic results that you have, content marketing.

But to be fair it’s like you’re trying things like VSLs, you’re trying call funnels, you’re trying like instant forms. You’re potentially even trying like DM strategies and you’re just getting lack of profitability.

Your profit just kind of sucks. If you are profitable it’s barely profitable. You’re not seeing the numbers you want to see simply put.

Sometimes a simple change in conversion mechanisms or how you’re executing the conversion mechanism can make all the difference.

Recently we had a consulting client that came on board with us where they were doing a weekly webinar. In that weekly webinar they were seeing net profits between like 10 and 50 grand. Their best webinars were 50 grand and those were few and far between for what they net.

They had done this for years. This had been a strategy they had executed without exaggeration for like a 2 to 3 year duration in time in a row and it just was diminishing. Their results were diminishing. Their show rates were diminishing. Their net revenue was diminishing. Everything about it was kind of terrible.

So I told them I was like well first of all you’re selling a $3,500 product through these webinars and you’re doing direct to checkout. How about we switch it up? How about we do a monthly webinar? How about instead of pitching this $3,500 low ticket offer, how about we pitch, he had a $15,000 offer and a $10,000 offer.

I was like how about we pitch the $15,000 offer and we drop sell the $10,000 offer? They won’t even know about the $3,500 offer. Like we won’t talk about that at all.

They were like yeah sure. I mean look we’re open to it. Because at this point they were netting very little in a month.

First month, this was December, very scary month to test anything. They did a webinar mid month for a call funnel webinar. This is the first time of them doing it.

They advertised about 80 grand, I think to be fair I think about 80 maybe 85 grand somewhere in there. They get a little less than 10,000 people to register for this thing. They had a decent cost per registrant. It started off around like 10 bucks, ended up around like 15. They had some organic people as well.

Man this is awesome.

They ended up grossing a little over 600K from this specific webinar. They net out in like the high 300s.

This was a monumental difference in both gross and net for them in the middle of December. This wasn’t any regular Q4. This was the election cycle Q4 which is like a black swan event on top of the fact you got Christmas, all the other holidays and all the Ecom boys that are making their money for the year in those three months of October, November, December and then they crawl back under the rock after that.

Point I’m trying to make is that one difference in how they executed their conversion mechanism was monumental. Monumental for the experience that they received. The gross, the net, everything was better just from that one change.

Sometimes it’s a difference of a client having to switch from a call funnel to a webinar funnel. We have a guy right now in the Inner Circle, he’s running twice a week webinars. He’s targeting the West Coast for one of the webinars and the East Coast for the other webinar and he’s printing money.

So sometimes you don’t have to switch from weekly to once a month. Sometimes you could go to a higher frequency of twice a week and still make tons more money.

But when that same guy who does twice a week webinars tries to ever incorporate call funnels, he gets destroyed on the financial return he is receiving because again his salespeople are exclusively used to layup deals and that’s it. They don’t do good with literally anything else.

Get the point I’m trying to make? Conversion mechanism differences can be your friend. It can be how you execute the same conversion mechanism that makes a difference or it can be a completely different conversion mechanism that makes the difference to your profitability.

Why Changing Your Offer or Raising Your Price Can Make You More Money Without Any Other Changes

Third option, offer and pricing.

Just like I just told you, they switched from a $3,500 offer to their $15,000 offer then they made a ton more money as a result. They switched the offer that they were selling and they switched the pricing that they were selling it at in order to get the results that they achieved.

Offer and pricing differences can make a tremendous difference.

I’ll give you a good example with what I consistently pitch around here. You know I consistently talk about my Inner Circle program for rich people trying to get a heck of a lot richer. Ideally you’re already doing a low couple hundred grand a month. You get twice a month one on one calls with me, weekly group calls, quarterly in person masterminds here in good old Miami, Florida.

On top of that you have a group chat that is highly active full of people just like you and way better than you that you can get perspective from beyond just myself.

Well as a result of consistently pitching it and all the other places in which we generate interested applicants for that specific offer, we’ve had to raise the price tremendously over the duration of time from about July through now, July 2024 to be clear.

We originally had agency owners, occasionally like some info product person in there, an occasional like service business in there. Now at a higher price point, like literally thousands of dollars more per month, tens of thousands of dollars more per year, we exclusively get people in there that are already at a couple hundred grand. Some of them join in and they’re already at a million a month. They want to tack on the next million dollars a month.

We got 15 people in there right now doing a million dollars a month. The average person in the group currently does about 2 to 300K a month. What used to be like a bigger person in the group somewhere between like maybe 80 and 150K is now a small fry.

It’s like pricing alone, no difference in the offer. There’s been no difference in the offer at all. Just the pricing alone and what we do to qualify people coming through has dramatically increased the quality of person and the revenue that we net out as a result of having the price of that offer higher.

Sometimes that’s all you got to do. Sometimes your price more than any other variable, no difference in the offer necessary, is indicative that what you sell is low quality and not going to do what the person wants it to do for them or is going to do exactly what they think it’s going to do for them. 

Research from pricing psychology confirms that consumers consistently associate higher prices with higher quality and greater value, even when actual quality differences don’t justify the premium. Robert Cialdini’s research found that a jeweler who accidentally doubled prices on turquoise jewelry sold out completely—the inflated price made the jewelry irresistible to buyers who had previously ignored it.

When I go buy like a bag for my girl and I could go buy like a bag from Alexander McQueen or like Prada or some cheap brand like that for like $1,000 or $5,000, I don’t think anything good about those bags. As a matter of fact I think to myself I’m like this is probably going to lower the status of my girl rather than increase her status.

The bag that she wears most often is like a $20 something odd thousand bag. It’s by Hermes and it’s that Hermes Kelly and it’s a beautiful bag. I mean honestly it’s one of the most elegant bags that she owns and she owns a lot of bags. It’s become her favorite bag through time but it’s also one of the most expensive bags that she’s had the opportunity to have.

Now to be clear the point I’m trying to make here, the designer of Hermes, he has a great quote where he was being interviewed on the news and he specifically was asked, you know a lot of people think Hermes bags are expensive, what do you have to say to that?

He says no, no, Hermes bags they’re not expensive. Hermes bags are costly.

The lady goes what’s the difference?

This is my favorite response ever. The guy goes costly is simply put, sure I mean it might have a high cost to produce the good or the product or the service that is in question, but every dollar that goes into that cost that’s then passed on to the client at the time of the purchase plus our profit margin is well worth it to the person who’s purchasing the item, is of incredible quality, the best on Earth that they could purchase and the item will never betray them.

Whereas expensive means that you have still spent an exceptional amount of money on whatever that product or service is but it fails to meet your expectations. It eventually betrays you.

He goes our products aren’t expensive, our products are costly.

I love that. It was so good.

But here’s my point without digressing. Sometimes you sell something that could be great that might need literally no difference at all in the actual offer itself but the price is indicative that it’s going to be a piece of junk.

One time to be fair to Alexander McQueen I walked in there while I was waiting to go to dinner around the corner here in the Design District in Miami and I saw this bag I thought it was actually quite cute. It was a bag that I think a girl calls a clutch and it had these like brass knuckle looking things that like you would use to hold the bag and it was a nice like white leather bag, quite good to be clear.

I walked in, it was like I don’t know $2,000 something and I remember thinking while I was there I was like man I feel like they could charge like a whole lot more than this. Like if Chanel came out with something like this for like 10 grand I’d probably perceive it as a far greater quality.

The quality on this specific product, and I never shop at Alexander McQueen, the quality of that specific product was so good, again it just felt like something was off for why it’s so cheap. Like why is it so cheap?

Nobody ever classifies like an Alexander McQueen with Hermes or Chanel or like all these people that are selling the more expensive bags and it’s solely indicative of the price.

There’s Bugattis and Koenigseggs and Paganis and like yeah they’re amazing cars. But then below that perceptually there’s the Lamborghinis, the Ferraris, the McLarens, the Rolls Royces, the Bentleys.

Then below that it’s like way below that it’s like you got like the BMWs, the Mercedes, the Land Rovers, things like that.

A perfect example of this, like there’s Range Rovers and Land Rovers that you can buy that out the door are like $300 something thousand odd dollars which is insane. A $300,000 Range Rover.

Range Rover is not perceptually in the ranks like I could get a Rolls Royce, almost any Rolls Royce for $300 something thousand odd dollars besides Phantoms respectfully to Phantoms. I’m going to get that thing under warranty and it’s going to have infinitely more status and be an infinitely greater quality of product than a brand new Range Rover or Land Rover at $300 something odd thousand.

So sometimes price can actually push people away. Like the offer of what a Range Rover and a Land Rover is at $300,000 immediately crosses the threshold in the mind of the buyer to say okay I either get a Range Rover for 300 grand or I get like a 10,000 mile or 20 something thousand mile under new car warranty Rolls Royce. Yeah I’m going to go with the Rolls Royce every day of the week, Range Rover.

The value proposition there makes no sense because they’re not respecting the hierarchy of where they’re placed.

That’s what most of you are unaware of in like an oblivious way. You act like you’re in a certain position in the market just like what Range Rover is in that example. They are not even close to the level of even like a Porsche let alone a Bentley or a Rolls Royce.

It just makes no sense at all for them to have that type of pricing and it’s going to deter a substantial quantity of buyers as a result of that.

I want to be fair in saying yeah through time Range Rover and Land Rover could increase their product quality perception and status to the point where they might fit into that bracket. But for now like in this exact moment they’re not and through the pricing strategy that they’re currently deploying without increasing the product quality at the same time, it’s a mistake. They’re burning buyers at that rate.

Offer and pricing can be a tremendous lever to pull in order for you to actually and in reality make a ton more money.

Why Hiring Better People in Sales and Marketing Can Overnight Swing Your Revenue by Hundreds of Thousands

Fourth and final lever, the people. The people, a part of your organization man, they make or break everything. 

Research confirms that top sales performers generate over $1 million in annual revenue individually, with the top 10-20% of sales talent typically producing 60-80% of total organizational revenue. Additionally, high-performing sales teams achieve their goals 2.8 times more often than underperforming teams, making strategic sales hiring a critical growth driver.

We had a business, won’t say the name of this girl, she’s a very well known girl. She’s got tremendous amount of revenue that she makes organically already. Give or take the month organically she’ll do like high couple hundred thousand at the lowest, like that’d be like an awful month. At most maybe like $2 million give or take the month just organically alone.

She had a paid advertiser. Paid advertiser was producing very little money, about 100 to 300K a month. No money.

The girl was like shocked. She’s like what is going on? Like why does paid ads just not work for us?

That was the conclusion that she started making but in reality she had a B player, maybe even a C player arguably working in that specific division of her business that was taking responsibility for the paid advertising.

Salesperson gets just fed up and is like dog we need a better advertiser and demands that they bring in the big dog.

So they do. They hire us. We come in dude. First month we get that thing to 500K. Second month we get that thing to almost a million dollars.

Our worst months now from paid advertising are high couple hundred thousand low end, again somewhere between like 700 and 900. Our average months are at least a million dollar, maybe up to 1.3 for the average range. We’ve touched 1.7 on that account in a month just on us coming in and running the ads as an A player.

That’s the difference a person can sometimes make or break everything.

We’ve had that same situation for sales departments where we as the marketers have determined that the salespeople are awful and we’ve done everything that we could to throw ourselves at it and make it work but again they’ve just done an awful job.

If and when that kind of thing happens we recommend a better sales organization to come in or for them to hire better salespeople. When they do we can overnight see differences like swings of a couple hundred grand within like 30 to 60 days.

It is monumental the differences especially in sales and marketing departments. That’s the main thing I want you to understand as a lever here. Sales and marketing departments can make or break everything.

Sometimes it could just be a consultant. We’ve come in on deals, we had a guy, he’s technically a testimonial of ours for our Inner Circle offer. He’s also a consulting client. His name is James.

James was a recent trophy winner at the time I’m writing this. At one of our recent masterminds we gave him a million dollar a month trophy.

At the beginning of that fiscal year of 2024 he was around 150K on that offer in a month. He brought us in around March and at that time he was around 200K in a month. Dude by the end of the year he was hitting a million dollar a month.

Right now he’s got five days to go in the month. He’s already at $1.03 million. So a million $30,000 is what he’s at literally right now for this month. He’s probable to collect at least 1.3. The goal is 1.5 for this month to be very transparent.

But that’s a $500,000 swing between December and January. Between the beginning of the year versus the end of the year he made no people differences. All he did was bring in us as a consultant and he was right to do so.

Why? Because we had helped a direct competitor of his hit $22 million in 18 months and that story circulated.

He talked about this at the mastermind presentation where he said and he fully endorsed the fact that we made all the difference on that account. Again there was no difference in people. He had the same sales manager. He had the same advertiser. He had the same COO. He gave them all props. He gave them all credit and obviously they helped to be clear.

But when we came into that business as a consultant we drove that revenue through the roof. We were on everybody to take that thing to a million dollar a month and because we had already been there done that in a direct competitor of his literally, we were able to come in and know exactly what needed to be done in order to get to at least a million a month.

Keep in mind in the $22 million year business that we had already been there and done that with, we had gotten that business up to 2 million plus a month.

So the probability of this guy getting to 2 million a month with our help was pretty good. Not guaranteed but pretty good.

Again you could see the dramatic swings from the difference of a person, a consultant in that example coming in.

How to Figure Out Which of These Four Levers You Need to Pull Right Now to Fix Your Revenue

So all I ask you is this. Which one of these four levers is best for you to pull right now to make a difference in your revenue?

Because if something’s messed up in your process right now one of these four things has to change. Could be a combination.

What’s it going to be?

Go check out our paid offers. We have our Inner Circle offer. Twice a month one on one calls, weekly group calls, quarterly in person masterminds and our group chat full of rich people trying to get a heck of a lot richer.

We got our Master Internet Marketing program as well. Seven week class going in depth, 3 to 5 hour classes, dozens of videos in between each one of the classes in the homework libraries. Worksheets help with retention.

I want to help get you richer my friend. Pick an offer, apply and join in. Would love to help you out.

Most business owners waste years figuring out what actually works. In my Master Internet Marketing program, I compress that learning curve into 7 weeks, covering copywriting, funnels, ads, and more. If you’re ready to invest $5k and get serious about your skills, apply here.

Go get richer.

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