I am going to begin today’s newsletter by pasting an excerpt from Alex Hormozi’s book $100M offers…

This will also substantiate how there are only 2 ways to grow a business: get more email subscribers and increase the value of each email subscriber.

Here is the excerpt:

To simplify this concept even more. There are really only two ways to grow: get more customers, and increase each customer’s value. “Increasing each customer’s value” has two sub-buckets: 1) Increasing profit per purchase 2) Increasing the number of times they buy. For the purpose of this book, I highlight both of those sub-buckets as individual growth paths. I did this because I think it will be easier to understand the money models that will come in Volume III. All three — getting more customers, increasing their average purchase value, and getting them to buy more – are repeated themes in this book. But if you seek simplicity, both increasing average purchase value and increasing the number of times a customer buys results in one outcome: increasing each customer’s value.

Now, I’m gonna walk you through the strategy I use to do this with clients.

This is how we get a 4x increase in our conversions…

Using “Full Funnel” Email Marketing.

I have 3 parts to this system:

1. List Growth
2. Increasing Value Per Subscriber
3. Data/Reporting

Let’s start with List Growth.

Typically, my clients have established businesses, that are already either:

• Running ads
• Have a large social media following
• Have SEO

What that means, is they have TRAFFIC.

And we want to grow their company, WITHOUT them needing to spend more money on ads, etc.

This gives us way more profitability. And ultimately, gives us way more leverage too, making it easier to scale.

So the way we grow the list without increasing ad dollars or traffic, is through Conversion Rate Optimization.

Basically, if we have 10,000 people visiting our website each month…

And 3% of them convert into email subscribers…

That means, we’re getting 300 new email subscribers each month.

After installing proven CRO tactics, we might start getting 6%.

So, we’d get 600 new subscribers.

That’s 300 more leads we’re now getting, without ramping up ad spend.

Now, if we get the same value from each new lead too…

Well, that means, we basically doubled the revenue from our lead gen efforts—without spending more on ads.

You following?

You spend time to get people to sign up to your list, but if you double the rate people sign up to your list through conversion optimization (eg. convert 6% instead of 3%), and all other factors stay the same…

(eg. closing rate, value or deal size, average order value), you just doubled the ROI of those lead gen efforts quite easily.

I won’t get into the tactics of CRO, because that’s a whole nother beast I’ll cover at another time.

Here’s some quick wins though:

• Pop up forms (optimized)
• Quiz funnels (with value-added bribery)
• Signup forms at the end of blogs (with forms related to content of the blog article)
• Plus, optimizing your landing pages people sign up on
• Building a new high-converting funnel, or optimizing our clients current funnel

The main thing here is we wanna outpace churn.

And the way we do that is by growing our list faster than people are unsubscribing.

And that’s actually a good segway into the next part of this method.

Increasing Value Per Subscriber

The way we increase the value of each subscriber is through email segmentation.

Here we focus on sending the right message to the right person at the right time.

Basically, sending someone exactly what they want, right when they want it most…

Which gets us effortless conversions.

Even better though…

Is by using segmented content…

Our unsubscribe rates also go down, too—because people are getting content they actually enjoy.

I’ve written some tactics on email segmentation, so you can do a deeper dive here.

One way to think about it though, is this:

Many people will send “segmented email campaigns” to a select group on their email list.

But what they don’t realize is you can get way more leverage with less work by using dynamic content in your emails.

For example, let’s say you’re sending a newsletter to your entire email list.

But then you have offer sections in different parts of your email:

With dynamic content, you can show different products and offers to people based on their interests.

Maybe if someone has bought a particular course from you in the past, you can show them other ones that would be good to cross-sell them.

Vs. Other subscribers or leads, you may wanna introduce them to more front end offers to trip the wire.

The key here is to experiment with what emails give you more sales.

Typically, you’ll notice a boost in email revenue just by using dynamic content in regular newsletter emails.

Then, there’s also sales sequences you can use based on when people click on a link or take a particular action…

So now you’re swiftly moving people deeper into the sales process, based on what they’ve already shown you they’re interested in.

The point here, is by using segmented content and personalizing things for your customers, you’ll provide a way better experience for them, and it also increases your average value per subscriber.

Now let’s talk about the last piece, which is most important.

Data/Reporting.

You may have noticed in part 2, I mentioned experimenting and testing what emails give you more sales.

And that’s sorta what we want to do in part 3 here—but it’s not all of it.

I’ll tell you more about experimentation in just a moment.

First though, the most important thing when it comes to growing your company is having a true north star, because that’s how you stay focused.

Like Peter Drucker said:

“If you can measure it you can manage it.”

Here’s the problem:

Sometimes, I’ll see a company and they don’t have clear goals for growing their business.

Without that, honestly, email won’t help you all that much.

Let me get straight to the point here instead of talking in tautologies.

Let’s say you plan to grow your company 2x every 4 years. That’s the growth rate you’ve set for your empire here…

If you don’t have that, well then okay, this is not for you, maybe focus on a lifestyle business or hobby instead.

But if you want to build a real empire that changes lives, well then, you need clear goals to strive for.

Here’s what that means in terms of email marketing:

2x growth every 4 years, basically means 25% each year.

Inflation tends to grow 3% each year, with spikes over 10%, too…

So if you’re not growing faster than inflation rate at a minimum, then your business is slowly dying (literally).

Luckily, though with the right email strategy you can avoid that! Let me show you…

So, let’s say you end up doing $1,000,000 in ARR in 2024.

10% of that came from email marketing.

In 2025, your goal is 25% growth, so you plan on doing $1,250,000.

But now, you’re investing more into email marketing because you understand how much more leverage it gives your business…

So, in this case, instead of doing 10% of revenue through email marketing, you wanna do 20% instead.

Well, now you take your $1,250,000 revenue goal for 2025, and you times that by 0.20.

That means you wanna see $250,000 come from email marketing.

So now, when you start looking at what emails get you closer to that result and which ones don’t the picture gets more clear.

Now, of course, you’re gonna work with someone who knows how to create and test high-converting emails, so you can do this process in your business…

And ultimately, have more predictability into the growth rate of your business.

If you are doing enough testing, pulling data, and know how to manipulate different variables from your email list, like:

• Offers
• From name
• Subject line
• Preview copy
• Body copy
• CTA
• P.S. section

…as well as what types of emails work best on your list:

• Problem agitate solution
• AIDA
• Story emails
• Paradigm Shifting emails
• Product launch emails
• Contrarian emails
• Testimonial emails
• Newsletter style emails
• Graphics above the fold
• And so on…

…it gets easy and formulaic to consistently grow your company.

You just need the right system, and the right people who know how to run the system.

Otherwise, you’re playing business with a blindfold on.

And it’s way easier, when you just have a clear map to follow that consistently provides growth, without taking up much of your mental and/or physical bandwidth.