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Things getting worse & worse
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
Have you ever felt like sometimes your doing more work but not getting more results?
Or even worse, less results?
When I started my agency 2.5 years ago I genuinely worked my ass off…
Like i’m talking 12-14 hour days, day after day.
But none of that mattered because it still took me 17 entire months to hit my first ever $6.5k in a day.
But now I make that in a day…
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Yasmin almost doubled that in a single day
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And the clients I work with make 14x that in 19 days…
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Let me tell you why.
The Law of Diminishing returns is a universal law which basically says if you increase one factor if inputs while keeping everything else the same, you’ll eventually reach a point where the additional effort actually leads to a decline in results.
This isn’t good…
This is actually the last thing we want.
If you’re familiar with my Youtube videos you know that I view business as a simple game
A simple game of inputs and outputs.
If this is the case, then it only makes sense that If we should want to get the absolute most for every input we make, not have our outputs gradually decline…
So why does it happen?
Let’s take the example of paid ads…
In any target market, there are multiple segments of people that signal the part of the buying process they are in
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Some people are screaming at you to take their money,
Some need a bit of convincing but they’ll gladly give you their money if sold,
Some need to really be sold and might even need 2-3 follow up calls,
And some people could care less about your solution or are honestly just looking for “more information”
But as you can see… the smallest percentage of our market is that “buy now” segment.
When spending money on acquisition, we may launch ads that only perform well for a certain segment of the market.
But when we increase the budget of our ads we naturally begin to reach more and more of a wider audience.
However, the ad that worked before isn’t going to work in this segment.
For example, a direct response ad wouldn’t work in a market that isn’t problem aware.
So how do we solve this?
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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.
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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
If you like this information and would like to work together 1-on-1
(no courses, no group calls)
Allow me to build your agency:
1. Let me productize your offer and help you build a full solution for your market
2. Turn it into something tangible that we can build and outline once and repeat for every single customer.
3. For a high ticket price ($5k-$15k+).
4. We’ll build out your full acquisition system so you can consistently hit the KPIs you need to sign clients effortlessly.
5. We’ll build your backend systems, infrastructure, and operations so you can wake up to stripe notifications before breakfast.
6. I only get paid when you make money (Allow me to become your partner).
If this sounds interesting -> Find a slot to speak with me here.
The Process:
I'm currently doing walkthrough & implementation calls where i’ll design your 120 day action plan and show you how to implement the system that personally scaled me to $106k/mo
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- If it makes sense for you and you want to partner together, let’s get started by building out the foundational infrastructure of your company.
Hope you enjoyed this one,
-Toussaint
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