Biggest Roadblock To Scaling: Vavoza Insider Letter From Vlad Strizheus

Hello subscriber 🙂 It’s Vlad from Vavoza.

It’s been a while since I sent out a newsletter. I hope you’re doing great, your business is booming, and your marketing campaigns are running smoothly like melted butter!

In today’s edition of Vavoza Insider, I’ll share with you one of the most important optimizations you can do to scale your marketing campaigns and, as a result, take your business to the next level.

Running a digital marketing agency allows us at Vavoza to analyze a lot of data as well as identify common problems that companies face when marketing their products and brand. We are privileged to work with the most incredible clients on the planet from various niches in the info-product space.

Do you know what the single most common and biggest roadblock for most of them is to scale up to the next level in 2022?

The answer is limitations that are outside of their control, such as ad platforms limiting their reach if they are not able to afford to increase their bids in advertisement auctions. As you can imagine, being in a position where you have a large budget but not being able to spend it and get the returns you desire is unbelievably frustrating (to say the least) but we see it far too often.

That being said, it’s not all bad news. If you find yourself in the position described above, that means you’re running profitable campaigns, which is awesome! If you’re running profitable campaigns, you should keep running them even if your returns are small. Why? Because even though small returns are not ideal, it’s free marketing and a business should never stop marketing.

Don’t ever feel bad about spending money on marketing. Without marketing, you wouldn’t have a customer base or a business, to begin with. Feel bad about other parts of your business that are exhausting your revenue (such as bad employees and unnecessary expenses) but NEVER feel bad about marketing costs.

Direct Response Marketing (even with small or no returns at all) can serve as Brand Awareness Marketing, and I don’t think I need to sell you on the value of creating brand awareness. You already know that it’s GOOD to be known and recognized in your target market. So keep marketing! 🚀

Alright, enough about the problem – let’s talk about the solution! Yes, there is a solution to this big and common problem and I’m happy to share this with our highly-valued Vavoza subscribers (you).

The solution is to stop focusing so much on your front end and optimize your back end. I would argue that your back end is more important than your front end and it’s increasingly getting more important every year. This means increasing your advertisement auction bids (Target CPA, CPC, CPM, etc.) Increasing your bids will allow you to a) increase your impressions and reach, and/or b) target higher-quality prospects that are more likely to convert into higher-value buyers.

Side note: I said “and/or” because increasing your bids won’t necessarily increase your impressions and reach, it depends on where you are at scale. Also, paying more per lead won’t necessarily mean getting higher-quality leads, you need to consider variables such as your targeting settings, market competitiveness, conversion rate, and front-end conversion value (and so forth). Everything requires an appropriate balance.

Yes, this typically means taking a hit on front-end ROAS (return on ad spend). That being said, we have clients that spend unreasonable dollars per lead (webinar registrations in most cases) in their niche and still generate a 3X or 300% and above ROAS on the front end while spending hundreds of thousands of dollars per month on paid advertising. But this is another topic for another Vavoza letter – stay tuned.

Unfortunately, many companies simply cannot afford to take a hit on the front end because they have a very weak, or, no back-end cash-producing system in place.

Before you can double or triple your bids and outbid everyone, you need to nurture a customer base and figure out how to sell products to them long after they purchased the initial product(s) when going through your front-end marketing funnel. Yes, this means you need to have more products or services that you can sell to your customer base. You can either create more products or services or collaborate with other companies as an affiliate and get a cut from selling someone else’s products to your customer base (products appropriate for your brand).

Selling a product or service only once and then letting your customers go cold is a big mistake that many small businesses make. Sell, and then sell again, and again. Keep selling! And I shouldn’t have to even say this but, of course, don’t sell crappy products, sell GREAT products and services that your customers will appreciate.

Side note: Subscription-based or ongoing service-based business models are great for this purpose.

In conclusion, I’ll give you a personal real-life example that will drive my point all the way home.

I buy t-shirts from an online / e-commerce clothing brand. I don’t feel bad about spending money buying the product whatsoever because I absolutely love the product. The brand keeps retargeting me with ads all over the internet and emailing me all kinds of offers and notifying me about new releases, ensuring that I don’t forget about them.

And guess what? I keep coming back and buying from them over and over again. I tell all my friends about them without any incentives simply because I love their products that much. In fact, I’d be disappointed if they stopped targeting me with ads and stopped selling their products to me!

Although to be honest, I’m already so cultivated in the brand that I’ll keep coming back regardless if I see their ads or not, they should probably reallocate their budget to focus their efforts more on nurturing colder audiences and turning more people into Vlad-like customers 😆 LOL just kidding – keep marketing and selling!

That should be your ultimate goal as a brand^

Of course, it’s definitely easier said than done, but it is what it is. It requires work and clever brains. But if you were afraid of work and lacked in the brain department, you wouldn’t be a business owner or marketer in the first place. So get to work and make it happen.

You’re awesome and you can achieve anything you truly set your mind to!

Thank you for being a Vavoza Insider subscriber – we appreciate you, and we’re happy to share valuable content with you continually!

Be A VIP!

– Vlad Strizheus