The Next Facebook Slap

Are you ready to pay double per every lead you’re generating right now?

If not, then don’t use Facebook ads.

Facebook has just updated their algorithm and lead costs doubled.

In this episode, Igor shares his thoughts on the FB Ads outrage and what’s next for Facebook marketers

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Igor Kheifets: I'm Igor Kheifets and this is the List Building Lifestyle, a podcast
for those who want to build a large profitable email list and make six figures from
anywhere in the world. If you would like to get rich by building a large email list
while helping people, this podcast is for you. I also invite you to attend a free web
class I'm conducting this week to find out how I built a list of four-million-three-
hundred-thirty-one thousand-six-hundred-and-fifty-six email subscribers at a profit.
Secure your free seat at Attend this free workshop to discover an easy
way to get 50 to 500 new email leads per day on complete autopilot without losing
tons of money. Just go to to attend this free web class. And now, once again
it's time to claim your list building lifestyle.

Welcome back to another edition of The List Building Lifestyle with your
host Igor Kheifets. I never get tired of bashing Facebook ads because
even to this day, even after all the algorithm changes, even after they
publicly announced they're kicking people off their newsfeed, even after
they banned crypto for no reason, even after all that people still flock
to Facebook ads as if it's the best thing since the microwave. I really
do not understand why. My guess, if I had to take a wild guess my guess
is because it's in your face, because everybody's on Facebook, because
it's right there on our phone, and the obvious place resume that the
best consumers go to if their Facebook account. They log into that thing
four times per day, blah, blah, blah, blah, blah.

Here's the thing, Facebook as an advertising media actually sucks, and
I've been saying this over, and over, and over again for the last couple
of years that people overestimate what Facebook can and cannot do for
their business. They still have this outdated idea that Facebook ads is
the single best way to for you to advertise your business. Now, there
are some businesses that will pretty much live and die by Facebook ads.
I agree, there's some businesses, but for 90% of businesses Facebook ads
is not the best way to do it. Facebook ads is not the best lead
generator, and Facebook ads is not where you should be spending the bulk
of your advertising budget every month. I'll give you a specific
monetary example why I believe this to be true.

Just like anyone else, I follow some people when it comes to marketing
advertising, and self-development, et cetera. One of the people I follow
is Mike Dillard, he's somebody who I've followed since I started online.
I think part of it is about the habit, but also because the guy has lots
of business sense. The one thing Mike Dillard did when he came back from
his slumber he started the Self Made Man, and to fund Self Made Man
which is an education platform today, but started out as a podcast, to
fund that he created a webinar and a program called List Grow that he
sold for 1497. He still sells it, I think for 1497, or $2000, or
something like that.

The program is sold through a webinar, through an automated webinar.
This is no secret, I'm not revealing anything ground breaking here, and
it's actually public information. However, the way Mike, at least based
on what Mike reports, is getting customers for List Grow is by running
Facebook Ads. Now, obviously he's running Facebook ads to register to
the webinar, then he follows up by email. He's got a really sweet email
campaign because Mike has always been an email marketer. In a recent
interview with one of the co-founders, or one of the CEOs of
ClickFunnels he admitted that by far the media that gives him the
highest revenue per customer, the media that delivers the most
conversions is email marketing, so nothing new there.

He does acquire customers over Facebook ads, and if there's anyone who
understands their metrics, and has their shit dialed in that's Mike
Dillard, so that's one of the reasons why I respect him so much, that's
one of the reasons I invited him on the show, and you can check out the
episode just go on our website at, and you'll
see his face on the right-hand side of a featured guest widget. knows
numbers, and recently he emailed his list saying he discontinues what he
calls The Challenge.

Now, The Challenge is what he offers to all of students, or used to
offer to all of his students where he says, "Okay, grab my course and
complete it. The moment you can send me proof, of any kind, that you
went through the course, like you created your sales letter, you
produced your product, you've mapped out your funnel, anything I will
immediately either PayPal you your money back or send you a check." He
had over 700 students complete the challenge The Challenge, and get
their money back for the course, which is epic. Hands down the best risk
traversal I've ever seen. Now, the only downside is you have to give the
money back. While most people probably don't take action it still is a
pretty good motivator to get pet people to act.

What ends up happening is that Mike has to refund over 700 people, which
in my opinion is a great thing because not only it shows that the
program works, and he's got tons of testimonials, but also he's actually
able to motivate people into action, which is something that most
educators and Internet marketers cannot do. Myself included, by the way.
My success rate, in my programs when I used to do coaching was really,
really high. I was able to create a community where out of like 200
members I had 80, over 80 members earn a full-time income. That's a
great rate, but that's a lot of work, and that involved personal
coaching like getting on the phone with people. Mike had over 700 people
take The Challenge, complete the course without spending anyone on one
time with any of them, and only incentivizing them by giving them their
money back if they completed it.

Again, my hat is off to Mike Dillard, a very cool idea. Obviously, it
works, but then Mike emailed his list couple days ago and says, "Look,
The Challenge has been great, it allowed us to help a lot of people, but
some things have changed in the industry, and we can no longer afford to
give you your money back if you complete the course." He announced the
deadline for a couple more days for you to get in, and complete The
Challenge, and get your money back, but it's discontinued now.

If you were going to try and enlist in List Grow, which is a pretty good
list building program, and I'm not getting commissions actually for
recommending it right now you will not be able to take advantage of The
Challenge, which in my opinion, shouldn't stop you from getting the
course. Again, great course, and Mike was one of the first few people
who was talking about list building when I was getting started, so it's
really cool, and it's really useful for you to know this stuff. However,
here's the reason that Mike Dillard discontinued The Challenge, and that
is because his customer acquisition cost doubled.

Remember, Mike is getting most of his customers from Facebook ads, and
in that email he shared that the acquisition per customer, customer
acquisition cost for a $1500 customer changed from anywhere between 3
and $500, so he actually had to spend on average anywhere between 3 to
$500 to acquire one customer in which case for him it was still proper
possible simply because every customer was worth about $1500, so that's
good math. He was still making nearly 3 to 5 times over what he was
spending, but his acquisition cost doubled to anywhere between, I think,
700 and 1,000. Basically, it went, if not double then it went up
significantly preventing him from allowing people to get a full refund
if they completed the product.

Now, as far as Mike's business, he's a great entrepreneur, he's a great
problem solver, and he'll figure it out I'm sure. Will the conversions
get hurt over not offering The Challenge? I think, they will get hurt
slightly, but not to an extent that most people would think because the
people who take on The Challenge would've completed the course anyway.
The people who are achievers, people who take action they don't need The
Challenge to take the action, or to get into the course. They have the
belief that they are capable of taking action on their own, they don't
need that extra incentive, they do it for other reasons.

As far as Mike's conversions, I don't think it's going to make too big
of a difference, but my point, and the focus of today's episode is to
let you know that even Mike Dillard who's got all this authority, and
marketplace presence, and a podcast with over a million downloads, and
he's got interviews with Tony Robbins, and Ed [Mill-ett 00:09:34], and
NFL superstars, and billionaires, even Mike Dillard has to spend ...
used to spend $500 and now has to spend close to $1000 to acquire one

Now, tell me this, who in their right mind, if they're just getting
started, and they don't have a deep product line, they don't have a high
ticket coaching program, they don't have the ability to squeeze tens of
thousands of dollars per customer, and don't have the ability to give
that much value in return for that money, who will be able to use
Facebook ads to get customers, and why the hell does it take so long to
convert a Facebook click into a purchase?

Yo, it's Igor, if you're loving the content hop on over to for more free training, and a free
transcript of this episode. I'd really appreciate if you logged into
iTunes, and rated the show. It really helps. Thanks.

How come, in comparison to Facebook, email takes fewer clicks to
convert, customers spend more money with you, and overall the process is
way easier? Nobody's putting any red tape around you, nobody's trying to
control your claims, no one's nobody's trying to ban you from using
email, and you actually get to control your business because you're
building your own asset, and email list. What gives? How come people
still don't get it? How come everybody keeps insisting that Facebook ads
is still the best thing, it's the Holy Grail? It's not.

There's better ways to get customers, and I'm not going to get into all
of them right now, for example, YouTube ads has been really on the rise,
but what I can tell you is this, the one thing that's common for
everybody, for everyone who's using paid traffic is that even if they if
they don't use solo ad, or email traffic, or that type of audience,
which in my opinion is the best one. If you can have someone email their
list for you, and promote you that's the single best way to get
customers because they require the least selling, they spend the most
money, they're easiest to work with, it's just amazing. Your life will
be so much easier if you do that, but even if you don't do that, and you
try to get super, super cold traffic the one thing I can tell you is
that the only way for you to make it work is to put these people on your
email list, and nurture that list aggressively.

For example, yesterday I spoke with two top-notch marketers, people who
I would consider household names. Now, I'm not going to mention their
names because I don't really have their permission to talk about this
stuff, but here's what I'm going to tell you one of them has shifted
from using Facebook ads and Instagram ads into using YouTube ads, which
is where he says he's getting the best results. He says there's they're
still using Facebook and Instagram a bit, but YouTube by far has the
best results.

Then, I asked him so how do you convert your YouTube traffic? He says,
"Well, we put them on our list, and we have a really aggressive content
sequence, so what ends up happening is that by the time the offer is
actually made they have consumed lots of content over email." In
addition, they put them through a webinar, which is more content, and
they don't really sell on the webinar they invite people to submit an
application, and then they sell something that's expensive over the
phone. They take the customer through this journey where they get their
attention on some kind of media form, some kind of media network then
they nurture that relationship over email, but to close the sale they
get on the phone. I assure you that their results would not be the same
if they removed the email element. They'd been getting results way, way,
way, way worse.

The other person I spoke to, again, another household name, somebody
who's very, very successful, made hundreds of millions of dollars,
somebody who's at the very peak of their game, somebody who is when I
grow up I want to be more like them, that's the kind of person. That
person uses Facebook to drive traffic, but he openly admits that
spending anywhere between $2500 to $10,000, I don't remember the exact
figure he's actually making back around 50% of his money back when he
drives traffic off of Facebook.

Let's just say, he spends $1000 a day, and he spends 30 grand a month on
Facebook ads he will only make $15,000 back, and the rest will have to
be made elsewhere. Now, where do you think that's made? Over email. He
says that the best thing they've done in their business, and they got a
huge business, is nurturing the audience over their email list. That's
the number one thing, the number one focus, so even if they're losing
money up front they're recuperating that money very, very quickly
because their average customer lifetime value by communicating with that
customer over email is significantly higher, and they're able to recoup
that money within the first several month, which is my guess, but even
if not within the first six month for sure they're in profit.

My point, is that a) Facebook is not the Holy Grail, Facebook is very
difficult as an advertising media, it has become very expensive, people
are still getting banned no matter how money they spent, and Facebook
contrary to what you may feel right now, contrary to your feeling simply
because you see Facebook every single day, and it's top of your mind,
it's in your awareness, Facebook is not the best way to get customer.
Neither is Instagram by the way, neither is Snapchat. No social network
other than maybe YouTube is worth the time right now. YouTube is
definitely the direction for you to go to if you want to specialize at
cold traffic, but get ready it's going to be super expensive, and
difficult, and you will have to get yourself out there.

Email, to this day, and I don't think it's going to change in the next
10 years, email is still the number one way to acquire customers at the
lowest price, who spend the most money with you, who are the easiest to
convert, and where you're able to quickly establish authority and
credibility with them to build a long-term relationship where each
customer can easily be worth anywhere between 1000 and $10,000 in
revenue to your business over the course of the first 18 month. Email
clients, email subscribers, email referrals, email is the media. If
you're in this game to make money not to waste your time on social
stuff, if you're in it to make sales email's the single most important
element of your business, and even if you're driving traffic off of
Facebook right now, and you don't subscribe to the belief that Facebook
is not the best thing ever then still you need to incorporate email
heavily into your lead acquisition process because if you don't you're
quite literally leaving untold amounts of money on the table.

I know I've done similar episodes in the past, and it seems like I have
to do at least one Facebook rant episode every couple month or so
because I'm still seeing people confused about what it takes to convert
a customer, confused about what it really costs to get a lead off of
Facebook, confused about just how difficult it is to move the person
from a social network mindset to a customer mindset, confused between
likes and sales. I've been saying for this for years likes do not pay
the bills, likes don't make sales, likes are just that. It's the
complete stranger expressing the fact that they appreciate what you do,
but instead of voting for you with their wallet they vote for you with a
like. That is not enough to build a business, that's simply not enough
to acquire customers, that's not profitable, it's not the best use of
your time, and it's stupid. It's stupid to believe that you can build a
business running it that way.

Now, again, the caveat here is that some businesses, some businesses can
and should use Facebook ads. Even then I'd argue that it's not their
best, and most profitable customer acquisition mechanism, but some
people do. If that's the case, if your business fits that description
awesome by all means use your Facebook ads, but even then incorporate
email into your strategy. You will 10X your income, you will convert
those leads 10 times faster, you will extract 10 times more profits per
every single lead on your list compared to if you don't use email at

To conclude, Facebook is not the best thing since the microwave, and you
should be using email in your business because that is how you convert a
social lead into a customer. Right now, it's more important than ever
because Facebook is changing the rules. It already changed, the newsfeed
is just stuffed with ads, they cannot fit any more ads, so they're
raising the prices. That means your lead acquisition cost goes up, that
means your customer acquisition cost nearly doubles, that means you are
screwed if you you're relying on Facebook ads right now to drive
business for your enterprise. Now, the one media you should be using is
email, enough said.

This is Igor, thank you so much for tuning in, and here's to another
great episode of The List Building Lifestyle, and until next time we
chat have a good one.

Thank you for tuning in to the the List Building Lifestyle. Get access to previous
episodes, the transcript of today's show, and exclusive content at our website at Also, don't forget to claim your free seat at the
traffic workshop I'm conducting this week where I'm showing how I built a list of
four-million-three-hundred-thirty-one-thousand-six-hundred-and-fifty-six email
subscribers without losing money. And how my clients are pulling anywhere from 50
to 500 new leads per day on their list at a profit without any list-building
experience. Just go to to claim your free seat now.

Who Is Igor Kheifets

Igor Kheifets is the founder and CEO of Igor Solo Ads, world’s largest Solo Ads agency. He’s the guy the gurus call when they need high quality business opportunity leads that convert.

Igor’s passionate about sharing up-to-date traffic & conversion strategies that work with beginners who want to make six figures while traveling the world full time.


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