The Law of Diminishing Returns

It is Toussaint Gilbert

Today we’re going to talk about why the Law of Diminishing returns happens and how to solve it.

(est. 2 min read).

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Deep Dive

The Law of Diminishing returns is a universal law which says that if you increase one factor in your production while keeping all other factors the same, you will reach a point where additional inputs lead to a decline in outputs.

This isn’t good…

This is actually the last thing we want.

If we understand our business is simply a game of inputs and outputs then we want to get the absolute most for every input we make, not have our outputs gradually decline…

So why does it happen?

In any target market, there are multiple segments of people that signal the part of the buying process they are in

As you can see… only three percent of the market is usually in a “Buy Ready” mood.

When spending money on acquisition, we may launch ads that only reach a certain segment of the market and stop performing in other segments.

For example, a direct response ad wouldn’t work in a market that isn’t problem aware.

So how do we solve this?

If we look at the Leveraged Consultant Funnel, we will see a total of 8 different lead magnets in place.

You may be wondering why there are so many, but each lead magnet solves a different problem for our target market.

Although there may be 8-10 different problems that your service solves, not every single person will struggle with all of these.

So we need to promote multiple solutions to different problems so we reach the widest audiences possible.

This allows us to spend larger sums of money on acquisition and still consistently get the 7x-10x Return on Ad Spend that we are used to.

How I Can Help You

If you like this newsletter and want to work with me, then I have an offer for you…

I'm currently doing free walkthrough & implementation calls.

At the very least you will have a walkthrough of how to implement the leveraged consultant funnel that has personally scaled me to $106k/mo as well as a step by step guide of what you need to do every single day to achieve success with your business.

If you're curious to see if this would be a good fit, and have some spare time to give me then let's jump on a call.

https://calendly.com/toussaintgilbert/toussaint-1-on-1

Hope you enjoyed this one,


-Toussaint

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