CFD 129 – Steve Daar Teaches Us How to Hack Profits!

  • 5 years ago

Without sales you don't have a business for long. That's true for all businesses in all industries. One person who knows a whole lot about this topic is Cash Flow Diary podcast guest Steve Daar, the super trooper of profit hacking. This business owner, author and entrepreneur started out as a financial advisor for school teachers of grades K through 12. What he learned is that he wasn't really hired to do any favors to the teachers, which outraged Steve enough to open his first business. In Steve's words, it was an impressive failure, but that experience opened him to what he didn't know and what he needed to learn to make another business be a success. He says it become abundantly clear that to be a success in any business he would have to learn all he could about sales and marketing. He says that he continues to learn so he can help more and more people be more successful in their businesses. He found out that no matter how much specialized knowledge one has, other and different knowledge is going to be needed when it comes to running your business profitably. For example, while Steve knew a whole lot about being a financial advisor, he learned it had little to do with marketing his business. He began talking to marketing strategists and reading lots of books on the topic. He found one thought leader and master marketer, Dan Kennedy, to be extremely helpful. He gobbled up everything he could from Kennedy to help him in his business. Then Seve went on to pick the minds of several other marketing and strategy experts. He ended up becoming one himself and now teaches others how to “hack profits” from their sales through smart marketing. Steve talks about how to make tiny tweaks to your online marketing efforts to double or triple your conversion rates, which creates a whole lot more sales month after month. What you'll learn in this insightful interview is that you probably don't have a traffic problem; it's more likely that other things are going on. You are going to want to take notes through this entire interview, because Steve Daar shares a lot of what he's learned about converting traffic to greater numbers of customers and more sales. You are going to learn a great deal in this episode that you can put to immediate use! Get ready. LISTEN NOW

Show Notes

Summary: 

On this episode of Cash Flow Diary, J interviews the author of Profit Hacking, Steve Daar. He is an expert at driving, converting, and monetizing traffic, and prefers to help businesses and non-profit organizations that have a mission. In this podcast, Steve discusses doubling your profit by using tiny tweaks that take minutes to implement. If you’ve ever wanted to increase your profits online, then this is a fantastic podcast for you!

Episode Rundown:

04.11 Steve’s origin story

07:44 Finding people to sell to

09:13 Dan Kennedy

11:30 Profit hacking

13:00 Increase your profits online

20:00 Google’s ‘halo effect’

20:56 Apply for a free one-on-one breakthrough session / J’s episode insight

23:03 Profit hacking formula

24:07 Revenue per visitor / customer lifetime value

27:53 Small business and agility

30:40 What is considered small business?

33:12 Online marketing recommendations

40:13 Understanding and finding a businesses customer

41:05 Contacting Steve Daar

Main Questions Asked:

  • What is your origin story?
  • What was the first thing you did when you figured out you had to find people to sell stuff to?
  • Who is Dan Kennedy, and why is he important?
  • What is the profit hacking formula?
  • Is ‘revenue per visitor’ the same as ‘customer lifetime value?’
  • How did you get to 1.3 million in online advertising and work with Fortune 500 companies?
  • Is there a place you recommend we start when it comes to online marketing?
  • How do you know how big to go with online marketing campaigns?
  • Talk about $5 advertising budgets on Facebook.
  • Your specialty is finding and understanding a business’s customer, talk about that.
  • What advice do you have for people saying “Will this media thing really work for me?”

Key Lessons Learned:

  • The Dan Kennedy model is to give away information for free or low cost, then sign you into a monthly membership fee or seminars.
  • Books are the highest ROI thing you can learn from.
  • As the entrepreneur and business owner, you don’t have to be the expert in every niche, you just have to know that you need to hire an expert in certain niches.
  • Google has the ‘halo effect,’ where people tend to trust the results they see in the search engines, especially if you rank number one.
  • Do your first deals for experience, not profit, and later get the profit from experience.
  • You will earn more money in your lifetime, but after today is gone you will never get those 24 hours back.

How To Increase Your Profit In Online Business

  • 1) Increase traffic (either online or in person).
  • 2) Increase conversion (the percentage of visitors that buy or subscribe).
  • 3) Increase economics (the amount you earn per customer) by getting people to spend more for your product or service, e.g. get them on a recurring subscription or membership.
  • Most people focus their time on traffic; however, this is the least efficient way to grow your business.
  • You don’t have a traffic problem; you have a conversion or economics problem.
  • Once you get conversion and economics in your favor, you can pour as much traffic into the engine as possible.

The Profit Hacking Formula 

  • Traffic x (Conversion x Economics) = Revenue
  • Conversion x Economics = Revenue per visitor / Customer lifetime value
  • Revenue per Visitor x Visitors = Revenue 

Small Business Advantage 

  • The advantage for small business over larger organizations is agility.
  • Make sure you always test and get proof of concept, as well as invest money to get early feedback.
  • Ensure you get out of your office and talk to people to find out their pain points, goals, frustrations, and what they are currently using to solve their problems.
  • Be clear on who your customer is and who you want to serve.
  • Once you have the information in their language, the ability to adequately deliver the solution they want is infinitely more effective.

Online Marketing

  • Google is great for finding solutions to problems, e.g. “How to cure acne.”
  • Everyone willingly gives their information to Facebook, e.g. people change status to “engaged” is a good starting point search for a wedding DJ.
  • With Facebook, bid high but keep your budget low, and put daily caps in place, e.g. $5-10 a day.
  • Google AdWords is also doable on a $5 per day budget depending on what you are targeting. This is a great starting point to get a few clicks a day.
  • Think “What is an irresistible offer to get people to click through and take action?” Once this happens, they are on your list so you can follow up with questions to get into the mindset of the customer.
  • The key is knowing your numbers and keeping your eye on the dashboards within the tool.
  • Know how many clicks you received, the cost per click, how many sales were made, and how many leads were generated.
  • Have a basic idea of how much a lead or a sale is worth so you can figure out your cost per click, revenue per click, and whether you are close to creating a higher revenue than cost per click.
  • Traffic, conversion, and economic are timeless. It doesn’t matter whether you are online or offline, they can still all be leveraged to grow your business.

Understanding and Finding a Businesses Customer 

  • Figure out what makes people click, subscribe, and buy?
  • You must understand who they are, their problems and needs, where they are, where they want to be, and what is stopping them getting from A to B.
  • Deliver your product as the solution for what will get them from A to B.

Focus on Incremental Improvements

  • Everything starts internally with your mindset.
  • Train yourself to always move forward and not get down if you spend money on media that doesn’t work.
  • If you constantly improve and focus on incremental gains each day, you will be surprised how fast you will get profitability.

Thank you for listening! If you enjoyed this podcast, please subscribe to the show in iTunes 

Links to Resources Mentioned 

Profit Hacking

Arc Angel Academy

Dan Kennedy

Click to Tweet

What are 3 ways to improve your online business? Find out w/ @SteveDaar   & J Massey cashflowdiarypodcast.com @CashFlowDiary #profithacking

Have you heard the profit hacking formula? @SteveDaar reveals all to & J cashflowdiarypodcast.com @CashFlowDiary #profithacking

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