My Startup Has Exhausted Its Cash and Weve Slashed Our Marketing Spend to Zilch | Ep. #1376
I'm Eric Su and I'm Neil Patel and today we are going to talk about what happens if your startup has exhausted. All of its cash and you slash your marketing spend to Zilch and this question. We're doing this live right now. Comes from Varuna and Neil. What are your thoughts on this? So first off and business and we see this typically the first expense that's to go during bad times as marketing. It's not people it's marketing and that makes sense. You don't WanNa let people go. I want to let your marketing. But HIS GOPHERS. I know being a marketer. That's weird for me to say. But it's true. You WanNa try to retain people as much as possible now when you slash your marketing budget zilch. You need a rethink that. And here's what I mean by that. When tough times comes you? WanNa save people so you want to save a marketing budget but you only WanNa cut off the marking budget. That's not profitable so if you're spending a dollar on a marketing channel and it lose you money then you should cut it for sure but if you're spending a dollar and it's making you three dollars and after all costs are still profiting fifty cents or a dollar. You WanNa keep that because if you slash that during a bad time it's actually. GonNa make your situation even worse right. So the first thing you need to do is look at the marketing. Spend that you slashed and make sure that only slashing the ones that aren't profitable and you keep the profitable ones going. That's the first thing you need to do call so I guess you know from my end. I think there's a good example of this or probably going to live with him on pet from conversion. Xl seeing right now for a lot of entrepreneurs like a lot of costs have been cut. Remarking is literally a zero right unfortunately might have had to lay off marketing and sales staff wall. But it's during times like this where you get to go back to doing. Hand to hand combat. It's times like this where you take out the skills that you were. Basically using the past to grow the business from nothing to what it is now and you've got to adapt so conversion. Xl Basically they sell education courses marketing education courses and they used to charge more of a premium price. I think it was a couple of hundred thousand dollars or courses and you just pay for it up front now for him. If you go to see Excel Dot. Com. He's now changed it to think it's a one dollar trial for seven days is very similar to what? Hfs Does the paid trial. But it's a very small paid and the whole idea behind. That is he made. These changes very quickly. It didn't cost much to do it. And what's amazing is. His sales are now on track to break marches record. And it's only halfway through the month right so sometimes during times like this where you go back to hand to hand combat and you want to make the changes that you've been wanting to make for a long time it's often just flipping that switch jumping back into it as a leader yourself if it's a very small company especially and then going from there right because you don't get the luxury of resources anymore. You didn't get the luxury of having a bunch of people help you that a lot of us. We've gotten lazy in many cases and this is the time where the rubber meets the road and the people that step up and are willing to go back to doing things that they thought were above themselves are the ones that are really gonNA thrive yet. The other thing I want you to do is start looking at partnerships. It's very similar to marketing. But it doesn't cost money. There's someone out there who's not a competitor but is in the same industry and has your customers. Why not partner with them and try to get them to drive you business. So for example what this is. Let's say I have Seo Agency your digital marketing. Agency called Neil Patel digital and there's actually someone and our Utah Office that were funny enough where subleasing our space from them and in that office. They have a huge company that all they do is marking for lawyers and dentists and doctors. But they don't do seo or did not doing paid advertising right. So that's a great partnership because they can drive. Us Business and they can pretend you make money from it by selling this to their customers at a premium Sonali. Do they make more money but also allows us to grow without having US spending any money on marketing as well start thinking outside the box because there's other ways to grow and one of the easiest ways to grow is business partnerships so? I had a really good answer but then I forgot what it was so the other thing I would think about when it comes to we talked about hand to hand combat. We talked about affiliate marketing as well. But the other thing to think about too. Especially if you're near a service business right now is think about how you can play the long game right. If you look at Gary. V's an example of guide. That's out there and he's agency you know vein or media right now. He's having to put out a lot of fires when it comes to clients and a lot of contracts or canceling but at the same time he's also adapting because he used to create a ton of content everyday. We're talking hours and hours of footage. 'cause he has a team falling around and now what he does is. He does a live daily life for about two hours. Every morning he goes live and that's his content right so being able to adapt during times like this being of the build a lot of goodwill I've been doing a lot of one on one zooms a Lotta Group. Even this scenario we're going live across the board to multiple channels. That goes along because people actually do come back later because I remember in in the past when it's been tough times the goodwill that built up people do actually come back like a year or two years later. And if you're saying that's GONNA take a long time ultimately what you're trying to do is you're trying to play the long game right so we did give you a couple of things that you can do immediately. I want you to think about how you can build your base right now and how you can start building your audience right now especially during you know talking to a lot of agency or service based businesses right. Now they're lead flow has dried up so I do like the things we mentioned to like the affiliate model but sometimes even type stuff takes time to get going now. Remember my answer. Go TO SPARK TORO DOT COM. That's renditions new tool and what Neil is talking about. In terms of finding partners sparked Toro is basically like having your dream one hundred for different categories still. Help you find top podcast related to keyword to help you find top youtube channels related to certain keywords top website stop twitter's I use it for the first time today and those immediately like I got the Aha moment and Yeah. I don't know if you've tried it or not Neil but you definitely should cool. Yeah having tried it out yet but I will all right so that is it for today. Go to marketing school the Iowa Slash School. If you want to get on the waiting list for the education program that Neil are working on 'cause we literally have marketing school so check it out if it's interesting to you during these times than gas could fill it up see tomorrow. We appreciate you joining us for this session of Marketing School. Be Sure to rate review and subscribe to the show and visit marketing school dot. 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