Latest / Connor with Honor: AI, Real Estate and Real Life / Pay Only After Results: I Ran the Numbers on Three AI Agency Ads

Transcript

Pay Only After Results: I Ran the Numbers on Three AI Agency Ads · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  A lot of times I'm watching videos out there and people are just, I mean, they're just spewing all this wonderful golden.
• 0:06
  Information, stuff that, you know, people think, oh my gosh, it's going to make me a lot of money.
• 0:11
  I need to hire these people because they're not even paying charging me.
• 0:15
  They're not even charging me until they give me results, until they give me the leads. Now, they're not talking about money.
• 0:20
  in your pocket or money in your bank account, or people that actually convert to being a client paying you money. They're talking about, it's, until you start getting leads. Then what happens is something magic, your credit card gets hit, or your bank account gets hit.
• 0:33
  Your bank gets hit for that 10 grand fee.
• 0:35
  What are the things you can do? And I do this a lot.
• 0:38
  I'll take something. And your phones have the capability of recording a website. It's just about getting the text right.
• 0:45
  From there, and pretty soon, the large language models, they're gonna be able to really extract the text very well from there.
• 0:51
  But just getting that from, if it's an Instagram, or, or something that isn't regular garden foraging.
• 0:57
  variety, you know, YouTube. YouTube, you can go on there and you can get the transcript But what I do is I check these people, especially when they have all these numbers, and they're telling me how, how wonderful it's going to be, and how all I need to do is just spend, you know, just, just don't spend anything, and they're going to build out.
• 1:14
  So, this is one cat that, that popped up, and this is what happened. What AI said when I took all of his script and plugged it in there, it said, so his own numbers contradict each other, it says. It says he claims three to five hundred pre-qualified bookings every month and separately that you're closed forty to sixty percent.
• 1:30
  percent of them. So if you run that four hundred bookings at fifty percent, that's two hundred clients a month. But he said it's a one-zone agency signed seventy-four. That's eighteen point five percent, not forty to sixty percent.
• 1:43
  So he can't have it both ways in the same four-minute ad.
• 1:46
  Either the booking volume is inflated, or the cost is close rate is. And either way, the number he's using to sell you isn't the number he's actually using.
• 1:55
  Living. Then the headline claim.
• 1:57
  It says 74 clients times $10,800 equals $100,000.
• 2:01
  $799,200 a month,$9.6 million a year from an agency.
• 2:08
  Whose owner has time to personally build and manage funnels for strangers within seven days.
• 2:15
  The second ad is worse.
• 2:17
  Another, another, another person out there different than the first cat.
• 2:21
  Over 4,000 partners averaging $18,105 per month. $17,000. $72 million a month across that entire network.
• 2:31
  $869 million a year.
• 2:34
  That's close to a billion. They would make it.
• 2:38
  That would make it one of the biggest agency networks.
• 2:40
  Networks on this planet. Note, it's an average, not a median.
• 2:45
  So, a handful of out-of outliers carry it, and 18,105 has false precision, which is a trick, exact looking numbers, and read as audited when they're invented.
• 2:59
  So, all, also worth noting, this is also good. It just kind of pulls it apart.
• 3:05
  The transcript is three different ads spliced together, and that's true. So, the offer changes at 4.07.
• 3:11
  So, this is me. I took three things. One right after another, because that's all my feed is, folks. Trying to point out the law enforcement thing in me from back in the day with LAPD.
• 3:19
  It just champs me something awful when people are selling bullshit.
• 3:22
  All right, so, uhm, where do we go? We go, We got here, pay only after results.
• 3:28
  It's really not what it sounds like. So, the standard structure, is, okay, so knowing the three, the three ads sliced together, the offer changes at 4.07, do a done for you agency, then you get a 5.21, that's when the next one came in. So pay only after results is the part of to actually understand. It's real and it's not what it sounds like.
• 3:48
  The standard structure, you pay the ad spend directly.
• 3:50
  Typically, $5,000 to $15,000 a month, straight to Meta or Google. That's why they say no money goes to them, period, until they get you leads, until they get you clients. Well, you can, a squirrel could set up an ad on Facebook and Meta and they can get leads. You can get leads for selling your squirrel parts business.
• 4:10
  And when you start to sell your squirrel parts business, most of the people that are going to be clicking on there come in in the form of a lead. They're probably not going to want to buy any squirrel, squirrel parts. Who wants to buy a squirrel shoulder?
• 4:21
  Who wants to buy a squirrel foot? Yeah. Again, it's probably not going to sell well, but you will get the leads.
• 4:26
  And then after that point, you gotta, you gotta pay me, right? You gotta pay pay, pay to get those leads because we just charged it. Uhm, let me do this. So, as results define, so $5,000 to $15,000 a month.
• 4:40
  That's straight to Meta or Google. Well, depending on what advertising platform they use, OpenAI is beginning theirs. I think it's not ruled out all the way yet, but again, it's, it'll be ads in OpenAI's chat GPT, just like Google. Pay-per-click, that was the big one back in the day, now Facebook, Meta, Instagram. Meta has Facebook and Instagram, again, another. Very good platform, depends on the business.
• 5:02
  I have a couple of those accounts that I'm working for people.
• 5:05
  It just depends on whether it can scale or not.
• 5:07
  There's a whole research thing wrapped around All right.
• 5:10
  So straight to MediRoute. They never touched that money and it's never refundable because it's. it's you paying Meta or Facebook.
• 5:17
  They just get it set up. But it's, that's your credit card in there.
• 5:21
  They have nothing to do with anything that comes out of that system.
• 5:23
  Their fee is the management fee or the setup fee or whatever they call it. Setup fee. And results to find in the contract nearly always, uh, nearly always, uh. Always as bookings or qualified calls, not closed revenue. So it's not about what you have to actually deposit in your bank account. It's just people that are kicking the tires.
• 5:45
  So you can't. You can spend $30,000 on ads in over 90 days.
• 5:48
  Hit that booking target and you owe them their $40,000.
• 5:51
  their full fee in full and have nothing closed.
• 5:55
  The risk reversal is theatrical.
• 5:58
  The money still leaves your account.
• 6:00
  Ask one question and you'll know everything. What's the monthly ad spend requirement and why? What exactly is the contractual definition of results?
• 6:09
  Hold on to that. What's the monthly, monthly ad spend requirement, and what exactly is the contractual definition of results?
• 6:18
  If the answer is vague, or gets redirected to a call, or they have to have you talk to their manager. who's a really good salesperson, well, you have your answer.
• 6:31
  The one line in there that was aimed at you, and it says, you know, without doing any fake podcasts.
• 6:37
  So, I'm recording episode two of A Real Show this week with Santa Clarita business owners that are actually known. And that line exists that makes you feel like you're a differentiated asset is a gimmick, so you'll see people buy their commoditized one instead.
• 6:52
  It's, it's wrong. He says you're on the wrong side of the transaction.
• 6:55
  He sells how to get clients for your AI agency, and I already have something as far as what what's real fulfillment.
• 7:03
  This is, it just continues on. So it's starting to tell me about my businesses. But, so this is how you watch out for your self.
• 7:10
  If somebody's selling you something, just have your AI look at it. I know, and I know.
• 7:15
  Let me tell you this. I know. I know most of us can smell it. I knew watching these cats, watching everybody that flows to the top of my feed.
• 7:22
  Yeah. It's all nonsense.
• 7:24
  If, if it were so good, they're not going to sell it. If it were so good, they'd shut the hell up about it, and they would just do it, and they would just be in the Caymans, or whatever.
• 7:34
  Whatever the best place in the world is now. I'm not sure if there's any left. But that's where they would be. They're not going to be trying to say, sell it to us normal folks.
• 7:42
  They're going to be setting up a recurve, a recurring income stream.
• 7:46
  Monthly payments with many people, like Acquisition, like Hormozie, like these other cats.
• 7:53
  And just relax. And, you know, some of them don't relax, right? They're working like blood, sweat, and tears every single day. This is how you watch out for yourself.
• 8:01
  Be careful. There's nothing like getting the rejections you need to get to a yes. There's nothing like it. There's nothing There's nothing like doing the crappy work, the hard work, the laborious work.
• 8:13
  There's nothing like that, getting rejected by people you know, doing videos and having people judge you and calling you bald and stuff.
• 8:20
  and fat, which I don't even know where they get the bald from.
• 8:22
  All of that, yeah, you face it. You face it.
• 8:26
  And it's okay, you screw it up, you do it again.
• 8:28
  And if you don't want to do it again, you leave your screw up in there, because in the future. Artificial intelligence is going to look so perfect, they're going to have to build in glitches and problems.
• 8:38
  Will people still watch it? Because everybody's going to say, I'd rather watch a human being screw it up than a robot screw it up. Perfect. AI. Thank you.
• 8:45
  Have a nice day. I will see you in the next one. This is Conor McIver. Be well.