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How we use advertising to outpace Investment Companies

Ray Dalio

You are probably wondering who this guy is.

Meet Ray Dalio, he founded Bridgewater Associates out of his two-bedroom apartment in NYC and ran it for most of its 47 years, building it into the largest hedge fund in the world and the fifth most important private company in the US according to Fortune Magazine. Bridgewater is worth over $150 billion with several billions in Assets Under Management because they are good at generating returns for their clients. The question is how good? According to TipRanks, their average returns in the last 12 months was around 12.41%. This means if you spent $1000 dollars, you would walk away with a profit of around $124. Sounds reasonable to the average American who may face a 5.5% interest rate, but can it be better?

Return on Ad Spend - Digital Marketing - Apollo Digital

What if I told you that with every dollar you spent on ads with Apollo Digital, you would get a 400% return? This means that if you spend $1000 we would make sure you earn $4000 in what is considered to be a Return of Ad Spend (ROAS) of 4 (4:1). Investors dream about these kinds of returns because it is not easy to get, but that is because people don't truly understand how to get these results. The Performance Marketing team over at Apollo Digital worked tirelessly over several months of testing to formulate the most effective E-Commerce advertising strategy. With an ROAS of 4 being the target, our team managed to generate returns sometimes as high as 5400%. This means that with $1000 dollars spent on ads we would return around $54,000. Sounds too good to be true but the formula is simple. As a consultancy, we hear businesses owners coming with ambitious plans and goals for their business. It is very rare to hear expectations such as 5400% returns but all businesses that come to us (big and small) tend to have really big goals. Just like any other business owner, I am the same, but there is 5 factors I take my time to consider and build on.

1. Your Product can't be sh*t

Most founders and business owners often blame their bad returns on everything but their product. The truth is that it is hard for a business owner to admit that their product is bad because in most cases, that business is their baby, and no one wants to admit that they have an ugly baby! This is why testing is vital. In fact, testing is everything.

Hot Sauce

If you've made what you think is a killer hot sauce. Give it to people for free. Give it with a free hot dog, give it with free wings. Just make sure you give it with the intention of improving the product. If I had a penny for the amount of times someone came to us with a terrible product saying they're ready for marketing, I would probably start planning retirement. Once you're certain that there is a genuine buyer for your product, that will buy it more than once if the need arises. Then you look at the next factor. 2. Don't bite the hand that feeds you, try to give back Without the consumer, you just have an item or an idea. Not a product or a service. So make sure you do everything to provide value. The biggest brands in the world bring value to millions of homes and businesses, so focus on creating something that brings value to people whilst also curating an experience that is customer centric.

From lead generation to conversion, ensure the customer journey starts strong and finally to make sure they stay a customer, focus on improving customer satisfaction by developing the product or just maintaining a good experience. Sometimes, people pay more for less because they feel better. Its why economists say that the rational consumer is never really rational. 3. Make sure you can grow

The difference between a $1000 and $1 Million is quite significant (duh). It is what separates start-ups and small businesses from enterprises and corporation. The question is, what makes the difference? Scalability.

If your product sells at a dollar, you need to figure out out to sell a million units to hit $1,000,000. Is your business capable of producing that much, and is it possible to profit whilst managing such a large output. Sometimes, businesses are unable to handle more business and this pushes them to operational malfunctions that result in a subpar product or service. When we started out, we told companies that came to us looking for leads that "we would make it rain". As amusing as it sounds, it is something we were beyond capable of doing but businesses always underestimated how hard it would rain. We have 'made it rain' for multi-million dollar companies who are industry monopolies, but we made it rain so much that they often drowned. This is a big problem because why grow if you are unprepared to do so? This is one of the tougher battles you will face as a business owner because this takes time, but once you figure it out, you will gather momentum that pushes your business to rapid growth. 4. Connect with your client This is what real marketing is. Not selling, but connecting with consumers by delivering value. Just like in testing, your objective should be to give, give and give some more. This may mean that you incur a cost, but it also may mean that you incur no cost, but just need to put a bit more time and energy to improve your brand. The little things always count.

When Apollo Digital was getting on its feet, I went to businesses all around the country offering them free photoshoots for social media content. I did not have a photographer working for us, I did not even have a camera. So we paid for a photographer to come and give photoshoots for free. We wanted nothing from the client but a good review and the ability for us to share the content we created for them. That's how we scaled our company to 8 figures annually. But keep in mind that this is the job for those who manage the brand. Those who execute the marketing strategy have a different task that should be executed quite clinically. This is usually where our clients start seeing the value coming in. Any good business identifies their user persona, the task in marketing is to figure out how to reach that user and then convert them into a buyer. Sounds simple enough but there's a combination of specializations that play a role in achieving it successfully. With a strong understanding of the market, a good grasp of economics and geopolitics and cognizance of the science of marketing and trends, you can assure returns. This is generally why businesses look for an agency, but its definitely the reason why business need us! Marketing is a combination of several moving parts that come together to create a seamless initiative to empower the brand and increase sales. As a consultant, we advise businesses to get to the point where they are well equipped to take on marketing properly. 5. Patience is not just a virtue, it is a necessity Rome was not built in a day, neither was Apple, Nike or Tesla. Most people have heard this analogy several times in their life but tend to forget it when it comes to their business expectations. However, noting that the 'day' is metaphorical, there have been businesses that have been built quickly. For instance, Alchemy, went from launch to $10 billion in 18 months. It is not impossible and it is great for business owners to chase these results in these timelines, but in most cases it is impractical. If it does not pan out that way, there is a billion different variables that contributed to you not hitting that target. You need to identify, optimize, scale, repeat. If you've gotten this far, you're probably wondering what this have to do with Ray Dalio? Well at Apollo Digital, we care about generating returns for our clients just as much as Ray Dalio does, but the difference is, we can generate remarkably higher returns with digital marketing and advertising, we just need businesses and entrepreneurs to understand how to get to that point. The businesses who we are able to generate returns of over 800% are ones that have spent time fine tuning various aspects of their brand and business operations, but most importantly, its businesses that have chosen the right partners to guide them in areas that require expertise. We

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