Reader,

"What should I expect when running Facebook and Instagram ads, to a video selling your services, and encourages them to book a call?"

—A predictable question from prospects I talk to

Typically it works out like this:

In the first couple of weeks your ad spend will be breakeven against the revenue you collect.

Sometimes there's negative cashflow for a couple of weeks. Then you hit breakeven, then by the third week, you see the shoots of profit, and the flowers of scaling start to blossom.

This happens primarily for three reasons:

1. Conversion cycles
2. Sales cycles
3. Recurring revenue

Someone will click your ad. Give you their details. Then they start to consume your VSL, emails, and texts. Then they get hit by more of your ads on FB/IG. They've gone from having no idea about you and your business, to struggling to avoid you.

Some people book a sales call with you after thirty minutes after giving you their details.

But the majority won't. They'll sit on their hands, twiddle their toes, and play with their private parts for a a good couple of weeks before booking themselves in.

So the first day running ads only gives you a tiny percentage of the results you'll be getting after a full month.

To add another layer on top of that— only 30% of those who do book a call quickly will give you money. Again, that means you'll only be realising a small percentage of the money you will make for another few weeks.

Put bluntly:

All of your first week's leads, will only become clients once a month has passed.

This means that you will temporarily be negative or breakeven on cash. If you turn the ads off during this period, you will shoot yourself in the foot, and never be able to scale.

So let’s say you spend £4,000 of ad spend in a week.

Let’s also say that you have to spend £1,000 to get a new customer.

That means you’ll get four new clients, but the clients appear in the same week they first saw your advert.

But they will over the course of the next month.

Still with me?

Good. Business owners who understand this core marketing principle do far better at growing than those who don't.

But there's another factor at play.

If you have recurring revenue built into your offers.

Because put bluntly, you need it.

Here's why:

Those four closes from one week of ad spend will become clients over the next four weeks. They pay you in full, for four weeks of service.

And let's pretend those four new clients all close at one per week. One after the other.

So, in weeks 2, 3, 4, and 5 you have gained one new client each week.

Here's why recurring revenue is so powerful for your business:

In week 6, the person who closed in week 2 will pay again.

In week 7, the person who closed in week 3 will pay again.

In week 8, the person who closed in week 4 will pay again.

In week 9, the person who closed in week 5 will pay again.

However, during weeks 2, 3, 4, 5, 6, 7, 8, and 9 you never turned off ad spend.

What does this mean?

It means that week 10, 11, 12, 13 and so on keep stacking continuously more clients on top of one another, and your monthly recurring grows very quickly.

If the above has baffled your brain, ask your favourite ai to explain it to you like you are five.

If you understand the above, but believe you can't build in recurring revenue, you are likely wrong—you just don't know how.

And if you understand all of that, and want us to build out a complete client acquisition system for you (inc the ads, the funnel, the video scripts, the follow up emails, text, the whole shebang)

​Then apply to work with us here.​

As previously noted, we had two spots—one has gone, with another still open.

Stay stacking monthly recurring revenue,

Connor Benham

—CWB

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