The Law of Diminishing Returns

It is Toussaint Gilbert

Happy Sunday šŸ˜‰

Today weā€™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 isnā€™t goodā€¦

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 declineā€¦

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 seeā€¦ only three percent of the market is usually in a ā€œBuy Readyā€ 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 wouldnā€™t work in a market that isnā€™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 youā€™re ready to actually make this ā€œonline thingā€ actually workā€¦

I'm currently doing walkthrough & implementation calls where iā€™ll design your 120 day business roadmap and show you how to implement the system that personally scaled me to $106k/mo

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.

If you're curious to see if this would be a good fit, and have some spare time to give me then click here

Hope you enjoyed this one,


-Toussaint

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