How Facebook, Instagram And Solo Ad Sellers Are Robbing You Blind

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Hi, my name is Igor Kheifets and this is the List Building Lifestyle, the only podcast
which delivers cutting edge conversion strategies from the online trenches straight to
your earbuds. Download the transcript of today’s episode and all future episodes at
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List Builder’s Survival Guide” at listbuildinglifestyleshow.com/survival and now
once again it’s time to claim your List Building Lifestyle.

Jonathan: You are listening to another action packed episode of List Building
Lifestyle show. We have given you a lot of lifestyle maybe we’ll give you some
lists today, I don’t know. What do you have in store for us, Igor?

Igor: Well, Jonathan, what I’ve got is Facebook.

Jonathan: What?

Igor: Which is really the most interesting. Yeah it’s the best traffic source,
isn’t it?

Jonathan: Huh? I’m confused, is it? Is it really? Are you being

Igor: You did not hear the news?

Jonathan: What’s the news?

Igor: The news that Facebook is the single best thing since sliced bread and that
Instagram PPC is like the next hottest thing after that.

Jonathan: Oh God, man, I’m hanging out in all the wrong places but I really
thought that Facebook was burnt out already with so many marketers on there.

Igor: Well, you probably would be like the one person in the world.

Jonathan: What?

Igor: That’s actually right about it. Because a couple of month back I went to
this event in London which is like the closest place I can go to for a marketing
event and I can just come in for two or three days and then go back home because
there is literally no jet lag since it’s just five or six hours away unlike of
course if I go to Dallas or Vegas and that is just two days that are just really
bad, really bad jet lag. Anyway so I went to this event and it is by a competitor
of mine, Shakir Hussain and I say competitor and really in every sense of that
word simply because the guy sells traffic and I sell traffic so we pretty much
catering to the same customer. I was surprised that he was kind of enough to let
me through the door and not really perceive me as a competitor.

Jonathan: Did he frisk you?

Igor: No, he was actually kind of nice and we had a little chat. He was really
busy with the event because that’s the model that he’s going with. He is actually
with you in Dan Sullivan’s Strategic Coach.

Jonathan: Okay.

Igor: Yeah, so anyway, he made a different impression on me from the one that I
had on him going there but he actually turned out be a really nice dude. What I
got to see is the inside of his business or at least what they chose to show us,
of course, I was in the audience. They showed us how they generate traffic on
Facebook and that’s pretty much what the entire presentation was about, getting
traffic on Facebook. So there was this one gentleman who works for Shakir who was
doing the presentation and kind of showing their ads and their numbers and it’s
interesting because at the more recent event that I went to in Dallas for Russell
Brunson’s Funnel Hacking, Russell also showed some money math. He showed us the
average cost per lead, the average cost per sale, so that values that matter. And
in case, let’s do a quick detour and explain some key terms, so cost per click,
CPC, is what you pay per click. Cost per lead is CPL and that is what you pay per
lead that you generate which basically cost per opt in. Cost per sale is what it
costs you to get one actually customer through the door which is CPS. So after
going to these events, here is what I discovered. Both Shakir and Russell are
actually paying either close to or above depending on the campaign $10 per single
opt email lead.

Jonathan: Wow.

Igor: Ten bucks.

Jonathan: For an opt in.

Igor: For an opt in.

Jonathan: Yeah. That’s crazy.

Igor: Which means their cost per sale is way higher; now think about it, I mean
this is just crazy. How can somebody who is brand new to the business because that
is who I really want to help. Right, you asked me a couple of show back, you asked
like what’s my mission, what am I here for? My mission is to help the newbie, the
beginner, the rookie, somebody who is still green in this industry. So how can
somebody who is just getting started pay $10 for a single opt in when they’re
driving traffic off of Facebook.

Jonathan: So the one number and I don’t know if you’re going to go into this, I
will probably step all over what you’re doing but the thing that these guys, I
believe know better than anybody is their LCV, is that a real thing or did I make
that up? Lifetime Customer Value. So they know who much they can afford to acquire
a customer because they have a track record of getting customers and knowing what
they are worth, right?

Igor: That is absolutely correct. So for Russell, I mean he’s got ñ first off
Russell has a bunch of products so every one of his funnels leads the same
backend. He shuffles the frontend offers but it always leads to the same high
ticket backend and all the way to seminars where he sells really expensive
$20,000, $25,000 packages. So naturally he doesn’t mind spending $20, $30, $50 per
customer just like I didn’t mind when I was doing my $15,000 a year coaching
program, I was actually paying $200 per single customer and I was perfectly fine
with that.

Jonathan: Sure.

Igor: Because the first year, I would make more than that and even after I paid
out my employees and everything else, I was good. I was making really good money.
The problem with that business model of course was it was eating too much of my
personal time and took a toll on my family as we discussed in one of the previous
episodes so I stepped away from it. But obviously, they have their backend figured
out and their average customer value or their lifetime customer value is so high
they don’t mind paying that. But again, let’s circle back to the newbie. The
newbie cannot pay that. The newbie simply cannot afford to pay $10 per a single
opt in lead because that would kill them. But that is the average of what you pay
if you are ñ Jonathan this is really important distinction to make, if you’re an
experienced marketer with deep pockets with a full team of highly qualified funnel
experts both copywriting experts and automation experts working for you because
that’s what Shakir Hussain, Russell Bronson are. I mean come on let’s face it;
they got teams working on their funnels. They got teams setting up it all up not
to mention they got relentless follow up that is working through automated
webinars, text messages, retargeting pixels and everything else. But again that’s
besides the point, the point is that you will be paying $10 a lead or more if
you’re smart about it. But if you’re just getting started you can easily double
that number. Now, if you’re now thinking, okay you know what Facebook is good but
I’ve been hearing that Instagram is awesome, it’s even better than Facebook.

Jonathan: No.

Igor: I will do Instagram. Oh man, you’re so, so wrong. First off, I mean for some
reason people don’t realize that Instagram is a Facebook company now.

Jonathan: Yeah.

Igor: So whatever you’re going to be paying Facebook, you’re going to pay that to
Instagram. If you’re thinking that it’s going to cost you less to like shout outs
or something like that even if that works for somebody who was the first one to
buy the shout out and let’s face if you’re in the business opportunity you’re
competing against like a million people doing the same thing. So I mean you just
have to be the first one to buy the shout out and the moment the first shout out
went out that’s it, you’re done. You’re up against a really saturated marketplace.
So what is then the solution? How do you minimize your cost per leads? How do you
not end up in a really saturated marketplace? Because the reason by the way is
Facebook is so expensive now is because it’s saturated. I mean people just ignore
these ads.

Jonathan: Yeah.

Igor: They do, it’s impossible to get anybody to click on a damn ad anymore
because there are so many of them and Facebook got so sophisticated about
targeting that it’s becoming creepy.

Jonathan: [laughter]

Igor: Did you know Jonathan that Facebook can actually listen on your calls now?

Jonathan: The calls ñ oh because they are connected to your phone, right? You’re
talking about the app?

Igor: Exactly.

Jonathan: Yeah.

Igor: Yes.

Jonathan: We noticed that too actually ñ it was so bizarre when it started
suggesting friends that were in my contact list. I was like, “Shit they are going
beyond just their app and they are starting to tie into everything in there
looking for more connections.”

Igor: Exactly, so they will connect through your phone number. They will even
eavesdrop on your conversation. Now they haven’t rolled this out yet but if you
have a conversation with your friend, let’s just say you called me up on your
phone and you say, “Hey Igor, I was thinking of getting some burritos or wraps or
something like that.” You’ll have a Chipotle ad popping up on your news feed after
that.

Jonathan: [laughter] I love that. You know what that reminds me of?

Igor: This is a true story.

Jonathan: I don’t remember ñ yeah you use Gmail. Gmail reads your emails then
serves you ads based on your emails.

Igor: Yup, mhh hhm. Yeah but I mean them listening in on my phone conversation is
creepy but again not the point. The point is they want to flood you with ads.
There are so many ads. There are so many different things that target you. We are
in such a consumer-focused environment right now that we can’t help but develop ad
blindness which drives the cost of lead generation way, way up making it virtually
impossible for a beginner to build a business. That is why you see so much crap
flooding Facebook groups and then your Facebook feed because people are so
desperate that they want to post on their personal profile and stuff. So then what
is the solution? What is the remedy? Is there a remedy in the first place? Well, I
believe there is. You see I developed this a while back and I call this concept
“Distilling Traffic” where rather than targeting the leads that are cold and that
need lots and lots and lots and lots of exposures before they can respond to you
and each exposure ends up costing you money, right? I developed a way to buy
traffic using wholesale pricing which is really cheap and then get the people that
are most qualified and most engaged by making them jump through a bunch of hoops.
I would only serving the ones that took the extra steps to my customers which it
ends up the customer gets two big benefits of that. First, the customer gets an
actual engaged audience not people who are trolls, not people who are kind of
looking at your ad just to leave just because they were curious but people who
took several steps before clicking on your ad basically indicating they’re
interested. The other benefit is the cost per lead. The cost per lead given the
fact that this traffic produces like 50% and higher opt in rate.

Jonathan: Wow!

Igor: In fact it produces it so consistently that I guarantee a 50% opt rate. The
other benefit of that is that your cost per lead can be 3-4 times lower than the
cost per lead you’re paying when you driving leads off of Facebook.

Jonathan: Really?

Igor: Yes, sir. And I know it sounds like a pitch but

Jonathan: I’m leaning in. I’m sitting here leaning in like tell me more.
[laughter]

Igor: [laughter] But here is my point, the point is that when everybody and their
brother is raving about Facebook ads and Instagram and God knows what else about
it being the best thing since sliced bread. I want you to question that. Okay? I
want you to question those claims because I don’t know any “guru” marketer and by
“guru” I mean it in a way that professional ñ somebody who’s really established
and making a lot of money. I don’t know anyone who is able to get leads off of
Facebook like real genuine targeted leads for their program for less than $9.27.

Jonathan: Wow, 10 bucks or 9 bucks whatever you want to look at it.

Igor: Yeah. It’s crazy man. Crazy!

Jonathan: So where do we find out more? I know you’re not going to give away all
the secrets here but where do we find out more about this “Distilled Traffic” that
you’re talking about?

Igor: Oh well, you can go to www.distilledtraffic.com you can find more about
that.

Jonathan: Cool stuff, man. Alright. And so Igor, anything else you want to say on
the Facebook scam that is going on out there and it’s not just Facebook, it will
be something else next time won’t it?

Igor: Absolutely, man. It’s anything that the corporate ad giants and these
networks want to sell you on and then all these guru fan boys kind of pick it up
and start spreading the misinformation. Anything that goes mainstream like that is
usually not going to work. Like the traffic sources that work are not the ones
that being praised in the mass media. It’s impossible. You can’t possibly expect
to pay like a fair amount of money per lead if you’re operating within like a
space where you’re competing against a 100 million other advertisers. It’s just
not going to happen.

Jonathan: Hmm.

Igor: Think about it this way, think about it as if Forbes magazine was like an ad
network so everybody reads Forbes and so now everybody wants to advertise in
Forbes so what happens when everybody wants to advertise?

Jonathan: The prices go up.

Igor: The prices go up because it’s a bidding war. So naturally the ad networks,
they will keep charging you more money every single day and the cost will keep
going up. I mean it will not go down. The cost will keep going up but the quality
of the traffic will keep going down because of the saturation and they don’t care
that you’re paying for duds. They couldn’t care less; all the care for is pleasing
their board with higher profits this year and keeping the stock price real high.
Now actually the bad side of that is ñ you maybe thinking, “Okay Igor we get it.
You hate social media marketing. You hate social media PBC because you’re a Solo
Ads guy. So what, we should use Solo Ads now?” Well no that’s the problem with
this whole thing too because you can’t. Most Solo Ads out there are just ñ how do
I say this Jonathan? What is the word you use when got two cousins having sex with
each other?

Jonathan: Incest.

Igor: Incest ñ thank you. That’s incest traffic because all the Solo Ad sellers
are doing is selling traffic to each other. When was the last time you went to
udimi.com which is like a Solo Ad marketing place? It’s always the same people
buying and selling Solo Ads. You can have the same person hooking up on a top
seller list and then next week he is on the top buyer list because he now has to
fill all of these orders. It’s ridiculous. It’s like the wild, wild, west and
nobody’s ever willing or able to regulate it. So at the end of the day if you’re
buying Solo Ads, all you’re doing is you’re paying for really crappy out of shape
freebie seeking leads that simply do not have the buying firepower to convert and
they have no existing or affinity or relationship the person sending the damn
email.

Jonathan: Damn them.

Igor: All that person is doing is blasting the crap out of it, dealing with sky
high unsubscribe rates and tries to replenish it the next day. It’s kind of like
having a bucket with a giant hole in it and all he is trying to do is just make
money off of reselling your traffic to another solo vendor so to keep the
difference so what he needs is constant flow, constant encirclement if you will.
Right? It’s like energy, pushing energy around. So it starts out as this cloud and
then it evaporates into rain or something and then the rain hits the ground and
then the sun comes up and it becomes steam and then it becomes a cloud again. So
that is what a Solo Ad business looks like from within because that’s what these
guys do and you a customer ends up getting the bad end of that stick because all
you’re doing is paying for shit traffic.

Jonathan: Whoa. I want to let that sit there for a second. Damn. Alright Igor we
are coming close to the end here. I feel like we ñ as a matter of fact nothing
else needs to be said. You’re paying for shit traffic. That was it. [laughter]

Igor: [laughter]

Jonathan: Good stuff, man. So List Builders thank you for tuning in. Igor thanks
for enlightening us. And we will be back next time.

Thanks for listening to The List Building Lifestyle Show, make sure to subscribe on iTunes
or Google. Play to never miss an episode because who knows just one conversion tactic
we share on the show might double your list and double your business. Download the
transcript of today’s episode and all future episodes at listbuilderslifestyleshow.com and
don’t forget to claim your complimentary copy of “The Wealthy List Builder’s Survival
Guide” at listbuildinglifestyleshow.com/survival . This is Igor Kheifets until next time we talk, have a good one.

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