Thread by @blackhatwizardd

Here are the situations where cold email makes sense

THREAD

Situation 1:

You are selling an agency service. You are new. You have minimal capital. You are below $10,000/mo.

WHY?

Because it is the cheapest way to get into contact with people

Don't let somebody come along and say "bro you'll get so many more leads with Facebook ads"

YOU DON'T RUN ADS WHEN YOU'RE A BEGINNER.

LET ME EXPLAIN

You do not "just run ads"

Ads are expensive, and they almost never make sense unless your offer is $5,000+ or your LTV is $5,000+

Go ahead and turn some lead generation ads on Facebook

"Omg I'm getting $5 leads!!"

Yes but HERE'S THE PROBLEM

For some extremely odd reason people on Facebook fill out forms when they are absolutely unqualified

So out of your $5 leads, quite literally 1% of them are qualified

You need SHIT TONS of qualifying questions on your page

You should reasonably expect a $250 - $500 per qualified call with a FB ad call funnel

This is an LTV play (lifetime value)

Might cost you $2,000 per acquisition. If you're charging $2k/mo - you only profit in month 2.

Beginners can't afford this, so cold email makes sense

Situation 2: Your lead pool is extremely small

There's like 5,000 people in existence your offer is for, and it's probably high ticket $10k+

WHY?

Because you cannot specifically target them with ads.

It makes zero to sense to not just scrape their emails and write them a personalized message through email or LinkedIn

Drastically more time & capital efficient

When should you make ads?

When you're prepared to pay $2k+ per acquisition and you're okay with being in the red for 1-2 months

This requires you *already* have cash flow and a bank account to pull upon

Now you can augment this by using a Facebook group

You're essentially mixing cold & warm traffic

You use ads to build a group

You post in the group consistently

You get inbound leads

This lowers your effective cost per acquisition at the expense of time

So two funnels:

A: Straight call funnel. Stringent qualifying questions. Cost per qualified call will hover between $250 - $500. Cost per acquisition hover between $2k - $4k

B: Ads to FB group. Cost per acquisition will be lower - but it will take much longer

Takeaways:

> If you're under $10k/mo send cold emails. It's faster and cheaper

> If you're above $20k/mo and have the balls to use your capital, build a funnel with ads

> If your lead pool is small use cold email