How 1 Ad Got Me a 24,900% ROI & Why Ads (when done correctly) multiply capital the quickest
Everyone who has the privilege of being able to make more than they spend can potentially invest money if they so chose to into investments.
There are many ways to multiply capital.
For example you could...
Invest in real estate and attempt to achieve 6-25% yearly returns on capital.
Invest in broken cars that you restore & sell to achieve 50 - 100% monthly returns.
Lend your money to others at 10-15% interest where you're getting a literal payment for letting others borrow your capital.
Apart, from houses, cars and lending though, what else is there that allows your capital to multiply itself quickly?
Well, you could get a 33% to 100% capital return on buying a business.
If it costs you a $50,000 down-payment on a brick/mortar business that gets you a $100,000 annual owners income, then you'll have achieved a 200% return on that capital per year.
That's good, but the smart question to ask is:
What's the best way for a person to scale and multiply his/her capital without having to take on a lot of risk or new responsibilities?
You could do stocks or bonds.
Bonds are very low-rate returns, so low in fact, I don't see the benefit of doing them unless they are meant to be passed on to children or grand-children.
Investing in a bunch of blue-chip companies over time could yield an average
of a 6% return.
Again, it's to slow, at least for me.
Ads, or advertisements are bar none the quickest and most definitively powerful way to multiply your capital.
For example, my girlfriend has an eye-lash extension business.
We ran some Facebookâ„¢ Ads to the local market simply targeting people who'd be most likely to buy this type of thing.
Within the first week we had spent only $7 on ads and got 7 appointments.
$1 per appointment.
I do think it's not hyperbole to say the average Life Time Value of a customer in this sort of thing (very conservatively speaking) could safely be presumed to be $250.
If this holds true, and 100% of the appointments also show up, which is likely in this case, we will have traded $1 for $250.* *
Or $7 for $1,750.
And every day I run the ads we are expected to make more and more appointments to get customers.
That's a 24,900% ROI, or, return on capital.* $1 in, $250 out.
And the thing about ads is...
...They SCALE very well to sell products and services when you are targeting a very-large group of interested people.
1 Ad that yields a 24,900% ROI like this one (Trade $1 for $250),
Can keep high ROIs with scale.
Something that works on a micro level can work just as well if not better on a macro level.
Even if... you were not getting insane ROI's like in this example.
Take for example you only get a 100% ROI.
Which is:
You input $1 and make back $1 on the $1 so in other words you put in $1 and make $1 and now have $2.
Let's say you spend $50,000 per month and make $100,000 per month.
Thats $50,000/mo profit and $600,000/year profit.
Where else can you use Ads to sell stuff and make that type of ROI?
No-where.
Ads are not commonly seen as investments though.
Not by most people at least.
And most people don't know what to advertise or sell that can scale well.
That's easy.
You sell your own products or you sell someone else's products (or services) with your ads and take a cut.
This is what some of the smartest people in the world do.
Because Ads do not require oversight or management in the same way that a brick and mortar business would, where you have employee's, payroll, tangible products, leases, and all of the like.
Ads do require some maintenance and some creativity, however the Return On (Time + Energy) you can get from being an advertising specialist is absolutely unparalleled.
Mastering Facebookâ„¢ Ads is a great thing to do.* Youtubeâ„¢ Ads & Google Adwordsâ„¢ are next in line.
Hope you got value out of this post for today,
Justin
There are many ways to multiply capital.
For example you could...
Invest in real estate and attempt to achieve 6-25% yearly returns on capital.
Invest in broken cars that you restore & sell to achieve 50 - 100% monthly returns.
Lend your money to others at 10-15% interest where you're getting a literal payment for letting others borrow your capital.
Apart, from houses, cars and lending though, what else is there that allows your capital to multiply itself quickly?
Well, you could get a 33% to 100% capital return on buying a business.
If it costs you a $50,000 down-payment on a brick/mortar business that gets you a $100,000 annual owners income, then you'll have achieved a 200% return on that capital per year.
That's good, but the smart question to ask is:
What's the best way for a person to scale and multiply his/her capital without having to take on a lot of risk or new responsibilities?
You could do stocks or bonds.
Bonds are very low-rate returns, so low in fact, I don't see the benefit of doing them unless they are meant to be passed on to children or grand-children.
Investing in a bunch of blue-chip companies over time could yield an average
of a 6% return.
Again, it's to slow, at least for me.
Ads, or advertisements are bar none the quickest and most definitively powerful way to multiply your capital.
For example, my girlfriend has an eye-lash extension business.
We ran some Facebookâ„¢ Ads to the local market simply targeting people who'd be most likely to buy this type of thing.
Within the first week we had spent only $7 on ads and got 7 appointments.
$1 per appointment.
I do think it's not hyperbole to say the average Life Time Value of a customer in this sort of thing (very conservatively speaking) could safely be presumed to be $250.
If this holds true, and 100% of the appointments also show up, which is likely in this case, we will have traded $1 for $250.* *
Or $7 for $1,750.
And every day I run the ads we are expected to make more and more appointments to get customers.
That's a 24,900% ROI, or, return on capital.* $1 in, $250 out.
And the thing about ads is...
...They SCALE very well to sell products and services when you are targeting a very-large group of interested people.
1 Ad that yields a 24,900% ROI like this one (Trade $1 for $250),
Can keep high ROIs with scale.
Something that works on a micro level can work just as well if not better on a macro level.
Even if... you were not getting insane ROI's like in this example.
Take for example you only get a 100% ROI.
Which is:
You input $1 and make back $1 on the $1 so in other words you put in $1 and make $1 and now have $2.
Let's say you spend $50,000 per month and make $100,000 per month.
Thats $50,000/mo profit and $600,000/year profit.
Where else can you use Ads to sell stuff and make that type of ROI?
No-where.
Ads are not commonly seen as investments though.
Not by most people at least.
And most people don't know what to advertise or sell that can scale well.
That's easy.
You sell your own products or you sell someone else's products (or services) with your ads and take a cut.
This is what some of the smartest people in the world do.
Because Ads do not require oversight or management in the same way that a brick and mortar business would, where you have employee's, payroll, tangible products, leases, and all of the like.
Ads do require some maintenance and some creativity, however the Return On (Time + Energy) you can get from being an advertising specialist is absolutely unparalleled.
Mastering Facebookâ„¢ Ads is a great thing to do.* Youtubeâ„¢ Ads & Google Adwordsâ„¢ are next in line.
Hope you got value out of this post for today,
Justin
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...By Showing My Students How To Get A 100% ROI On List-Building 100% of the Time, EVERY Time.