2 builders who never spoke to each other

Scale the budget on evidence, not on a plan

Two operators raised spend only once the quality was proved, and one of them doubled a monthly budget from around ten thousand dollars to twenty after the referred subscribers turned out to be good, holding when quality dropped. The opposite failure is optimising a small budget forever: one founder had capped spend at two hundred dollars a day, was told by a peer running a similar business to spend more, and watched applications climb steadily when he did. Volume of opportunity can be the only difference between two comparable businesses.

The method

1. 01

   Increase the paid acquisition budget on evidence of subscriber quality rather than on a plan, and hold it where quality drops.

2. 02

   Raise the ad budget rather than optimising a small one, because opportunity volume can be the only difference between you and a comparable business doing better.

What it returned

• $10,000

  Michael Houck doubled his monthly spend on paid recommendations from about $10,000 to about $20,000 after the referred subscribers proved to be good quality.

• $200

  Greg had capped spend at $200 a day, was told by a peer with a similar business to spend more, and saw applications climb steadily when he did.

Sources

• S02 Episode 3: How to Value Your Funnel with Greg Hickman - Double Your FreelancingGreg Hickman · doubleyourfreelancing.com · S02 Episode 3: How to Value Your Funnel with Greg Hickman · 2018-05-01
• Friday Feature: Houck's NewsletterMichael Houck · sparkloop.app · #3 - Re-investing in paid growth · undated