Is Spending Money on Ads the Best Way to Grow Business?

Rudy Mawer and I were hanging out in Costa Rica at Mawer Capital headquarters a couple of weeks ago. If you don’t know, Rudy is Facebook ad Guru. He has partnered with Ty Lopez and Alex, raised $150 million, acquired 11 companies and billion-dollar brands like Radio Shack, and did many celebrity marketing works with many fitness celebs, more recently, with people like Mike Tyson.

This guy spends up to a quarter million dollars daily on Facebook ads. He has an extensive mastermind coaching program with 70 employees, 40,000 students, and 200 people in his mastermind coaching program, where he helps them grow online with ads, funnels, and lead generation. 

I did a podcast with Rudy Mawer and asked him some important questions about growing businesses and things you should know, which are as follows; 

What is working now on Facebook ads?

The biggest thing that works well for him on Facebook ads now is the current significant mindset shift he teaches, which he has applied to his business; instead of just teaching, teaching, and giving a clear result. 

So all the best funnels right now, landing page offers, and a 30-day challenge to start generating X amount of leads in seven days. He will show you how to do that.

People want less content these days; they’ve overconsumed enough content. If they’re going to buy something and take action and buy a program, they want to buy into a clear path to a result.

Do you know what high ticket selling is?

A high ticket is a higher ticket price. It’s selling for over a couple of thousand dollars. The highest ticket Rudy sold was a hundred thousand dollar offer. 

Rudy and Tyson have sold 150K agency packages as well.

He has built high tickets in every business. It helps recession prove you a little and adds lifetime value. It’s very hard these days to make a lot of money selling low tickets.

A high ticket gives you the economic lift where you’re making more per customer to scale much quicker.

And he does about a million a month in high ticket sales alone, which is incredible. 

Why is it that people don’t sell a high ticket? 

You might not think you can sell it right now because you don’t know how to fit it into your business model.

In every business Rudy has worked, he figured out how to increase lifetime value and high ticket offers. 

It might not be a thousand dollars offers, but there are clear ways to increase lifetime value.

You might be struggling with how I do high-ticket offers at scale. But don’t let your mindset limit your ability to go and create high-ticket offers.

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Me Interviewing Rudy Mawer

Rudy has 40,000 students on his lower mid-ticket, over 5,000 students on his mid-ticket, which is $2000- $5000, and over 200 students paying him over $25,000 a year. 

And, of course, there’s work involved, like any business, but he has systems, processes, SOPs, and frameworks that allow him to scale it at a high level.

Maybe you can’t sell high tickets because you’re not an expert, you’ve not got enough social proof, or you’ve not been doing it for a while. If that’s the case, you have a limiting mindset. People will pay high ticketing and a lot of money to achieve a significant result, whether coaching them for weight loss, a relationship, doing something on their website, or setting up Facebook ads. 

People will generally pay more money to get stuff done quickly without having as much risk. So you have to be creative, figure out what your avatar wants, what they’ll pay a lot of money for, and then go and sell it.

How did you generate 40,000 students and all high-ticket customers?

The big thing for him to get such a result so quickly is his mindset: He wants to spend hundreds and thousands of dollars a day on ads.

He says, “If I’m spending a hundred grand a day, I’m helping more people than anyone else in our industry”. 

So he has built funnels, offers, and broad ecosystems where he can spend a lot of money, giving him many customers. I.e., 40,000 of them. 

And then it allows him to take a small percentage of all those 40,000 people and then upgrade them into a high ticket offer because they’re more serious.

They want to work with him, and they want to get faster results. 

How much are you spending on Facebook ads per day? 

If you’re unsuccessful with your ads, you’re missing a massive part of your business growth.

The most considerable growth in your company will come when you figure out the paid acquisition. Many businesses are doing 10 million a year as they have spent 20 years building a brand. Rudy hasn’t created a brand that long, but he made it quickly because he figured out paid ads.

So if you’re spending a few hundred or thousand dollars, that’s a great start. But the magic will hit when you figure out how to scale that to $10,000.

There are many companies and clients Rudy has worked with, and they spend $10,000-$30,000 a month, meaning they haven’t figured out cold traffic and are handcuffed. Because let’s say you spend $400 a day, it’s better than spending none, but you’re only going to get a few customers. You will never be able to get hundreds of customers a day. 

Lots of money on ads is the best way to grow a business.

The next step is omnichannel, building the ascension model and the lifetime value. 

Build the lifetime value!

You’re maybe getting some success, but I guarantee you’re leaving a lot of money on the table from all the customers and leads you’re acquiring. 

Rudy goes into a lot of businesses. They hire him for ads, but the big thing he does is build the lifetime value and the strategy of all the leads they’re bringing in.

So it’s great that you’re spending thousands of dollars a day, but I want you to imagine if every customer you brought in is worth five times more. What would that do for your business? You’ve already worked hard to build the ads’ ecosystem.

Imagine if you could make way more per customer. The economics and the profit margins of your entire company would wildly go up, and you’d be much stronger as a business. 

Why are people afraid to spend more money on ads? 

The only reason that people don’t spend more money on ads is they haven’t built the strategy to make an ROI

Let’s say you give Facebook $2,000 a day, and it gives you $5,000 a day back. Are you still scared of ads?

What if you give Facebook $20,000 a day, and it gives you $50,000 a day back? Are you scared to spend money? 

Maybe No.

But most people are scared to spend money on ads because they don’t know how to get to the point of profitability.

I’m not saying you should run ads and lose money, but you need to be able to run ads and acquire customers. You might lose money on day one, but you’re profitable as long as it is within a 30-day cycle. Then it would help if you spent as much as possible because you will get more customers, impact, and a more significant business.

Are you ready to make some business money?

If you want your business to grow and add more impact and revenue to your company and a world-class team working to create free variations for your ads, you can have Rudy’s irresistible offer of $97.

Rudy will guide you through the process, identifying the avatar, the audience, and the perfect clientele to sell for a dirt-low price. He usually charges thousands of dollars for this, but now it’s only $97.  

So if you’re ready to start, take action today. They’ll give you some high-level strategies that you can implement to start getting more success.

Dennis Yu

About the Author

Dennis Yu
Dennis Yu is co-author of the #1 best-selling book on Amazon in social media, The Definitive Guide to TikTok Ads.  He has spent a billion dollars on Facebook ads across his agencies and agencies he advises. Mr. Yu is the "million jobs" guy-- on a mission to create one million jobs via hands-on social media training, partnering with universities and professional organizations.

You can find him quoted in major publications and on television such as CNN, the Wall Street Journal, Washington Post, NPR, and LA Times. Clients have included Nike, Red Bull, the Golden State Warriors, Ashley Furniture, Quiznos-- down to local service businesses like real estate agents and dentists. He's spoken at over 750 conferences in 20 countries, having flown over 6 million miles in the last 30 years to train up young adults and business owners. He speaks for free as long as the organization believes in the job-creation mission and covers business class travel.

You can find him hiking tall mountains, eating chicken wings, and taking Kaqun oxygen baths-- likely in a city near you.