Sergio Chavez: [00:00:00] Just very simple. Yeah and doesn’t have to be learning Google ads or Facebook ads or anything. I would really get their numbers down. I would really, really get their numbers down. Let’s go three letter words. Their customer lifetime value. 

Richelle Shaw: Yep.

Sergio Chavez: what their true profit is on it, cuz people also dilute themselves on what they’re profiting. 

Richelle Shaw: Yep. 

Sergio Chavez: And , get those hard numbers. Make sure that you got ’em down. And then start advertising. There’s quite other ways to build a business so that once they have those numbers down, start advertising and make it uncomfortable, even go negative necessary on your customer acquisition, because if you’re not comfortable with that, you’re never gonna build a business. If you’re not comfortable with knowing, okay, I’m $10 in the hole with this customer, but I know I can sell ’em another a hundred. I think that uncomfortableness that’s gonna force you to grow your business.

Richelle Shaw: Yep. 

Sergio Chavez: But if you don’t know, if you’re flying blind, then you’re not [00:01:00] gonna have that foresight to be able to do something about whatever business it is. But yeah, make, get your numbers right. 

Narrator: Welcome to the Million Dollar Equation Podcast. A podcast about the easiest, fastest way to build a million dollar business based on the best selling book, the Million Dollar Equation If you Love Business. Each episode reveals all of the core fundamental essentials for growth. Now, here’s your host, Richelle Shaw.

Richelle Shaw: Once again, so this was the session that everybody said, you know, I wanna know. I wanna know, I wanna know. So when I was doing my surveys and asking, okay, what do you wanna learn about, this is the one that they said, yes, I wanna get into and so once again, I reached out to one of my besties Sergio Chavez, that has [00:02:00] been working with me for six years, five years. How long, Sergio? How long? 

Sergio Chavez: Yeah. At least. At least five, six years. Yeah .

Richelle Shaw: I know, I know, I know. It’s a long time. So I mean, he was there in the original M D E Live, the very first event that I ever put on that was for the world. He used to come to my local events here and we’ve just grown together and done some really, really, really cool stuff.

So I’m excited to welcome to the show, to the summit, one of my business besties again, Sergio Chavez. Give him a hand. Yay. 

Yay. Hey, Sergio, you know, today we’re gonna talk. Google Ads versus Facebook ads. You know why you think that you like Google Ads better, but before we get into that, just give, you know, a two minute intro of who you are so that they can fall in love with you just like I do. 

Sergio Chavez: Okay? So I’ve been in the internet marketing space [00:03:00] within many, many different competencies for 11 years now.

I started 2008 going to U N L V for a little web design program. I built my first website back then and I stumbled onto the power of the internet while working for an insurance company. Like they paid for some of my classes, so I built a website for them and by mistake it became the number one website on Google for auto insurance, Las Vegas.

And that website back in the day, like 2010, 2011, was selling about a million dollars worth of insurance a year through that. So I’ve dabbled in everything from, you know, building YouTube channels when it wasn’t the thing yet. Video, all of the Facebook ad stuff, always SEO, doing websites.

So I’m pretty familiar [00:04:00] with all the gamut of different things in the internet marketing space. Right now, I just specialize mostly on Google ads. 80% of my time is all Google ads, so yeah, that’s kind of where we’re at. What I like, the way that I operate is that I like to bring at least base value to my clients.

Richelle Shaw: Yeah. 

Sergio Chavez: If not at least 10 x. So, I can pretty much tell you I sleep very well at night, because I know that any dollar that has been spent on my services has been returned at least once, not 10 times, sometimes even a hundred. It all depends. 

Richelle Shaw: Right, right. And I think, that’s what everybody’s looking for, you know, one of the challenges and you know we’re in all these groups together online Facebook groups together and you’ll see people saying, you know, Hey, I got my first client. What are your [00:05:00] ideas on how I should build their business? You know and it’s like. What? 

Yeah, well how dare you go out there and sell this client, before you know what you’re doing and I’m so, just, you know, people are gun shy and they’re scared to make an investment. And so, one of the things and he’s one of my secret weapons, you guys, that we use with my agency when we talk to doctors and go out with doctors, because we don’t count clinks, we don’t count likes, we don’t count any of those things.

We only count dollars and so I have to have people on my team that know how to produce. And you know, how do you feel about that when you see, I know you see it too out there that they go, Any ideas? 

Sergio Chavez: I just ran into somebody the other day. It just, it literally, sometimes it makes me even, I’m gonna say it makes me puke.

Because these people are approaching it from the sense of they saw some sort of program on the internet and when they come [00:06:00] into a client, they’re approaching it from their own viewpoint in the sense of, I want to make money off of you. And that just stinks like fish, like literally stinks like fish.

Whenever I come into a customer’s with whomever I consult, whether I’m gonna do business or not, I’m always thinking about them and in the sense, and the first thing that I’m thinking is, you know, what is the base number, is what, does a customer give them so that I know how much, it’s what space of money I have to get them a customer. Right? 

Richelle Shaw: Right. 

Sergio Chavez: And most people aren’t accustomed to *inaudible* most small businesses, which I’m not dealing with anymore, I’m dealing with bigger businesses, they’re always thinking about the cost. You know $500 for social media, but it’s not about that. When you turn their head around and you start, okay, so how much does a customer give you?

What’s the customer lifetime value and then they don’t even have a number sometimes. So you come down with that and let’s say [00:07:00] it’s a hundred dollars. So then, okay, I think I can get to a customer for $20. How many of those do you want? So then it doesn’t matter if it’s $500 spent or a million dollars spent because you can put in however many customers you want into that number, at $20. And to this day, I see it every day. I see it every day. It’s so simple, I think, in those terms and that’s the way you gotta think if you wanna be successful, especially in Google advertising, cuz it’s, it’s expensive. I’m saying it’s expensive because there’s niches where it can cost you up to $80 bucks to get a customer, Right?

Richelle Shaw: Yeah. 

Sergio Chavez: But the thing is, can you figure out, you know, if it cuts me $80 bucks, then I make 160 out of those. That is on the business side of things. 

Richelle Shaw: Sure. So, well, you know me as a business owner. If it costs me $80 bucks, I don’t care as long as I can make $80 bucks. Right? So I just want, you know, I don’t need to make 160.

I [00:08:00] need to make one to one, because me and what I teach everybody to do, of course, as you know, in the Million Dollar Equation and in the new book Speed, it’s like, okay, you know, we spend the most to acquire the customer, because now I have a customer and then it’s my job to get them to come and buy again. So, as you know, I don’t know if I’ve said this in any of the interviews, so I might as well say it now, right? 

There’s only three ways to grow. 3, 3, 3, 3. One, get a new customer. Two, get your existing customer to come back more often, right? Or three, get them to spend more with each transaction. That’s it. So, If I get you to acquire my customer, awesome. That’s $80 bucks, right?

Then it’s my job to expand the transaction by using, you know upsells, down sales, cross sales, right then, when they come in, so that now it can pay for that, which is amazing when it happens. It doesn’t happen often, right immediately, but it’s my job [00:09:00] too to do that third way is get them to come back more often. Because now I’ve paid for them and now, you know, we’re on the other side. I’ve made the investment and now my investment is paying for itself over and over and over again.

You know, so if they’re looking at it as expensive or that it costs me, Then I run away from those and hopefully, you know, one of the things that we’re doing on this whole virtual summit is really changing the mindset of the audience from this is an investment. Your business is an investment.

You know, so many of ’em think that their house is the biggest investment that they’ve ever made in their life. And I go, oh yeah, how much was your house? Oh yeah, $300,000 or, you know, half a million, but I invested, you know, a half a million dollars to get certified in the telephone business. Yes. It’s like, you know, What, I mean?

It’s like what? Yeah, it costs half a million [00:10:00] dollars to go to each public utility in each state. That’s 50 states. It costs $10,000, so guess what? A half a million dollars. You know what I mean? So, to invest a thousand dollars to get, you know, if you said 20 bucks, so, to get 50 customers, Oh my goodness.

You know, I built a million dollar business with a thousand customers. Yeah thousand and…

Sergio Chavez: Correct. Correct. And that’s the problem these days. You see all over social media, all the promises of it’s even more rampant these days of get rich quick and no money. No business is harsh.

Business is, it comes down to the cold numbers, not to what Ty Lopez or Gary Vaynerchuk are saying today on social media. That’s completely opposite of what business is. It’s cutthroat. It’s, [00:11:00] you know, it’s numbers and cents you have to accept also that sometimes those numbers are not gonna work out because you’re using entities like, You know, computer algorithms that might not have your best interests at heart, right?

What they wanna do is spend your Ad money, right? 

Richelle Shaw: Right! That’s why you have to know what you’re doing, right? 

Sergio Chavez: You have to be, yeah, you have to be a good steward. For me and my business and what I do, I have to monitor all my accounts, probably a couple dozen accounts that I have to manage and see every day so that that algorithm doesn’t eat you up.

And you know, check the conversions, check to see if those ads that you’re putting in front of people are getting those calls or pull in the door.

Richelle Shaw: Yeah.

Sergio Chavez: Have to be on top of that. That’s basically, and I mean, we’re not showing a lot of bells and whistles of how, you know, you work on the [00:12:00] platform.

But I think people need to be educated more on the bigger picture, on the meta thinking before they do anything or put it by campaign. 

Richelle Shaw: Sure, sure, Which is probably what we should get into now, is back before the only place that you could run ads was on Google, and then Facebook kind of came in and that became the rage.

So I know that you spent time in both places and, you know, you used to be all Facebook ads, you know, so why are you back just a champion of Google ads? Why, why did you choose Google over facebook?

Sergio Chavez: Well, I mean, let’s put a disclaimer here. 

Richelle Shaw: Okay.

Sergio Chavez: In the sense of better serving people, when I get asked which one is best, the answer is always, it depends and you can make both work, but it depends on where you are in business and what’s happening.

Richelle Shaw: Got it. 

Sergio Chavez: Why am I championing Google ads more? Because [00:13:00] the pendulum has run so far up the Facebook ladder that I mean all these groups of advertisers and people and every day it’s like something changed. I was paying $2 to acquire a customer into my email list and now it’s up to $20 and then it goes down to $10, and then they don’t get anything and then it’s just every single day and why is that? 

Because the pendulum has swung so far up that alley that all the money, all the attention is there by all the advertisers and Facebook, I don’t think knows what to do and how to fit all that advertising into their algorithm and it’s just, it’s a feeding frenzy, right?

And it’s not even your fault or it could be a hiccup on something on Facebook. So I think they’re having growing pains in that sense. [00:14:00] That’s my perception and feeling. But it comes based on very, very tangible observations every single day. Right. Now, if you see a graph of Google ads versus a graph of Facebook ads, like on results and on traffic, like Facebook is like all over the place.

It looks like a frantic, right? Google, once you get it up there, it becomes a smooth curve and you can start predicting when it’s gonna go down, when it’s gonna go up, because they have their platform very, very well figured out. It’s been 18 years in the making. I think Google Ads is 18 to 20 years old.

Also Google is more based lately on intent, right? You’re not going into people’s faces and forcing stuff on them. Facebook, that’s what it is. Now I’ll give you the counterpoint [00:15:00] to that. What I’ve been noticing on my Facebook ads is that if I respect people and I put up, like if I’m gonna put up a piece of content and I tell them even before, when they’re scrolling through it, I let ’em know this piece of content is about this.

I think people feel respected to either look at it or just scroll through it. I think that’s working very well right now on Facebook. But you have to come to it from thinking from respect. Now, from respecting your customer instead of being clickbaity and putting in like mystery stuff and you wanna get them to buy, example,

I mean, I’m selling funerals right now on Facebook, Successfully. I have 20-2 ROI, but I respecting people. I’m telling them up front, we’re selling funerals. Right. It’s like there’s, there’s no hidden agenda behind it and people either want or not. Yeah. On Google, the difference is that people are looking for [00:16:00] that stuff.

Right? So you’re showing them respect actually by showing them a better answer to their question. Right. So that it becomes, it’s a whole other game. If a person’s looking for an eye doctor and you answer the question. I just built a huge campaign for an eye doctor and I’m answering every single question on every single service that the doctor does.

And it’s like nine core services, but I’m answering the question exactly. You know, like people will put in , I didn’t know there’s something called Surfer Eye. So then, and none of the other guys, the competition that I’m putting ads against are using that term. They’re just using ophthalmologist.

But if, I’m like, I have Surfer Eye and I’m in Las Vegas and I wanna cure for it and then I see an ad that just caters to that, of course I’m gonna go and click and you know, you’re more prone to get that customer. So it’s a whole different focus, right? [00:17:00] And you’re gonna get a much more, even if it’s more expensive, you’re gonna get a much more customer that’s willing to spend that money or to do business with you.

So again, the answer is, I mean, is it depends, well, let’s go back to the pendulum. So then so many people are putting that attention on Facebook ads and that people are not putting attention no Google ads. But there’s a little trend that I posted on my Facebook about a month ago. You actually liked it. Let me find it.

Richelle Shaw: I like that, I personally liked it?

Sergio Chavez: So I’m gonna share a post. Let me find it, a little picture. Here it is. So on September 22nd, 2018 on Google Trends, if you see the blue one is gonna be Google ads and the red one is Facebook ads. So now Google ads are [00:18:00] trending up more versus Facebook ads.

So I think we are on the verge of where people are gonna start putting a little more attention on Google ads. And as a business owner and as a business professional, of course, you want to be ahead of the trend, right? So I would rather be giving those services and becoming badass at it, because also there’s a lot of people that are not.

Richelle Shaw: No, that’s great and, and you know, I think that part of that is that you know, it’s kind of like the stock market. You know, I used to tell people if it’s on the news, it’s too late. Like you’ve missed the curve to buy this stock. You know what I mean? Because now everybody is and it’s driving up to price and this is a false gain, it’s all gonna correct itself.

And I think that’s the same thing that’s been happening between Google and Facebook, is that now that Facebook ads are all the rage, you know, you’re overpaying for the same. click that, you know, you could have gotten earlier [00:19:00] before when it wasn’t all the rage and now the competition is, is in and you’ve gotta kind of wait for it to course.

Correct. Same thing with, you know, real estate. It’s the same type of investment, you know, right now when the Raiders announced by the way, you know, congratulations Raiders ticket season holder, my friend. So I’m gonna hit you up for some games. Right. . It’s when they, when they first announced that they were coming to Vegas, you know, it was ridiculous and our real estate prices went sky high.

And so now I noticed that we’ve got lots of for sale signs, but they’re not selling as quickly. And normally summertime is a really great time to sell your house, right? Kids are outta school. You wanna get into the new house, you wanna get settled before school comes. But it’s slowed down and well, why is it slowed down?

Well, because guess. Our number one industry here in Las Vegas is gaming, is casinos. They are the number one employer other than the state, [00:20:00] right? So if you work for a casino and you can’t afford to buy a house here, , it’s a numbers game. Same thing. So it’s all gonna adjust here in a minute, you know, and, and you know, this whole summit is about our economy.

It doesn’t matter who’s president. You need to figure out, you know, how to build your business in any economy. It didn’t matter who was president. I built million dollar businesses in a slow economy and a fast economy. It doesn’t matter because you have to understand these trends, these things that you’re looking at.

The same thing that you are ahead of the curve in. That’s what people need to be with. And they, you know, I don’t come to you and go, look Sergio, and, and here I am the marketing expert, right? I don’t come to you and say, this is what we’re gonna do, do this. I come to you and say, tell me what we should do, , which is totally different.

You know, when you have a person on your team who [00:21:00] is spending all of their time doing this, then yeah, I’ll have some ideas. But you always reel me back in and go, all right, aren’t we doing this ? And I’ll go, oh, yeah, yeah, yeah. But you need somebody who is, who is ahead of the curve. So you talked about it being a little bit more expensive than the other, so….

You know, there’s *inaudible* you that’s out there, that pitches all the time that you can do a dollar a day on Facebook and, you know, build a million dollar business. So it, I know, you know, but a headline is a headline. It’s a good headline. 

What’s the minimum budget that you really like to work with on Google Ads?

Sergio Chavez: Well At least a thousand dollars. At least. At least. Because customer acquisition right now on Google Ads goes on all your better butter industries and services. It’s the low end, $10[00:22:00] and the high end, about a hundred bucks. So, so yeah. I mean, if, if I don’t have enough to experiment, then get those hundred customers, probably that a thousand dollars is going to provide then, Yeah.

 You can’t see anything less than that. For example, like I was telling you the eye example is gonna be $2,500. Right? 

Richelle Shaw: Right. 

Sergio Chavez: And I mean, I would shoot myself in the head if I couldn’t get this person, one customer for this, for an eye doctor, a customer’s probably worth, at least 3 or $4,000, right?

The high end. I don’t know, but yes, I mean, it’s a higher ad spend. I don’t know who’s gonna be watching this call. For some people that probably would be a heart attack for me. I mean, I have campaigns that I’m running a thousand dollars a day on. 

Richelle Shaw: Right, but see…

Sergio Chavez: I’ve grown pretty accustomed or cold, to, like, [00:23:00] people’s emotion on money, because I know that’s bringing 2000 back. Right? Right away. 

Richelle Shaw: Every time, every day, right? So what they don’t understand is that advertising is always expensive when it doesn’t work. Okay? 

Sergio Chavez: Exactly. 

Richelle Shaw: But when it does work, it’s an investment to get you better cash flow, because if you’ve got new customers coming through every day, then oh my goodness, you know, you are in such a great spot.

I mean, the reason why people came after me for the telephone company all the time, and I got to pick who I sold to was because I had new customers coming in every day, you know, and I had continuity from them. So once I got them in and then continuity, it was a wrap. You know, there was no, no nothing. Like, they couldn’t figure it out.

They, they were all, oh man, you know, how come she’s killing it? Well, because I never turned off my ad. Never turned off my ads, even when it cost me a little bit more. I [00:24:00] was consistent. They heard my message, they saw my message. It was making a one-to-one no matter what. And then some days I would spend $1 and get $10.

Someday I would spend $1 and get $1. But it all averaged out that my marketing budget got bigger and bigger and bigger because the business got bigger and bigger and bigger. Right, you know, in Breakthrough. And I know that several of the folks that are watching this are involved in or going to be in my class breakthrough.

And part of that is let’s figure out what your budget is, right? If you don’t have what you really want to invest in the business, then let’s figure out a way that we can sell something really quickly to people that you know, so that we can get that budget. Just staying at this small one where we just sell the people that we know won’t, you haven’t built a business, you know, you’ve built this little hobby thing.

That’s not a business. A business is a system that generates new customers for you on [00:25:00] a continual basis and that grows, right? So that’s why businesses go out of business cuz they stop implementing the system that’s generating new customers for them all the time and then they wonder why they’re broke.

Okay, well you’re broke, because you stopped that thing, that thing, that thing. Right? You know, it’s like, do that thing!

Sergio Chavez: Let the *inaudible* say, what are we promoting today? It’s always, what are we promoting today? 

Richelle Shaw: So here’s the mistake that they also make is when you sell to your friends, now you have to keep creating new shit.

And it’s very hard to leverage when you’re in creation mode, right? So you’re having a hard time, you know? So now we’re starting and stopping. So, you create, create, then you sell, sell. Then, oh my goodness, now I have to implement. Now I have to deliver. Now I have to create again. So you’re going back and forth, back and forth doing this little, you know, the hokey pokey.

You know, you put one foot in, you put one foot out, and as [00:26:00] you’re doing this hokey pokey, nothing works, nothing works. You’re not making any money. So you go up and down and up and down and you burn through credit cards and then you finally pay them off. Then now the stress of having that the credit cards were, you know, it just is.

It’s too much and most folks can’t handle it and the reason why is, because you haven’t created a system that has a consistent amount that you implement. Even if you start with a hundred dollars, you know, you build it up, you build it up. So, a thousand dollars minimum, but we know that with a thousand dollars minimum, that you’re gonna produce for them.

Thank you so much for listening to My Passion Project and the Million Dollar Equation Podcast and what you’re hearing, if you like it, I love it. So click the subscribe button to get each week your new favorite episode.[00:27:00] 

So I mean, do you suggest that people do it themselves and, you know, look, he’s my guy so , you know what I mean? You know, I don’t need him to be so busy doing your stuff, but, you know, do you suggest people doing it themselves? 

Sergio Chavez: I would not and I will tell you why. Google, the way Google makes money, those billions and billions of dollars, is out of what’s called inefficiencies.

Their platform, Facebook a their platform like running the ads and the platform that it’s, let’s call it, it’s a soft S.A.A.S. Software. Software as a service. Right. The platform is very confusing. It’s not an easy to navigate platform, and they have not made it any easier in the sense of if people understand it, they’re gonna be able [00:28:00] to break through their inefficiencies, so they’re not gonna make as much money.

And I’ll give you an example of an inefficiency. It’s called negative keywords, right? So let’s say you’re bidding for lasik surgery, right. So, some people are not gonna type just like lasik surgery, they’re gonna type “lasik surgery free”, which is a unicorn that will never exist, right? Right.

So if you’re not checking that, Google tells you Google gives you great data, when people are looking for your term, what? It’s showing up. So, it’ll tell you if it’s showing for free, but to get to that is about four clicks and four clicks to get there, right? They tell you that, you know, Steve Jobs always wanted to make it one click or half a click or just a swipe, right?

Well, to get to that place, it’s four clicks and it’s like, it’s hidden way, way, way inside the platform and [00:29:00] then they set up the table so that all, you see all these numbers, CPA, CPV with all these little three letter words and it’s just complicated as hell. If you’re running a business like the people that are probably watching this call, I don’t think they have the brain power to be able to digest all those things.

Richelle Shaw: Apart from the brain power after running their business.

Sergio Chavez: The brain power left. Yes. 

Richelle Shaw: Yeah. 

Sergio Chavez: It takes a certain level of intelligence and experience in business and marketing, I think to be able to be in the top of Google ads. 

Richelle Shaw: Sure. 

Sergio Chavez: Because if you want to keep competitive, you’re fighting first against the machine, which is Google. So you’re fighting against certain efficiencies, which you have to keep abreast of all the time.

And then because yeah, I mean LASIK surgery for free, somebody clicks, there’s 20 bucks down the drain, right? And then just like that, just like that.

Richelle Shaw: Right. 

Sergio Chavez: And to Google, they don’t care cuz it’s just an algorithm.

Richelle Shaw: No. Yeah. They’re still making their money. Well, I had a private client [00:30:00] that wanted me to run their ads and I’m like, I’m not really good at this, you know, but, so I jumped on the platform.

I’m like, well, maybe I can figure this out. Right. You know, silly Richelle and this was years ago, cuz that’s why now I don’t run any of my client’s ads. Now, I can write a copy for you and I’ll give you suggestions and I’ll do that and I will manage the team to make sure that we’re all on that same plan.

But I don’t run any ads. So while I was running the ad These negative keywords were killing us, because they do custom backyard basketball courts. Right and so they got more clicks of people looking for, wanting to go and play a pickup game. So they would say, Hey, is there a close backyard court?

Right? Until their phone was ringing off the hook, but it was the wrong customer. Yeah and then all of a sudden we burned through the budget.

Sergio Chavez: It’s like, happens. 

Richelle Shaw: did you get any customers from that? And it’s like, well, no, no. 

Sergio Chavez: Oh my God. Yeah. That was sort of like the Google Horror stories. Do we have [00:31:00] time? I can tell you one more real quick.

Richelle Shaw: Yeah, yeah, yeah. I would love to, would love to hear. 

Sergio Chavez: I was tasked with auditing a German restaurant here in Vegas. I’m not gonna say names, cause it’s gonna be public, but I was tasked with that and they had like a $20,000 budget, right. That they had to burn through. So there’s, so I could tell right away that I went in and 80% of their keywords that people were clicking on were strip clubs in Las Vegas and like at restaurants.

Right? And I’m like, I went into the forensics of this and I saw for German restaurants, the only traffic was about $300. Cuz that’s the only traffic to be had. You know, there’s a certain pocket of people just looking for that and that’s as much as Google can spend for you for a German restaurant.

Richelle Shaw: Right. Right. And it’s all based on how many people are searching. Right. 

Sergio Chavez: Then I just made the numbers real quick in my head and I said, okay, so let’s say average ticket price is 50 bucks [00:32:00] and half of that is profit. So how much does these $15,000, how many customers do they have?

Does it have to bring out? And it’s like, what is it, four times 30, 15? That’s like, 750 customers and that campaign wasn’t bringing 750 customers, just to break even. Right? 

Richelle Shaw: Wow. 

Sergio Chavez: But it was an advertising agency that needed to justify a budget. Right? 

Richelle Shaw: That’s right. 

Sergio Chavez: So that they could charge whatever their fees is *inaudible*

Richelle Shaw: Well, cause they get a percentage, you know, when you get it a percentage… wow.

Sergio Chavez: Or they get a fee for it. 

Richelle Shaw: Right.

Sergio Chavez: So then that’s a caveat on these things, that there’s, there’s, so there’s horror stories and just $15,000, just like burn $15,000 every month. It was a monthly thing.

So yeah, there’s those horror stories and that’s when you hear, oh, I tried Google ads. Well, you didn’t have the right person running it. 

Richelle Shaw: Right, right. Well, cause you don’t know what you’re doing. Yeah. 

Sergio Chavez: And you didn’t have the right person running it or you needed to justify. [00:33:00] These big companies have to justify budget. Right? And for me, I can’t sleep at night, if I get a client like that. Like you gotta justify a budget.

I find that also with big companies now that I’m like deep in the rabbit hole and I now understand why Google makes so much money. Not only the inefficiencies, now there’s somebody doing it on purpose.

That’s like, even that’s like, you’re going to help.

Richelle Shaw: That’s the worst ever. You know, I mean, between you don’t know what you’re doing and those that do kind of know, well, I think that they don’t know what they’re doing and they say, yeah, you know I think you need this budget, right?

And the customer says, okay, well we’ve got, you know, we’ve got about 50 grand a month, we can spend and they go, okay. Then they try to look for things to put them in. You know, I mean, I see it all the time that, why would they, you know, this isn’t their customer, why would they target this person? I see it even in my Facebook ads.

It’s like, how did I even get targeted for this right [00:34:00] here? And I think that they’re just trying to burn through the budget and, you know, try to get to the other side, so that they can just continue instead of really delivering results. 

Sergio Chavez: Yes. Yes. So yeah, that’s why I’m kind of an underground person. I just, I go by my results.

I don’t go by, you know, people promoting ads on Facebook that I see on everything. I’m like, I’m always worried, cuz I know what’s really going on behind the scenes. 

Richelle Shaw: Sure. 

Sergio Chavez: And it’s not pretty, it’s cutthroat, it’s cold. It’s a cold world really.

Richelle Shaw: It is, it is. And you know…

Sergio Chavez: It takes a lot of confirming.

The crazy things that people do for money, right? And so, you know that they will sell anything and then don’t know how they’re gonna deliver it and I get this, you know, sell it before you do it. I get that. You know, I definitely do those things. However, I also have built $4 million businesses.

You know, real brick and mortar without [00:35:00] internet, without social media, without email, without, you know what I mean? Where I had to, run radio ads and TV ads and newspaper ads and direct mail, all things that cost a ton of money. I’m shocked when I watch people do things that they might not have done.

That’s why I like you, Richelle, because you base your stuff on time tested principles. So it’s always principles and I think now more than ever, the business world has gone really, really awry on that.

It’s people are basing on all the hoopla and everything that’s going on around in social. They’re forgetting the principles. There’s basic business principles that have been basic since the time of the Phoenicians and they’ll keep holding up 2000 years from now. 

Richelle Shaw: Absolutely. Which is why I tell them, you know, if you, if you come through Breakthrough, you know my, my 14 day challenge, right?

It’s not even a lot of work, but it at least gets your foundation done so that when you build upon [00:36:00] it, everything else is easy. It makes your Instagram stuff easy. It makes all your social media easy. If you’re struggling on what to post, it’s because you haven’t done the core, you know, basic five things, right?

And so I just , you know, I just take deep breaths. It’s all right. 

Hey, hey, hey, hey, MD Nation. Can’t get enough. Can’t get enough. Hey, I’ve got another free training that I’d love for you to see how to add another million this year. 

You can watch it for free by going to 

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Ugh, it’s my favorite thing to do is to teach and train so you can go and hang out, have some [00:37:00] fun, and learn some stuff from me.

Go to 6TO7FIGURES.COM

But before we go, there are two things I always love to ask and so one is tell me about your favorite client ever. Like one that you’re like, ah, this is my favorite client ever. 

Sergio Chavez: Favorite client ever. I’m actually working with them right now.

Richelle Shaw: Awesome. 

Sergio Chavez: It’s a very big company. They have sales of over 1.5 million every month and it’s just basic numbers. It’s straightforward. We know our cost of goods. They got it all down. They got all their conversions down, they have everything going and I have a good team helping me create videos.

Right now the big thing is YouTube. So we’re cracking that nut and we’re cracking it really well.[00:38:00] Right now. That’s the big thing, I mean, if you wanna add tip and all, YouTube towards that. And it’s working pretty well. So I’m very, very happy because I’m getting to spend, I mean, I have a limited budget.

I can spend $10,000 as long as I make it, make a profit. Right. So, those are the exact clients. So they’re like, are you spending more? Are you spending more? Are you spending more, like, I’m figuring it out because, you know, you gotta spend and be careful. Yeah. That, you know, for every dollar, I know that for every dollar that I’m putting in, I’m getting three back.

So that changes. There’s a curve where that stops. So that’s why you gotta be on the hum. I’m very, very special on these big budgets. You gotta be watching it like a hawk. Sure. And so that’s a lot of fun. That’s my favorite client so far. First time I get unlimited budget, you know what I mean.

Richelle Shaw: Right, right, right. So, you know, my boss used to tell me that. He used to say, Hey, you know, the one boss that I have, everybody knows that story. I had one [00:39:00] job and then I bought the company. Right? And so he used to say, Hey look, you can do anything you want. Just don’t put me out of business and it needs to be profitable.

So do you go, you know, I’m giving you carte blanche. This is, you know, a 23 year old. Really? You give a 23 year old carte blanche, you know? But because I knew I couldn’t do. I couldn’t put ’em out of business. I was always, you know, mindful of, okay, is this going to work and is it going to work right?

Because I think once you get that experience, which makes me super confident now, which makes you super confident now when it’s like, okay, should we do this? You go, yeah, I’m positive I can get you these results at this, because of, you know, all the things that you’ve done before. So that’s just fantastic.

So what’s the one thing that you think, or one area that people should be crushing right now? I think you kind of mentioned it already, but for, you know, the rest of the year, this is like this, this pivotal point. We’ve got half the year done. Now let’s go crush the rest of [00:40:00] the year. You know, what do you think that they need to do?

One thing, three things, five things. What, what do you it is? 

Sergio Chavez: Just very simple. Yeah. And doesn’t have to be learning Google ads or Facebook ads or anything. I would really get their numbers down. I would really, really get their numbers down. Let’s go three letter words. Their customer lifetime value. 

Richelle Shaw: Yep.

Sergio Chavez: What their true profit is on it, cuz people also dilute themselves on what they’re profiting. 

Richelle Shaw: Yep. 

Sergio Chavez: And , get those hard numbers. Make sure that you got ’em down and then start advertising. There’s quite other ways to build a business, so once they have those numbers down, start advertising and make it uncomfortable. Even go negative necessary on your customer acquisition, because if you’re not comfortable with that, you’re never gonna build a business if you’re not comfortable with knowing, okay, I’m $10 in the hole with this customer, but I know I can sell ’em another hundred. I think that uncomfortableness that’s gonna [00:41:00] force you to grow your business.

Richelle Shaw: Yep. 

Sergio Chavez: But if you don’t know, if you’re flying blind, then you’re not gonna have that foresight to be able to do something about whatever business it is. B ut yeah, make, get your numbers right. 

I don’t sit down with a person without, even myself forcing them to get their numbers right and if they don’t have ’em Right, I just don’t work with them. 

Richelle Shaw: All right, it’s not worth it. It’s not worth it because eventually they will think that it’s expensive instead of….

Sergio Chavez: Not only that, you end up being the responsible party. I’m very responsible, being responsible even for things that are not my own.

But there’s a certain point where that burns you. That there’s so many other business owners out there that I could go and serve better than somebody that doesn’t know. Even if I help ’em, you are gonna end up the faulty or responsible party for their failure. I can see that coming a mile away.

Richelle Shaw: Yep. 

Sergio Chavez: And I just choose not to [00:42:00] engage. With those customers. You know, it took a while. You saw me when I was fledgling and I wanted please everybody, 

Richelle Shaw: We all do it, you know. Yes. Well, that’s awesome. Thank you so much. I know that you are super busy. I see all of the things running around in the background.

To get you, you know, the three monitors. I finally got you to the right monitor, so that they could see your hands in face and I appreciate you just really breaking down, you know, the, the five things people need to do if they wanna run these types of ads. I am grateful and gracious and thank you so much for your time, sir.

Ladies and gentlemen, my friend Sergio Chave. Yay. Yeah, yeah, yeah, yeah. Yay. There’ll be information below so that you can find him, reach him and work with him, but make sure you got your numbers before you call him. All right, everybody. Thanks. 

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