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Outsmart Competitors With Agency-First Web Design

Outsmart Competitors With Agency-First Web Design written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with Itai Sadan

In this episode of the Duct Tape Marketing Podcast, I interview Itai Sadan, founder of Duda, a website builder designed for marketing agencies and small businesses. As a digital marketer since the birth of the internet, I remember Duda’s early days. In this episode, we discuss the evolution of this website builder from a mobile-first solution to a comprehensive platform for responsive web design.

Given how competitive the market is, Itai Sadan shares insights on the strategic shift to focus on web professionals. Just listen to any podcast episode, and you’ll hear it in the ads. We also talk about the role of AI in enhancing agency efficiency and the unique value Duda offers compared to competitors like WordPress. Also, being one of this episode’s sponsors, Itai Sadan gives a Cohen Brothers explanation of the origin of the brand’s unique name.

 

Key Takeaways:

  • Duda started as a mobile-first solution for small businesses.
  • The platform evolved to support responsive web design.
  • Focusing on web professionals helped Duda clarify its mission.
  • AI is transforming how agencies operate and deliver services.
  • Duda provides tools to enhance agency productivity and efficiency.
  • The company emphasizes the importance of websites in marketing.
  • Duda’s support team offers 24/7 assistance to users.
  • The platform integrates various tools to streamline website creation.
  • Duda is committed to improving Core Web Vitals for better performance.
  • The name ‘Duda’ is inspired by the film The Big Lebowski.

 

Key Moments

[00:00] The Birth of Duda: A Mobile Revolution
[03:02] Evolution of Duda: From Mobile to Responsive Design
[06:07] Focusing on Agencies: A Strategic Shift
[09:04] AI in Marketing: Opportunities and Challenges
[12:01] Duda’s Unique Value Proposition for Agencies
[15:02] The Duda Platform: Empowering Agencies
[20:00] The Story Behind Duda’s Name

 

More About Itai Sadan

 

This episode of The Duct Tape Marketing Podcast is brought to you by:

Duda

Try Duda, the web design platform trusted by agencies to create beautiful, high-performing sites quickly. Ready to impress your clients? Visit Duda.co and start building something unique!

 

 

 

ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

 

Testimonial (00:00): I was like, I found it. I found it. This is what I’ve been looking for. I can honestly say it has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made.

John Jantsch (00:16): What you just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM world slash scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM World slash scale.

(00:59): Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch and my guest today is Itai. He is the founder of Duda. It was created to help small businesses connect with potential customers anywhere, anytime, and any place. Itai started the company from his garage in Mountain Valley, California. I wonder how many intros have that in with his high school friend, Amir Glot, who is now the CTO in 2008. They both noticed how the internet was shifting towards mobile and the need for better mobile first experience to extract customers on the go. Over the years, the platform has evolved. Today Duda offers a fully responsive website builder targeting digital marketing agencies and SaaS platforms. Duda has over 1 million websites hosted on its platform. So Itai, welcome to the show.

Itai Sandan (01:50): Thank you, John for having me. Excited to be on the show.

John Jantsch (01:53): So I’ve been covering marketing, digital marketing for many years, and I feel like I’ve seen the evolution of Duda. Talk a little bit about V one, like the very early days when you started this. What did the tool look like at that point?

Itai Sandan (02:08): Oh yeah, we went through quite a change over the years. So when I started the company back in 2010, it was really at the advent of mobile phones. iPhone came out in 2008, Android followed shortly after. And the first idea that kind of triggered the launch of Duda was to help small businesses take their website that was built back then for desktop primarily,

(02:35): And make sure that it really created a great user experience on mobile phones. If you remember, back then it was a lot of pinch and zoom of sites, and the experience was not really there. So we came out with a pretty nifty solution that just took all you had to do, put the URL of your desktop site, click on submit, and we do the magic behind the scenes and kind of optimize it for mobile. Created a second website, kind of an mdot, and that was the initial product for the first, I would say re four years of a company.

John Jantsch (03:07): And fast forward to today, Duda is really very accepted by agencies as really a full building platform for your entire online presence. So talk a little bit about that evolution, that change that you really saw, because you probably felt at some point the mdot was a little limiting for what to do, could be right. So talk a little bit about that evolution and how you’ve kind of walked alongside the changes in small business marketing in general.

Itai Sandan (03:36): Yeah, absolutely. So as I kind of alluded about three or four years in, as we started sensing that small businesses didn’t want to build a site for mobile, a site for desktop, a site for tablet. They wanted to build it once and it runs everywhere. And kind of at the same time, responsive web design rose to be the way to achieve it. There weren’t great tools that allowed SMBs to actually build responsive sites. So we kind of were thinking, okay, how do we take the solution that we built really for mobile primarily and add these other screens and worked on our second product, which is today our core product. And as we did that, we also went through a rebranding. Initially we launched the company as Duda Mobile. Then with this new product, we kind of cut the mobile out. And from then on, the company was known as Duda with building fully responsive website.

(04:33): But that was not enough. As we did that. Now, we were suddenly in competition with some very significant players like Squarespace, Wix, WordPress, and four years into the company of a very big question arose of what is unique about us? Why are customers going to come to do that? And we were looking at our user base and about 50% were SMBs, but the other 50% were these web professionals, web designers, digital marketers. And we felt like first they were just from a data perspective, they were growing faster and maybe from a culture DNA of the company, we felt we understood them better, we understood their needs, and we were better at building maybe more sophisticated software for a more professional user than kind of dumbing it down building simple tools for. So at that point, we made a very significant decision that was kind of the second big decision.

(05:28): Almost in the same year after moving from a mobile product to a fully responsive product, we basically decided to focus on only 50% of our customer base. And going forward, we said, we are going to be a web development platform for agencies, for web professionals. And from that day on, we did not spend a dollar more on acquiring SMBs. We became that platform for web professionals and that brought tremendous amount of clarity and focus throughout the organization. So my co-founder and CTO knew which features to prioritize, obviously the features that agencies wanted. Marketing knew at what level to message sales understood better who were their customers. So really that decision. I know a lot of companies are hesitant about narrowing your customer base and your total addressable market, but actually being much more focused, which everybody always tells you that you should do. It really helped propel the company forward, helped us be more unique and help the product become much better in doing what this type of customer really wanted.

John Jantsch (06:42): And those are two very distinct markets that had very distinct needs. So it makes it very difficult to try to serve both of them with essentially the same message, the same tool set. So whenever I talk to a technology company, a SaaS company, and we can talk about the changes in platform and the market that have occurred, I mean, I started my business, we didn’t have the internet talk about all the changes, but I love asking this question. In your time in doing what you’ve been doing and being an entrepreneur, is there anything in marketing that you feel like hasn’t actually changed?

Itai Sandan (07:21): Yeah, I think I know from when I launched it and first talking to VCs, and this was like 14 years ago when I started the company, there was always the question, will websites always be needed? Would it be replaced by social media? Will it be replaced now with ai? So the technology has changed, but websites stay a very fundamental piece of any small businesses marketing stack. And I don’t see that changing. I think we actually ran a survey with our customers, and 99% said that they still see websites as a very dominant component of their revenue generation capabilities in 2024, they actually expect much more from their website. And we can talk about that very soon.

John Jantsch (08:09): Yeah, I was going to say, I actually think they’ve moved from being a channel to actually being the hub. I mean the central part of their marketing.

Itai Sandan (08:17): Yeah, absolutely. They’re asking, they want to see more traffic, they want to see more leads from their website, higher conversions doing a lot more things, and they don’t want to pay more. So I think we can talk about that. That causes a challenge for agencies that are servicing SMBs, how do they continue to service them and help provide that additional layers that they’re asking for additional capabilities while keeping costs at bay?

John Jantsch (08:51): That’s a really significant question. We work with a lot of agencies, and a lot of them are especially agencies that are very focused on tactics. We do websites. We do SEO, we do content. I mean, the pressure on price for that stuff is, I mean, because there’s somebody doing it for $10, AI will do it for free mean, or at least that’s the perception, right? I mean, so a lot of agencies are really struggling with both revenue and certainly profitability today. I mean, first off, have you found that to be true? Second part of that, I suppose, is what has due to attempted to do to kind of address that?

Itai Sandan (09:28): It’s absolutely true. There is much more pressure to do more for less. And I think things like obviously AI are key technologies and capabilities that an agency needs to adopt in order to be more efficient with the existing headcount and staff that they have, do that. As many other players in the market, we’ve been very focused on adding AI features into our platform. We call those AI assistance, and they really help our customers deliver, build and maintain websites at half the time then it used to be before. So everything that you can imagine from the obvious things of text generation, content creation, but then to a lot of things that are kind of also behind the scenes around SEO taking a lot of helping with workflow, taking a lot of those maintain, but very important tasks that need to be done on the website and automating them.

John Jantsch (10:30): It’s my pleasure to welcome a new sponsor to the podcast. Our friends at ActiveCampaign. ActiveCampaign helps small teams power big businesses with the must have platform for intelligent marketing automation. We’ve been using ActiveCampaign for years here at Duct Tape Marketing to power our subscription forms, email newsletters and sales funnel drip campaigns. ActiveCampaign is that rare platform that’s affordable, easy to use, and capable of handling even the most complex marketing automation needs. And they make it easy to switch. They provide every new customer with one-on-one personal training and free migrations from your current marketing automation or email marketing provider. You can try Active Campaign for free for 14 days and there’s no credit card required. Just visit active campaign.com/duct tape. That’s right. Duct Tape Marketing podcast. Listeners who sign up via that link will also receive 15% off an annual plan. That’s activecampaign.com/duct tape. Now, this offer is limited to new active campaign customers only.

(11:36): So what are you waiting for? Fuel your growth, boost revenue and save precious time by upgrading to ActiveCampaign today. Hey, attention all digital agencies. Are you looking to build beautiful high performing websites? Fast Meet Duda, the platform designed to help you create stunning, responsive sites that wow your clients and boost your business, whether you’re a season pro or just getting started, Duda Hass got the tools you need from custom widgets to seamless client collaboration. We’ve made it easier than ever to turn your web design dreams into reality. So why settle for less? Join the thousands of agencies who trust Duda to power their success, head to Duda.co and start building something amazing today. Yeah, I love the fact that you’re using the word assistance. That’s how I refer to AI right now. I mean, maybe there will be a day when it can create from scratch original stuff, but I think it’s terrible at that right now. But I think that it is very good, as you said, at creating efficiencies, doing mundane things, creating writing metadata. I mean, that’s like mind numbing work and AI can probably do that better than a human being in some cases. And so using it as an assistant, I think is the correct way to look at it.

Itai Sandan (12:56): We have capabilities inside the tool that with one click of a button, let’s say you have 500 images on a website, it will add all text to all your images automatically, right? It actually does it really well. You could go and edit it, but most people don’t. And these are very important things in order to be, for the website to rank and to be found for all these keywords. A lot of focus there.

John Jantsch (13:23): So in addition to the tools that you have built in, what are you seeing agencies do? Some of the things we talked about, like metadata and alt tags and creating efficiencies. A lot of people are focused very much on using AI for content creation, which makes total sense for marketers. But are you seeing agencies use it in other ways to run their businesses?

Itai Sandan (13:49): We have multiple examples. We have seen an agency create custom gpt for each customer.

John Jantsch (13:55): So

Itai Sandan (13:56): They kind of load that custom GPT with all the documents, all the information related to that customer

John Jantsch (14:02): Tone, they tone, tone, voice brand, right? Yeah, everything.

Itai Sandan (14:04): Yep. And that custom GPT is connected to additional tools like could be connected to an SE Mage or an H Rev to do that. So then when you need the specific tasks, you want to know how is this customer doing on their search ranking? The custom GPT would go and question SMR and return that answer, or how’s the traffic been to that website in the last months that it will go to Duda and check that and return that answer. So creating a lot of these efficiencies inside the business in the agency where otherwise it would be just going to many different tools to try to collect that data. So that’s one example. We’ve seen a pretty big directory. Local listings business in Australia really increase a lot of efficiency by embedding eye content into the generation of websites. So think especially today, in order to rank, you want to add more pages into a website, you want to find one of those keywords that I want to rank for.

(15:10): I want to create additional pages with content related to those keywords. You can use AI today to generate these specific pages, at least to give you a pretty good first draft that afterwards a human can go and review. They’ve been able to go from about the creation of 130 websites a month to about 270. So almost more than doubling. And they say that the majority of those gains is due to the use of AI for content generation. So I’m sure there’s a lot of more examples, but those are quick too, that I have top of mind.

John Jantsch (15:48): I still see a lot of business owners and even some agencies really seeing AI as a threat. I mean, where do you fall on that? Is it going to wipe out the industry or are SEO firms not going to be needed anymore? Where do you fall on that?

Itai Sandan (16:01): Yeah, I think similar to what you alluded to, I agree as well. I don’t think there’s any risk to agencies not in the midterm of being replaced by ai. I think the risk for an agency is to be replaced by another agency that makes better use of AI than they are.

John Jantsch (16:22): This is, I have said that exact thing numerous times. Yeah, exactly. Somebody who’s as strategic as you using ai.

Itai Sandan (16:30): So this is where agencies need to educate themselves, train themselves, embed AI into their workflows in order to make sure that they’re not falling behind.

John Jantsch (16:43): So this might be getting a little bit into the technical aspects of Duda, but I wonder if you could explain for people that are not familiar with it, if I’m familiar with, say WordPress, I go and I get an installation and I build the website and then I do all the stuff to it, right? Explain kind of how Duda works for agencies, right? Because you have a model where somebody can build countless websites on the platform for all of their clients. So talk a little bit about how that all works together or maybe even compare and contrast to say a WordPress.

Itai Sandan (17:13): Yeah, I’d say I’d start with that Duda was built with agencies in mind. So everything that we do, every decision about our roadmap is all focused on agencies and how do we empower agencies to be more productive, more efficient when they build websites. And we have kind of broken down the lifecycle of an agency creating websites for SMBs, and we try to address different pain points in that lifecycle of website creation. So we have multiple different tools. Of course, the bread and butter is the editor itself, and I’ll talk about that in a second. But we have multiple different tools to address different stages of that lifecycle. So for example, we help our agencies with acquiring customers because we know the value propositions of our website. So we provide sales training and marketing assets that they can white label and provide us their own. We have tools that help them gather information about a small business.

(18:19): We know how long it takes to get things like just to get the images for a business that you’re going to build a website for how long it takes to get business information, opening hours, email addresses, social media links. We have tools that scour the web and put that information at the agency’s fingertips. So again, it’s all about efficiency and productivity. And then around the website builder itself, there are a lot of capabilities there that are around productivity and efficiency that make it very easy and quick to build beautiful pixel perfect websites in the fraction of a time compared to what it would take you in WordPress. Now, the nice thing about using a proprietary platform like Duda is that you have a lot of things included that maybe in the WordPress, WordPress ecosystem, you would need to go into the plugin directory and you get plugins from different players that you don’t know how well they’re playing with one another and they break.

(19:24): And here actually, you have an amazing support team that is sitting, some of them are sitting right here next to me where I am here in Colorado, but they’re spread throughout the world, so they can give you 24 7 support, and they actually help you with issues that you have. They’re all very technical savvy in H-T-M-L-C-S-S, JavaScript. So they can really help you if you run into issues, you shouldn’t run into issues, but if you do, they can help you get the job done. And then on top of that, I would say we have a lot of these advanced tools that really for agencies that are not building maybe one or three sites a year, but if you’re thinking of taking your agency to the next stage where you want to build tens, hundreds, we have customers building thousands of websites a year. You need these tools. You’re not going to get them in the WordPress ecosystem. These are tools that allow you to make one change in the template, and it spreads throughout all the websites that you created. It’s tools that give you AI and sorry, API access into a website and either integrated into your workflow creation process into your CRM tools or things that through APIs you can go and make changes in your websites, your customer’s websites. There’s so many. Again, I gave examples of AI and capability. So there’s a lot of things

(20:51): Embedded in there. There’s things that, I dunno if you know, but Duda is also a leader in terms of core vitals, which is

John Jantsch (20:59): For speed, I’m sure.

Itai Sandan (21:01): And that’s just the page speed and load times. We do better than any other website CMS platform out there significantly better than WordPress. And that’s because our engineers are really focused on improving every single aspect. And that’s one of the advantages of having more of a proprietary platform. You can really control these things. But yeah, there’s a ton of advantages. I probably touched on a few of them.

John Jantsch (21:26): So I want to end today, our time today with probably a silly question, and maybe you’ve answered it a hundred times, but I’m sure other people have asked you. Is there any story behind the word Duda?

Itai Sandan (21:36): Yeah. So Duda is related to the dude, and that is, if you’ve seen the Big Lebowski, Jeff, who plays the dude there, that was a movie that both me and my co-founder were very fond of. I know him since high school and we went to college together. So initially when we formed the company, we called it Duda Mobile. We didn’t think that Dude Mobile was a great name. So we went Duda Mobile, and now it’s Duda, but still the culture and some of the aspects of that movie, and you can see them in our offices today. For example, I’m right now sitting in a room that is called the Dude, but there’s other rooms here that are called the Ringer and Urban Achiever and Pinky Toe. So there’s a lot of elements from, it’s kind of just a fun thing to have as part of your culture.

John Jantsch (22:25): So I’m hoping Happy Hour includes white Russians then. Absolutely. Awesome. Well, Itai, I appreciate you stopping by the Duct Tape Marketing Podcast. Is there somewhere you’d invite people to find out more about some of the things we talked about today?

Itai Sandan (22:40): You can obviously visit us@duda.co. That’s where you can try out the software. There’s a 14 day free trial. If you need an extension, ping me directly. You can find me on LinkedIn, on Twitter. Yeah, I think those are the best channels to reach out to us.

John Jantsch (22:56): Awesome. Well, it’s really been a joy to watch kind of how you’ve grown this tool and evolved this tool. So again, I appreciate you stopping by and sharing a few moments with us.

Mobile vs. Desktop: Where Do You Convert?

Mobile vs. Desktop: Where Do You Convert? written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with Steve Oriola

In this episode of the Duct Tape Marketing Podcast, I interview Steve Oriola, CEO of Unbounce. Steve Oriola is a tenured CEO with over two decades of experience scaling dynamic B2B SaaS platforms, including Act!, Constant Contact, Pipedrive, and Julius. He recently led Unbounce through the acquisition of Insightly CRM, in which the two companies effectively merged.

We discuss the findings of a recent benchmark report on CONVERSION RATES. That’s right—we tried to get rid of email, but it looks like it has entered the chat again.

Our conversation covers the importance of simplified copy, the enduring effectiveness of email marketing, the dynamics of mobile versus desktop conversions, and the rise of Instagram as a leading platform for conversions. We also cover the significance of writing at (if you can believe it) a lower grade level for better engagement, the nuances of industry-specific language, and the role of conversion-rate optimization in marketing strategies.

 

Key Takeaways:

  • Complex copy is significantly hurting conversion rates. Although industry-specific language complexity can vary, simplified language resonates better with audiences today.
  • Email remains the highest converting channel despite the rise of other platforms.
  • Mobile traffic is high, but desktop conversions are still more substantial.
  • Instagram is outperforming Facebook in terms of conversion effectiveness.
  • Adopting a mobile-first design strategy is crucial for success.
  • Benchmark reports can provide valuable insights for businesses.
  • Testing multiple variants is essential for optimizing conversion rates.

Chapters

[00:00] Introduction to Unbounce and Steve Oriola
[03:58] Email’s Enduring Effectiveness in Conversion
[05:59] Mobile vs. Desktop: Conversion Insights
[09:32] Writing at a Fifth to Seventh-Grade Level
[11:43] Industry-Specific Language Complexity in Conversion
[13:59] Using Benchmark Reports for Industry Insights
[16:32] Integrating Insightly with Unbounce
[18:58] Capturing and Retaining Attention in Marketing

 

More About Steve Oriola

 

This episode of The Duct Tape Marketing Podcast is brought to you by:

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

Testimonial (00:00): I was like, I found it. I found it. This is what I’ve been looking for. I can honestly say it has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made.

John Jantsch (00:16): What you just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM world slash scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM World slash scale.

(01:04): Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch, and my guest today is Steve Oriola. He is the CEO of Unbounce. He is a tenured CEO with more than two decades of experience scaling Dynamic B2B SaaS platforms, including Act! Boy, World Slash SThere’s an oldie constant contact, Pipedrive and Julius. He recently led Unbounce through the acquisition of Insightly CRM, where the two companies effectively merged. But we’re going to talk today about a benchmark report, some new research that Unbounce did on conversion. So Steve, welcome to the show.

Steve Oriola (01:43): Great, thanks for having me, John. Appreciate it.

John Jantsch (01:45): So I mentioned ACT is Act still around. That was the first CRMI ever used 25 years ago.

Steve Oriola (01:52): Act is still around, has a portion of their business desktop and a smaller portion that is SaaS. So yeah, they’re still delivering.

John Jantsch (02:01): Wow, that’s great. Alright, so probably let’s just not bury the lead, right? The big thing that you guys have been promoting about your findings is that complex copy is herding conversion rate. So let’s start there. Tell me about that.

Steve Oriola (02:15): Sure, yeah. What we’re finding is that, and this is just a difference between 2020 and 2024, really over just three or four years. The actual copy that resonates in lands is now fifth to seventh grade level copy as opposed to a little bit more like ninth and 10th grade or eighth and ninth. And people aren’t getting dumber. We believe the noise is increasing and you have less of an opportunity to land a message and get attention. And that’s what we believe the dynamic is. And we think during Covid, people may have had a little bit more time to read possibly, but the noise is intense now and we find the difference between fifth to seventh grade language and professional language is like two X in terms of conversion. So it’s a significant difference.

John Jantsch (03:08): And I imagine some of it’s the filter, right? I mean, like you said, people aren’t getting dumber, they just are willing to invest less time. And so it’s like give it to me very quickly. Don’t make me dance around and get the plot. And I suspect that’s probably what’s going on as much as anything, right?

Steve Oriola (03:23): Yeah, there is, but if you read the report, there’s a lot of nuance in there, right? A statement like that, you go into a particular vertical and it stands on its head. So we are talking about industry wide and that’s really the power of the report is to drill down into a particular vertical and see what the impact really is.

John Jantsch (03:43): So people have been trying to kill out email, kill off email for many years.

Steve Oriola (03:48): The

John Jantsch (03:48): Report shows that email is still the highest converting channel. Why do you suppose so many people want email to die? Is it just because we are sick of getting it, but we also buy stuff?

Steve Oriola (04:00): No, I think it’s because we now have so many other forms of communication. People think, well, email is the old one that’s going to die. Email is, you have to keep in mind email is an effective store and forward mechanism. So if you think about use cases and storing forward is preferable, sometimes it’s there. You don’t have to read it right away. And the other thing that might make email seem more effective is it’s a bit of a lower funnel tactic and comparing it to higher in the funnel tactics for conversion, not really fair. Those higher in the funnel channels and tactics are very important, yet you might not act on them until you’re in an email and have something in your

John Jantsch (04:41): Yeah, so it’s an attribution issue as much as anything probably.

Steve Oriola (04:46): I think it’s a bit of an, and we say that in the report, we caution people, we say, look, email is a much more effective conversion mechanism, but it might not be the first stop. That’s

John Jantsch (04:57): Way. So along those same lines of conversion mobile versus desktop increasing, my clients are seeing 50, 60, 70% mobile visits, but this report found that, but that’s not where people are pushing by.

Steve Oriola (05:13): Well, they are. I think they’re converting on mobile, they’re just converting higher on desktop. But if mobile makes up 70% of your traffic, you got to look at it in real numbers too.

(05:24): And it’s probably worth grinding on that mobile conversion rate in your tactics, but understand that desktop does convert higher. I think there is, and this isn’t in the report, this is sort of me, there is sort of an assumption that maybe on mobile you’re not seeing everything. And in fact, that is a bit true. You do design your responsive mobile to not have everything because dealing with constraints on the device. And I think people just sort of have an understanding of that. And if they’re really going to make a decision about signing up for something, they may want to be on the desktop and feel like they have access to all the information.

John Jantsch (06:07): And I think going back to our attribution thing, I think if we were able to follow journeys as thoroughly as they happen, I mean we would find a lot of people doing research, finding stuff, and then going, oh, I’m going to go to the desktop now. Right?

Steve Oriola (06:19): Exactly. Yes. That’s a good point is yeah, you’re sitting on the couch and there’s a commercial on during the football game and you’re on your phone researching a landing page vendor or something.

John Jantsch (06:30): Yeah. So Unbounce clearly sees lots of landing pages built and sees the effectiveness of those. Where do you, and maybe the research directs some of this, but where do you counsel people when it comes to this idea of mobile first? That everything needs to be designed there first and work there and be optimized there first.

Steve Oriola (06:53): We believe in that. I mean, certainly deal with the hardest constraints upfront when you’re designing, and then you could probably loosen up as you get to desktop. And the reason people do that is if you start with desktop, you may not think about the constraints of mobile and then you’re designing for that and it’s really difficult. So just flat out in general, mobile first is the right strategy. I think from a conversion mechanism like a landing page, I think you, yes, mobile first, but I think you really need to consider the industry you’re in. If you’re in financial services, people will do research on mobile, but they’re going to make decisions when they’re in front of their computer at home. So I think it’s industry specific as well. So I recommend people comb through the data in here to get that kind of guidance.

John Jantsch (07:40): One of the highlights in the report, I guess maybe I don’t pay enough attention because maybe this wasn’t a surprise to you all, but it was a little bit surprise to me that Instagram is outperforming Facebook in terms of being a paid, converting paid social channel. Was that surprising?

Steve Oriola (07:59): Not for me and probably not for people in their twenties. I think what’s changing over time is we have different platforms by demographics being sort of dragged into adulthood in the business world. And I’m sure my daughter is more likely to do something on Instagram than Facebook for

John Jantsch (08:18): Sure.

Steve Oriola (08:19): So that certainly could be part of it. I also think Instagram just is a mobile first channel and application. And as you see mobile take over more and more of the traffic, that’s probably part of the dynamic as well.

John Jantsch (08:37): It’s my pleasure to welcome a new sponsor to the podcast. Our friends at ActiveCampaign. ActiveCampaign helps small teams power big businesses with the must have platform for intelligent marketing automation. We’ve been using ActiveCampaign for years here at Duct Tape Marketing to power our subscription forms, email newsletters and sales funnel drip campaigns. ActiveCampaign is that rare platform that’s affordable, easy to use, and capable of handling even the most complex marketing automation needs. And they make it easy to switch. They provide every new customer with one-on-one personal training and free migrations from your current marketing automation or email marketing provider. You can try ActiveCampaign for free for 14 days and there’s no credit card required. Just visit activecampaign.com/duct tape. That’s right. Duct Tape marketing podcast listeners who sign up via that link. We’ll also receive 15% off an annual plan. That’s activecampaign.com/duct tape. Now this offer is limited to new active campaign customers only. So what are you waiting for? Fuel your growth, boost revenue and save precious time by upgrading to ActiveCampaign. Today. I want to circle back to this writing level. If somebody decides, oh, I’m in an industry where that probably is very valid, how does somebody decide to write in a fifth, seventh grade level? I suspect the world out there writes probably not much higher than seventh grade necessarily, but if I’m an engineer and I’m thinking, oh, I need my content to read fifth or seventh grade level, I mean, is that an AI tool?

Steve Oriola (10:17): I’m sure there are AI tools out there. We wrote our own model to score grade level

(10:23): That is not available as an external service, but I’m sure there are those out there. And our methodology was to look at a whole variety of tools or methodologies to grade level people’s writing and reading and chat. GPT can help you simplify, but one of the things that’s in the report is the kinds of words that will make it more complex. And the number of three syllable or greater words in your should be a below 15%. So that’s all laid out in the report, and you can easily do that yourself by looking at the content. And again, gen AI can summarize and simplify and you can even ask it to, I think if you write in there, dumb it down, it will literally dumb it down for you. So there are ways to do

John Jantsch (11:18): It. Yeah, I’m terrible at writing run on sentences and I’m certain that probably gets in the way, right. Shorter sentences, probably better

Steve Oriola (11:27): Then don’t be a copywriter.

John Jantsch (11:29): That’s what editors are for. That’s right,

Steve Oriola (11:31): That’s right.

John Jantsch (11:31): So there are things in here. There were a couple of things that surprised me as I’ve mentioned. Were there things in here that surprised you all, especially since you’ve done this research before?

Steve Oriola (11:41): I think some of the spreads in conversion rates in some of the verticals were significant. I believe it’s health and I think financial services as well with regards to the complexity. The language, financial services actually benefits from a little more depth of language and a little more complexity of language. I think there’s an assumption there that if you’re pursuing financial products, that’s real impact on your life and you want to understand it a little bit more. So those kinds of departures from the median as we measured, most things were a little surprising in some of the verticals. Just the level of nuance once you get down into the verticals was surprising.

John Jantsch (12:23): I’m going to come back to the verticals, but I wonder if, I mean, you’re analyzing a lot of copy that is, I don’t know, top of funnel for a better word, that you’re getting attention, right? With landing pages in some cases or getting people to move to a next stage in a journey. Would you agree that potentially simpler language is better there because we don’t have a relationship as we get deeper and I’m starting to analyze, can you actually solve my problem? Do I want perhaps a more complex language or at least deeper language because I’m going to spend the time?

Steve Oriola (12:55): Well, landing pages are not only top of funnel. So landing pages,

John Jantsch (12:58): I knew you were going to say that

Steve Oriola (13:00): Landing pages would come into play further down the funnel, even in retargeting, even in customer marketing to your own customer base. So the closer you get to that, the more complex the language can be and probably the more information people are looking for. So I think that plays a role for sure.

John Jantsch (13:20): Yeah. So you talked a couple times about industry specific benchmarks. Would you suggest that somebody who’s thinking, oh, I’m going to read this thing and see what my industry is doing, would then actually be able to draw the conclusion of, oh, okay, we’re doing really well or we’re doing better than people in our industry, or we need to up our game. I mean, do you feel like they can use the tool that way?

Steve Oriola (13:42): That’s really the purpose of the tool.

John Jantsch (13:44): Yeah,

Steve Oriola (13:44): Exactly that. And we didn’t release all of the verticals yet. We’re still crunching data to write this report. We crunched a year’s worth of data, 57 million conversions, over 41,000 landing pages. And the verticals that didn’t show up as statistically significant. And those kinds of numbers aren’t in here, so it’s not going to cover everyone. I think if your vertical’s not in here, you could still look at verticals, you could look at the data overall, so it will work for everyone. But if your vertical’s in here, it’s a benchmark,

John Jantsch (14:18): Roughly how many verticals you think covers, it’s going to be tough for a specific,

Steve Oriola (14:23): Yeah, sorry, I think we did seven or eight and maybe we have that or more coming.

John Jantsch (14:27): Okay. Okay. Alright. Conversion rate optimization is obviously a huge part of landing pages of marketing in general of webpage of pretty much everything. How can we make this better, right? I think there are actually probably c-suite titles given to that function

Steve Oriola (14:46): Director level. I’ve seen VPs of CRO. Yep.

John Jantsch (14:50): So you talk about in this report something called simple CRO, and I think a lot of people feel like, no, it’s terribly complex. So explain how that differs.

Steve Oriola (15:01): We can give a lot of capabilities. Our platform is not just for building landing pages, we have an AB testing solution and it’s more than A and B, it’s sort of we can create multiple variants and pick the best copy and even prior to statistical relevance, that’s just a math problem. We can help and we can also maintain those variants and direct traffic to the variant that makes the most sense for you. And we’re taking signals in order to make those determinations. So it’s way more than a landing page platform. And I think that’s an important consideration because we were designing and building a CRO platform and that’s what it’s about. So we would call that pretty simple because the tools are there if you want to go further beyond what our tools let you do. We have a third of our customers, I’ll call them customers or agencies, and they serve well beyond our customer base. And a lot of those agencies are performance based and go quite a bit further and start optimizing for revenue and other things beyond the conversion where they have that data and usually it’s their MarTech stack that we’re integrated into. So there are ways to go much further beyond. We make CR os simple, but we also want our more advanced customers to be able to go further.

John Jantsch (16:31): How is Insightly the CRM showing up in the unbalanced product?

Steve Oriola (16:36): Sure. Well, it isn’t yet. We’ve been one company since July. We are integrating the platforms and you’re likely to see the landing page solution be an upsell for marketing automation, right? Insightly has both a CRM and a marketing automation platform. The data science team that we built to turn our platform into a CRO platform is now very dialed into the CR ad Insightly. So you’ll see the kinds of things that we can do and have done. We’ll start doing on CRM and in marketing automation. We also have an attribution solution, a company that we bought a couple of years ago called Leads rx. So we have all the makings of a pretty rich, dynamic, exciting marketing solution

John Jantsch (17:28): You take on Salesforce pretty soon, right?

Steve Oriola (17:30): There you go. Well, we know our market and we know where we’re going. We hope not to always be running into Salesforce.

John Jantsch (17:41): So I think in the report, I think this is where I grabbed this, you talk about attention spans being obviously part of the issue, and I think you identified 47 seconds. I’m not sure if that came right out of the report or not. So you see a lot of marketers read that and they’re like, how do we get attention fast? How do we do gimmicky things? So what are some of the best ways to capture first, I guess, and then retain attention if people are only going to give us so many seconds?

Steve Oriola (18:08): Yeah, I think it comes down to clarity, which is usually simplification in this context. It usually means simpler words, not four or five syllable words and shorter copy and test generate multiple variants and test. That’s really the only answer. And we give you a platform to do that.

John Jantsch (18:32): It truly is the only answer. I can’t tell you how many times I’ve thought, oh no, that’s the winner. That’s the winner for sure. And you’re like, what? Yeah,

Steve Oriola (18:39): No, that’s right. And some of the things, and as you comb through different verticals, some of the things are a little counterintuitive. So yeah, you got to look for that.

John Jantsch (18:47): Yeah, it turns out clarity is much harder than complexity, isn’t it? It’s speaking of counterintuitive, Steve, I appreciate you taking a few moments to stop by. Where would you invite people to connect, either with you or clearly those interested in getting the full report? Where would you send

Steve Oriola (19:02): That? Oh, go to unbound.com and you’ll get directed there from the homepage. Something will probably pop up and nudge you there too. So that’s where I’d start. And yeah, it’s a pretty good report, so it’s getting a lot of play.

John Jantsch (19:18): Again, appreciate you stopping by and taking a few moments. Hopefully we’ll run into you one of these days out there on the road.

Gain Client’s Trust by ensuring Cybersecurity

Gain Client’s Trust by ensuring Cybersecurity written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with Zach Kromkowski

In this episode of the Duct Tape Marketing Podcast, I interviewed Zach Kromkowski, co-founder of Sention, about the importance of cybersecurity for small businesses and marketing firms.

Zach’s cybersecurity journey began with a passion for problem-solving and a talent for turning ideas into reality. Blending intelligence, tenacity, and a love for community education, he simplifies cybersecurity through webinars, workshops, and consultations, helping MSPs and enterprises easily enhance their security.

We discuss best practices for system hardening, managing security in a distributed workforce, and the significance of password management and compliance standards. The conversation also touches on the risks AI poses in cybersecurity and the necessity of implementing two-factor authentication and VPNs. Zach emphasizes that adequate security doesn’t require a large budget and offers practical steps businesses can take to enhance their security posture.

Key Takeaways

  • Cybersecurity is crucial for marketing firms and small businesses.
  • System hardening can be done without a large budget.
  • Managing security in a distributed workforce requires clear policies.
  • Google Workspace users should regularly review linked accounts.
  • Password managers are essential for secure password storage.
  • Two-factor authentication (2FA) is a must for all software.
  • SOC 2 compliance is a common standard for businesses.
  • AI poses unique risks in cybersecurity that need to be addressed.
  • Adding layers of security can deter potential attacks.
  • Educating employees about security risks builds trust.

Chapters

[00:00] Introduction to Cybersecurity and Marketing
[02:00] Best Practices for Small Businesses
[04:59] Managing Security in a Distributed Workforce
[07:59] Enhancing Security with Google Workspace
[10:58] Password Management Best Practices
[13:58] The Role of VPNs in Security
[16:59] Understanding Compliance Standards
[18:10] AI Risks in Cybersecurity
[21:52] Conclusion and Resources

More About Zach Kromkowski:

 

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This episode of The Duct Tape Marketing Podcast is brought to you by:

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John Jantsch (00:00): I was like, I found it. I found it. This is what I’ve been looking for. I can honestly say it has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made.

(00:16): What you just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM world slash scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM world slash scale. Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch. My guest today is Zach Kromkowski. I was so worried about the last name that I’ve messed up. You

Zack Kromkowski (01:15): Overthought the last name and you got the first name. No worries.

John Jantsch (01:19): Kromkowski. Here we go. He is a force in cybersecurity driven to make system hardening both effective and accessible. Co-founder of Ion, he and his team developed an innovative platform that automates hardening for workstation servers and browsers to CIS standards, streamlining compliance and security. So we’re going to talk about security cybersecurity, I suppose more specifically. So this is a topic that is not necessarily marketing very related to what we do as marketers, very related to what we do as business owners. So Zach, welcome to the show.

Zack Kromkowski (01:54): Yeah, thank you for having me on. And I mean, you kicked off right there, John. Why is this relatable to marketing firms and owners? I mean, our little pre-session banter, it’s like us marketing firms, and when we work with clients, they’re telling us a lot of their ip. They’re telling us their brand, their image. All of these details is how bad actors might be able to create a more targeted phishing email or a more targeted, more persuasive email that isn’t real. So even though we’re talking about security on a marketing podcast, it’s all related. So I really appreciate the pre-show banter we had, John.

John Jantsch (02:30): Yeah, well, and not to mention, I mean, we have clients that their cousin’s, ex-boyfriend set up all of their passwords on things and they just have ’em on a spreadsheet and they give ’em to us. And as a marketing agency, in some ways that makes life easier because I’ve got all the keys, right? But it’s also should be very scary to anybody that is taking that data. So let’s kind of back up and can you give us some best practices on the typical small business we can get into? The agency maybe is a little different, but the typical small business, what are some of the things they need to be doing as just routine practices? Not because the sky’s falling, just but because lots of things happen, right? You’ve got bad actors, but you’ve also got disgruntled employees. Maybe you’ve got lots of things that can happen in the world because stuff happens. So let’s kind of start there. What are the basics?

Zack Kromkowski (03:26): Yeah, I mean, there’s risk to anything. Again, in that pre-show we talked about as Duct Tape Marketing, you have your own third party vendors. What can I do to protect myself? And you shared a little bit about that. So

(03:37): Talking to those basics, there’s a misconception with security that you have to invest hundreds, thousands of dollars just to have security. And I’ll be the first vendor to admit, you don’t need to spend a ton of money on security. There are things you can do specifically called system hardening. So this is one of the first things, in my opinion, any business owner, any SMB can really focus on. This is a concept of understanding. Where are your assets? Where are your computers? Where is your server? Maybe you have one, maybe you don’t. Where are your computers? And the next step of saying how are they configured? What software is installed on this computer? How can I configure that new software to be more secure? So talking about some of these easy examples, something every small business owner I talk to always and my parents, right? My family, for example, they want to save their passwords to the browser. This is universally just accepted. This is what everyone does. But the browser, the Google, the Microsoft Edge, these are not security first browser password storage methods. There are literally companies that dedicate their entire business model just to saving the password. So that’s like bit warden LastPass.

John Jantsch (04:58): And

Zack Kromkowski (04:58): When I talk about hardening, you can’t write a policy and say, Hey employees, I don’t want any of you to save your password to the browser and expect them to do that. When I talk about hardening, we literally remove the ability to save a password to the browser. That way that policy is enforced and happens by nature. There’s no way around it. So that’s one aspect of hardening, John.

John Jantsch (05:22): Yeah. Awesome. So what about, I guess, outstanding on that same topic. What about the fact that in my particular case, there is no server, there is no central office. In a lot of cases, people are using their own devices to connect to many of the assets. So how does somebody who has a distributed workforce, is that going to be different or are we really just going to run a much higher risk?

Zack Kromkowski (05:50): So this is another good follow up. It’s this concept of risk and being able to communicate this as a marketing or that owner is really important because if you can educate and talk towards your risk, it’s going to build more trust. And this trust, if I’m outsourcing my marketing as cion, I have to trust the person that I want to work with. So let’s say there is a distributor distributed network, BYOD devices. It’s my personal computer and my work computer. What can we do? One of the things, and I’ll stay on the topic of browsers, browser security, browser hardening is very important. You can write a policy to say, Hey, for work, you have to use the Google Chrome browser for personal use. The other one, the Edge, the Firefox. Or if you want to set up a Google workspace, if you have a little bit of budget to invest, you can create a Google Chrome profile and you configure the profile to have company standards and then the personal one they manage on their own. There is a level of risk to that decision because they still have access to the other profile. Worst case scenario, that profile is compromised and they find a way to get to the other one. But you at least have that segmentation to add an additional barrier to that bad actor. So when I talk about hardening, again, the key thing is here not to have default settings. If your settings are in defaults, a bad actor will know what the settings are before they get there.

(07:25): So if we can change some of those settings and create even the smallest barrier for that bad actor to have to invest 10 minutes instead of 30 seconds, they might just bypass you and go to the next target. They may not even try to hack you anymore.

John Jantsch (07:40): Yeah, a great example of that, not necessarily on a server, but many of our clients are on WordPress.

Zack Kromkowski (07:45): And

John Jantsch (07:47): Just a simple thing like changing the page name of the admin login does that same thing because they’re out there knowing that 90% of the sites out there, it’s admin, wpa, admin. And so if they’re not going to find that in the one second bot search, they’re probably going to move on. So

Zack Kromkowski (08:05): That is a really good example. And we talk about WordPress, but we can also talk about Microsoft in the same respect. So there’s also an administrator account on the workstation, on the laptop itself, and that admin account, I mean, we could talk about Fortinet firewalls, right? The password and newsrooms, if we just take that five minutes to change these default choices, it adds an extra layer of effort. And this is by most intensive purposes, the most important takeaway from the show is by adding layers of difficulty, even just one layer makes you a target that they probably won’t want to hit.

John Jantsch (08:42): Because you see a lot of these things are obviously being done by bots in a lot of cases. So the bots just told, ping this and so it’ll move on.

Zack Kromkowski (08:51): Exactly. That’s exactly right, John. That is a perfect way to say it.

John Jantsch (08:55): So what about many people? I don’t know what the percentages are these days, but a lot of, especially virtual companies have turned to Google Workspace as really a lot of their internal storage, their email, their calendars. What are some best practices for that? I know super admins have some security things they can set up. So what are some best practices to make sure that even if it’s not the most secure thing, you can make it more secure?

Zack Kromkowski (09:24): Absolutely. So this is going to go into more piss. You’re a Google House, you want to use single sign on, you just want to click sign on with Google, that’s great. But we do that so often. We’re just signing up for this free trial of that. It builds up so much. So my recommendation here would be one, look at Google had a recent update. My CISO is extremely excited, but you can actually see now all of the accounts that are linked to your single sign-on,

John Jantsch (09:54): And

Zack Kromkowski (09:54): You can easily remove that from having access, because again, this is looking at the layers of security. If your single account is unfortunately compromised, now they have access to everything

John Jantsch (10:07): And

Zack Kromkowski (10:07): Even things you don’t use or don’t need anymore. So doing that asset inventory review allows you to reduce your tax surface and reduce the things that have access. And let’s talk about the flip side of that. If that third party company, the one you did use single sign on to sign on with, and you don’t even need it anymore, they get compromised now, they can leverage that to attack you because you still are authenticated. You still have the permissions because you never removed it. So that first most important best practice would be to review what you currently have available via that single sign on.

John Jantsch (10:44): It’s my pleasure to welcome a new sponsor to the podcast. Our friends at ActiveCampaign. ActiveCampaign helps small teams power big businesses with the must have platform for intelligent marketing automation. We’ve been using ActiveCampaign for years here at Duct Tape Marketing to power our subscription forms, email newsletters and sales funnel drip campaigns. ActiveCampaign is that rare platform that’s affordable, easy to use, and capable of handling even the most complex marketing automation needs. And they make it easy to switch. They provide every new customer with one-on-one personal training and free migrations from your current marketing automation or email marketing provider. You can try ActiveCampaign for free for 14 days and there’s no credit card required. Just visit activecampaign.com/duct tape. That’s right, duct Tape Marketing podcast listeners who sign up via that link. We’ll also receive 15% off an annual plan if purchased by March 31st, 2024. That’s activecampaign.com/duct tape. Now, this offer is limited to new active campaign customers only. So what are you waiting for? Fuel your growth, boost revenue and save precious time by upgrading to ActiveCampaign today. What about users? Are there policies that you should have all of your users adhering to?

Zack Kromkowski (12:05): This is a good one. So this goes towards disabled browser password manager. So that one example is the most relatable to everyone because everyone knows what a password is. Everyone knows how to save a password. I’ll go high level on this, but there’s an organization, it’s a free nonprofit. It’s called Center for Internet Security, CIS, and they have free downloadable PDFs on how to configure your Google Chrome, how to configure your Microsoft Edge. And that setting, I gave the example of with passwords, that’s about one setting out of a hundred some different settings.

(12:41): So another example is when executing a download, you have to explicitly say, download it to this folder, right? It makes you do one extra click because for that fish, without that in place, that fish, you click automatically done with the extra layer. Now the user says, okay, I’m going to click this. Oh, now it wants to trigger a download. That’s not behavior I expected. And it allows your employee, it allows your clients, it allows you to take an extra second to say, is this what I thought would happen? And maybe that extra second prevents the worst from happening.

John Jantsch (13:21): A little bit about password management as it relates to certainly to Google, but then you also mentioned some of the password managers out there. Are there best practices for password management in general?

Zack Kromkowski (13:31): Yeah, so this one’s good. So two FA, I’ll say this on every single episode I go on. For any field password managers are critical. Save your passwords there, but let’s talk about getting into the password manager. This has to be the most unique password because you can’t put it in their password manager. You can’t, if you don’t know this password, you can’t sign into it to figure out what it is, right? So you need to know that password, and that is something you should treat like your social security number, whether you have it written down and put into a safe, or you just have it memorized, which memorizes, of course, the best practice. But making sure this has at least 20 different characters. And when I say characters, I’m referring to letters, numbers, and symbols. Those are the things that make a strong password. And because this is a password you use nowhere else, it’s a single password. This is actually not something I would recommend to rotate or change. This is just your forever password

John Jantsch (14:29): Until

Zack Kromkowski (14:30): Your safe gets broken into, until you get an alert saying possible password compromise. You never have to rotate this password. This is your single source of truth to get into your password manager. And yeah, on top of that, I’ll say it one more time. The two FA, every piece of software, everything that you have access to always go through and just see, Hey, in the setting section or the security and option section, do they have a two a option available? Do you want me to go a little bit deeper into why that’s important, John?

John Jantsch (15:01): No, but I do want to explain, not everybody knows the acronym two FA. So two factor authentication. So we’ve all got some, all the financial folks have gone to almost forcing that. So you log in and then it says, all right, we’re not sure this is you. We’re going to text you a code, or you need to use an authenticator or something. So basically it’s just a second hoop, if you will, to somebody could have your phone, they can have your password, so they could authenticate it, but it just adds an extra hoop for somebody that’s out there in some far away island that’s trying to hack into your stuff.

Zack Kromkowski (15:38): And I think that’s a great point, and I’m glad you called me out for that. I do my best to speak all of my acronyms. It’s alphabet soup in the security world. But

(15:48): This is a cool thing, and relating it again, back to the marketing departments and marketing teams and doing sales, right? If you were trying to sell ION or a security company, Hey, I want to do your marketing. I need all of this brand information, I need all of your value props, I need whatever, to build the perfect messaging. If one question I would probably ask, Hey, how are you storing this? Right? So marketing departments may want to take half a step into enabling their sales team to say, Hey, if it ever makes sense, feel free to let the prospect know, Hey, we secure our data this way. We have managed browsers, we do use two FA. If a marketing firm said that to me and leaned into MySpace as a security vendor, I’d be impressed. I’d be like, Hey, maybe they’re not experts, but they took that half a step to at least try to appeal to what I care about, and that would mean a lot to me.

John Jantsch (16:42): So here’s my other topic. I’m going to throw this one in here. This might just mix up the soup a little bit, but where do you stand on VPNs? So again, since we’re all over the world and all doing, we’re all logging into Google to do X, should we all be using virtual private networks that mask our ips?

Zack Kromkowski (17:01): Yeah, I mean, this again, goes towards that BYOD. If you are an enterprise who can only access certain things via the on-premise domain, you have to be connected. You have to be onsite in order to obtain certain information, you’re going to be inherently required to have A VPN. Now, the debate kind of comes in, okay, we can only access the data onsite. We have no one remote. Do we really need a VPN? In that case, you probably don’t. I mean, more is always better, but in that case, it’s probably overkill. If everyone is already working on site, the computers never leave the business, everything has to be done there. There’s not a lot of value because the data’s never leaving that secure built environment. Now, to your point, a lot of people are B-O-I-O-D. We’re all remote nowadays. So yeah, they really do become that backbone to say, if I don’t lock out some of that business data and require A VPN in order to reach it, anyone can reach it,

John Jantsch (18:08): Right?

Zack Kromkowski (18:09): So it’s going to depend on your business model, your business setup. But yeah, VPNs are critical for those remote environments. But if you are on site, probably not necessary.

John Jantsch (18:21): So you talked about if somebody was wanting to do your marketing, if I went to a company and they were asking, in fact, we’ve had this happen before where people have an IT company that they work with and they’re like, Hey, here’s our checklist of security standards. Do you meet them? So is there kind of a, I wouldn’t call it the gold standard, but maybe even a minimum standard that if I went to them and just said, oh yeah, we are BXYC compliant. Is there one sort of compliance level that say a small business should strive towards?

Zack Kromkowski (18:54): So there’s an easy answer that comes to mind here, and that’s going to be SOC two compliance, which is maybe what you’re leaning towards.

John Jantsch (19:00): And

Zack Kromkowski (19:00): It’s definitely one of the most common and most understood compliances to me. And it would mean something to me. It would definitely say, well, they at least did that. That means they care about it To some extent, the follow-up question. And if you do take the approach of getting a SOC two, which yes, that’s a good approach. ION has one, right? We’re doing all this, but be able to say, not only do we have one, this is what we got it for. So that’s the very unique thing with SOC two. I can get a SOC two on the ION website, but the ION solution itself has no security certification. So if you intend to take the approach of leading or injecting at some point during the sales conversation as a marketing firm, hey, we have our SOC two, be sure to be ready for that follow-up question and say, what’s your SOC two for?

John Jantsch (19:52): Because

Zack Kromkowski (19:52): That is something that we would ask if anyone ever said that to us.

John Jantsch (19:56): And I believe that’s SOC two, right? It is,

Zack Kromkowski (19:59): Yep. And I think it’s the Roman numerals two is usually how it’s, yep.

John Jantsch (20:03): Alright, if people want to look that up. We’re 18 minutes and 38 seconds into this recording. Let’s talk about ai. Oh boy. So does ai, where are the risks, I suppose, posed by AI that we need to at least be thinking about?

Zack Kromkowski (20:19): So risk especially in the relation to marketing and the business field that you cater to. John, you are a goldmine to a bad actor. Why? We talked about this a little bit at the start, but you have multiple companies, brand multiple companies, points of context, multiple companies, just image if an ai, if you were to be compromised, and I already heard you have your layers of security, so kudos to you on being able to talk towards that very good conversation. But let’s talk about if worst case scenario you were compromised that AI can now ingest hundreds of companies, unique branding, colors, branding, verbiage, branding, everything, and it takes that data and then can target the next business your customer. You have a similar risk profile to a managed service provider. So a managed service provider will typically manage the IT and security and has more access. So they can be a direct point of breach, they can take advantage of things, but you’re the next layer. You’re the layer still hugely valuable to an ai because that AI now is tailoring, its messaging, becoming you talking to that end client. And it’s going to be hard to tell the difference, John. I mean, that’s the end of the day. Our AI are becoming so trained and so tailored. If we inject it with the appropriate information, which marketing firms already have, how are your clients going to know the difference?

John Jantsch (21:51): I actually saw somebody post, and again, there are definitely a lot of people out there trying to lead with the fear factor, but some of it’s real. And they were suggesting that if you got a phone call from somebody and your boss, your spouse, and they were asking you for something that you thought was a little odd, but it sure sounded like them, that level of fake is going to be out there and that people were actually talking about having your own sort of password with each other.

Zack Kromkowski (22:22): I love the stories. So when we call partners and sometimes they don’t always have our number saved, and a lot of, I mean just you guys, we’re all in marketing here, right? We’ve done the cold calls, we’ve done the customer calls, and they may not recognize the number. Some security companies will take an edgier take to this and have a little AI recording or AI interface to almost annoy the person on the other line. They simply pretend to be a real person, but you’re actually talking to a computer the whole time, and that’s just one piece of ai. Now, you take that kind of a comedy scenario that satire like, oh, it was just used for goofy, but you actually allow it to now make outgoing calls, make those outgoing fakes. Having that key password phrase makes a difference. I think my biggest point here is, Hey, can you remind me what, so-and-so’s story was right? Doing something personal that an AI probably doesn’t know. And I’m going to be honest, I’ve had to do that. Hey, this conversation has been going for 45 seconds. I haven’t felt anything real out of it. I’m going to put a very personal question here to see how it responds, and sure enough, it couldn’t, it just went back to the replay loop.

John Jantsch (23:37): Yeah. Wow. So Zach, I appreciate you taking a few moments to stop by the Duct Tape Marketing Podcast. We obviously a wide range of topics. It probably just stirred up more questions than answers. Happy to come back, but you want to invite people where they might want to connect with you and maybe find out more about some of the things we talked about if they have some concerns.

Zack Kromkowski (23:58): Yeah. So my name again, Zach Kowski. I’m very active on LinkedIn. You can find that at security, Zach as the profile name. But the big thing I want to shout out here is you don’t need a security budget to do security activities. The things I talked about today is knowing what software you have, knowing what hardware you have, and then changing settings. If you’re overwhelmed and don’t know what these settings do, we have free documentation across YouTube and our resource hub to say, this setting does that. This setting does that. And you can take advantage of this a hundred percent free offering to do some of these steps without paying anything. Now, if you do want to do this at a mass scale, ion automates all of this. That’s the plug. But there’s a lot of free steps you can do without even investing a dollar.

John Jantsch (24:46): Awesome. Well, again, I appreciate you stopping by and hopefully we run into you one of these days out there on the road.

How ‘Company Culture’ Became Overused

How ‘Company Culture’ Became Overused written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with Brian Gottlieb

In this episode of the Duct Tape Marketing Podcast, I interviewed Brian Gottlieb, founder of Tundraland Home Improvements and author of ‘Beyond the Hammer.’

He transformed a $3,000 investment into a multi-state enterprise with nearly $1 billion in lifetime sales. Gottlieb, an inspirational business leader, and Harvard Business School executive education alumnus, champions a leadership philosophy centered on strategy, empowerment, and consistent execution while founding charitable initiatives like “Windows for a Cause” and “Baths for the Brave.”

We discuss Brian’s journey in building a successful business from the ground up, emphasizing the importance of belief in leadership, creating a positive company culture, and the impact of community initiatives. Brian shares insights on effective feedback techniques, the significance of employee engagement, and how to align a team around a common mission. The conversation highlights the role of training and development in fostering a motivated workforce and the importance of understanding employee perspectives through stay interviews.

 

Key Takeaways

  • Starting a business with limited resources can lead to innovative solutions.
  • Belief in people is crucial for leadership and team success.
  • Aligning a team around a joint mission enhances performance.
  • Creating a positive employee experience is essential for retention.
  • Feedback should be constructive and encouraging to foster growth.
  • Stay interviews provide valuable insights into employee satisfaction.
  • Company culture is shaped by the behaviors tolerated within the organization.
  • Community initiatives can enhance employee engagement and brand reputation.
  • Recruitment should focus on finding individuals who align with the company’s mission.
  • Training and development are vital to building a skilled workforce.

 

Chapters:

[00:00] Introduction and Background
[03:10] Belief as the Foundation of Leadership
[10:11] The ‘Center and Sphere’ Approach to Feedback
[16:27] Engaging Employees Through Mission-Driven Initiatives
[19:20] Creating a Positive Employee Experience and Attracting Top Talent

 

More About Brian Gottlieb:

 

Like this show? Click on over and give us a review on iTunes, please!

 

This episode of The Duct Tape Marketing Podcast is brought to you by ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

 

Brian Gottlieb (00:00): Back in the early days. I think the only rule of business is simply to stay in business. Sometimes it’s the rules that we create in our own mind that limit us. It’s my belief. If you’re a business owner, one thing’s for sure. If people love what they do, they tend to do it a whole lot better.

John Jantsch (00:14): Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch. My guest today is Brian Gottlieb. He is the founder of Tundra Land Home Improvements and author of the upcoming book we’re going to talk about today Beyond the Hammer, a Fresh Approach to Leadership, culture and Building High Performance Team. So Brian, welcome to the show.

Brian Gottlieb (00:35): John. Thanks so much for having me. Appreciate it. Let’s have a good chat today.

John Jantsch (00:39): Yeah. So is there Tundra Land? Is there some story behind the name there? I find myself tripping over it every time. I want to say Thunder Land or something like that.

Brian Gottlieb (00:47): Yeah, people did mistake it for that at that time. First of all, I wanted to find a name that didn’t exist on from a URL standpoint. So the business was Wisconsin based, which is the frozen tundra. So I thought, why not Tundra Land? And it seemed to work real well. And then of course I dialed one 800 Tundra Land to see who would answer in some plumbing company, somewhere answered. And I said, Hey, can I buy your phone number? And they said, sure. So I had the domain and I had the one 800 number. So he was a happy guy.

John Jantsch (01:16): They probably didn’t even know what you were buying, right? I mean, they weren’t using it for that. It just happened to add up.

Brian Gottlieb (01:21): Right, right.

John Jantsch (01:22): So in the bio, I didn’t read this part, but to you talk about starting your business with $3,000. So I’m not going to ask you what challenges you face because it’s obvious, right? But talk a little bit about the early days and really was there a pivotal moment, because you’ve obviously grown it to quite an enterprise now.

Brian Gottlieb (01:43): Yeah, right. 2009 in the back of a friend’s warehouse on a plastic folding table with $3,000 in cash. I thought it was a great time to start a business. So look, there were a lot of people that in 2007 and eight lost their jobs, which also meant there was an opportunity there, some great talent out there, and it was to me, a great time to start a business. But sure, in the early days, everything was a challenge. I mean, everything was a challenge. $3,000 doesn’t go very far. So this is Duct Tape Marketing. You have to go out and you have to make a lead, and you have to make a lead, and you have to sell a lead, and you have to install a lead, and you have to do all those things just to stay in business another day. Back in the early days, I think the only rule of business is simply to stay in business. But over time, we started to grow and grow. And when I sold all the businesses that original business, tand spawned into a couple of other businesses that covered multiple states in the United States. We had 600 employees and doing about 150 million in revenue when I finally sold all the businesses a couple of years ago. It was quite a fun ride. A lot of learning along the way though.

John Jantsch (02:47): Well, your book is essentially a, I dunno, would you call it a leader? Yeah, you’d call it a leadership book, I suppose. And I think somebody who’s at some level managed 600 employees can actually call themselves a leader. A lot of your book is pegged to the word belief and this idea that it really starts with that. And I’m a fan of the idea of the power of the universe delivering if you have beliefs. So unpack kind of that idea and what it means to this entire book, or really even to your entire thinking about leading.

Brian Gottlieb (03:22): Yeah, so what it all really came from is that when you think about back in 2009 when I started the business, if you’ve asked me what my business was, I would’ve said, well, we’re a construction company.

Testimonial (03:31): Maybe

Brian Gottlieb (03:31): Fast forward six years later, when I had 30, 40, 50 employees, I might’ve said, well, we’re a sales and marketing company that happens to be in home improvements. But what really allowed us to grow was when we said, what are we really? Well, we’re a training organization. Let’s just be a training and development company, and what does that mean? And part of that process is believing in people and helping and getting people to believe in themselves. And the more people believe in themselves, the more they’re willing to grow. Sometimes it’s the rules that we create in our own mind that limit us. So can a leader change that perspective? And how do you influence the mindset of people on your team? John, when I first started the business, the success of the business depended upon how well I personally executed. But as you start hiring people and building a team, now the business’ success depends on how well teams execute. And by the way, that’s both in the leader’s presence and in their absence. So getting people to believe in themselves, but also getting them aligned around a certain set of beliefs around a mission and a vision and things that really matter. And these are all the necessary ingredients to build an aligned team and aligned teams perform well in any market regardless of competition.

John Jantsch (04:42): So how do you get, you’re in one of those industries where, I mean, there are a lot of businesses that knowledge workers are brought in and they’re told the mission and we got to believe and we’re all on the same team. And sometimes you feel like, I could be wrong, I am wrong. But sometimes the feeling is that, well, those people naturally get it, but okay, you hire a carpenter and they just want to go out and build the mantle on the job that they’re working on and not really think of themselves as a training company. How do you kind of deal with that mindset? Or did you,

Brian Gottlieb (05:11): Yeah, that’s a great question, John. So first of all, it’s true. There are a lot of mission statements that are either, in some cases they’re businesses, and other times it’s just maybe a poster on the wall somewhere.

(05:22): And the question is, how do you bring it to life? How do you weave it into the fabric of your organization? And how do you make it so that everybody, whether they’re swinging a hammer out in the field, just a carpenter or somebody that’s working in the mall trying to schedule an appointment for a bathroom model, how do they understand what is their role in the mission and vision? How do you bring it to life? I’ll give you an example of one way we did that if I could. So we would install replacement windows in people’s homes. Well, when you put new windows in people’s homes, you typically take the old windows out and you throw ’em in the trash, which normally that’s okay, but our mission statement was to do well and do good. And what that meant for us is the purpose of business is to make a decent profit decently.

(06:03): So we always looked for opportunities where we could do just that and how can we involve others in the organization In doing so, one way was with these old windows. We would take these old windows out of people’s homes, and instead of throwing ’em away, we would turn them into really cool art pieces by giving these sashes to local artists and community members and the high schools, and they would turn these windows into art pieces. And then once a year, all these windows would get auctioned off and the money raised would go to make a positive impact. Then the life of another individual. If the installer wasn’t careful taking those windows out, we wouldn’t have windows to auction. If the marketer didn’t set an appointment, we wouldn’t have windows to auction. So that’s just one example of how you can take a mission statement and just really weave it into the business. And people then feel like their job is more than just a job. It feels like they have purpose, and that’s really important. They also understand that their work is impactful.

John Jantsch (06:58): And there’s countless, especially when we were going through after the pandemic and there was this quiet quitting and all whatever terms people wanted to call it. Really the bottom line came down to people saying, I, I’m not tired of working. I’m just tired of working here. I’m just tired of working for you. I want to work somewhere

Brian Gottlieb (07:15): Where I feel valued. I write about that in my book that there was a study upwards of 60% of people in the United States have left a job simply by the way, just to get away from a manager. So there are a lot of reasons why you write people quite quit after the pandemic, but then still there are a lot of unhappy people. And that’s such a shame because look, it’s my belief, if you’re a business owner, one thing’s for sure, if people love what they do, they tend to do it a whole lot better. So how do we get people just to love what they do? Because the customer journey really starts with the employee journey

John Jantsch (07:46): A hundred percent. I mean, I’ve said it a hundred times any way, shape and form that your business comes into contact with a customer, that person is performing a marketing function regardless of what their job title

Brian Gottlieb (07:57): Is. It certainly is. And it’s interesting because when you think about scripting inside of an organization, it’s quite common in the home improvement business where maybe the sales reps are scripted, but really the installers need to be also taught how to communicate with a customer. How do you ask for check? How do you make sure the customer is happy and all these sort of things? Because you’re right. The thing about the home improvement industry, unlike many businesses, is 99.9% of every employee is customer facing, whether it’s over the phone or face to face. And you’re right, and everything represents your brand, and you just want to make sure that you’re aware of that.

John Jantsch (08:34): Well look no further than the reviews, the five star reviews in the home service industry, and they don’t often mention the company. They mention Rusty who fixed my boiler.

Brian Gottlieb (08:44): That’s right. We had a couple of our installers. What they would do is while they were in the home doing whether a bath project or window project, they kept some nine volt batteries in their toolkit and they would say, Hey, Mrs. Jones, when’s the last time you changed your smoke detector batteries? I’m here. I’m happy to do it for you. I’ll tell you what, look, we always installed a great shower and a great window for people, but customers love that little 2% shift. It was a big deal for them.

John Jantsch (09:09): Well, a lot of it’s because they’re not getting that in a lot of places in their life. And so I think that it, I don’t want to say it’s easy, but it kind of lowers the bar, doesn’t it?

Brian Gottlieb (09:18): Well, people deserve, customers deserve to have a great experience, especially when they’re investing their money in something. Likewise, employees deserve to have a great experience. They’re giving up a portion of their life inside of an organization. They should be happy doing so it shouldn’t be a miserable experience. It doesn’t. There might be some other

John Jantsch (09:38): Stuff they’d rather do. So let’s get down to some brass tacks here, some in the weeds stuff. You introduce an approach to feedback that you call the center and sphere. You want to break that down.

Brian Gottlieb (09:51): So what happens when you tend to give feedback to people, even when it’s just a little bit constructive, they tend to kind of shut down and people tend to remember the negative more than the positive. So when we give feedback to people, we want to transfer belief whenever possible, and we do that through the center of the sphere. We explained to them that A, we believe in them and we believe in them because, John, I believe in you because I’ve seen you do X, Y, and Z before, and I know you can continue to do well at that. What I’d like you to work on is fill in the blank, some sort of actionable feedback, but then you surrounded again with the sphere of encouragement because remember, the purpose of a one-on-one conversation when you’re coaching isn’t necessarily to terminate somebody. It’s to coach them up. And to be a great coach, you have to be effective. And how do you be effective? Well, you have to connect with people and get people to really want it. Take advantage of whatever advice you’re giving them and not look like they, you’re beating up on them either.

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Brian Gottlieb (12:18): Yeah. What’s interesting is some of the best processes came from employees that weren’t necessarily satisfied, by the way, this whole thing that when an employee leaves, you’re supposed to do an exit survey and an exit survey. Well, okay, that’s great. It’s an autopsy is what, let’s call it an autopsy. Okay, but you mine so much valuable information. We started to do something called stay interviews. Instead of waiting for somebody to leave, let’s interview them while they’re actually working with us. Let’s ask them four questions. The first question is, what makes you want to come to work every day? The second question is, what would one day make you want to leave? The third question is, what is one thing the company is doing wrong today? And the fourth question is, what is something you’re not getting out of your leader that you really need? Mining for those things really tells us where we need to take the organization, because what happens is when a business grows, and with 600 people, you could imagine the org chart is growing and I’m getting further and further away from the customer and really away from the customer facing people.

(13:20): So stay interviews really connects the leader of the business to what the mindset of the team is, the true culture of the organization, how are people thinking? Because how they think affects how they act and how they act is how they behave, which is how the organization performs

John Jantsch (13:37): Well. And those are some pretty tough questions, and I think that somebody who has asked those questions is going to feel heard. It’s like, oh, you care what I think?

Brian Gottlieb (13:45): And isn’t that what people want? But we all want to feel heard, valued, and appreciated. More so than a paycheck, by the way.

John Jantsch (13:52): Yeah, yeah. No, it shows up all the time when people are surveyed. So how much of this, the word culture has certainly been pretty popular the last 10 years. How much of this really, the problem I have with the word culture is a lot of times people, this is what it should be. This is what it ought to be, as opposed to, this is what it is, because that’s really what culture is. I mean, there’s things you can do intentionally. So how much of this would you say is culture and how much of it is just figuring out who you are and being it?

Brian Gottlieb (14:19): Well, I think, look, let’s talk about what culture is right there. I think the word is overused. Every business has a culture, whether you want it or not, you’ve got a culture. Now we can talk about what that culture is, but I believe culture is what do people think about the organization? What do they think about their, how do they think and feel about the business itself, and how does that affect organizational performance? We had a saying in our business that if you wanted to copy our performance, you first had to copy our culture, which means you had to copy what goes on inside of our people’s heads. And that’s a lot to me. If you have the right culture, and you can always inspect your culture, look at any organization. I visited plenty of companies. I know you have too, John, and if you look at how a company hires, how they terminate people, what does that process look like? How they promote, how they reward and compensate. That’ll tell you a lot about the culture because it’ll tell you what the priorities are inside of the organization, which also tells you how people think and feel about the business.

John Jantsch (15:22): So there’s a line, I think it’s directly from the book. Company culture is shaped by the lowest level of acceptable behavior in an, that’s a pretty bold statement, Mr. Gotlieb.

Brian Gottlieb (15:35): Yeah. Well, what happens? It’s a very important statement. It’s easy. It’s the manager that creates a toxic environment, shapes the culture of the organization, the high performer, low culture fit, the person that really gets results, but they’re not good around the rest of the team that you try to isolate shapes the culture of the organization, the low performer, high culture fit, the person you in sales, it’s like the person you love, but they can’t even close a car door, but you keep them around because you love them. All of these things shape the culture of an organization. This is why it can’t be ignored. One of the pillars in the book is that leaders are aware of the echo of their voice, and the idea is that you can’t ignore these sort of things because you’re right. The culture is shaped by the lowest level of acceptable behavior.

John Jantsch (16:22): I mean, it really kind of disempowers the people that say, Hey, I’m doing this and doing that, and look what they’re getting away with. I guess they don’t care.

Brian Gottlieb (16:31): It sends a wild ripple effect through the entire organization.

John Jantsch (16:35): Yeah, yeah. So you briefly mentioned Windows for a cause. You had another one, baths for the Brave or for the Brave. Talk a little bit about, you started talking about where they came from. What impact did they have really on your business to the point where you probably sought out my next business, we’re going to do X, right?

Brian Gottlieb (16:54): Yeah, yeah. It’s interesting because the thing about Windows for cause is as it makes an employee, a co-producer in the mission statement, it also makes the customer a co-producer. And that’s really powerful when you can create a co-producing customer. IKEA does that really well. If you buy anything from ikea, everything comes in a little skinny box and you got to put it together. You know that going into ikea, but IKEA customers are co-producers. Keeping the costs of Ikea down Bath for the Brave was another example. It’s so sad. The thing about the Bath business is it’s very joyful, but there’s a lot of sadness too. There are people that have, there are a lot of veterans, in fact, that have served our country proudly, but they have a shower because of mobility issues that they’re petrified of. They can’t step over their bathtub safely. They can’t take a shower safely in their own home, and they don’t necessarily have the financial means to do anything about it.

(17:45): Bath For the Brave was an initiative that we started where we surprised free veterans. We surprised veterans with free showers just in time for Veterans Day. And in fact, it wasn’t just myself. It became a movement with 30 40 other home improvement companies across the country, all surprising veterans with free shower projects. When you talk about how do you involve an installer in your mission, I will share with you, John, the installers would fight with each other. They wanted to be the one to install the free shower for the veteran that served our country. And again, we can’t do free showers for veterans if customers don’t first buy showers from us. I think a tangible mission that creates a co-producing customer and involves your team in the process is really something

John Jantsch (18:32): Special. And that’s why I love, from a marketing standpoint, and the home improvement business was probably as bad as any, it got really tough to find skilled labor there for a long time, especially as demand was skyrocketing. And I found that companies that did a great job with their employees and were actually able to promote how happy their employees were and what a great place this was to work. That became a tremendous brand, didn’t it?

Brian Gottlieb (18:56): Yeah, that’s right. That’s right. Because word does get around, doesn’t it? Word does get around. It’s interesting. When I sold one of my businesses in 2022, and again, it was coming off of there’s no labor shortage. We received 9,000 job applications the last year I had my business 9,000 applications that people that wanted to come. And by the way, this isn’t Wisconsin where there are more cows than people, just to be clear. So that’s a lot of applications, but people want be part of something really cool. And again, because really when you think about even recruitment is marketing as well. It’s all marketing, isn’t it?

John Jantsch (19:34): Yeah. A lot of people just think it’s lead generation or something. It’s like you run an ad and people show up, and it’s really, if we’re talking about all the things being true, people want to work a place with purpose. I guarantee you some percentage of a performers that you want, they’re looking for that first.

Brian Gottlieb (19:52): That’s right. And then if an organization can also create upward mobility, because as long as I’ve been in this industry, there’s been a labor shortage, and so let’s not even worry about that. Let’s just be a training organization where we can take people right out of high school that didn’t want to go to college, and let’s teach them a skill where they can do quite well and have a wonderful life with great benefits and raise a family, and all those things that are really cool in life. But you have to believe in people to do that,

John Jantsch (20:21): Get good at their craft. Did you start apprentice programs? Was that part of your

Brian Gottlieb (20:25): We did, yeah. We were able to bring anybody in and just if they were willing, if they had the right mindset, if they were hungry and trainable and all those sort of things, yeah, we can put ’em on a path of success and didn’t mean just because we hired them for this role, that’s where they ended up. Sometimes we move ’em into another role inside of the business. Again, it really does come down to just taking a moment and trying to find the best fit for somebody and not just kicking ’em to the curb in the role they’re in. It’s not working out.

John Jantsch (20:51): Yeah. Awesome. Well, Brian, I appreciate you taking a few moments to stop by the Duct Tape Marketing Podcast. You want to tell people where they might connect with you and find more about Beyond the Hammer?

Brian Gottlieb (21:02): Yeah. You can always connect with me on my website, which is brian gottlieb.com and beyond. The Hammers available on Amazon, the audio version, Kindle, and of course the hardcover book. It’s a great read. I think you really enjoyed it. It’s a fun story. It’s a parable, and it’s also actionable, so you can plug it into your business very quickly.

John Jantsch (21:20): Awesome. Well, again, I appreciate you stopping by, and hopefully we’ll run into you one of these days out there on the road.

Testimonial (21:36): I was like this. Found it. I found it. This is what I’ve been looking for. I can honestly say has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made.

John Jantsch (21:52): What you just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit dtm.world/scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM World slash Scale.

Why AI Continues to Suck at Original Content?

Why AI Continues to Suck at Original Content? written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with John Jantsch

In this episode of The Duct Tape Marketing Podcast, I talk about the elusive: Content. What it is, What it’s been, and where it’s going. In other words, Air, King, and now AI-generated?

I refer to content not as a tactic but as the voice of strategy. But how can AI be used effectively in content creation?

With the approach of producing ‘Pillar Content’ and breaking it into subtopics. The best use of many AI tools is to ‘produce good content in the easiest way possible,’ which is video—producing and repurposing it into various formats.

I also discuss the ‘Content Sprint Methodology,’ which involves using AI to generate additional assets based on the original content.

 

Key Takeaways

  • Content is essential for building trust and authority.
  • AI can be a valuable tool for content creation, but it is best used to generate ideas and enhance original content.
  • Producing pillar content and breaking it into subtopics is an effective strategy for creating valuable and relevant content.
  • Using AI to create videos and repurpose content can save time and effort in content production.
  • The content sprint methodology involves starting with original content and using AI to generate additional assets

 

Chapters

[00:00] The Importance of Content in Marketing
[00:57] Using AI Effectively in Content Creation
[02:23] AI’s Limitations in Producing Original Content
[04:34] Producing Pillar Content and Subtopics
[05:58] Repurposing Content with AI
[08:48] The Content Sprint Methodology

 

This episode was brought to you by:

 

ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

 

Wix

work in sync with your team all on one canvas, and reuse templates, widgets, and sections across sites. Create a client kit for seamless handovers and leverage best-in-class SEO defaults across all your Wix sites.

 

John Jantsch (00:00): I don’t believe that AI today is very good at producing original content. I use it all the time for ideation for like, what did I miss? Are there things that I should be saying here? Is there a research statistics to back this up? So I use it in that manner when I’m creating content, but here’s the way that we produce content. Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch, and you got it. Another solo show, just me and the microphone. So I want to talk about content today. I used to stand on stages and say, content is king. Remember that? And then everybody got the message and really, content became air, really have to have it to play. Today, pretty much every single industry, obviously there are a lot of industries that realize education, building trust, building authority, those are things that go hand in hand with marketing, period.

(00:54): But pretty much every industry today, regardless, local businesses, construction businesses, plumbers need to have content today. And I actually refer to content, not as a tactic, but as the voice of strategy. Alright, with all of that set up, I want to talk about something I’m seeing a lot of right now. AI is a tool that certainly offers a lot of promise around the idea of content. Some people actually say it can produce all your content for you. However, I believe that what I see a lot of people doing is using content or using AI in some of the various new tools in the wrong way. And I think actually backwards would be how I would refer to it. I was in a presentation the other day and somebody was demonstrating some AI tools, and really it’s pretty easy. I’m kind of geek out on the coolness of some of the things that some of the AI tools can do and will increasingly be able to do.

(01:50): Kind of creepy. Cool, I suppose in some regards. But one of the things that I see a lot of people doing is there are now these tools out there that you can train to produce video with your avatar. It’ll look like you, it will talk like you sort of. And so what people are doing is they’re now just writing content or having AI create content, create scripts, feed it into this tool, and all of a sudden, voila, I’ve got video produced by ai. But then they spend a ridiculous amount of time trying to get it to sound like them, to say the things that they say, to have the tone that they have, even to be able to pronounce words in their industry the right way. And I think that while, like I said, there’s some coolness factor to it to be able to, I mean, I’ve seen people actually go and produce entire podcast with a host and a guest.

(02:44): Neither one of them actually does it. They produce a script, they produce the answers to the questions, they produce the podcast. And while it is one of those things that’s like, look what we did because we can, I’m not sure it’s, look what we did because we should. And here’s the main reason. I don’t believe that AI today is very good at producing original content. I use it all the time for ideation for what did I miss? Are there things that I should be saying here? Is there a research statistics to back this up? So I use it in that manner when I’m creating content, but here is the way that we produce content, and this is really more of a how to, not necessarily the structure of the content, but I’ll spend a minute on that. We produce what we call pillar content. So we come up with once a quarter, three core themes, and these are going to be themes that we know are ideal client or clients are looking for information on.

(03:37): And if they find it, I guess is another way of saying if they find this content and read it, it’s going to be useful in helping them understand why they might want to work with us. That’s sort of the filter, I guess. It’s not just, well, here, we should write about this trendy thing or that trendy thing. It’s what’s our core pillar content. It’s my pleasure to welcome a new sponsor to the podcast. Our friends at ActiveCampaign. ActiveCampaign helps small teams power big businesses with the must have platform for intelligent marketing automation. We’ve been using ActiveCampaign for years here at Duct Tape Marketing to power our subscription forms, email newsletters, and sales funnel drip campaigns. ActiveCampaign is that rare platform that’s affordable, easy to use, and capable of handling even the most complex marketing automation needs. And they make it easy to switch. They provide every new customer with one-on-one personal training and free migrations from your current marketing automation or email marketing provider.

(04:36): You can try ActiveCampaign for free for 14 days and there’s no credit card required. Just visit activecampaign.com/duct tape. That’s right, duct Tape Marketing podcast listeners who sign up via that link. We’ll also receive 15% off an annual plan. That’s activecampaign.com/duct tape. Now, this offer is limited to new active campaign customers only. So what are you waiting for? Fuel your growth, boost revenue, and save precious time by upgrading to ActiveCampaign today. Hey, digital marketers, this one’s for you. I’ve got 30 seconds to tell you about Wix Studio, the web platform for agencies and enterprises. So here are a few things that you can do in 30 seconds or less when you manage projects on Wix Studio. Work in sync with your team all on one canvas, reuse templates, widgets and sections across sites. Create a client kit for seamless handovers and leverage best in class SEO defaults across all your Wix sites.

(05:39): Alright, time’s up, but the list keeps going. Why don’t you step into Wix studio to see more? Now we’ll take that core pillar content and we’ll break it down into subtopics. And so for example, once we determine what that content is, some of the AI tools, the GPTs out there are really great, frankly at creating outlines. What are the subtopics that would go under this? I mean, you put in any industry and it’s pretty good at actually saying, here are the important things to know about any industry. So we actually do this same thing with clients. And if you’re out there thinking, how am I going to produce all this? Or you’re an agency that says, how can I produce all this for my clients? This is an exact approach that we teach or in some cases just do for our clients that are trying to build brand and build authority.

(06:27): So at the end of this, if you would like to know more about how we might be able to do that for you, it’s just john@ducttapemarketing.com is where I always tell people, just write to me and we’ll see what we can put together for you. But after we produce that topic list, then here is how we employ ai. I actually create videos just like if you’re watching this on YouTube, just like this one. I just stand in front of a microphone and I riff on the topic for five, 10 minutes. And when we have clients, we actually just interview them and let them riff for five or 10 minutes on the topic and we can coach them that way and get great video. But here’s what we get from that. First off, we generally speaking, get good content well, or at least it’s original content.

(07:12): It is from my thinking, it is from my point of view, it is the jargon that I use, the terminology or citing our own IP is going to show up in that video. So that’s a great starting point, but it also is an incredible way to train then an AI tool on how I speak, how I pause, how often I say there’s so many things that can be gained really just by having that original video on top of, as I said, the real starting point there is that we have good high quality original content. So I might actually just pick out one day and spend 60, 90 minutes and record 10 of these videos, which will then give my team enough ammo, frankly, to produce all the social posts, email newsletters, original videos, of course snippets. From that video. We employ all those tools to actually repurpose the content.

(08:07): And I think frankly, right now, today in what are we, almost in September of 2024, that is the best use of many of the AI tools is to produce good original content in the easiest way possible, which to me is video a lot easier than banging out a thousand words. I can talk all day long, A lot of the folks that we work with that remodeling contractor, getting them to write anything would be next to impossible, but getting them to talk for an hour about what they believe, what their process is, how to get the best out of this, new trends in appliances. I mean, they can talk for days on these. So it allows us to really capture a ton of original content and then we turn it into everything, including blog posts, of course, snippets of video I already mentioned LinkedIn posts, Facebook posts, X posts, Instagram reels.

(09:03): There’s just so many things that we can produce when we start with this video first. But then we can also take some of those videos and stack them. And now we’ve got, we can actually use the AI to say, create a course, take these 10 videos and create a course out of them. Obviously we had some thought into what the titles were and the topic and the through line of the 10 videos, but it can actually produce a complete course outline, complete with questions, complete with quizzes, complete with checklists. And so we can create lead capture devices out of that. So we’ll take a checklist or two, we’ll take a tool or two, and we will actually put it into the GPT and say, here, fill this out, complete this. Give me examples, samples. So we have something we call the marketing snapshot, which is our version of a marketing plan, kind of all on one page.

(09:54): Well, I can upload that tool that we’ve created and ask the GPT to fill it in for X industry, in fact, for 10 different industries. And all of a sudden now we’ve got samples that people can relate to and really maybe more thoroughly understand. So if you start my whole point, if you start with this original content in your voice or in your client’s voice, you can then work backwards tremendously producing all kinds of iterations of that good original content that’s in your voice, in your point of view, in your tone, using your industry jargon. So instead of thinking, how can I create these avatars to talk like me, talk like you, and use the transcript of that, which pretty much every one of these tools now produces right off the bat, use the transcript of that. Then to go out and produce all kinds of other assets.

(10:49): We call this the content sprint methodology. It’s something, as I said that we do for ourself, but we also do it for pretty much all of our clients, either inside of a full engagement or as a standalone. We’d be happy to do it for you as well. So that’s it for today. Use AI the right way. Use it for good. Hopefully we’re running into you one of these days out there on the road. Don’t forget, we love those reviews as well. If you’ve got any questions, comments, feedback, john@ducttapemarketing.com. That’s DU CT A PE marketing.com. All right, take care.

Testimonial (11:33): I was like this. I found it. I found it. This is what I’ve been looking for. I can honestly say it has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients, it’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made. What

John Jantsch (11:50): You just heard was a testimonial from a recent graduate, the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM world slash scale to book your free advisory. Call and learn more. It’s time to transform your approach. Book your call today, DTM World slash Scale.

 

How to Master Product Launches: Strategies That Stand the Test of Time

How to Master Product Launches: Strategies That Stand the Test of Time written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with Jeff Walker

In this episode of the Duct Tape Marketing Podcast, I interviewed Jeff Walker, a renowned expert in product launches with over 30 years of experience in the industry. Jeff Walker is best known for their groundbreaking strategies that have contributed to multiple successful launches, totaling over $1 billion in revenue. His deep understanding of market psychology and product positioning has made them a go-to authority for entrepreneurs and businesses looking to achieve lasting success.

In this episode, He explains why his much-anticipated revision of his book: Launch needed a revision in the first place and what makes a product launch truly successful, from the initial idea to post-launch strategies. We discuss the importance of timing, customer engagement, and the psychological triggers that can make or break a product’s entry into the market. Whether you’re a salesperson, a coach, launching a new product or looking to revamp your current strategy, this episode is packed with real world advice sure to stand the test of time.

Key Takeaways

With advice relevant 30 years ago and will continue to 300 years from now, Jeff Walker shares critical insights into mastering product launches, emphasizing the importance of understanding your market, perfect timing, and pre-launch audience engagement. He discusses leveraging psychological triggers like scarcity and social proof (here’s to you Apple, even with the planned obsolesce of their products they still manage record-breaking lines with every NPL) to drive sales and highlight the necessity of a solid post-launch strategy to sustain success and build customer loyalty.

Questions I ask Jeff Walker:

[01:15] What is PLM?

[01:43] What  updates are included in the revised edition of your book that would be particularly valuable for someone who purchased the original version?

[03:56] How do you address concerns from people who might think that following a formula means there’s only one way to achieve success?

[06:51] Would you say your success with this method developed organically or was it a case of trial and error?

[12:18] What are the most common mistakes you see people make when they try to follow your method, and where do they typically go wrong?

[14:58] For someone who’s just starting out and doesn’t have a product yet, what would you advise?

[21:39] Where can listeners find more information about your work?

 

Check out the new launch of PFL and Join his Launch Masterclass to discover the 3 simple steps to launch an online course, membership class or coaching program

 

More About Jeff Walker:

 

Like this show? Click on over and give us a review on iTunes, please!

Connect with John Jantsch on LinkedIn

 

This episode of The Duct Tape Marketing Podcast is brought to you by ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

 

Jeff Walker (00:00): The reason it’s lasted so long is because it’s based on strategies as opposed to one hit wonders as opposed to short-term tactics. It’s rooted in psychology and the way our brains work. And so the formula has been working for coming up on 30 years now, and it’s going to keep on working for another 30, I think for 300.

John Jantsch (00:23): Hello, and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch. My guest today is Jeff Walker. He’s the creator of the Product Launch Formula, revolutionized online marketing with a step-by-step process that generated over a billion dollars in launches since pioneering the concept in 1996. His formula has become the gold standard for online entrepreneurial training. He lives in my favorite state of Colorado, way down in the corner of Durango, enjoys Outdoor Adventures and Family. We’re going to talk a little bit about his updated and revised version of his bestselling book Launch, how to Sell Almost Anything Online, build a Business You Love and Live the Life of You. So Jeff, the show.

Jeff Walker (01:07): Thanks, Jen. I’m really happy to be here.

John Jantsch (01:09): Been a long time since you’ve been on the show, but fortunately you and I got to bump into each other recently in Nashville, which is greatly connecting. So for the two people that don’t know, what is PLF?

Jeff Walker (01:21): PLF stands for Product Launch Formula and basically is a process and a system to launch your products online, whether you have an online course, a membership site, coaching program, any type of training like that, it’s also used for art and for books and even for widgets.

John Jantsch (01:43): Awesome. So I always like to ask in a revised book, updated book, you’re in the online space, a lot of stuff changes every day in there. What would you say to somebody who bought the original version? Like what’s new?

Jeff Walker (01:57): Yeah, what really changed? So Product Launch Formula is the reason it’s lasted so long. So as you mentioned earlier, I started developing it in the mid nineties. That was when I did my first launch, was 1997 and developed it, started publishing this as a course in 2005, came out with the first edition of the book in 2014. The reason it’s lasted so long is because it’s based on strategies as opposed to one hit wonders as opposed to short-term tactics. It’s rooted in psychology and the way our brains work. And so the formula has been working for coming up on 30 years now, and it’s going to keep on working for another 30, I think for 300 years. But the online world does change quite a bit. So with that in mind, I revised it and really what I went into deep in the book is social media, which really wasn’t, there was no social media when I started out, and even in 2014, it was definitely a thing, but it wasn’t a thing at the level it is now.

(03:04): And also paid traffic, the ability to, there’s just great ad platforms that there weren’t back in the day. So those are a couple of the really big things. And then one thing that’s really changed is the timing of the sequences. So Product Line Formula is built on sequences, well, it’s built on stories, sequences and mental triggers and the sequences. It used to be there was this pre-launch sequence and that was the star of the show. And then you would actually open up and start taking orders, and that was almost an afterthought, that portion what we call the open cart or the open cart sequence. And that has become the star of the show now. So a lot of the emphasis has shifted from, yes, I’d say it used to be the pre-launch with the open cart being an afterthought, and now the open cart is a full on major sequence.

John Jantsch (03:56): You mentioned when you were describing what it was that you have a lot of pretty big variety of use cases, right? Oh yeah. But somebody might read the word formula and think, oh, there’s one way to do it mean, how do you address that idea?

Jeff Walker (04:12): Yeah, I mean, it’s more, I think that marketing is often, there’s a science and then there’s the art. And within product launch formula, there’s certainly room for the art. And as formulaic as I try to make it because I’m teaching people to do it and the people I’m teaching, some of them are starting from absolute ground zero, have never sold anyone anything, have never done any marketing whatsoever. So I have to assume that’s where we’re starting from. But as you get more experience, there’s all kinds of room for creativity within the formula, the whole idea, it’s about delivering value before the sale. It’s about delivering. One of the ways I like to think about is the value. It’s value before reveal and before you reveal the full extent of what your offer is, you’ve already built great value for people. And then there’s this idea of desire before availability where you’re building up this desire before someone can get it. And if you look at the way, I mean, this is used by big companies, like Apple does this so well, yeah, I mean Hollywood does it. People

John Jantsch (05:24): Waiting around the block for the new thing, right?

Jeff Walker (05:27): Exactly. And that is possible, even if you don’t have a budget like Apple has or the Hollywood studios have or the big gaming companies have, we can absolutely do that by putting together a pre-launch where you walk people through a series of you define a problem that they have, whatever market or niche you’re in, whether it’s quitting smoking or learning meditation or having a better love relationship or building your business or hitting a better tennis serve. It doesn’t matter the people they’re there, they’re in your world because they want something different in their life. And our job is to either still deliver it, is basically to take away pain or deliver pleasure to people, give them more pleasure, take away pain from them. And so they have a series of problems. And if you can solve those problems through your pre-launch and not like the big overarching problem, but if you can start to thin slice some of the things that are keeping them up at night, and you can define those problems really well and then start to solve some of them in the pre-launch, then that just, it builds trust. It builds relationship, but it also builds anticipation that they’re going to want to get whatever the thing is.

John Jantsch (06:52): Would you say that this sort of came about organically, like 1995, I was on 9, 9 2. We were all trying to figure out, Hey, how can I make money on this thing? So you created something and worked. People started asking you, Hey, Jeff, how’d you do that? Would just kind it. Yeah,

Jeff Walker (07:10): That’s exactly it mean. So when I started, I started publishing a newsletter in 1996, and it was about the stock market. And that’s something I had some knowledge on, and I don’t even think I ever told you this, but I started that newsletter, a free newsletter back when there very many free newsletters there. No,

John Jantsch (07:27): We called ’em Easy or something like that, right?

Jeff Walker (07:30): And there weren’t very many, and I think there was probably about zero free ones about the stock market back then. There might’ve been couple. And I actually started publishing that because I needed some to put something on my resume to help me get into grad school. So it’s just by these ridiculous, ridiculous path people started subscribing to that newsletter. And then after I had about six or eight or 900 people, and I’m like, oh, maybe they’ll buy something from me. But at that point, there was no teaching or training about marketing online in 1996. It just didn’t exist. And I had no sales or marketing experience. And furthermore, I thought I had this feeling messed up feeling about marketing and messed up feeling about sales that if I asked them for money for something that they would hate me. And so I decided to romance them, and I gave them a whole bunch of really high quality content, and that gradually led it to the sale. And that one seed of an idea has led all these years later, my students have done a billion dollars in sales. It’s just ridiculous.

John Jantsch (08:38): You mentioned the idea that there is a psychological strategy or psychological component, a lot of this, so you talk a lot about authority and scarcity. Reciprocity. So how do you bake that in a way that doesn’t seem manipulative, but also certainly does the job?

Jeff Walker (08:58): So there’s all these mental triggers, and the pre-launch gives you this amazing time to use those triggers and one of them authority you mentioned, and you absolutely have to lead with authority anytime you’re doing any type of marketing, even if you’re just doing content marketing, if you’re just getting people to try to pay attention to your message out in social, you have to establish some authority or else there’s just no reason for them to pay attention to you. So anytime, any presentation you give of any sort, anywhere, you have to tell people why they should pay attention to you. Now, there’s elegant ways to do this, and there’s clumsy ways to do it, like

John Jantsch (09:41): The picture in front of your jet.

Jeff Walker (09:43): Yeah, right, exactly. I think one of the best ways to do it is to deliver real value and to show up and know what you’re talking about, not have the intro that I just had on this podcast where I was stumbling over myself trying to describe what PLF was. But yeah, so I think authority is a big one you want to lead with, and reciprocity is a mental trigger where if you give something to someone, they want to give something back to you. And when you are giving true value in your pre-launch and it doesn’t cost anything, that’s not manipulative, you’re just giving value. But it does develop reciprocity. So yeah, I mean, I think with a lot, any type of marketing, there’s ways to go to the dark side, and I hope my clients aren’t doing that because I think the reality is if you just show up and you deliver real value, you’ve automatically built up authority and you’ve built up reciprocity and you’ve built up likability. And so yeah, those triggers are built right in all the way through the process.

John Jantsch (10:46): Where I see people, what I was talking about, I’m sure none of your students do this, but we’ve all seen the oh sale ends at midnight every day for the next six months. The sale ends at midnight. And so it’s just manipulative, it’s, it’s not honest and authenticated. It’s my pleasure to welcome a new sponsor to the podcast. Our friends at ActiveCampaign, ActiveCampaign helps small teams power big businesses with the must have platform for intelligent marketing automation. We’ve been using ActiveCampaign for years here at Duct Tape Marketing to power our subscription forms, email newsletters, and sales funnel drip campaigns. ActiveCampaign is that rare platform that’s affordable, easy to use, and capable of handling even the most complex marketing automation needs. And they make it easy to switch. They provide every new customer with one-on-one personal training and free migrations from your current marketing automation or email marketing provider.

(11:46): You can try ActiveCampaign for free for 14 days and there’s no credit card required. Just visit activecampaign.com/duct tape. That’s right. Duct Tape Marketing podcast. Listeners who sign up via that link will also receive 15% off an annual plan. That’s activecampaign.com/duct tape. Now, this offer is limited to new active campaign customers only. So what are you waiting for? Fuel your growth, boost revenue, and save precious time by upgrading to active campaign today. So tell me this, you have had lots of success, but I’m sure that you have heard from a person or two, this just doesn’t work, Jeff, for me, what are the common mistakes that people make when they invest in your program? Start to try to follow it. Where do you see ’em fall down if you do?

Jeff Walker (12:36): I think there’s a couple ways, and one of ’em is the people that are just amazing salespeople. And the incredible salespeople, often they have a sales message or a pitch that they’re used to giving. And as an aside, I don’t like the word pitch. I always use the word offer. So I’m using that intentionally here where these folks have a pitch and what they do is they’re like, oh, pitch. And I’d see it in your formula. You usually put out three pieces of pre-launch content. Well, I’ll take my pitch and I’ll just cut it into three pieces. I’ll take my webinar and I’ll make it three 20 minute segments instead of a 60 minute segment that’s not following the formula, that’s not delivering value. So I think the people that are just really good at selling, and I don’t consider myself one, I’ve gotten, I’m really good at marketing. I’ve gotten pretty darn good at selling, but it’s been a long journey for me to get there. But the people that are just natural salespeople, the one that can sell sand in a desert, they get into trouble because

John Jantsch (13:39): They don’t want to waste the time on all that other shelf. Right,

Jeff Walker (13:41): Exactly. Maybe they don’t need to. I don’t know. Maybe they don’t. So that’s one. And the other one is where people, they just get enamored with is, oh, deliver value before the sale. I love that. And then they just teach and teach and teach. And they’re like, if I teach, you say, I’ll put out three pieces of pre-launch content. I know I’ll do three hour trainings. And so they don’t actually follow the formula because the reality is you can easily over teach. And when you over teach what you’re asking people to invest a lot of time with you before they’ve really truly chosen to invest with you monetarily, but also emotionally and intellectually, intellectually. So if you’re just like, I’ll tell you what, for free, just give me your email and I’m going to give you a Harvard MBA. It’s going to take you about three years to get through it, but that’s okay because it’s going to be great. And even if you delivered that, no one when they give you an email is prepared to spend three years getting an MBA and the same. They’re not going to go through three or four hours of training with you until you’ve moved them

John Jantsch (14:51): Or establish some value of that. It’s like, I’m not going to invest the time because I don’t know if it’s any good. Right.

Jeff Walker (14:57): Exactly.

John Jantsch (14:58): Exactly. So alright. What do you tell the person that says, well, okay, I don’t any, I don’t even have a course. Can I make this work or do I need to go to work on sort of the preprint stuff?

Jeff Walker (15:10): Yeah, I, so I think first of all, you need to start anyone who’s building an online business, anyone who’s building any business, you need to start to build an audience. I would start that immediately. And the great thing is you can start that on social these days, but then you want to move people off of social onto an email list. So you want to start to build that audience. And as you build that audience, I consider myself a publisher. It’s like when I’m on the ski lift and someone asks me what, I’m a publisher, that’s what I do. I put out, well, these days often it’s video, but I put words and thoughts and video out into the world, and I think we all need to do that. And the great thing is when you’re just starting out and you don’t have an audience yet, you don’t have to be amazing.

(15:59): Like John, you and I, were at this point now where if we’re going to publish something, there’s an expectation that we’re going to be pretty good because we’re experts in our field. We’re perceived as experts in our field. But when you’re first starting out, no one’s paying attention. You have time to practice and get your chops down and find your voice and find the hooks in your message and find what it is you’re going to bring to the world. I think that almost every one of us, I think probably every one of us has something we can bring to the world that we can teach something that people, what do people come to you to ask you about? What seems like incredibly easy to you but seems hard to other people and some of the niches that people have had success in? John, there was two guys. They had a six figure launch, so a hundred thousand dollars launch teaching people how to scream. And I was like, they wrote in, after they went to the court, they did this launch, they wrote in, they said, yeah, we thought screaming. And I’m like, okay, we got to get these guys on a call and find out what this is. And it turns out that it’s for, I’m like, it’s for screaming for heavy metal, for heavy metal, vocal, how

John Jantsch (17:12): To scream. I was going some sort of mental health release or something, but

Jeff Walker (17:16): Turns out there’s a technique for it, and they knew how to do it, so they taught it. You only had someone teaching sword fighting. It goes on and on, the different types of things. So I think pretty much all of us have something we can bring to the world. I am a big fan of this, what I call a wisdom business, where you’re, whatever you spent time learning how to do, you could show other people how to do it.

John Jantsch (17:41): And what’s interesting too, I think a lot of people underestimate this idea that everybody’s on the continuum of their journey somewhat. So people that have read all the books and gone to all the courses, maybe they’re farther along in their journey, but there’s definitely people back here starting their journey that you can teach something to. I think that’s a lot of times when people, they read your book and they think, I got to be like Jeff, but Jeff serves a certain audience. There’s a whole lot of people out there that your stuff, they’re not ready for your stuff.

Jeff Walker (18:10): And the reality is there’s more people at the beginning. There’s more beginners in any market because everyone starts as a beginner. If you’re teaching guitar, there’s some people that are masters, Eric Clapton, the masters, but there’s a lot more people that just bought the guitar because everyone starts, Eric Clapton bought a guitar one day. Everyone starts and only a few people get to the expertise. So it’s like a pyramid. There’s just more beginners in any field.

John Jantsch (18:41): Yeah, I hesitate. We’re violent at the end of our time. I hesitate at opening up new still, but how has AI impacted what you do and what marketers do in your view?

Jeff Walker (18:51): Well, obviously we’re still in the second inning in the AI revolution, I think. So we don’t know where it’s going to go. I just have no idea right now where it’s at is, I think it’s great for ideation.

(19:10): It is absolutely amazing. I’ve spent my life over the last 30 years becoming a very good copyright. I’m really good at putting words together that convince people to move forward with me. And those words might be delivered via an email, via a blog post, via social media or a script that I say on video. And it’s something I do I’m great at, I’m proud of, but it’s not necessarily an easy thing to do. I’ve spent three decades getting better at it, but right now you can use AI and cut out the first 80% of that. So I think it makes it a lot.

John Jantsch (19:50): You can tell it to write like Gary Halbert

Jeff Walker (19:54): And it won’t write like Gary Halbert. In fact, John, just in the last week I was going back and reading the old Gary Halbert letters. For those of you don’t know, Gary Halbert’s, one of the legends of copywriting. He’s passed away quite a number of years ago now, but one of the absolute legends. But I think AI can get you the first 80% there. AI can help you design a course. AI can help you brainstorm hooks, AI can help you brainstorm lead magnets. It’s just it’s

John Jantsch (20:23): Pain points,

Jeff Walker (20:25): Right? Get to know your avatar. Yeah,

John Jantsch (20:28): I’ve signed it really good at, it’s terrible at creating original content in my view right now, but it’s pretty good at repackaging your good original content. And so for me, for a lot of marketers, you start with something really good. And now because we want to maybe or make sense for us, participate in a lot of different platforms, you can actually take that original content and make it through the podcast. But again, you can’t tell it, write me a 700 word blog post on X or it’ll be pretty garbage.

Jeff Walker (20:58): But something a lot of people struggle with is avatar research avatars, your ideal client. And because a lot of us are more advanced, if you are the guitarist who’s this amazing guitarist now, and you’re trying to remember what it was like to be a newbie because you want to teach some newbies, it’s hard to remember what it’s like. But you can go to AI and ask AI what it’s like to be a newbie and what the concerns are and what the hopes and dreams and fears are. And it’s really good at that.

John Jantsch (21:26): And I think the hopes and courage and dreams, when I picked up the guitar, had more to do with Patty McCormick than learning how to play the guitar. A lot of junior high guitarists. Right,

Jeff Walker (21:36): Right.

John Jantsch (21:37): Well, Jeff, it was awesome catching up with you. Where can people find more about your work and certainly pick up a copy of the updated revised launch?

Jeff Walker (21:46): The book is called Launch. It’s available anywhere books are sold, including Amazon, and there’s all the different types of versions there. Then you can find more about the product launch formula at product launch com. I’ve always got all kinds of great free resources there for you to have.

John Jantsch (22:05): Yeah, and depending upon when you’re listening to this, I know you have a new launch of PFL coming up, and we will let people know where that is. But again, following you listening to this, you’ve can find the latest and greatest.

Jeff Walker (22:18): John, this is great. Thank you.

John Jantsch (22:20): My pleasure. Hopefully we’ll run into one of these days out there on Highway 50.

Testimonial (22:35): I was like, found it. I found it. This is what I’ve been looking for, I can honestly say has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made.

John Jantsch (22:51): What you just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM.world/scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM.World/Scale.

The Power of Hospitality: Secrets to Successful Retreats

The Power of Hospitality: Secrets to Successful Retreats written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with AJ Wilcox

In this episode of the Duct Tape Marketing Podcast, I interviewed Kevin Rains, an expert in the hospitality industry and founder of Dappled Light Adventures, a company specializing in creating unforgettable retreat experiences. Kevin Rains is renowned for his innovative approach to hospitality and ability to transform ordinary spaces into extraordinary destinations. His background in community building and family-man personality offer a comprehensive guide to building and managing successful business retreats.

Kevin Rains’ love for nature and extensive experience with hospitality and retreat management provides listeners with practical tips and advanced techniques to enhance their retreat offerings. He explains the importance of understanding guest needs, the role of personalized experiences, and creating a welcoming environment that encourages relaxation and connection. This episode is a must-listen for anyone looking to elevate their business retreats and achieve outstanding results.

Key Takeaways

We’ve all considered a business retreat to rejuvenate our teams, but have we considered what makes them truly successful?

Kevin Rains and I discuss the rising popularity of business retreats and their unique advantage in fostering team cohesion and innovation. He stresses the importance of crafting personalized experiences and creating an environment that feels like a home away from home.

Kevin Rains shares strategies for effective retreat planning and execution, emphasizing the need for clear goals and robust logistical support. He states that attention to detail, understanding guest preferences, and creating memorable moments are essential for driving satisfaction and repeat visits. In this episode, you’ll learn how to design impactful retreats, why personalization matters, and why all these strategies are crucial for long-term success in the hospitality industry.

 

Questions I ask Kevin Rains:

[01:20] Could you share your background, especially your successful journey with your auto body business, and what led you to where you are today?

[03:06] What inspired you to start this venture? Was it purely a business opportunity, or was there a deeper drive, perhaps influenced by your ministry?

[04:26] What challenges did you encounter in turning a private residence into a retreat center? Were there issues with zoning, neighbors, or large-scale construction?

[06:29] You mentioned focusing on short-term rentals like Airbnb. Now, you’re shifting towards hosting retreats. What are you learning about what you need to offer for such events?

[10:59] How do you plan to impart the same connection with the land to your guests as you have? Is it challenging to create that ambiance for temporary visitors?

[12:47] What differences have you noticed between hosting business retreats and family reunions? Are there unique challenges or advantages?

[16:29] What are the logistics for hosting events? How many people can attend, and do you offer catering services?

[18:47] Do you have any advice for families or individuals considering starting their retreat center?

[19:55] For those unfamiliar with the area, Can you describe the location of your retreat center in central Kentucky?

[21:09] Where can people find more information about your facility, Dappled Light?

 

 

More About Kevin Rains:

 

Like this show? Click on over and give us a review on iTunes, please!

Connect with John Jantsch on LinkedIn

 

This episode of The Duct Tape Marketing Podcast is brought to you by ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

 

Kevin Rains (00:00): Women tend to to talk to each other face to face. Men like to be facing the same direction. It feels safer for them to share more openly. So having these two seater UTVs going off road and we’re driving together and there’s an adventure element, once again, it allows…

John Jantsch (00:20): Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch. My guest today is Kevin Rains. He’s a devoted husband, father of three and grandfather who’s always embraced the joys of the outdoors. As a former body shop owner, entrepreneur, marketer, off-road writer and fisherman, some of my favorite things there, Kevin has prioritized family nature throughout his life. In 2021, he and his family transformed their 50 acre property in zoo Kentucky into a haven for outdoor adventures and simple living where they’ve created lasting memories for over 15 years. So Kevin, welcome to the show.

Kevin Rains (00:57): Thank you. Honored to be on excited.

John Jantsch (00:59): You and I have known each other for some time, like everybody knows each other these days right on the internet, but I’ve followed your journey, entrepreneurial journey, especially in the autobody days. So I thought this is a little different take on a show, but I frankly, I’ll just be honest, I had a personal interest in learning about it, so why not record it? So maybe give us a little background because I know you had a very successful autobody business that I believe you sold, and so I’d love to hear a little bit about your journey as an entrepreneur and then obviously where we are, where you got to today.

Kevin Rains (01:34): Yeah, so I started my career in the ministry actually in my twenties and early thirties. Pivoted into the family business when I was 33 and felt like I had a bit of a knack for that and started to grow in large part thanks to your books and learning. Coming out of Bible college, they did not teach marketing, so I had to learn it from John Jansch, and I learned step by step course by course, book by book, pieced it together. Eventually grew to five locations. So we went from doing about $250,000 a year in revenue to doing over $12 million a year in revenue and private equity. Came knocking on my door, wasn’t interested. They told me their number. I was interested, and that shifted quickly. So I thought I was going to retire. I was 50 51 at the time and thought, this is it. I’m going to kind of cash you out and do a lot of fishing.

(02:25): And quickly realized that I was not made for retirement. So my kids came to me and said, Hey, let’s do something different. Let’s do something else. I said, what do you want to do? They said, why don’t we start by developing these 50 acres we’ve owned for at that point, 18 years in zoo, Kentucky, and here we are, we’re building it out. We have 10, sorry, 11 rentable structures on the property. Now after a couple years, we’ve been doing a short-term rental business, and we’re pivoting now into more of a retreat business. So it’s been 80% short-term rental, 20% retreats. We’re just going to try to flip the script on that and go 80% retreats, 20% short-term rental starting in 2025.

John Jantsch (03:05): Well, first off, maybe what was your inspiration? I mean, what made you think, other than this is a what I want to do next or a business opportunity, was there any sort of driving, I’m envisioning the ministry playing a part, maybe even in just the retreats. I mean, was there any drive towards we want to have this place where people can gather?

Kevin Rains (03:24): Yeah, definitely. It’s not connected to any religious tradition. Our retreat center is not, but as a pastor, I would take retreats. I’d go to different, I went to monastery for a week at a time, at least twice a year, and that would fill me up and fill the pipeline with ideas and things that I could teach on to the church and all that. And it’s just always been a part of my personal formation as a person and how I’ve lived my life. And one of the things we talked about as a family is we have a high value for hospitality. So we said, what can we do to open this property up? We had really protected it for almost 20 years, 18 years, just for our family. And then we thought through the gift of hospitality, what would it look like to really open this up, use some of the resources we had gotten from the sale of our businesses and put those to work in a setting where we could invite more people onto this property. So I think that was the inspiration was kind of like my early formation going on retreats and then our family deciding together, we want to use our gift of hospitality and open it wide up.

John Jantsch (04:26): So what challenges did you run into turning a private resident, zoning, crazy neighbors, whatever it might be, and just even construction, large scale construction. What did you learn? What were the challenges? How hard was it?

Kevin Rains (04:43): So when we started this in 21, we didn’t have any utilities on the property. So my family would go there. We would basically be, at first, we would just literally camp and over time we’d get a trailer, but we didn’t have any running water, so we’d have to carry our water in. There was no place to really prepare foods. We had to learn to cook over the open fire. We eventually built a yurts on a cliff edge on one side of the property that became the foundation for a cabin that we built. It was kind of an off-grid cabin for all that time. So the earliest challenges were actually not zoning, believe it or not, that part of the world, central Kentucky, they don’t care what you build, as long as it’s like, honestly, I can’t think of it. We went to the building department and said, please give us any warning or restriction because we want to do this, right? They said, honey, it’s your property. You all do what you want. And we’re like, okay, well, we did. And cooling all those utilities on was probably the biggest challenging. So we wanted to bury the utilities. So we have, there’s no electrical lines running on the property, so everything’s in the ground, the water, the electric internet, everything is run under our driveway now. And then we branch out from there to the various structures.

John Jantsch (05:52): And then most of the buildings then outbuildings were built from scratch. Well, then

Kevin Rains (05:58): That’s correct. Yeah. We had a contractor come in and they started drilling posts in the ground and we built decks and then we put tents on top of those. Now we’re building a 2000 square foot, we call it the rookery, which is a place where birds gather because all of our tents are named after birds because they’re elevated in the canopy, so they’re kind of in the tree, like tree house type places. So we’re calling it the rookery, and it’s going to be a couple thousand square feet with a 2000 square foot deck. So great place for retreats to gather in that space.

John Jantsch (06:29): So I think we were chatting a little bit before we jumped on the air, and you said that to date, it’s been a lot of short-term rental, Airbnb kind of thing, but you are now really trying to move towards people having retreats, maybe coming in, reserving the whole facility. Are you just kind of learning what you have to offer for that kind of thing, ways to, whether they’re activities or adventures that you need to add? What’s that going to look like, you think?

Kevin Rains (06:55): Yeah, great question. So the area is really well known and it balloons in population on the weekends and in certain seasons. So there’s an underground kayaking area, there’s canoeing, there’s rock climbing all around us. There’s guided hikes and climbing. So there’s all kinds of, it is an outdoor enthusiast dream because of the way the cliffs are constructed. And we have great hiking on our property and we have access to Daniel Boone National Forest coming off of our property. So we’ve hiked, I think we hiked seven miles one direction with no trail in the national forest, just to see how far we could get and if we ran into anything, saw nothing. So we have this beautiful playground and we’re just introducing people to it. There’s a 200 foot waterfall that cascades off of our property into the national forest. People can hike down there. So we’re trying to think of some things we could do maybe eventually like a ropes course or some other things on property. But the area is so rich with opportunity. We feel like our main role is really to host people and create a very comfortable place for them to be as a base of operations for their own adventures.

John Jantsch (08:04): I’m curious, how are you running this as a family business then? The kids are all, everybody’s involved. So I’m curious, how has moving to hospitality business in a way changed any impacted your family dynamic at all? Because obviously that’s different than going to work and working on the cars now we’re hosts. What has that done to the family dynamic? I’m curious.

Kevin Rains (08:25): It’s been interesting. So it was a chance for my kids to kind of elevate into, because at the time they were coming into my business, we were already three, four shops at that time, ended up with five. So they kind got slotted as customer service reps or helping me manage the part room or something kind of simple. My daughter helped me organize my office and create an operations manual for our office team at the time. She was 17, believe it or not. But I did put ’em into some roles. It may have been a little bit outside to give them a chance to spread their wings, but now it feels like they’re really kind of at the top of an organization that’s going to grow over time. So we’re starting fairly small. We’ve invested a few million dollars at this point. So it’s definitely starting to be built out.

(09:12): We’re not seeing a big return on that. So they’re having to think through how do we do marketing? How do we sell retreats? How do we handle HR for this size of organization? So they’re learning the resource constraints that I had early on as a business owner. I’m letting them experience that as we go. And the secret for me is like I don’t care if it turns money for the next couple years, but at some point it’s going to need to so I can be patient even though I watch them kind of freak out about trying to get the break even.

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(10:51): So what are you waiting for? Fuel your growth, boost revenue and save precious time by upgrading to active campaign today. I’m curious, you talked about a lot of people that really love outdoors experiences. It’s not just the doing, it’s actually the being in a relationship with land. I’m curious if bringing guests onto that, if that’s going to, are you going to be able to impart that same sort of feeling or ambiance, and I’m making some assumptions that you have for the land itself now that you’re bringing in guests that are going to be there very temporarily. How do you get them to experience that?

Kevin Rains (11:29): Yeah, that’s a great question. I would say that initially a lot of the retreats that we’re running are people that we know love and trust to use your language. So we’re being very selective about some of the early days of people that we do bring on to the property. They share many of our values. They understand how important this space is to our family. Now through the short-term rental, there’s been a lot of people on the property that we don’t really know,

(11:55): But it’s been an opportunity to get to know other people and to bring them into the fold. So I travel down as often as I can. My son travels down very regularly and we have an onsite property manager as well who welcomes people onto the property. So I think having eyes on the property is helping us feel a little level of comfort about, it’s just not come one come all. We have a gate at the front and we’re kind of making it a secure environment for people to feel safe and to have an experience that their family can enjoy. And we make it clear that this is really for families

John Jantsch (12:30): Just because a lot of my listeners expect me to talk about business and entrepreneurial ventures. Have you had business retreats? And if so, what have you learned from doing those? Because I’m sure they run a little differently. And again, I’ll stop there and just ask one question at a time. What have you learned from hosting some business retreats and how they kind of differ from say, the family reunion?

Kevin Rains (12:54): Yeah, great. It’s interesting. One of the things I found that I actually love is when you get men in particular around a fire, sometimes there’s an adult beverage and a cigar involved in that as well. But the fire, the adult beverage is cigar. The relaxed environment, it really tends to open people up, especially men who may not be as open with their feelings or how they’re really doing or peeling that onion or not trying to posture or position. So I’ve taken several retreats that led several retreats there with small business owners from my area who want to scale, who want to leave a legacy, who want to do what my family’s been able to do and enjoy that space with them and get them into an environment where they can start to open up. So I love getting around that fire. Sometimes there’s tears, there’s always laughter.

(13:42): It’s a place of transparency. Transparency. The other thing that we do along those lines is we have side-by-side, kind of those off-road vehicles. And I don’t know, I’d have to do a little more research on where this came from, but I’ve heard that women tend to talk to each other, face-to-face. Men like to be facing the same direction. It feels safer for them to share more openly. So having these two seater UTVs going off road and we’re driving together and there’s an adventure element, once again, it allows some of those walls to fall. So retreats for me are really about helping business owners lower their defenses and get real and honest about what’s really going on in their life and their business.

John Jantsch (14:27): So on that vein, have you seen a lot of times, I do a lot of events and we some struggle with how much downtime or playtime versus say, working on whatever it is. Ostensibly we came there to work on have you seen some mixes or best practices or even ways in which people have incorporated those two

Kevin Rains (14:51): Of the opinion? And it may not be the majority opinion that whatever needs to be talked about will get talked about. So I go very low on the curriculum side for my retreats, and I trust my own facilitation skills in that moment to kind of pull the group together to talk about what we need to talk about. Sometimes it is a business topic and I’m more than comfortable talking through those topics as well as family or personal challenges that they may be facing. So we’re not trying to pigeonhole people and say, come to a retreat, and you end up crying and sharing your heart and going through all the layers, and it’ll be like therapy. That’s not the point. It’s just the point is to let them be the curriculum so the content comes out of whatever they bring into the retreat versus me having a script or a pre-packaged. I love teaching, I love content, I love books. But I also think there’s, the wonderful thing about retreats is it’s kind of open-ended, and I can bring some of those things I’ve learned to bear on their real call ’em live animals, whatever live animals they come with, we wrestle with those

John Jantsch (15:59): Well, and even people that go to conferences constantly comment on, I heard some good things in the meeting rooms or in the keynote, but it was the three or four conversations I had at break that really made the difference. And you hear that all the time, and I do think there’s a real feeling by event organizers still like, let’s pack a whole bunch in. But sometimes you just bring people together around an idea and just see what happens.

Kevin Rains (16:23): That’s it. I think it could

John Jantsch (16:24): Feel scary, but yeah. So let’s go over the numbers. How many people could come to an event? Is it get catered? I mean, what are the logistics?

Kevin Rains (16:37): Yeah, so if you could imagine that the 10 rentable structures, each of the tents are set up very well appointed hotel rooms. We have large like queen size or even king size mattresses, Tempur-Pedic, wonderful pillows. They’re beautifully designed. They’re probably a few hundred square foot. I think they’re 310 square feet each. So it’s a big space of big room. So you could put one person. So when I do men’s retreats, one guy in each tent, so they have solitude. If we do a couple’s retreat, then it’s like obviously two per tent. So if it’s a couple’s retreat, easily 25 people. And then we work with a local barbecue joint. There’s a kind of a grass fed beef that does hamburgers and tacos. Also in our area, we partner with local restaurants to bring food on. The rookery that we’re building is going to have a nearly almost like commercial grade kitchen in it. And our dream is to bring chefs down for certain retreats so that there can be meals prepared on site that are healthy, beautiful, and delicious. So that’s the dream. But I’d say our retreats tend to be anywhere from five to six people all the way up to 25, even 30 once the rry is completed.

John Jantsch (17:56): And any plans for making it a hundred person place or is this kind of the intimate sort of scope that you want?

Kevin Rains (18:04): Yeah, so I have a partner in that area and we’ve bought up more property down there. So we have about 500 acres in that area, and we’re currently using seven acres. So yeah, the long-term answer is yes, we plan to go bigger, but we want to get really good at those five to 25 retreats before we start thinking about more conference level type stuff.

John Jantsch (18:31): So any advice that you would give now? I don’t know that there’s going to be a lot of people listening to say, I’m going to build a retreat center myself. But to majorly pivot, whole different industry, whole different skillset, whole different customer based, different vibe, everything. Is there any advice or something you’ve learned along the way to somebody, a family or an individual that was contemplating their next thing?

Kevin Rains (18:55): I would say that I’ve learned most of what I’ve gained over the last 20 years of being in business applies to what I’m doing now. So there’s not a huge disconnect. It’s still we want to do great customer service now we call them guests. Previously, I called them customers. But really it’s the same idea. We’re dealing with people that need to be cared for and given an effortless experience and done, they need to be communicated with in a way that’s meaningful and helpful to them. So a lot of those skills are highly transferable, I would say if somebody’s considering a big pivot to feel like you’re not starting over, you’re just taking what you’ve learned and you’re applying it in a different context. And for us, it’s like any fears that I had around, could we do this or not? Over the last two years have been completely set aside. Our confidence is very high that we can make this happen, drawing on the skills we’ve learned in our previous enterprises.

John Jantsch (19:55): So how would you describe where Z Kentucky is?

Kevin Rains (19:59): It is in central Kentucky, so it’s probably about an hour east of Lexington, so it’s not easy to get to. It’s a couple hours from Cincinnati, an hour from Lexington, a couple hours from Louisville. So some of those major metropolitan areas, like three hours from Nashville. So it’s not always easy to get to the payoff is the cliff edges. We could have bought property a lot closer, but to have these 200 foot soaring cliffs on one whole side of our property, you can’t get that within an hour of Cincinnati. So we feel very lucky to have what we have.

John Jantsch (20:34): Yeah, I spent some time, what’s the national park in Kentucky? Down in Southern. It’s a cave, wind cave or something like that. Right?

Kevin Rains (20:41): Mass

John Jantsch (20:42): Cave. Mass cave. There we go. So I’m envisioning some of that same limestone.

Kevin Rains (20:46): It’s a lot of limestone, some sandstone, Mitch, which makes it really good for climbers. I don’t know a lot about climbing. I’m not built for climbing. I’m more built for podcasts. But the climbers tell me the way the rock formed down there, it’s just ideal. So it’s a world-class. It shows up in almost every climbing magazine every month

John Jantsch (21:03): Somehow. Oh wow. Wow. Awesome. Well, Kevin, again, I appreciate you stopping by the Duct Tape Marketing podcast. Where would people connect with you or certainly find out about a facility, which I don’t even think we’ve mentioned. The name Dappled Light, is that right?

Kevin Rains (21:17): Yeah, that’s right. Dappledlightadventures.com. So dappledlightadventures.com, everything’s there. You could see our facilities, you could reach out. If you email us there, you’ll get to my son Isaac. But would love to have any dialogue with people who are interested either in retreats, talking about a business pivot or want to talk about the hospitality industry. Things that we’ve learned in our first two years. I’m an open book.

John Jantsch (21:40): Alright, awesome. Again, I appreciate you stopping by. Hopefully we’ll run into you soon. One of these days out there on the road.

Testimonial (21:55): I was like this. Found it. I found it. This is what I’ve been looking for, I can honestly say has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made.

John Jantsch (22:11): What you just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM.world/scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM.World/Scale.

Mastering LinkedIn Ads: Transforming Clicks into Clients

Mastering LinkedIn Ads: Transforming Clicks into Clients written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with AJ Wilcox

In this episode of the Duct Tape Marketing Podcast, I interviewed AJ Wilcox, a LinkedIn Ads expert and founder of B2Linked, a company specializing in LinkedIn Ads account management. Wilcox is renowned for his in-depth knowledge of LinkedIn’s advertising platform and his ability to optimize ad campaigns for maximum ROI. His insights provide a comprehensive guide to transforming clicks into clients through effective LinkedIn Ads strategies.

AJ Wilcox’s extensive experience with LinkedIn Ads offers listeners practical tips and advanced techniques to enhance their B2B marketing efforts. He explains the nuances of LinkedIn’s advertising tools, the importance of targeting the right audience, and how to create compelling ad content that resonates with professionals. This episode is a must-listen for marketers leveraging LinkedIn Ads to drive business growth and achieve substantial results.

Key Takeaways

I know we’ve all clicked on a Facebook ad or two before, but have we clicked on a LinkedIn ad? Though we see them every time.

AJ Wilcox and I discuss LinkedIn ads’ rising popularity and unique advantage in B2B marketing. He stresses the importance of optimizing ad spend and creating high-impact content. He shares strategies for effective targeting and measuring success, ensuring every dollar spent contributes to achieving marketing goals. He states clear messaging, strong visuals, and robust targeting options are essential for driving engagement and conversions.

In this episode, you’ll learn how to hack LinkedIn Ads, why Meta struggles to compete, and why all these strategies are essential for long-term agency growth.

 

Questions I ask AJ Wilcox:

[01:56] What challenges do B2B clients face when using LinkedIn ads effectively, and why do they often find them expensive and inefficient?

[04:45] Can you explain why many businesses struggle with LinkedIn ads and how your approach differs to ensure success?

[05:35] How does the concept of thought leadership integrate with LinkedIn ads? Can you describe the process and benefits of using a boosted post strategy?

[08:21] What common pitfalls should be avoided when running LinkedIn ads to maximize their effectiveness and avoid wasting money?

[14:29] Do you have a specific methodology for managing LinkedIn ads, especially for those new to it or managing multiple clients?

[15:50] Does LinkedIn offer a business manager platform similar to other social media networks?

[18:30] How effective is the strategy of selling a low-ticket item first to convert LinkedIn ad leads into long-term customers?

[19:37] Where can people learn more about your work or connect with you for further insights on LinkedIn advertising?

 

More About AJ Wilcox:

 

Like this show? Click on over and give us a review on iTunes, please!

Connect with John Jantsch on LinkedIn

 

This episode of The Duct Tape Marketing Podcast is brought to you by ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

 

Testimonial (00:00): I was like, I found it. I found it. This is what I’ve been looking for. I can honestly say it has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever made. What

John Jantsch (00:17): You just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM world slash scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM World slash scale.

(01:03): Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch. My guest today is AJ Wilcox. He is a LinkedIn Ads Pro who founded b2linked.com, the LinkedIn ads agency in 2014. He’s managed over 150 million in spend on the platform and he’s an official, or his company is an official LinkedIn partner. He is also the host of the LinkedIn Ads Show podcast has managed five of the world’s top 10 LinkedIn ads account. So aj, welcome to the show.

AJ Wilcox (01:35): Thanks so much, John. I’m excited to be here.

John Jantsch (01:37): I think we’re going to be, I saw your name somewhere. I’m speaking marketing profs maybe, or agents have Change Marketing World

AJ Wilcox (01:44): Or Inbound Agents of

John Jantsch (01:45): Change for sure. Okay. All right. So one of those coming up, depending upon when you’re listening to it, the fall of 2024, so I was saying all air. I wanted to have a LinkedIns ads specialist on the show because I hear from so many of our clients, particularly B2B clients who feel like, Hey, my target market is on LinkedIn, but I can’t figure out how to do LinkedIn ads. I’ve tried, they’re just expensive. So give me the high level. Maybe start with why everybody else is failing and you’ve cracked the code on it. What are they doing wrong?

AJ Wilcox (02:15): Yeah, so LinkedIn ads, as you compare it with any other platform, they look very similar, especially to Meta, but they act very differently. The really big positive we get, this is the reason why people, they just, even if they failed at LinkedIn ads, they keep getting drawn back, no substitute for the audiences that you can reach there. You can target people by their job title, their seniority, their size of company, their industry, and it just goes on and on. So LinkedIn owns, they have an absolute monopoly on our business data. So if you’re trying to reach a specific B2B professional, it’s the only way to go. But the challenge that everyone finds is, wow, the costs are three to five times higher than meta. They’re oftentimes in line with Google, and when you’re paying bottom of funnel kinds of prices, but your traffic acts like top of funnel, there’s always going to be a little bit of friction there.

John Jantsch (03:07): Well, one of the things that I find, I mean I’ll be the first minute. I mean, I don’t hang out on Facebook and frankly I go to LinkedIn for some engagement and things, but I’ve probably clicked on ads in Facebook. I don’t know that I’ve ever clicked on an ad in LinkedIn. Is that just me? Is that because the environment is so different that they haven’t kind of gamified it the way that the Facebook seems to have? Again, I’m willing to be completely wrong on this, but I, I’m in the same camp as the people that I haven’t been able to figure it out either. So help me out. Is the environment different in a way that makes us respond to ads differently there?

AJ Wilcox (03:45): It definitely could be. We find that when we launch a normal ad, because a normal ad will show as being from a company and you see a company post, come down your feed and you’ve never seen or heard of that company before. Most of the time you’re just going to keep scrolling. We see the average click-through rate being half of a percent, so 200 people scroll past your ad, one’s going to click on it on average. All of that changes when just last year, LinkedIn released something called Thought Leader ads. This is the ability to promote an individual’s post on LinkedIn and we see click-through rates. Being anywhere between about 2% on the low end to 11% is as high as I’ve seen. And so I think the fact that it’s coming from an individual, not a faceless organization, totally changes those mechanics.

John Jantsch (04:31): And you opened the door there. I was going to go certainly down the thought leader ads track because it seems, I mean definitely what you just explained, I’m more on LinkedIn. I’m way more likely to engage with a person, and in a lot of ways that’s what you’re saying a thought leader ad is. Tell me a little bit about how it works. Like you do a post and then that ad, it’s almost like a boosted post if

AJ Wilcox (04:53): You will. Exactly, yeah. You’re boosting an individual’s organic post that they put on LinkedIn, and it used to be that it could only be an employee, so they had to be an employee of your company in order to boost. But here, just a few months ago, they gave us the ability now we can boost anyone’s post so long as they have to give approval. So this opens us up to influencer promotions, customer testimonials, all of those kinds of things that are

John Jantsch (05:21): Well, or even just agencies, right, running the campaigns. Right. Yeah. You probably couldn’t do that before. So is it kind of one of those things where the consensus is, oh, LinkedIn ads don’t work, so people are not paying attention, and then this thought leader ad now is for people to get it or is really rocking it. Would you say that there’s an, why aren’t people using it more, I guess is the real question there?

AJ Wilcox (05:46): It’s an apt question. They’re really difficult to make work. You have to have a lot of things in place to even be able to sponsor one of these posts, so you have to really know what you’re doing. I think that’s keeping most people from trying ’em out. But to your first question, why is everyone saying LinkedIn ads don’t work? I think I know what it is. I think it’s because one reason is LinkedIn has a whole bunch of pitfalls in your way as you go to create the campaign. So we can sure talk about what those things are that are making people pay too much. But I think there’s also this aspect of people, they start advertising and they go, well, if I’m paying 10 to $16 a click, I better send them right to a demo

John Jantsch (06:29): To talk to sales. And

AJ Wilcox (06:30): We know cold audiences, they are not ready to talk to someone. They’re not ready to start a product trial, they’re not ready to get a demo. They’re still in research mode. And so if you start out by showing these perfect, ideal cold audiences, your talk to sales ad, they’re not going to respond and you’re going to say it doesn’t work. If you can segment things, sorry, not segment. If you can give them in the right order, first touch with them is something valuable and interesting. Second touch is something a little bit more involved. Maybe the third touch is where you finally get to say, okay, now do you want a demo? Talk to someone in sales. When we set up the funnel that way we actually do see actual results.

John Jantsch (07:09): Yeah. So you mentioned the word demo in terms that maybe are more related, like software companies. Are there industries or types of businesses that you see this working for? You mentioned a couple. I mean, imagine the high ticket consultant or even agencies. Is it working for service type businesses like that as well?

AJ Wilcox (07:30): Yeah, it’s mostly B2B because especially if we’re paying 10 to $16 a click on average, most B2C does not have that high of a ticket, but we do see some B2C working, so it’s mostly B2B. We’ve seen products and services work equally. It’s really LinkedIn, add this access to this audience that you can’t reach any other way. And as long as you approach them the right way, giving them the things that are engaging to them, then they’ll respond no matter what kind of product you have.

John Jantsch (08:00): So you started to mention, especially DIYing is a little tough on this platform, Swiss, I always find ’em frustrating because as soon as you figure ’em out, then they completely change where everything went. But what are some of the things that you have found like on Google Ads? I mean, if you just follow the path that Google tries to take you down, you’re going to spend three times as much money. So what are some of the pitfalls in LinkedIn ads or some of the things that people need to definitely watch for so that they get at least the most at or at least not waste their money?

AJ Wilcox (08:32): Oh yeah, several I could cover, but just for brevity, I’ll cover the very biggest ones. First one is after you design who your audience is, there’ll be a little checkbox that LinkedIn auto checks called LinkedIn audience expansion. We’re already paying a premium LinkedIn, please don’t put irrelevant audiences into our audience and say that you’re helping us, you’re not. So always uncheck that box. Another recommendation is down a little bit below that. LinkedIn will sometimes yes and sometimes no. Include the LinkedIn audience network. And when you advertise to the audience network, these are people who are supposedly the LinkedIn members, but when they’re around the web on trusted sites, sounds really cool. And when you advertise, you see, oh, I’m getting higher click through rates. My cost per click is a 10th of what I’m used to on LinkedIn. This looks great, but we don’t see very much quality come from that traffic. And a hundred percent of your traffic will go to the audience network and none to LinkedIn, so not super worth it.

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AJ Wilcox (10:47): When you go to pay LinkedIn, there’s the section that’s all the bidding and budgeting. The default bidding method that they set there and that they recommend to everyone is called Maximum Delivery. And it’s a pay by the impression, and LinkedIn can bid as high as they want in order to spend your budget for the day. And so we find that’s the most expensive way to pay for your traffic 90% of the time. And they’ve actually hidden the option for manual cost per click bid, which is the lowest. And so I always recommend always start manual cost per click bids significantly less than what LinkedIn recommends because their recommendations are trying to pad their pocket not yours. And if you can get past those three initial roadblocks, chances are you’ll probably pay a third as much as what you would’ve. Yeah, I

John Jantsch (11:34): Always loved those recommended bids. It’s like, here’s what we recommend, you should pay us. Exactly. It’s like, wait a minute,

AJ Wilcox (11:41): Should I just hand you my wallet and you

John Jantsch (11:43): Just take

AJ Wilcox (11:43): Whatever you want and give it back.

John Jantsch (11:45): Talk a little bit about creative. I mean, have you seen, again, this changes all the time, I suspect, but what’s working right now? Is it the same thing that’s working well in the feeds for ad creative? Yes, of course. Yeah. So what does that look like?

AJ Wilcox (11:57): I noticed as I’m scrolling through my organic feed, just seeing what my friends are posting and other thought leaders, I get a feel for what engages me. And I generally use that to come up with ideas for creative video is working really well, but it’s not just any video, it’s personal video. So just like you and I are talking right now, if an ad pops up in your newsfeed and it’s someone giving you good advice, sharing a viewpoint, someone who’s authoritative, even if it’s only 15, 20 seconds, that’s going to perform really well, people eat that up and you can retarget anyone who’s watched at least 25% of that video to show them another touch. We see that if it’s single image featuring faces is great, especially if the photographic of an image, sorry, photographic image of a person, if they’re either looking directly at the camera or if they’re looking towards the call to action, that performs really well. And we’re also finding that documents are working really well and it’s not just, I’m going to upload my whole white paper or something like that. It’s you design each page of the document, like it’s a blown up version of, here’s one big stat, flip to the next slide. Here’s one big stat or one main takeaway. Those also tend to be performing really well.

John Jantsch (13:20): Talk a little bit about segmenting again on some of the traditional, or I should say other ad markets. You want to segment small and have your ads be very relevant to that segment is a similar type of activity on LinkedIn.

AJ Wilcox (13:36): Very much. I’ve heard a lot of people who advertise on meta saying, Hey, we used to micro segment and choose these very specific audiences, and now we find that the broader we go, the better it performs. LinkedIn is totally the opposite. I think it’s LinkedIn just doesn’t have the same level of data that Meta has. And so even though LinkedIn says, we recommend that your audiences have at least 300,000 people in them, oh wow, I recommend segmenting those down to 20,000 to 80,000. Keep a really small, tight segment ‘EM based off of specific job titles or departments or seniority industries, company sizes, you can get really specific and then treat all of your data a private focus group where you get to see how each of those segments performs and reacts to your ads.

John Jantsch (14:22): And I’m sure everybody has their own way to organize, but in terms of structure, campaign structure, how you keep things straight, do you have a methodology that you really have developed that again, especially when you’re working with multiple clients, it’s really important, but just for that person trying to do it themselves, are there some tips?

AJ Wilcox (14:41): Oh, absolutely. I name all my campaigns. There’s this natural reaction to name a campaign after the asset that you’re advertising. So if a marketer goes, Ooh, I just got this new ebook, I want to go publish, they go in and they create a campaign and they call it ebook. And we don’t do that. What I highly recommend is you name your campaign after the things about that campaign that won’t change. So the things that won’t change about that campaign, the ad type that you’ve chosen, the objective that you’ve chosen, those all stay the same. You’re going to add all this targeting. Maybe it’s like these job titles at this size of company in this geography, put all of that in the campaign name. And now as you’re looking through all your campaigns trying to keep things straight, you have this one entity. It’s an evergreen entity that anytime you want to show that kind of ad to that audience, you can put in it. And that campaign’s going to live forever. Otherwise you’re just creating like, here’s an ebook, here’s a guide, here’s a thought leader. And all of these campaigns just clutter up your account and after they’ve served their purpose, you throw ’em away. And then LinkedIn never gets a chance to learn from your history.

John Jantsch (15:50): So do they have, showing my ignorance here, do they have a business manager type of platform? Yeah. Okay.

AJ Wilcox (15:56): Yeah, they totally do. I would say it’s fairly recent. We’ve gotten in the last couple of years, but it’s actually gotten a lot better in the last couple of years.

John Jantsch (16:04): So you mentioned retargeting. That’s a fairly new capability on LinkedIn ads, isn’t it?

AJ Wilcox (16:10): Yeah, it’s had the ability to retarget website visitors since, I want to say 2017, but LinkedIn keeps adding all these others because retargeting your website visitors is totally based off of you having a cookie in your browser.

John Jantsch (16:24): And

AJ Wilcox (16:25): IOS devices wipe the cookie. Mozilla doesn’t store it either. There’s lots of reasons why people would delete their cookies in between, so it’s not all that great. LinkedIn realized that and said, well, hey, when someone is logged into the platform, we know who they are and all we have to do is pay attention to what it is that they’re clicking on and interacting with. So now we can create what we call engagement based retargeting audiences. I can go to LinkedIn and say, Hey, build an audience of anyone who’s watched at least 50% of one of my video ads in the last 180 days. And it can go, oh, I remember all the people who did that. I’m going to build that. And then two days later, I have an audience to target. They have a whole bunch of different retargeting audiences like this, and I don’t know of any other ad platform that has that capability that many different ways of building these retargeting audiences.

John Jantsch (17:18): When you launch campaigns on LinkedIn, you probably have a hypothesis about what will work, how do you approach testing ad copy, ad creative segments the whole bit? I mean, how do you go about really launching a bunch of things to see what works?

AJ Wilcox (17:33): Yeah, we could definitely go really deep here, but in general, when a client comes to us and they say, here’s an audience we want to go after, I’m trying to define what is an AB test going to look like? So if they came and said, Hey, we have three different podcast episodes. We want to try advertising here, I’m going to say, alright, let’s test episode against episode. We have a lot of things, but if they came to us and just said, we only have one guide. This is our big research report that we do every year, I might suggest, Hey, let’s come up with two different variations or four different variations, all that are covering that same asset. And then let’s test and find out which assets are more interesting to your audience and what wording imagery are you using to try to draw people in. And so we design everything like an AB test to gather later and find out what works to which segment of the audience.

John Jantsch (18:30): A very common funnel for marketers is, let’s sell a low ticket item. Obviously they become a buyer of that low ticket and then we’ll sell them other things. Do you find that working that works pretty well on Facebook? Do you find that type of approach or anybody running that kind of buy the $12 ebook kind of thing?

AJ Wilcox (18:49): Not great on LinkedIn, because the cost per click is so high, you’d have to have a really high conversion

John Jantsch (18:55): Rate. So there’s no way to get your ad spend return. Yeah, okay. Yeah, makes sense. So it really is, so to summarize a bit, the thought leader ads really kind of promoting education and just what you talked about, the thought leadership is really the approach that you’re seeing the most effective

AJ Wilcox (19:12): And realize that these audiences you want to go after because they’re perfect for you, they’re not ready to buy until they’ve had multiple positive interactions with you. So quit jumping right to the bottom of the funnel with these audiences and warm ’em up. Use the retargeting to graduate them down to where they’re going to be more open to that kind of interaction.

John Jantsch (19:32): Yeah. Awesome. Well, aj, it was great catching up with you. Has spent a few moments on the Duct Tape Marketing podcast. Is there somewhere that you would invite people to learn more about your work or connect with you somehow?

AJ Wilcox (19:42): Yeah, if they go to b2linked.com, that’s our website. So there’s plenty there. There’s our podcast, our blog. I’d also love for you to connect with me on LinkedIn. Find me, I’m AJ Wilcox, and just make sure you send me a custom connection request. Just say you’ve heard me on John’s show, and then I’ll make sure I see it and accept the connection. I share. Lots of good stuff there.

John Jantsch (20:03): Awesome. Again, I appreciate you spending a few moments. I look forward to seeing you when we’re both out there on the road.

Why Today’s Training Methods are Failing

Why Today’s Training Methods are Failing written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with John Jantsch

 

In this episode of the Duct Tape Marketing Podcast, I interviewed Matt Beane, an assistant professor in the Technology Management Department at the University of California, Santa Barbara, and a digital fellow with Stanford’s Digital Economy Lab and MIT’s Institute for Digital Economy.

He conducts field research on the future of work involving robots and AI, exploring how these technologies are reshaping skill development and training in various industries. His latest book, “The Skill Code: How to Save Human Ability in an Age of Intelligent Machines,” breakdowns the significant shifts in how skills are acquired in the modern workforce.

Key Takeaways

Matt Beane explains that traditional skill development is becoming obsolete due to advanced technologies, impacting hands-on experience across various industries. In fields like robotic surgery, policing, investment banking, and bomb disposal, intelligent systems enable experts to work independently, disrupting the apprenticeship model. Organizations must adapt training methods to ensure practical skill acquisition by creating structured learning environments where novices engage with new technologies. By asking better questions and fostering a culture of continuous improvement, businesses can effectively integrate AI and robotics into training programs while maintaining high professional standards.

 

Questions I ask Matt Beane:

[02:02] What led you to into the field of studying master-taught lost skills in the workplace?

[08:08] Asides from the Medical industry, What other industries did you study that your learnings apply to?

[11:13] Did you have any industries that questioned your goals?

[13:54] Are there other factors besides technology such as organizational culture that contribute to lost skills?

[15:09] Is there a way that organizations can protect their “learned skill and knowledge base”, or those obsolete?

 

 

More About Matt Beane:

Connect with Matt Beane on LinkedIn

Visit his Website

Read the first chapter of The Skill Code

 

Like this show? Click on over and give us a review on iTunes, please!

Connect with John Jantsch on LinkedIn

 

This episode of The Duct Tape Marketing Podcast is brought to you by ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

Speaker 1 (00:00): I was like, I found it. I found it. This is what I’ve been looking for. I can honestly say it has genuinely changed the way I run my business. It’s changed the results that I’m seeing. It’s changed my engagement with clients. It’s changed my engagement with the team. I couldn’t be happier. Honestly. It’s the best investment I ever

John Jantsch (00:16): Made. What you just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM world slash scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM World slash scale.

(01:03): Hello and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantsch. My guest today is Matt Beane. He does field research on work involving robots and AI to uncover systematic positive exceptions that we use across the broader world of work. He’s an assistant professor in the technology management department at the University of California Santa Barbara and a digital fellow with Stanford’s Digital Economy Lab and MIT’s Institute for Digital Economy. He received his PhD from the MIT Sloan School of Management. We’re going to talk about his book today, the Skill Code, how to Save Human Ability in an Age of Intelligent Machines. So Matt, welcome to the show.

Matt Beane (01:49): Delighted to be here. Really appreciated the invite and excited to talk.

John Jantsch (01:53): We’re going to do our best to save human ability today. I think that sounds like a noble goal. So the premise, I’ll be very brief and let you talk more about it, but the premise of the book is this idea that we’re losing a lot of skills that the master taught the apprentice over centuries of time. So kind of led you to studying that particular gap or space,

Matt Beane (02:17): Right? The gap I wasn’t sure was going to be there. I’ve always been interested in training, learning and skill development my whole career one way or another. And since about 2000 and the confluence of that in AI and robotics got my fierce and firm attention. When it came time to pick a dissertation focus at MIT, I knew robotic surgery was a very interesting place to go because it boy, oh boy, doing robotic surgery is radically different than doing it the old fashioned way or even the modern way before that, which was with straight sticks, basically laparoscopic surgery as we knew about it in the nineties. And I just looked at the control apparatus for that robot, and it’s a giant Xbox controller basically with a 3D vision goggles that you wear and foot control. So you’re using your feet and your hands and I’m like, this bears almost no resemblance to the old fashioned way. How did you learn

John Jantsch (03:13): How to do? Yeah, the parts are looking at are called the same thing. But other than that, right?

Matt Beane (03:16): Yeah, no kidding. Although by the way, looking at it through this robot, you’re seeing it at 10 x magnification and an inch movement on the outside with your hands and the controller translates to a millimeter on the inside. So it’s a real different game. I didn’t know all that to begin with, but I figured the training for this has got to be real different for the training the old school way. How does it work? What are the upsides? What are the downsides? That’s the sort of going in question after no more than three months in the field in the operating room, watching real procedures with this thing, talking to residents, talking to surgeons, it was very obvious that everyone was assuming the way to learn how to use this thing is the same way that you should learn how to do the old procedure. And that was a fatal assumption, turned out to be false because, and by the way, the old school way is something we have encoded almost in our DNA.

(04:09): It’s literally 160,000 years old in surgery. They call this C one, do one, teach one. You basically show up, help a little bit, watch, get a little bit more involved as the expert decides you’re ready and sooner or later you’ve got somebody looking over your shoulder. Look at any profession I defy you. The book is full of examples of this. We just take that for granted as the way that you learn how to do stuff and build skill, which is the ability to do the thing under pressure basically reliably. That’s different than knowing conceptually. Like book smart. This is like, can you do it? So anyway, it turns out that mechanism of learning, this taken for granted thing, it was getting busted in robotic surgery because the console and the controller allowed the senior surgeon to do the whole thing themselves. So the resident becomes an optional participant at that point.

(05:00): I have to make mental effort to involve that person who wants to become me someday and there’s a patient on the table and therefore I’m never going to do that because they’re going to be slower and make more mistakes than me. So instead of the old school way, a four and a half hour procedure, that resident is busy for actually about six hours. They are working from before the patient gets, there’s any incision all the way till well afterwards they’re sweating the whole time and they’re helping out in consequential work. Now, they might be swimming in the shallow end of the pool, but they’re swimming now. They show up, help get that robot doc to the patient, sit in a separate control console and they watch a movie. That’s all they get to do. And so that was no one. Everyone recognized that was unsatisfactory on some level, but boy oh boy, they were just kind of tolerating it and surgeons would come out of programs after six years of big air quotes training. I have, well, I quote a chief of urology for one of the top hospitals in the states and he said, top surgeons suck. Now. That’s what he said to me, to my face. They’ve watched a lot of surgery, they haven’t done it. We have to retrain them when they arrive. So it was about halfway through that study that I realized most of what I just told you, because

John Jantsch (06:19): Really when it comes down to it, learning is reps, right?

Matt Beane (06:24): Yeah. And not reps on a putting green with no wind and a perfect sunny day, you got to have somebody throwing rocks at you. So it’s sure some reps in practice conditions, it’s helpful. But you’re right, even in surgery, they have a name for this. In their research on surgery, they call it dwell time, which means how much time are you in the or? That used to be the old proxy for you’re in there, that’s the best place for you to learn. Now it’s the worst. Anyway, I also made it a point in that study to try to find surgeons who were learning anyway, in spite of that barrier, I was very lucky to get some guidance to do that early. That turned up some really interesting and new ways to build skill that defied the new barrier of novice optional world that we’ve got now.

John Jantsch (07:12): Is the skill required to become a great surgeon different now? I mean motor skills maybe are different needs, or is it really just learning the tools?

Matt Beane (07:22): Sure, there are different skills involved, and that’s much less important than do you know a healthy way to build skill period in this context because the skills that you need to do your job are always changing a little bit, constantly. New version of this thing for my iPhone, gosh darn it, I got to learn a little something every day, right?

John Jantsch (07:40): Why did they move that button?

Matt Beane (07:42): Right? And big things come along every once in a while and we get a really big thing with chat T these days. But for most folks, that doesn’t mean you have a whole new job or a whole new set of skills. It just means say 30%. But if you have a healthy path to learning new skills, humans love to learn, then we’re going to do that. That’s no problem. If the way you learn is getting busted, then we have a serious issue.

John Jantsch (08:10): So you have talked primarily about medical industry, but you actually studied a number of industries, didn’t you? That this equally applied to?

Matt Beane (08:17): Yeah, over 30 now. So that was the immediate question. I published that study in 2019. I gave a TED talk in 2018, but actually from about 2016 on those findings were done. And I wanted to know where else is this happening? Is this novice optional thing happening elsewhere? It should be. That’s all I knew because I had the hypothesis that the more intelligent technologies, robots, ai, they allow a single expert to get more done with less help. If that’s really true, then let me go to some radically different places in the economy to study things like policing, investment banking, bomb disposal. I have a list of more than 30 now to see different technologies, by the way, different skills, different cultures. If this same problem is showing up there, then it’s time for all hands on deck. We’ve got a serious problem. And that resulted in that Harvard Business Review and TED talk piece, which came later.

(09:16): It looked to the world. I had just trumpeted my surgical findings, but in fact those were three years in the can. And I had spent the next three years being like, hang on. So that was the sobering news in 2019. This is everywhere I can look except for one place. I found one exception. It was accidental where tech was getting deployed in a way that improved skill development, which gave me more hope. And I think it was worth studying. And I keep trying to find and study exceptions like that. We need them. But in general, yeah, no, once I hit north of 20, 22 professions, occupations, industries, and so on, I just kind of stopped trying to find it.

John Jantsch (09:55): It’s my pleasure to welcome a new sponsor to the podcast. Our friends at ActiveCampaign. ActiveCampaign helps small teams power big businesses with the must have platform for intelligent marketing automation. We’ve been using ActiveCampaign for years here at Duct Tape Marketing to power our subscription forms, email newsletters and sales funnel drip campaigns. ActiveCampaign is that rare platform that’s affordable, easy to use, and capable of handling even the most complex marketing automation needs. And they make it easy to switch. They provide every new customer with one-on-one personal training and free migrations from your current marketing automation or email marketing provider. You can try ActiveCampaign for free for 14 days and there’s no credit card required. Just visit active campaign.com/duct tape. That’s right. Duct Tape Marketing podcast. Listeners who sign up via that link will also receive 15% off an annual plan. That’s activecampaign.com/duct tape. Now, this offer is limited to new active campaign customers only. So what are you waiting for? Fuel your growth, boost revenue and save precious time by upgrading to active campaign today. So I want to get obviously a little more into the findings too, but just even your process is fascinating. Did you have any industries that kind of question your goals? What are you up to? What are you really studying? What are you trying to, how is this going to change my job?

Matt Beane (11:22): No, because already on the ground. So number one, I should be real clear all those 30 plus industries I’m talking about and occupations and so on, I didn’t do all those studies myself because each one of these studies takes about a year and a half. I got primary access to data collected by other scientists who had done similar studies in their context. So investment banking, for instance, I’ve collaborated with a woman named Callan Anthony at NYU. She gave me her data set, I gave me her mine. We compared notes. We wrote another paper off of that. But in general, surgery’s a perfect example of this. Everywhere I’ve gone, everyone already knows things are not well when it comes to skill development, the next generation is struggling, but the productivity boost coming from these technologies is such an enticing, saccharine hit upfront that there’s no one party whose job it is to pay attention to. That unintended negative side effect of getting this productivity hit. The expert is happy. The organization, the person who’s investing in that capital is happy. And yeah, it’s kind of a pain to learn now. Can’t find a mentor to save my life, says the 24-year-old, nobody’s problem really

John Jantsch (12:34): Learning. Well, lemme ask this, will that catch up over time? Will that 24-year-old when he’s 48 and that’s all he is known be the mentor?

Matt Beane (12:41): Exactly right. This is why I’m trying to sound the alarm bell as loud as I can. This is why I wrote the book. It’s 3, 5, 7 years later, depending on the cycle time for your talent that the organization, the profession, the economy is going to start to realize that the next generation of talent just isn’t prepared for duty. And surgery’s noticing this now. So I announced my findings in about 20 17, 20 18, and I’ll just ground this out for you. They went kind of early. So I think other professions should get ready for this. The next generation of robotic surgical talent that’s floating in the hospitals have to spend an extra, oh, between 80 and 180 grand on what’s known as a proctor, which is another senior surgeon, either inside their own hospital from the outside to come in and retu this person on how to do the job. They just went through five years of training for it. That’s supposed to be good enough and everyone knows on the street it’s not. And so it adds to the cost base, the time to ramp to skill. That’s a bandaid solution. That’s just, there’s no way that’s going to work.

John Jantsch (13:45): Are there other factors besides the technology that are really kind of leading to this, but maybe even culture inside an organization? Demographics of the next generation coming up? I mean,

Matt Beane (13:56): Yes. Yeah. And so I think the fair thing to say is the problem I’m describing has been around since the advent of language, so about 160,000 years old. Let’s go back to ancient Greece, which I do in the book. There were big disputes about the shift from hand pinched pots to using a potter’s wheel and what was that going to do to skill around here? And an expert doesn’t need mentee or an apprentice quite as much. If they’ve got a powders wheel, they can do a whole bunch more themselves. So it’s just the intensity and the pace of what happens when chat GPT is free for everyone to use. They’re dramatically more self-serve on a much broader span of their work. Their dependence on a novice in different ways is dramatically the span of management control. These days. I’ve been doing studies in warehousing, for instance, the last few years. You have one manager to 50 to 80 people. And part of the reason for is technology. You can manage them through their iPhone, partially their schedule, their timing, discipline, pay, all that stuff. So it’s a tale as old as time. It’s just so much more intensified now that lots of things are digital, that it’s kind of a difference in quantity, amounting to a difference in quality, I think.

John Jantsch (15:09): Is there a way that organizations can kind of protect that idea of the learned skill and the knowledge base inside the organization? Or are you really actually saying those are obsolete in some ways? No,

Matt Beane (15:23): I hear you. And the back third of this book is what do we do now? And so definitely I have evidence to prove from studies that folks are fighting for their skill out there. They’re not doing it in an organized way, they’re not quite aware of what they’re doing. I’m doing my best to report on things that are working. So individuals can do things every day to protect their skill as they engage with these technologies. For sure. I have a post on my substack called Don’t let AI Dumb You Down, for instance. There’s some things that you as a user of that technology can do to avoid this subtle slide towards B plus territory. If you’re not careful, in fact nudge yourself up in towards a plus. You can in fact not just tread water. You can actually use this tech to enhance your skill by the end of every session.

(16:08): It’s just we’re not doing it. So that’s one level. But tactically managers in many ways, and people who run businesses have all the tools they need around handling this new tech. Anything. If you went to a top flight MBA program or more likely learn some great lessons outside of academia about how to mountain run a business and lead people, your tactics for dealing with new surprising events in your environment are probably just about as relevant now. It’s just everyone’s kind of got their hair on fire running around saying, when you know perfectly well how to run a healthy experiment with something that could be good or bad for your business right now. And what does that take to make sure that folks aren’t just trying it all on their own right now, which is not a terrible thing, but it’s just like yelling, fire in a crowded theater. It’s better to get folks organized. And what is an organized, healthy experiment in a business look like, by the way? That’s aggressive. You’ve got to be aggressive, fine but focused. So sure there’s stuff in the book and also on my substack about let’s just everyone remind ourselves. We know a lot. We know a lot about how to handle change and technological change. Let’s just put it to work.

John Jantsch (17:18): You know what I’ve been telling people for the last five, well, probably 30 years, but it’s really ramped up the last five years, is instead of saying, how can we use this technology to do something? We’re already doing faster or better or whatever, how can we actually ask better questions? You got it. That becomes our job, right?

Matt Beane (17:36): Yes. And in fact, part of the way you do that is the temptation immediately is just to use it to, I know how to do X, I’m just going to do X about two times faster, which is boy is entrancing.

John Jantsch (17:50): It’s

Matt Beane (17:50): Amazing. You can get it to write a memo in five seconds when it would take you 30 minutes. Geez. And that’s where folks stop. That’s the difference between top performers and average performers. The top performer goes and says, what could I do with this that I would’ve never even dreamed possible before? For instance, I made my master’s students who were most of them fearful of coding, had no coding expertise. And I said, you have three weeks on your own no help, but from chat GT to become a data analytics person, analyze this dataset and do plots in Python, use coding a solution in Python and then post it on GitHub, which is a shared software manipulation platform. And they looked at me like, are you joking me right now? What kind of class is this? This isn’t computer science. And I said, go. And they all did it.

(18:43): And by the end, I post this on my substack too. In the beginning I have their ratings on how afraid they were, what they thought with that nudge, mandatory, you must go do the thing that you thought was impossible before. And they all did it at the end. That was a shock to all of them, like hot diggity. I had no idea. I thought this was just kind of fancy, auto complete, like fake my own kind of thing instead of change the world. I wasn’t thinking broadly enough. I wasn’t asking the right questions. What could I do with this that I couldn’t do before? And if you can make yourself ask that question and then go for it. Try something really crazy. You’re going to fail. It’s going to be a waste in three nights or maybe 72 hours of your life, but you’ll learn a lot about this new world we’re entering that most folks will not have under their belt.

John Jantsch (19:31): And I think to some degree, what you’re describing is not about the end result, it’s about the journey

Matt Beane (19:37): And really in your bones skill, what you have at the end of that is not just, I know unquote a little bit about ai. It’s like, no, I’ve actually, I tried to decode sperm whale songs. I know talking to somebody who just took my challenge and tried to do that and they got some meaningful interpretation out of the data. It’s not as good as this paper that just got published. Actually doing that work by scientists who, by the way, four years ago got the memo and used AI to decode sperm whale songs. Another person wanted to sub Bruce Springsteen in for Luke Combs in that Grammy performance with Tracy Chapman. They got pretty far and this person didn’t code before. So yeah, that you will know in the deep sense. You’ll have skill that will inform your decision making and leadership in ways that most folks won’t.

John Jantsch (20:26): Well, Matt, I appreciate you taking some moments to stop by the Duct Tape Marketing Podcast and talk about the future, I suppose is what we were talking about, right? To some degree and strangely the past.

Matt Beane (20:38): Yeah, exactly. Thousands of years ago, and I’ll just toss in for your listeners only. I posted the first chapter of the book online if they want it, ducttapemarketing.mattbeane.com. It’s sitting right there. They can just go and grab it. Hopefully the book is helpful to them, but the future is now. But I agree. It’s an old dynamic too.

John Jantsch (21:00): Yeah. Awesome. Again, appreciate you dropping by for a few moments, and hopefully we’ll run into you one of these days out there on the road.

Earn More in Your Retail Business with Re-Commerce

Earn More in Your Retail Business with Re-Commerce written by John Jantsch read more at Duct Tape Marketing

The Duct Tape Marketing Podcast with John Jantsch

In this episode of the Duct Tape Marketing Podcast, I interviewed Patton Gleason, the founder and CEO of Relay Goods. With over 20 years of experience in the outdoor and run specialty industry, Gleason has deep expertise in physical retail, e-commerce, logistics, and operations. Relay Goods offers industry-leading solutions that help brands and retailers maximize the value of excess surplus and returned inventory. Through his insights and experience, Gleason reveals the transformative potential of re-commerce for retail businesses, turning what was once considered a loss into a significant revenue stream, while effectively preventing waste.

Key Takeaways

Patton Gleason, CEO of Relay Goods, emphasizes the role of the concept that is: recommerce in modern retail, highlighting how businesses can effectively manage and profit from returned inventory. The process entails implementing smart inventory solutions and leveraging a specialized marketplace for high-quality returns. Retailers can now transform potential losses into substantial gains, as Gleason’s insights underscore the importance of adopting a zero-waste supply chain approach, therefore minimizing waste and maximizing profitability. This episode provides valuable strategies for retailers and partners in defending their revenue and enhancing sustainability.

 

Questions I ask Patton Gleason:

[00:54] What is re-commerce?

[04:09] How did your experience with the minimalistic shoe movement shape where you are now?

[07:42] How does the process of re-commerce actually work?

[12:25] As an an Re-commerce business, do retailers ever feel like competitors?

[14:20] How much of re-marketing is ‘sustainability’ at play?

[15:27] Does re-marketing have the potential to become a core part of retail?

[19:17] Is there someplace you want to invite people to check out what you’re doing and connect with you?

 

 

More About Patton Gleason:

 

Like this show? Click on over and give us a review on iTunes, please!

Connect with John Jantsch on LinkedIn

 

This episode of The Duct Tape Marketing Podcast is brought to you by ActiveCampaign

Try ActiveCampaign free for 14 days with our special offer. Exclusive to new customers—upgrade and grow your business with ActiveCampaign today!

 

 

John (00:08): Hello, and welcome to another episode of the Duct Tape Marketing Podcast. This is John Jantch. My guest today is Patton Gleason. He’s been in the outdoor and run specialty industry for over 20 years with experience in physical retail, e-commerce, logistics and operations. He’s the founder of Relay Goods and serves as CEO. Relay is an industry leading solution that helps brands and retailers maximize the value of excess surplus and returned inventory. He is an active advisor and investor to businesses in the commerce space. So Patton, welcome to the show,

Patton (00:48): John. It is awesome to be here.

John (00:50): So let’s start with defining commerce as a term. I think, I guess that’s a whole sub industry, isn’t it?

Patton (00:56): It is an emerging and growing market that is depending on who you ask, on what day, it really depends on what it means. And commerce is essentially taking, once an item had been sold and it had gone off market, if it had gone back to a distribution center or a retailer or a brand, what was to happen to it next? And so the earliest versions were eBay and scratch and debt sales. And with the emergence of e-commerce in the last 10 years, things that were coming back to distribution centers in the form of returns ended up becoming a bigger and bigger percentage of inventory that warehouses were holding onto. And the trouble was if it wasn’t in perfect condition, it was really hard to sell. And so we had been in that space for a long time. We’ve worked and consulted with a number of brands on whether it’s D two C or on Amazon, and returned ended up being this giant loss inside of a profit and loss sheet. And so we’ve spent the last nearly decade trying to find the very best solution to turn those loss ultimately into a win.

John (02:02): And I bet your returns are way up from what they used to be. You used to go in a store, try ’em on. Yeah, they fit. Walk around a little bit. Yeah. Okay, I’ll take ’em. Where now it’s like, those look good, I’ll order. And it’s like, oh, they don’t fit, or These Hogans are really funny feeling. So people send them back. Now

Patton (02:22): When the showroom moved from a retail location into people’s living room, everything changed. And physical retail, we only exist as a business because people are so bad at fitting themselves and I’m like, oh, I want to try a new model. And occasionally you get to where you find that right model, and every year you’re going to get the same version of the same thing and the same size. And then anytime you vary outside of that, then all bets are off. Or a color might look different online. And Amazon really set the standard of 10 years ago it wasn’t super easy to return. Things they knew was a pain point for customers and they made returns and returning things. A huge important part of their business. And the prevalence of Amazon return centers inside of every Whole Foods now is really putting that consumer expectations have certainly changed.

John (03:15): Yeah, I bet you the employees at Whole Foods are really pissed about that. I know. I’ve taken stuff in there. It’s like, here it is. See you later

Patton (03:23): Returns. They’re uncomfortable for absolutely everybody. It’s the consumer experience. It is one of the most painful parts. Not knowing if something is actually going to work is actually one of the biggest factors that leads to people not even making a purchase. And most distribution centers are really designed for egress. So inventory comes in from a manufacturer just on a labor hour basis. You can get so much new stuff that’s in pallets out the door, but when you’re getting onesie, twosies that come back the labor hours

John (03:53): And not in their original packaging, by the way, that

Patton (03:56): Is exactly right. That’s exactly right.

John (03:59): So I think I mentioned in your bio, but you started especially retail running shoe store and kind of fell into the, remember when the minimalistic movement was all the rage. So how did that experience kind of shape where you’re now,

Patton (04:17): Oh man, well, we might need a little bit more time because you could not have convinced me otherwise. I thought we were in the middle of this giant industry shift, and what I really thought was that minimalist shoe movement was going to be to the running industry as Whole Foods was to grocery. I thought it was just a matter of time until people start working on technique and this and that, and I could not have been more wrong. It was a catastrophic failure. And the things that the learning lessons from there was we tried to make the in-store experience, that really personal high touch experience. We really tried to digitize it and we did thank you notes and we had this video recommendation system. And the value proposition for when people were shopping online was just different than if I left my home, I went to a parking space, I went into a physical location.

(05:07): The needs and the consumer experience were just different. And so once the writing was on the wall, that was a business that was not going to win at all. We were like, well, we’ll just start. What do we need to do to try to move through as much of this inventory as possible? And that strategy just to keep us afloat, ended up amazingly ended up working really well. And so we had other buddies in the industry, and as we were lamenting on all the challenges, they’d hear about what we were doing. They’re like, oh, I’ve got a bunch of stuff in my back room. Could you try to help me? And so one store led to another store, led to another store, and then I think we’re at 400 retail locations across the country where their excess and surplus inventory we had a solution to.

(05:51): And then that led into our getting a little bit better at e-Commerce and at management. And so for some of our bigger clients, when we were able to help them get really big sales wins, the unintended consequence was a ton of returns we never could have expected. And so we would contact the original manufacturing like, Hey, we’ve got pallets of this stuff, what he wants to do with it. They could say, you can do whatever you want. Just don’t send it here. Because they had the same challenges. And what we thought was, man, wouldn’t it be great if there was a market for not a hundred percent new stuff, but for 99% new because you were getting stuck. The only thing that was wrong with it, it didn’t have the original packaging. There was some minor cosmetic defect, but these are utilitarian items by nature. And we knew that with returns being so big, if we could find a solution that could offset those losses, that was potentially a really big win for everybody.

John (06:51): Yeah, I imagine the manufacturers probably, they probably have to actually make deals with especially big retailers like Walmart to say, we’ll take anything back. Doesn’t matter why. If you don’t sell at the end of the season, we promise to take it back. I mean, they end up with a lot of that stuff back from storage, don’t they?

Patton (07:07): That’s exactly right. And so part of our value proposition was as the business started to mature a little bit, was if Relay didn’t exist, what are the alternatives? So you could donate it. There is unfortunately a lot of stuff that ends up incinerators and landfills just because easy or it might end up with a liquidator where it’s literally pennies on the dollar via a container load, and there had to be a better solution to that.

John (07:37): So I guess, tell me how, I mean, I get conceptually what you’re doing, but how does the process actually work? Do you resell it or you get paid to do whatever you can with it? Or how does the process actually work?

Patton (07:50): You bet. So we like to think of ourself as the first line of revenue defense. And in a profit and loss sheet, one of the biggest sources of losses is going to be your returns. But those returns are in all kinds of conditions. And so what we do is we take those and then we identify each model based on its condition and its age. We assign a unique identifier. And then once we’ve filtered through all that, the very best and newest stuff, we actually can send a lot of that back to traditional retail. It just had gotten off track. And so rather than writing it off as a loss or donating it or whatever that it is, these are things that retailers crave. They’re high because if it was sold online once, they were really great items. But that kind of attention to detail, there are some that they’ve had enough use that there’s no more utility left them, and they need to be recycled.

(08:41): That’s a really small percentage. There’s enough of ’em, about 20 to 25% of our returns. They’re really good, but they’re not appropriate for resale. But they make terrific shoes to be donated. And we have a network of vetted nonprofits across the country, but then we run into kind of the meat of it. About half of those returns, they’re 99% new. They’re not used, and they’re not new. And so we thought, well, what if we built an entirely new category in a marketplace that was specific for this because consumers were already doing this on eBay, on Poshmark from unauthorized sellers on Amazon. But once it got to those places, the brands lost all control of the brand and the consumer experience. And so we thought, well, what if there was a marketplace that was specifically for these things that worked directly for the brands? And particularly as running shoes have gotten more expensive over the years, you’re starting to price out a number of people who would actually be really great customers. And so we can make premium high selling super high quality items much more accessible to a wider range of people without beating the drum of, well, this is all liquidation and it’s deals. And what we found was that consumers were not willing to make concessions on quality. They wanted the highest quality items, but they would make a concession on condition if it came with free shipping and all the benefits of buying new and went through a best in class quality assurance process.

John (10:16): It’s my pleasure to welcome a new sponsor to the podcast. Our friends at ActiveCampaign. ActiveCampaign helps small teams power big businesses with a must have platform for intelligent marketing automation. We’ve been using ActiveCampaign for years here at Duct Tape Marketing to power our subscription forms, email newsletters and sales funnel drip campaigns. ActiveCampaign is that rare platform that’s affordable, easy to use, and capable of handling even the most complex marketing automation needs. And they make it easy to switch. They provide every new customer with one-on-one personal training and free migrations from your current marketing automation or email marketing provider. You can try ActiveCampaign for free for 14 days and there’s no credit card required. Just visit active campaign.com/duct tape. That’s right. Duct Tape Marketing Podcast. Listeners who sign up via that link will also receive 15% off an annual plan. That’s activecampaign.com/duct tape. Now, this offer is limited to new active campaign customers only. So what are you waiting for? Fuel your growth, boost revenue, and save precious time by upgrading to active campaign today.

Speaker 3 (11:29): Duct Tape Marketing really helped me to shave at least six to eight months off of work that I was dreading after leaving the corporate world. Even before I participated in the agency intensive training, I had already landed in my first customer. This is in essence more than paid for my investment in Duct Tape Marketing. What

John (11:47): You just heard was a testimonial from a recent graduate of the Duct Tape Marketing certification intensive program for fractional CMOs marketing agencies and consultants just like them. You could choose our system to move from vendor to trusted advisor, attract only ideal clients, and confidently present your strategies to build monthly recurring revenue. Visit DTM world slash scale to book your free advisory call and learn more. It’s time to transform your approach. Book your call today, DTM World slash Scale. Do retailers ever feel like, wait a minute, now you’re competing with me.

Patton (12:28): Oh, what a great question. So that was our initial concern. And so with our retail and our brand partners, we are doing really constant contact list monitoring. And what we found was in our most recent one, there was less than one 10th of 1% of consumer overlap. And the consumers that did overlap had not been in a physical retail location in over two years. And so those really high touch in-person retail store experiences over time, consumers tend to graduate from that experience where they don’t need as much handholding. And they go, okay, every time I go in, I’ve gotten the same model in the same size. They will take that knowledge and experience and they’ll leverage that to go find the best value. What we were doing as an industry was we were losing all of those sales to unauthorized sellers on eBay and on Poshmark.

(13:22): And so to have now a native solution ends up being a really big benefit to everybody. And so for the retailers that have a lot of that older inventory or excess or surplus things, you’ve got to do something with it because if it’s not selling your top line, revenue is paying for it. And you can do a sidewalk sale and you can do expos. But if I learned anything from Duct Tape Marketing is stay hyper-focused on who your best customers are. And if you’re advertising that we’ve got this, we have professional experts, we’re going to fit you. You can try on a lot of things. And then a week later, you’re having a blowout sidewalk sale, you’re diluting your marketing message, and you’re attracting two kinds of customers. And so actually by offloading some of this hard to sell inventory to us, our retail partners are actually able to stay more focused on their best customers.

John (14:16): So obviously there’s a practical financial aspect to this. For the retailer, how much of this is a sustainability play?

Patton (14:23): So the sustainability piece, that was a big driver for me personally, because we saw until we came in, we just did the back of the napkin math of how much of this stuff was getting wasted. And sustainability is a really tricky term because what we are doing is we’re preventing a lot of waste. Sustainable would be, Hey, I’ve got this shoe, and then when it reaches its end of life, I can send it to a facility. They recycle the materials and they can do it again. That’s in the future. Where we could play a role is we could say, all right, in this supply chain there’s a lot of unnecessary waste. There’s the waste of advertising dollars, there’s the waste of product. And so before we work on sustainability, the lowest hanging fruit is what would it take to have a zero waste supply chain? And so to date, we’ve processed, it’s getting close to 700,000 units. We’ve never thrown away so much as a shoelace.

John (15:20): Yeah. So I mean, you’re clearly keeping stuff out of landfills. That’s the easy answer, I suppose, in some cases. Yeah. So is there a bigger market trend here? I mean, you’ve obviously tackled one little piece of it. Is this something that retail in general is really going to become a core part of retail?

Patton (15:39): Yes. So what I believe is brick and mortar retail is I believe that’s always going to stay strong. And what we see is brick and mortar retail typically has really consistent year over year growth, but there’s not quite the really big fluctuations. E-commerce is going to play a bigger role. And as it does, when you look at your profit and loss sheet, you’ve just got to say, all right, where are we having preventable losses and what unique strategies can we do? And I think a lot of that will be category and industry specific. What we do know is as there is less discretionary income, people just become a lot more mindful and intentional on where they spend their money. And if you can have a solution that can connect with a more price sensitive consumer without having to bring in cheaper product, and you can use these things that had gotten off track and you can find a really unique way, and this ends up being a great solution. The other thing that we found for retailers is we’ve had a number of them where we’ve done these co-branded revenue shares, and they’ll take their dormant email lists and people who they suspect had graduated from the experience, and we’ll do a co-branded email of, Hey, we hadn’t seen you in a while. If you’re looking for absolutely the best value in shoes on your favorite models, we’ve partnered with Relay, and this actually ends up being a really great win back opportunity for those customers that might not need that really high touch experience anymore.

John (17:04): So in a lot of ways then, does Relay operate like a traditional e-commerce store? You just get your product from a different place.

Patton (17:11): We operate as a traditional e-commerce seller. Our challenge is we never know what’s coming in. So it’s not like, oh, well, I’m going to place an order for 10,000 units and I go into a B2B system. We get what we get. We have on a weekly basis, we have no idea what’s coming in. And so we have, initially that was a disadvantage, but as time has gone on, we’ve built in really great systems to identify the bestselling and most desirable, not only with industry data, but then also with our own e-commerce data. And that all kind of goes into that unique identifying system of this item based on its age condition, where can we help a brand or retailer find the highest value and best use out of it? And occasionally you get models that they were manufactured great marketing plans, but it just did not land with the customer for whatever reason. And those things, they may actually not have a lot of resale value, but they’ll make a phenomenal shoe to be donated.

John (18:10): So it sounds like you’ve kind of got the shoe market figured out. So in true entrepreneurial spirit, what’s next?

Patton (18:18): So this model, so athletic footwear is a giant category. And again, we took one more page out of the Duct Tape playbook of we’ve got really good consumer data and a wonderful group of customers, but your number of running shoe purchases is fairly limited. That’s somewhere between two to three per year. And that was what we found with our customers. But what we got feedback on was if we could do this with running shoes, if we could do it with other categories, they would love that. And so while somebody in their closet might have two to three pairs of running shoes, they also might have a pair of biking shoes and a pair of golf shoes, and a pair of pickleball shoes and a pair of climbing shoes. And so we’ve slowly started expanding into some other categories where we think we can play not only a bigger role in people’s that more value-driven consumer in their running shoe purchase, but in their overall athletic footwear.

John (19:13): Yeah. Yeah. Awesome. Well, Patton, it was awesome having you stop by the Duct Tape Marketing Podcast. Is there someplace you, I want to invite people to check out what you’re doing and find out, maybe connect with you?

Patton (19:23): Yeah, so for people looking to get absolutely the best deals on 99% brand new premium, your favorite running shoes, I can guarantee you’ll find your favorite ones@relaygoods.com. And then for people who are interested in this space or are actively looking for other ways to defend their revenue from some of the biggest losses, you can reach out to me on LinkedIn and just search Pat and Gleason and I’ll pop right up.

John (19:49): Awesome. Well, again, it was great catching up with you, and hopefully we will run into you one of these days out there on the road.