Podcast Summary
Scaling Outbound Marketing: Outbound marketing can be scaled by hiring more people to perform outreach activities on various platforms, challenging the belief that it's not scalable.
Outbound marketing, or Appa, can be a scalable and reliable acquisition system, contrary to popular belief. The misconception arises from the belief that only paid advertising is scalable, but outbound can also be scaled by hiring more people to perform outreach activities on various platforms such as cold calls, emails, or social media direct messages. The myth that outbound is not scalable often stems from individuals doing it themselves and not recognizing the potential to delegate and expand their efforts. Understanding this theoretical aspect can lead to significant growth for businesses.
Measuring ROI for outbound sales efforts: Outbound sales efforts, like email and chat, can be quantifiably measured for ROI by tracking metrics such as interested leads, appointments, and sales closed.
Scaling outbound sales efforts using various platforms such as email and chat can be quantifiably measured and calculated for ROI, just like with paid advertising. Our real-life example involves 500 cold calls per week, resulting in one sale, with a cost of $1600 per month. While this may not seem like a large volume compared to paid methods, it's important to note that this is just one part-time employee's efforts. The process of calculating ROI for outbound sales involves tracking metrics such as the number of interested leads, appointments, and sales closed. By understanding these numbers, businesses can optimize their outbound sales efforts and make data-driven decisions.
Outbound sales vs paid advertising: Lower cost per sale: Outbound sales through a dedicated team can result in a lower cost per sale compared to paid advertising, with an example of $400 vs $2000-$25,000 per sale.
Outbound sales through a dedicated team can significantly reduce the cost of customer acquisition compared to traditional paid advertising methods. The speaker shared an example of a $1600 monthly investment in outbound sales resulting in 4 sales, equating to a cost of acquisition of $400 per sale. This is a fraction of the $2000 to $25,000 per sale cost through paid advertising. The speaker also discussed the potential for scaling this process by increasing the team size, which could lead to a substantial increase in sales while keeping costs low. Furthermore, the savings from not having to pay for a large marketing team and additional payroll associated with advertising can further boost the business's bottom line.
Maximizing outbound sales through training and channels: Send 500 cold emails daily for 5-10 responses, make 200 cold calls or 100 emails for meaningful results, and use Messenger for leads
Effective outbound sales requires both training your team on sales techniques and utilizing the right channels for lead generation. For channels like phone calls and cold email, there are numerous tools available to help with list acquisition and high volume outreach. With cold email, for instance, you may need to send 500 emails per day to receive 5 to 10 meaningful responses. On the other hand, outbound leads are often warmer than cold traffic as they're more likely to be in a moment of pain or higher interest. However, the numbers game still applies, with a minimum of 200 cold emails or 100 cold calls per day being necessary for meaningful results. For Messenger leads, you can reach out to your followers and friends. Remember, the key to successful outbound sales is understanding the numbers and using the right tools and techniques to maximize your chances of success.
Scaling outbound sales through acquiring leads and consistent activity: To scale outbound sales, obtain groups of qualified leads and apply consistent effort to reach them. Cost of acquisition and profit per customer determine scalability.
Scaling outbound sales involves obtaining qualified leads or "pawns" in groups, and consistently reaching out to them with targeted messages. This process can be broken down into acquiring lists and names, and applying consistent effort or "activity." To increase sales, simply multiply the number of qualified leads by the activity level. For instance, if one salesperson generates one sale per week, to achieve 20 sales per week, 20 salespeople are needed. The cost of acquisition and profit per customer are crucial factors in determining if this approach is worthwhile. If the cost of acquisition is $400 and the profit per customer is over $1200, it's a scalable system. Additionally, outsourcing to Virtual Assistants (VAs) can significantly reduce costs. For example, if a VA generates 10 appointments a week at a cost of $500 a month, and 2 customers are closed from those appointments, the system is scalable for your business.
Effective outbound sales can yield substantial ROI: Investing in outbound sales can result in significant returns, with costs of acquiring a customer significantly lower than the value of the sale.
Outbound sales, or cold outreach, can provide exceptional returns on investment (ROI) when done effectively. If you're spending $500 a month on a virtual assistant to generate 8 leads per week, and each lead converts into a sale worth $2,000 or more, the ROI is substantial. In fact, it's possible to see returns of 30:1 or even higher. This is an arbitrage opportunity, meaning the cost of acquiring a customer is significantly lower than the value of the sale. The key to success is understanding the activities that generate leads and doing them consistently. Adding more people to the process allows for reliable and consistent growth. This approach can complement or even surpass the results of paid advertising, where customer acquisition costs can be much higher. So, if you're looking for a cost-effective and scalable way to grow your business, consider investing in outbound sales.
Grow your business with an organic email list: Building an email list organically offers stability and predictability, providing a valuable asset for reaching and engaging with potential and existing customers.
Building an email list organically can be a more consistent and reliable way to grow your business compared to relying solely on paid advertising. While adding subscribers through organic means might take more time, it offers stability and predictability in contrast to the unpredictable nature of advertising campaigns. Additionally, having a large email list provides a valuable asset for reaching out to potential customers and maintaining communication with existing ones. However, it's important to remember that growing an email list requires dedication and effort, so it's essential to focus on providing value to your subscribers and building a strong relationship with them. In summary, investing time and resources into building an email list is a worthwhile investment for any business looking for a more stable and consistent way to reach and engage with their audience.
