43 min
Why ‘The Law of Inverse Profitability’ Is The #1 Way to Scale Your Business Perpetual Traffic
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- Marketing
In this episode of Perpetual Traffic, Ralph and Kasim discuss the importance of customer acquisition and how to make more money with less profit. They delve into the concept of lifetime value customer (LTV) and cost per acquisition (CAC), which are crucial data points for determining profitability ratios. They also touch on the law of inverse profitability, which states that businesses cannot scale if they still want a high net operating income. They provide examples from companies like Tesla and Apple to illustrate their points. Additionally, they share their own experiences with testing new theories on themselves and discuss the benefits of organic social media over paid traffic. Overall, this episode offers valuable insights for businesses looking to increase revenue and profitability.
Chapters:
00:00:00 Déjà Vu Intro: Kicking It Old School with a Modern Twist00:00:48 The Price of Fame in Business: Deciphering the Da Vinci Code of Costs00:05:54 The Great Scale Debate: Why Bigger Isn’t Always Richer00:08:39 The Happy Accident: When Marketing Missteps Turn into Gold00:17:07 Jay Abraham's Encore: The Trinity of Business Growth, Reimagined00:21:39 LTV Unleashed: The Epic Saga of Customer Value00:24:25 Traffic Wars: The Organic Rebels vs. The Paid Empire00:26:11 The Growth Conundrum: When Scaling Feels Like Tightrope Walking in Heels00:29:17 Smart Scaling Tactics: Ninja Moves for the Ambitious Business00:36:03 From Garage to Glory: The Rollercoaster Ride to Big Business00:38:51 Growth Hacking Mastery: Turning Inverse Profitability Into Your Secret Weapon
LINKS AND RESOURCES:
Episode 474: What Is The Law Of Inverse Profitability™?Episode 519: “The ACC Model” Case Study: How To Scale Your Meta Ads Using Google Performance MaxEpisode 577: (Part 2) Why ROAS Sucks: The New Attribution Metric Everyone Should Use…But Aren’tHave you heard of The Law of Inverse Profitability™?The Law of Inverse ProfitabilityTier 11 JobsPerpetual Traffic on YouTubeTiereleven.comSolutions 8 Perpetual Traffic SurveyPerpetual Traffic WebsiteFollow Perpetual Traffic on TwitterConnect with Kasim on Twitter and Connect with a href="https://www.linkedin.com/in/ralphburns/" rel="noopener noreferrer"...
In this episode of Perpetual Traffic, Ralph and Kasim discuss the importance of customer acquisition and how to make more money with less profit. They delve into the concept of lifetime value customer (LTV) and cost per acquisition (CAC), which are crucial data points for determining profitability ratios. They also touch on the law of inverse profitability, which states that businesses cannot scale if they still want a high net operating income. They provide examples from companies like Tesla and Apple to illustrate their points. Additionally, they share their own experiences with testing new theories on themselves and discuss the benefits of organic social media over paid traffic. Overall, this episode offers valuable insights for businesses looking to increase revenue and profitability.
Chapters:
00:00:00 Déjà Vu Intro: Kicking It Old School with a Modern Twist00:00:48 The Price of Fame in Business: Deciphering the Da Vinci Code of Costs00:05:54 The Great Scale Debate: Why Bigger Isn’t Always Richer00:08:39 The Happy Accident: When Marketing Missteps Turn into Gold00:17:07 Jay Abraham's Encore: The Trinity of Business Growth, Reimagined00:21:39 LTV Unleashed: The Epic Saga of Customer Value00:24:25 Traffic Wars: The Organic Rebels vs. The Paid Empire00:26:11 The Growth Conundrum: When Scaling Feels Like Tightrope Walking in Heels00:29:17 Smart Scaling Tactics: Ninja Moves for the Ambitious Business00:36:03 From Garage to Glory: The Rollercoaster Ride to Big Business00:38:51 Growth Hacking Mastery: Turning Inverse Profitability Into Your Secret Weapon
LINKS AND RESOURCES:
Episode 474: What Is The Law Of Inverse Profitability™?Episode 519: “The ACC Model” Case Study: How To Scale Your Meta Ads Using Google Performance MaxEpisode 577: (Part 2) Why ROAS Sucks: The New Attribution Metric Everyone Should Use…But Aren’tHave you heard of The Law of Inverse Profitability™?The Law of Inverse ProfitabilityTier 11 JobsPerpetual Traffic on YouTubeTiereleven.comSolutions 8 Perpetual Traffic SurveyPerpetual Traffic WebsiteFollow Perpetual Traffic on TwitterConnect with Kasim on Twitter and Connect with a href="https://www.linkedin.com/in/ralphburns/" rel="noopener noreferrer"...
43 min