Brief Overview

In a perfect world, we have a constant flow of high quality leads coming into our business at rock bottom prices. But how do you do that? Well, in this episode, you’re going to hear from Erico Rocha who has absolutely cracked the code and is generating upwards of 12,000 high quality leads every single day. Buckle your seatbelts.

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Q&A

You have morphed the way that you market your business, particularly with the way you generate leads. Can you tell us about your lead generation philosophy? [03:09]

Lead acquisition is all about price and quality. So, if you want to have a lot of leads with bad quality, that’s easy. If you want to have few leads with high quality, not difficult. The question that I had was ‘how can I generate a lot of leads at a low cost and still keep quality high?’ And what is a lot of leads? For me, it’s about 12,000 new leads per day. And a quality lead is one that gives me a positive return on investment on the first transaction.

What did you begin doing as you were trying to figure out a way to generate these high-quality leads at such a low cost? [04:16]

I started the way everyone starts, which is putting an ad before a lead magnet in order to capture a lead. The problem with this approach is that the more leads you get, the higher the cost per lead. If you ever invested in marketing, you know that you can get one lead very cheap but once you get 100 leads, the price per lead increases. So, I couldn’t scale because as I scaled, so did the price per lead. So at a certain point the leads stopped giving me a positive ROI. Our team wanted to come up with a way to increase the volume, without increasing the price or lowering the quality.

So how did you break that? How do you generate high quality leads at a low cost? [05:33]

A friend of mine that belonged to a group I’m a part of discovered something interesting. He realized that the cost per lead decreased whenever he advertised his lead magnet to the people who spent a higher percentage of time consuming his content. So, the higher the percentage of video consumption, the cheaper the leads became. So someone who consumed 95% of a video, would end up being a high-quality, low cost lead. And that percentage might change for you. My videos are typically 1 minute in duration. For longer content, this might vary, so be sure to test it out to see what works for you.

So, instead of creating ads and putting them out to a cold audience, create content, put that out, then step 2 is to advertise to those people who have actually consumed the content. They’re the best prospects. They are the high-quality low cost leads you want.

Of course, producing high quality content at scale is very difficult. Again, my game is not to play small with high quality, it’s to play big with high quality.

So, how do you do that? How do you produce a high volume of content without having to stand in front of the camera on a constant basis? [09:05]

So, on day 200 of a 365-day content challenge, I was about to call it quits when someone gave me an idea. They said, “Hey, Erico, there’s all these moments of time where you are interacting with your clients. When you do a talk, or live events or consulting work. Why don’t you do a free consultation and we will film it? From there, we will turn it into a bunch of small pieces of content (which we started calling nuggets) that you can now use.”

So, I started interacting with my clients. We first recorded four hours of consultant work. To my suprise, that turned into 10 pieces of awesome content.

I wanted more. So, I did a Q&A session in a café in Brazil and from that came another 10 to 20 pieces of content. Every single question was recorded, and every single question became a potential nugget. So, right now I have much more content to post. I’m posting like twice a day. We’re turning it to three times a day and I’m not producing any of the content myself.

Ok, so in step 1 and 2 you explained how you were able to reach high quality leads and create high quality content at scale. What has happened as a result of taking this to another level? [13:03]

Well, here’s what I did last week. Instead of the typical road to launching an online course where you script everything out, record the pre-launch content videos, insert the B-roll footage, and do all the editing, I decided to do something different. The approach I took allowed me take advantage of the same principles we’re discussing today.

I rented a very small theater. I emailed my list and sold tickets (at a very cheap price) so that people could come watch it live and in person. Now I had a live audience. I recorded the event and then broadcasted it for free across the internet. We had 500 people live but 9,000+ people who were watching online. I was now able to look at the data and see who was actually consuming the content, which in turn, allowed me to market to those people and convert at a much higher and cheaper rate.

We did 3 of these live classes, which became our pre-launch video content. There ended up being about 39,000 people who watched a portion of these classes. We called this the launch list. And when we finally opened the cart on a Monday to this list, we broke $1.5 million in sales in about 24 hours.  

Erico, this is a huge innovation in terms of launching products online. Instead of teaching the content in pre-recorded videos, you’re teaching it live and then marketing to the people who have consumed that live content. Amazing stuff. As we wind down, any final thoughts for everybody? [19:30]

Anyone who has climbed Mt. Everest started with the first step. So it’s one step at a time. If you cannot fly, run. If you cannot run, walk. If you cannot walk, crawl. Done is better than perfect. You need to do the best you can with what you have. But you also need to have the vision to follow the right strategy and you need to have the willingness to improve day by day, week by week. If you understand this core concept, you will one day climb your version of Mt. Everest.

Memorable Quotes

“You will see higher conversions at a much cheaper cost, when you are marketing to people who have already consumed your content.” – Stu McLaren

Resources

Erico Rocha on Facebook & YouTube
MembershipStories.com

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