0:00
I continue to be inspired by how much
0:02
Word of Mouth actually matters like it
0:05
just every year I feel like it sets a
0:06
new record in my mind for how important
0:08
it is because people right now like I
0:09
see this all the time people like it's
0:11
all about influencers and whatever like
0:13
and sure like the tactics of ads and all
0:15
this stuff like that's great but
0:18
the only thing that is still viral is
0:20
Word of Mouth like everything else is
0:22
linear in terms of the relationship like
0:23
if you spend a dollar in ads you get X
0:25
back if you do a cold reach out you get
0:26
X back if you do 100 you triple it you a
0:28
thousand it it's a thousand to a
0:30
thousand like whatever that relationship
0:31
is that ratio it's fixed
0:34
word of mouth is the only one that is
0:35
exponential in nature one tells two two
0:37
tell four four cell eight and so if you
0:39
want to have an enduring business you
0:40
have to have the monster of Word of
0:42
Mouth working for you rather than
0:43
against you who's building your
0:44
reputation rather than eating it from
0:46
underneath of your feet and I think that
0:48
like that stuff that you were talking
0:49
about earlier where you're like you're
0:50
doing this Goodwill and it's coming back
0:51
to me I just see that as like the
0:53
Invisible Hand of the word of mouth that
0:54
just like I mean you've had it happen
0:56
100 times I'm sure which is like you go
0:58
and you meet somebody like dude my buddy
1:01
saw you at an airport and you like
1:03
stopped and answered his questions and
1:04
whatever yeah and and mind you to be
1:06
fair if I'm like somewhere and I can't
1:08
it's the thing that bothers me the
1:10
absolute movement sometimes I have to be
1:11
pleased me too bro I hate it I hate it
1:13
so I feel like I'm just I'm like I do
1:15
too I feel like like dude I one time and
1:17
actually I became really good friends
1:18
with this guy because of that exact
1:20
scenario dude I had a guy his name was
1:22
Roman I'm still friends with them good
1:25
came up to me at a speaking event and I
1:28
was like I he's like hey man you got
1:29
time and I didn't and I'm like no I
1:31
can't I can't and uh and dude he was
1:34
like he had been going through all this
1:36
crazy like really bad stuff yeah
1:39
and then I dude it was bothering me
1:41
that's [ __ ] bad dude like like I
1:44
thought the whole time I was speaking
1:45
the whole time afterwards I'm like [ __ ]
1:47
I gotta find that dude because I got
1:49
time now yeah weirdly enough
1:51
uh I was at another event and I [ __ ]
1:54
ran into the guy and I was able to
1:56
apologize and say hey dude I'm like and
1:59
he was like you know what dude I
2:00
actually that really made me mad I'm
2:03
like I'm like bro I I get it I I felt
2:07
bad about it yeah you know but that [ __ ]
2:08
bothers me too brother and I think that
2:10
for the audience I think that the bigger
2:12
like sure the tactics that we're doing
2:14
right now are like useful but I think
2:15
the biggest thing is like the
2:16
perspective of there was that person
2:18
that bothered Andy enough that it kept
2:20
kept him up at night and I think that if
2:21
you if you can develop whatever that is
2:24
where it's a splinter because it's those
2:26
thousand splinters that become the
2:27
bundle that becomes very a very strong
2:29
stick that you can wield or it's wield
2:32
um and like for me like
2:34
I think about the products we build
2:35
right in the same way where the only way
2:38
to build an enduring company is either
2:40
to to sell stuff that people never stop
2:45
to build a company where people never
2:47
stop selling for you those are the only
2:49
two ways to build an enduring business
2:50
that just continues to thrive over and
2:52
over again and if you're one of these
2:52
guys who is and like I get the get
2:54
because I actually came from the direct
2:55
response world of like understanding how
2:57
the Arbitrage of like ads bro
2:59
that's where I started when I was 18.
3:01
right because you think it's right
3:02
actually right I was writing [ __ ]
3:03
classified ads for a credit booklet that
3:06
I wrote credit repair booklet yeah I was
3:08
writing classified ads to put in [ __ ]
3:11
newspaper yeah like we didn't have the
3:18
but what happens is as you scale your
3:20
because I'm going to get a little bit
3:21
higher level business but hopefully you
3:23
guys will ride with me yeah they'll get
3:26
as you scale advertising spend you go to
3:29
colder and colder audiences meaning
3:30
there's people who have less trust and
3:32
they're honestly less of a fit than the
3:34
warmest like if I if I was like I'm
3:35
gonna only Market a vegan powerlifting
3:37
women who are moms over whatever and I
3:38
had a product that was just for them I'm
3:40
probably gonna do okay but if I want to
3:41
Market to the nation there's just a less
3:43
of a fit with my product and so what
3:45
happens is your cost to acquire customer
3:47
goes up because ad costs will only go
3:49
one way for the rest of time they will
3:51
go up and your conversion on future
3:53
audiences that are colder will only go
3:54
one way which is down so how do you
3:57
combat two things that are inevitably
3:59
going against you you have to have one
4:01
thing that is non-linear in nature that
4:03
fights that fight which is word of mouth
4:05
because that when that one customer
4:06
comes in and tells five people it allows
4:08
you to continue to scale because you
4:10
have decreased cost of acquisition I'm
4:12
getting a little bit like no no business
4:13
stuff yeah here but like
4:15
it's the only way that it gets big
4:18
if what you want if you want to grow
4:20
something big then having the strong
4:22
word of mouth face which is why like you
4:24
can get into transactional sales stuff
4:25
sure if you know how to Market you
4:26
notice that you can become a millionaire
4:28
like you can absolutely do you could
4:29
probably become a Deca millionaire
4:30
um just by like learning how to sell
4:32
[ __ ] and I'm using [ __ ] in the true poop
4:34
word like okay yeah terrible stuff that
4:37
doesn't doesn't matter right but if you
4:39
want to achieve a certain level of scale
4:41
my recommendation is to continue to do
4:43
the thing at a scale way below your
4:45
friends until you figure out a way to
4:48
get everybody who buys stuff from you to
4:50
tell a friend like if this is a mental
4:53
uh exercise I like putting people like
4:55
our our portfolio CEOs through I said
4:58
the marketing gods have decided that you
5:00
are no longer allowed to Market anything
5:02
and they eliminate all of your customers
5:06
and every single customer from this
5:09
point going forward has to come from
5:10
that one customer how do you treat that
5:14
and what happens is you start thinking
5:16
like well [ __ ] I'll do this definitely
5:17
do this differently it's like well then
5:18
do that stuff and then what you'll see
5:21
is that the result you get from the
5:23
remaining the remaining efforts of your
5:25
advertising will compound rather than
5:27
continue to go linearly in the wrong
5:30
direction they compound in the right
