WEBVTT 00:00.320 --> 00:09.350 Now I want to go over a number of strategies for ads in case you are running ads to things like content, 00:09.380 --> 00:10.700 music or something. 00:10.700 --> 00:13.080 Entertainment related news. 00:13.100 --> 00:19.010 If you're building an email list, or even if you want to build up a brand, see what these things have 00:19.010 --> 00:22.430 in common is they don't pay back immediately. 00:22.520 --> 00:26.600 But nevertheless, I want to show you how there is still merit to them. 00:26.870 --> 00:36.080 So the first strategy that's very apparent and very common is the arbitrage strategy, where you basically 00:36.080 --> 00:38.270 buy traffic through ads. 00:38.270 --> 00:44.990 And when that traffic comes to your website or wherever you send them, you just show them more ads, 00:44.990 --> 00:51.170 typically by making whatever you show them more engaging so that they browse more pages of yours. 00:51.170 --> 00:57.650 And then, of course, if a person browses a bunch of pages, maybe subscribes, maybe does other things, 00:57.650 --> 01:03.230 that person will make you more money than you spend getting them with your ads. 01:03.260 --> 01:04.580 It's a nice dream. 01:04.580 --> 01:05.660 In most cases. 01:05.660 --> 01:13.460 This is difficult to make it work because it typically just ends up costing more to get the traffic 01:13.490 --> 01:20.870 than that traffic monetizes if you just monetize the traffic with ads, so you end up needing more monetization 01:20.870 --> 01:27.650 strategies after people land on your page, which is fine, because the additional monetization options 01:27.650 --> 01:32.540 can be selling products or services or getting email subscriptions from those people. 01:32.540 --> 01:38.090 So instead of just clicking on your ads, they might also subscribe to your email list. 01:38.090 --> 01:42.150 And of course, if they subscribe to your email list, you know you can make money from them long term. 01:42.170 --> 01:47.900 Of course, all this implies that you'll be selling from them, which isn't arbitrage anymore. 01:47.900 --> 01:53.390 But generally speaking, you have to supplement the arbitrage model with additional monetization options, 01:53.390 --> 01:55.190 and then it typically works well. 01:55.190 --> 01:59.970 So that ad strategy one if you just run your ads to content. 01:59.990 --> 02:05.000 So with that, let's look at strategy number two that you can use. 02:05.180 --> 02:10.520 The theme of this strategy would be engagement and audience building. 02:10.670 --> 02:17.000 Similarly to the previous strategy, when a person comes to your website or wherever you drive them 02:17.000 --> 02:24.260 to a piece of content, maybe even YouTube, they must engage with multiple pieces of your content not 02:24.260 --> 02:29.930 because you want them to, but because they are so, so, so impressed with your content that they get 02:29.930 --> 02:31.580 intrigued and keep browsing. 02:31.580 --> 02:33.620 If it's music, they want to hear more songs. 02:33.620 --> 02:37.070 If it's comedy, they want to hear more clips of your comedy. 02:37.070 --> 02:40.130 If it's something educational, they want more of that. 02:40.130 --> 02:46.820 So what you'd serve people are music playlists, so they can easily go next, next, next video playlists 02:46.970 --> 02:52.640 or any content which is natural to go next, next, next, browse, browse, browse next, next, next. 02:52.640 --> 02:55.760 And the idea is that they become fans. 02:55.760 --> 02:57.290 Some people will become fans. 02:57.320 --> 03:00.800 A lot of people won't like what you're showing them. 03:00.800 --> 03:01.880 That's fine. 03:02.120 --> 03:05.900 But some of those people must necessarily start becoming fans. 03:06.080 --> 03:13.520 Liking your Facebook page, Instagram page, maybe YouTube page, maybe subscribing to your email list. 03:13.550 --> 03:20.120 Because in this strategy, you want to actually make fans out of them like legitimate fans. 03:20.120 --> 03:24.530 Because if you're in the business of creating content, you need fans. 03:24.800 --> 03:31.820 Because if you're a content creator, the magical thing about building an audience is that any content 03:31.820 --> 03:37.580 or product you launch in the future, that audience, the email subscribers, the YouTube subscribers, 03:37.580 --> 03:43.160 the people who liked on Facebook, that's a great first audience to promote to for an initial burst 03:43.160 --> 03:48.230 of traffic, because let's say you launch a YouTube video, well, it needs initial views, or you launch 03:48.260 --> 03:51.320 a book that you made or a product on Amazon. 03:51.320 --> 03:54.490 Well, that needs an initial burst of sales to rank higher. 03:54.500 --> 04:01.130 That's where you get this audience already, a warm audience who like your content as opposed to starting 04:01.160 --> 04:05.600 to run ads for that on day one, all to a cold audience. 04:05.810 --> 04:14.120 And this warm audience of fans will grow, grow, grow over time, through ads and organically and through 04:14.120 --> 04:16.700 that grow quickly and exponentially. 04:16.820 --> 04:23.240 And every piece of content you post and create in the future will have a chance to have a more natural, 04:23.240 --> 04:24.500 gigantic lift. 04:24.500 --> 04:32.240 So when you see other content creators immediately out of the gate, get a lot of traffic, that sometimes 04:32.240 --> 04:36.050 those platforms promoting them, like YouTube promoting, sure. 04:36.050 --> 04:42.230 But it's also their own promotion boosting YouTube or boosting Amazon. 04:42.320 --> 04:49.040 That's one of the secrets behind successful launches and successful content creators. 04:49.460 --> 04:56.720 And this is the strategy that I might really prefer for something like my music hobby or let's call 04:56.720 --> 04:59.780 it the music business, where it's a lot of content. 04:59.930 --> 05:01.490 And I need to build fans. 05:01.910 --> 05:06.080 So the way I think about it is one engaging fans. 05:06.240 --> 05:12.710 Two getting them to watch a lot of my content, subscribing somehow, and hopefully one of those is 05:12.800 --> 05:16.580 in addition to social media, also my email list. 05:16.940 --> 05:20.500 Of course, if you want to make money, the first strategy is for you. 05:20.510 --> 05:24.950 If you want to build an audience, this is a strategy for you. 05:24.950 --> 05:31.520 And I think pound for pound, this is better because this may not be profitable in the short term, 05:31.520 --> 05:36.170 but in the long term, the audience building that's extremely potent. 05:36.200 --> 05:40.880 Although also, you can look at it like these strategies have a lot of similarities. 05:40.970 --> 05:47.750 Now there is also a third strategy which is a little different, just running ads to get you social 05:47.750 --> 05:48.470 proof. 05:48.590 --> 05:56.570 Because with every post you make, you can run a little bit of ads to it and make every post look like 05:56.570 --> 05:59.540 it was a very popular post on which there was engagement. 05:59.690 --> 06:06.650 And this is great if you don't post very often and have little or no real audience, but still want 06:06.650 --> 06:13.880 your brand to impress, because this particular social proof that will make new potential clients who 06:13.880 --> 06:18.590 are researching you, they'll be more impressed and they'll think, oh, that's interesting. 06:18.680 --> 06:23.720 Maybe I'll follow and see what's going on here, because in every post there's engagement as opposed 06:23.720 --> 06:28.940 to on every post there's like zero likes or one like or essentially zero engagement. 06:28.940 --> 06:32.150 Well, it doesn't make other people want to engage. 06:32.150 --> 06:37.280 Social media posts with zero engagement just tend to stay at zero engagement. 06:37.370 --> 06:42.080 But if there's a little engagement, other people suddenly start commenting and suddenly the engagement 06:42.080 --> 06:42.800 multiplies. 06:42.800 --> 06:49.370 And this strategy is a little different because this requires a lot less money than the other two strategies, 06:49.550 --> 06:53.120 because you're just running a little bit of ads to each post. 06:53.120 --> 06:59.660 So these are the strategies that you can pursue if you aren't yet necessarily selling anything. 06:59.690 --> 07:05.480 This is the easy and simple case to still be able to derive benefits from running ads.