Do This to Scale Your CPG Brand — Guaranteed

growth workshop that's happening on September the second at CTC's offices in

Sonny Coast, Amesa, California. You're going to hear a keynote from our CEO Taylor to kick it off and then you're going to join a cohort of about ten other brands, rotating through workshop sessions where we're going to be talking about forecasting paid media, creative production, hiring, and AI tooling, all of the building blocks to get your seven-figure brand to the next level. Luke Austin and Tony Choppe have

both been on this podcast regularly, are also going to be their in-person so come meet them as well. So to grab tickets, just go to cometherco.com and hit the banner up top, we would love to see you there. All right, mom with the show. This episode of The Ecommerce Playbook is brought to you by

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upgrade. One more time, outer signal.com/thread to discover the VIPs buying from you. Hey folks, welcome to The Ecommerce Playbook podcast. I'm your host Richard Gaff and Director of Digital Product Strategy here at Comment Threat Collective. And I'm joined today from as high-rise and do-by. It's Mr. Joy Sharma, who heads up our seven-figure growth service here at Comment Threat Collective. Joy, what's going on today, man? Here we got some

exciting news. Changing the world today. Yes. Changing the day? That's right. Joy came to us

“right before this podcast. Hey guys, we're changing the world today. And so that's what we're”

here to talk to you about exactly how Joy is going to change the world. And potentially your business for the better right now. So let's talk a little bit about kind of give us a background to this announcement. So like what's essentially, well actually maybe put it in a nutshell. Just give me one line about why what we're about to offer here is going to change the world into business. So the average result we saw when we did the hourly APS scaling on CPG business says,

well the 20% compounding guard and compounding means like people launching new creatives and they're spending crees like whatever you're ever going to increase and you can't continue to do that. I will keep compounding 20% growth on top of that incremental by using this strategy. So we're like, if you let us do this for your CPG business, we'll guarantee 20% growth or you don't have to pay. It's like literally I was talking to, you know, like balls do the wall off or like

change the world on this. Yeah. So okay. Let's let's define a couple terms in. One, the most important of course is AO is our friend Aaron Orndorf at operators who's also a part of the promotion for this a little bit. But then there's a couple things too. So what you put it out is that the service essentially is what you're calling hourly API scaling and it's for CPG businesses. Again, CPG consumer package goods, what we're referring to specifically here is primarily like things

like supplements or it can be like food and beef too, right? So everything can care. Yeah,

“it's consumable and yeah. So so that's what we mean by CPG businesses. So this is specifically”

for those. But talks to me a little bit about what hourly API scaling is. What is, what is the

strategy? Okay. So if you see this research, so basically, I wanted to look at few things. So number one,

what are the test parameters? So we are publishing this research or show like how well this API works and what we do at how well now works basically. And while we are so content and we're literally giving guarantee on it. So number one, we define test parameters. So test parameters were basically the ideas I can go into a particular hour and we can go through and look through the hours that are like really good and we can actually just force spend into it using the API which is not a little

to other people. So we're like, the best test parameters for this is how much more money did I spend in that hour that purely came from the API versus what would have the average been. So that's basically how to define the research parameters. After that is we basically looked at the number of actions that we take in how many days we took them and then we basically look at the results. We have three instance here, which are like their three brands. So there's brand A where we

purely just use the hourly API. There's brand B where we actually improve the everywhere in baseline, which we are going to talk about further. And then we saw if you improved the baseline, which is what we do. And you add the hourly API on top, how well that works. And then we went ahead and we backed as they across a huge sample said we have internally to make sure that we actually believe this is like not a one-off thing and it actually works forever. So if you look at the first

business, if you did it, there it is. So about the data, brand A. So we took 177 scaling actions over a window of 20 days. So the first 20 days of taking this business and putting them onto this

look at this graph, which is how much money you were going to spend and how much incrementals

“spend during the API's is basically a 30.8% compounding. That means I think they started out the average”

of about 1,400 pounds a day and they add by the end of the 30 days. Actually, it's spending twee grand a day. Because it actually compounds on top of it, which is like, hey, we took over, you launch your new careers the way you want to. And then we spent 30% additional compounding value purely from the API. Which is great. Like, this is good. Everyone is happy. The double, the spend, double the business, everyone is happy. The thing that's more interesting to me is like,

how do I go and change the baseline alls of further? Should I get brings us to this concept? Should we talk about this for a much a long time? Should I? I can open up stateless. I can look at my trend API and I can look at the trend that I can look at within industry hackers. So we basically looked at industry格 for the second business. And this is basically what I'm interested, which is, if you look at this business, what we did is basically we took their industry average

ALV's and CACs. And we basically, we designed the offer. We did everything and we basically started bidding that. And when you compound that to the hourly API, their business went through the absolute roof. And there's like trends that shows like the industry, CAC, industry, every business, CAC, business, and you will notice that they're out bidding it. And the reason why this is so valuable is basically what I'm doing is I'm essentially going to the algorithm and getting so much more

inventory. And there's still a limit on that inventory. But the second you become like industry hackers, you're just being more than everyone else in the industry, you actually get so much we in volume that that particular business actually went from we started. And I think in 30 days, they went from $1,500 a day in spent to 10 grand a day in spend. And I think you're like 90 days into this relationship. And yes, they were like 20 grand a day in spend. And that's, that's just,

if you think about it, how much like this for the first time, for the longest time at CDC, we have sold value. Like we produce the most value. And I think this is the first time we're actually going to sell speed. If you think about that business, going from zero to 20 k a day in spend is like 600 k and basically total spend in CPG businesses, returning revenue is half of that. That means like it went from zero figure business to like eight figure business in 90 days. This is like this is the

real value equation. And then what we did was we basically took that API and we took all the triggers that we use. And we basically backed this at about on 37 under the brand. So that's like the third

instance if you notice, they build about I think $100 million in annual admin. And if we basically

backed us in, you can see the table of how much percentage uplift that API will cause. And you can look at how many instances, how many changes it will take, basically over 30 days, how many times you're going to need to make changes, because if you notice like for the first time, it's like $177 changes are needed. Across 20 days to produce that outcome. And on our really business. So basically,

“we we played it out. And we noticed that it's like 24% average uplift. And that's why we were like,”

hey, if if you as a CPG business come to us and you let us do this for you, we will guarantee a minimum 20% uplift or you don't have to pay because we just backed this at end. We've done it for these businesses. And I'm like, this is like, we know this works. This is special. Okay, so let's let's talk a little bit about, well, I mean, first off, I want to kind of highlight some of the numbers here for this second brand that you tested. And again, to reiterate the idea here is both that you brought

their AOV, using this sort of like offer framework that we've been talking about on previous podcast with you, we built a set of offers that brought their AOV up above the threshold of this sort of like the

average cat for that industry, right, which is one thing that's super, super crucial. If you're

going to win in the auction, you have to be able to bid as much as everybody else is bidding, right? So okay, so that's step one. And then, but also here's a couple of numbers. So you mentioned where they started. So this particular brand was spending $856 a day in April. And as of today or yesterday, they're spending $11,659 a day. I think that's yesterday when I made the made it. I think yes, yeah, I'm actually like 20. That's more like 20k now. Okay, so that's like a

2000% increase or something. And then all of this is being spent at a point nine row as which for context, they had started out, at least according to this report at 0.49. So the baseline of row S doubled as well. So what we're seeing happened here is crazy, right, which is that we doubled efficiency well, 200xing. Is that right? 200xing there? I spent fake number. And also like the interesting year, we didn't bid less like the CPA did not increase. And actually increase. That was the

core part of it. It's like, this is like this is baseline. If I want everyone to think about baseline,

“is your offer landing pages and creative. You should always do that. You should do them weekly.”

And I'm saying not only will we do that if you want us to, when you put the hourly pay

scaling on it, it confounds the whole thing to 20%. That means if I spend a million dollars this

month on my ad spend 200k additional will come just from the hourly API. And then let's say I launch new ads next month. And I make additional 100k and spend 20% of that will be additional from bounding on top. So it's 220% from the hourly API and so and so forth. That's why this is like

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you upgrade. Once more, outer signal.com/thread to discover the VIPs buying from you. Okay, so I want to then let's let's be like super super clear then about again what a hourly

“API scaling. So yeah, I'll just read off like what's in the case that it because I think”

this clarifies a little bit, right? But just our moves programmatically and many times a day driven by the accounts owned delivery is doing hour by hour rather than adjusted by hand once a day. We call this hourly API scaling. So the idea here is that what we're doing is automating budget increase, automating scaling basically and we're able to do that again. It's in the name on an hour by hour basis. And part of the reason that we're able to do that is because we have access

to a meta API is not widely available. And in fact, who has access to this API? I don't know other people who have access to the API. The way this started is like seven months ago, I met a rep from one of our businesses that was one of the biggest vendors in the fastest growing accounts in CPG on the entire Facebook ecosystem. And I met this rep and he was like, Facebook has the special division I did not know about. They're like, we actually take the brands

of the faster growing and we do all the work for it. It was real. And they're like, we only take 10 businesses at a time. We only have one headquarters in the entire world for that kind of businesses. And we only take CPG business. And I was like, okay, so explain to me what you're different

“in the area. That's how we got access to this API. So like, it's actually done. And the only”

way you actually get access to this is like, if you get meta managed service, which I don't think people even you have heard about this, people don't know about this. And the reason I took seven months is actually additionally interesting, which is this is why it's special to us. And I actually believe this is like, in our city, it's in the blood of people at CDC and the reason

for that is basically, I got access to it seven months ago. We played with it. What I needed was

a few things, not only it's like special and proprietary and all that stuff, you actually need a media buyer to actually oversee the decision and it can't be obvious. So yes, it's automatic and all that stuff. And we have triggers. And we have tech. It took some time to build the tech. It still didn't work as well. Just because I wanted a human to oversee it because the expulsors so much. You're like, we are 10xing the budgets on few hours. Like, the reason it's so

big uplift is if you notice, we're making changes for a few hours. But like, you need to understand if I need to impact the whole month budget, the changes in those hours need to be very basic. So there are like triple 10 times. Like it's literally adding zures in some instances. If that goes wrong,

“I will lose so much money in the downturn also. And that's why I actually need a human to oversee”

it. So we had to train media buyers on it. We had to train like we don't actually call them

media where we really had to train gross charges on it, especially. And then the third part was,

you need to actually understand the heartbeat of the counter. So like, I know when it goes up, when it goes down. There are very few people in the world that do that. And the reason it can see if he's blood is that's the number one training that all of us have went through. Which is like, if you think about Taylor's growth map, what it does is every day you open growth map, or you growth plan, and you're like, hey, this is my forecast. This is what actual is.

And then you need to make projection. Which is like, I spend whatever I spend at whatever efficiency. I'm going to open the cap up. And I'm going to predict how much money I'm going to spend. That is the literal exercise I'm doing on an hourly basis. So we have been taught this for years. So there's no one actually better than us because we are doing it for years from multiple businesses. We have so many reps. It gets into the in the heart of CDs. It's like, I need to know how much

money I can spend when I open the cap. And that's basically why it's special to us. And I just, I think this will revolutionize two things. The reason I've been like to back up the claim that I've been saying for such a long time. Like it's going to revolutionize it. The last thing that's happened is I think you've been around. So you know, you know, you know, tubes. Like two clients is probably the only business I know that built something similar. We should like years

ago, they built this and tubesline basically did it for most value creation for them. So they basically came on to be like two science mafia. So they basically started holding the adagons of people hostage and a lot of different things. But they basically build a software in meta, which basically allowed them to get priority on their creatives in the auction, which made them some of the biggest creative agencies in the world. They just won and they kept charging percent of spend on it. Like it went

time to be really big. There's, there's not only happened once in the past. And if you look at their growth and how important it is out of it. Like there's no one else like freelancers like just

that was such a big provider tree valuable thing to them. The reason this impacts CPG businesses,

“like let's say, you were a CPG brand owner like, and you go around the industry now, you're like,”

hey, I want to find a partner. You've been new on what you're optimizing for. If you're optimizing for speed, they're actually wouldn't no longer be a competition because if you are like, hey, one of the biggest agencies which is CDC is literally guaranteeing 20% up a list. Like they're going to take us and they're going to guarantee it or we don't have to pay. They're going to compete with any other agency and what's going to happen is like there's no value proposition.

Number one, the other people are not as big as they're different. Isn't why big is actually great. But outside of that, they actually don't have the ability to promise and guarantee something. So that's going to cause this competition over time which is like people are going to fight for that API and they're going to find a different unique value proposition on why they need to be like beating somebody on a guarantee of 20% out. The left is so hard and it's going to push the

industry out there's in that good way. She's like, we'll need to guarantee results or hopefully for there would be just so much competition to actually provide more value. So this is like, see if a business list should go on a generational run from this because people are like, I don't like agencies any other. I like it. I solve for all of it because I'm just guaranteeing it outright. I'm going to give you performance or don't pay. That's all sort of all that paid

every single thing. And the reason this is all sort of this is because we're actually going to do everything for it. She's like CDC has this kind of extreme accountability where we can talk about it. But basically, broth and engineer came of this idea which is, and this is why like full stack agency didn't work for a long time, which shows full stack agencies were like, hey, we'll do everything.

I've never met an agency that does everything good. We didn't use to do everything for a long time.

We still don't. And then for this offer, we're especially building it because if you think about it, it's like to make somebody do great work everywhere. It's like the characteristic, right? I guess like employees do great work because there are some types of employees that are concerned about not getting fired. You can build that into the incentive plan. And then some people will like, if they're a great people, they're actually not concerned about getting fired because they'll just

get a job somewhere else. Building that with an agency was hard because there's no way you can actually put a carrot or a stake on people because the stake is I will fire you and that's fine because the agency still captures value in their retainer. And the upside is like, we'll pay you a percentage and like the agencies have enterprise clients. So you can't even count how much money they pay. So like that incentive actually never existed. And this solves all right, because we have

applied incentive. Like I want to keep you as a customer. But the downside incentive is we actually will refund all the money. So we actually make no money. And I actually believe that is the only way

you can hold a third body accountable is when they have everything online, as much as you and then this

concerns like the agency doesn't care about me. They would now because they have everything on the

“line and it's gonna force the entire industry to go towards that more and more. So I think that's why”

it's gonna actually be really good for a run. Yeah, no, absolutely. I mean, like the the incentives are very clear that like and I think you call them your notes extreme accountability. And that's really what we're embracing here. Like such a high level of confidence in the ability of this thing to do what we say it's gonna do that we will go ahead and just refund your money if it doesn't work out because we're so strongly believe that it will. So start what real quick, like what go ahead?

Yeah, extreme accountability is like there's a story from Taylor. So like the day I started as a gross artist, Taylor was like, hey, this is this is how you learn to create value. You go to the business and you say, what is your hardest problem? Which for CPG businesses are actually growth because they actually die if they don't grow. Like it's actually not profitable for CPG businesses. It's like your new customer needs to outpace your turning customer or your business

just goes negatively compounding. It's like negatively compounding business dies. So like for them, it's like actually new customer acquisition. So there was like put your name on the hardest problem

“and say everything is my fault. And that's what extreme accountability is. Basically, I know that”

they're the person in China supposed to ship out a product, there's a person in Philippines supposed to send an email. All those people will fail and it's still my fault. It's not their fault. It's my fault. And because I made the forecast to begin with. So I need to deliver to that and I understand there are gazillion people involved and they can all fail and I still need to make it work. That is what like the core I this CDC core value, that's what core like that's what extreme ownership is.

I like that idea so much. I understand why that people hate that idea for most of the time. It's like I didn't even do anything. I don't interact with this idea or people like I don't interact with the email and they lost and that's why I lost not my fault but at CDC Taylor is like no, no, everything is my fault. All of it. So I was like how do I actually solve ours or like how do I impact all of these things? So this is how we build it. I wanted to think about this or like there's

baseline growth and there's the hourly API that confounds in 20%. So the people who get the most value out of this are the people who can impact the baseline and then compound that thing on a 20%. So baseline is very simple. And this is how a CPG business owners mind goes through things. He's like I don't know what to do, which is okay. We have market data. It's literally cheating. It's like if you entered an auction, you were like everyone is bidding and I don't know what everyone can bid.

And I'm sitting here and I'm like yeah, but I can look at their bid and tell you that's that is the only competitor that you need and we are the only people who have it because no one

So I can actually just tell you what the industry cack is and that's just like cheating,

literally cheating. There's no other way to cheat in an auction. Then people are like oh yeah, this is great. But how do I make it? I don't know how to make landing position. We will do that for you. Don't worry about it. They're like great. Then I don't know how to make heads or statics to test this over. We will do that also for you. And they're like okay, then if the thing does work, how do I

“scale it? You're like you need to whitelist a bunch of content. They're like I don't have a bunch”

of content. Why blister? And this is like I call it or frames off of from refund on like incredible guy and I told him about the vision which is like we need to do the free guarantee result. It needs to be a person comes to us and they don't need to do anything and we can guarantee the outcome. It's like we don't really don't want them to do anything. We'll still guarantee the result because I can control everything. And he built this thing which is this is why. And this is like a plug to refund

that they're the best guys ever. So what did it is? The refund has been around for I think few years. And they are the biggest whitelist thing. So they're whitelist ads for every brand, you know. And what he did was he went on the back end of refund. And he found the set of influencers that

work always. So yes, you can shorten method, give the brush to everyone and you can basically

like who works, who doesn't work. He's like no, no, no. I'm going to find the best influencers that have worked one one Sunday vision above the mean. So like influencer that work above average. And he took all of them and he put that into a community. He's like this is yours. The brands that come into this business with you. We will they will get a refund for free. Number one. And unlike all these business, which is like tribe and stuff like that charge

percent of spend, or percent of GMV, they wouldn't do that either for the business and this program. And they will act and give access to that community of like those brands that brands that basically come into this program can post there and get those influencers at scale. And they just know they all work. It's like this is like cheating literally. We're just attacking cheating at this point. So with that, we build that for right listing and then at this point, it's like, okay, this is

great. Like we have we have everything we need to scale. And I want to ensure we have the right ad structures, which is we're literally buying 24/7. Like there's going to be slack thread, which is going to fire every hover, which is going to say this is the incremental spend in the

last hour. And then we are basically going to reply under any changes made or not. This is like

this is extreme like attention to detail. This is extreme care, which is like there's there really no doubt that the add constructions right or not, because we are basically literally looking at every other. This will also sell for the concern people like I don't think people care like agencies care about my business. Like we like there's no one we're looking at your account more often than your employees at this. It's like nobody actually cares on your business as much as us.

And then we also have our connected with that build.com and stuff like that. So we can give you credit line because most of the CBT business that you'd crash conversion cycles should be 60 days 90 days. So we can get you metacred line and credit card grid line. Like that's fine. We have partners. We've got that sorted. People are concerned about inventory of this worse. And we make forecasts. You're like within a 5% another. We get that sorted. We got a few single things sorted

“for the first time. And that's why I'm like extreme accountability is like I can say everything”

is my fault. And I can fix everything is my fault. And I can have all the stakes on the table is like guarantee. I will fix all of them or just refund. We didn't work. And here's all your money back. Well, I mean, I think it's clear or it should be clear at this point like why you were sort of kicking down the doors this morning on Slack saying like hey, we're going to change the world. Hey, we're going to change the world. Let's hop on a pod because I mean, I think it's it's pretty

clear. Like not only do you have access to, I mean, just to sort of recap the whole thing. Like you, we have access to a special API that allows us to boost budgets on an hourly basis. Sure. But we also have the know how the industry know how to increase to figure out how to like build the baseline past the industry. CAC, right, which is you're pointing out is not a number that you have access to, but we do have access to. And of course, we also have like, and it changes every

month and a week. Yeah. That's the other way. Yeah. Yeah. And so like we have to, you have to have an agency that is like aware of that at all times. So we have that as well. We'll build all the things that are needed to bring you up to that baseline or past it. And then we'll also give you access to this sort of elite group of influencers who are the best in the world of what they do that we only only we have access to. And then not only that we also are able to understand all of the like

sort of business operational considerations like inventory, cash, conversion, cycle, that sort of thing. And on top of all that, we're guaranteeing that we're going to do this for you or your money back, which is unprecedented in the agency space, except maybe for two signs. You should do that once upon a time. I remember that. But they don't exist anymore. That's the whole thing. But they're gone. They just just us. So you're going to reach them right. That's that's the perfect. Okay. So people want to

also want to know is like, if what if I have people that are existing in the company, like I have

“existing people who make land division creating like great, I think the way you should use this is”

you should get the agency to go and fight the war for you. It's like find the things that work. We should be in charge of finding what works because that's where our leverage comes into place.

to go and take the things that work and just produce them at scale for a cheaper cost. That's what

“you should be going to basically doing with your team. And that's why I think actually they should”

run side by side. And we should be the pioneers in finding new things. And they should be basically producing more at cheaper cost. Like that's how it should work actually. Okay. So let's then let's talk a little bit about like what how this is going to work. So this is something you're willing to

die for. So who are you willing to exactly? That's the question. So essentially if you're 3 million plus,

right, 5 million plus CPG brand, you want to get to 9 figures the fastest and who wouldn't. Then we'll have a link in the show notes to share with you. We'll probably email it out when this get comes out as well. And basically what we're going to have to three slots slots for this invite only. We invite 3 CPG brands. We're going to do this for you. And if we don't do what we say we're

“going to do, you'll get your money back. So that's how we're going to start this out. And if we”

also want to talk the offer. Yeah, I think so people need to go to the application. Click on the language read the case study if you want to apply for it. We look through the data. I'll personally get them and call it for the three slots. We're actually like it's actually even more risk

which is two slots get a 20% guarantee and the third slot actually gets a 40% guarantee. And to hold all

of this account. But we're actually going to post about it on Twitter. So we are going to start it. I think you're going to vet the applications this month. We'll start probably at the end of this month or the start of next month. We'll document the process to prove that we actually got 20% across all these businesses on Twitter publicly. And I'll personally get on every call who applies

to this application. And I'll personally be the gross charges for the first three rounds on this.

“Because again, yes, I'll die for it. Okay, cool. Well, if you want to show me the”

dot for you. All you got to do is click that link in the show notes apply where you can go to comments or code.com. Hit the highest button. Let us know you're interested in this. We will go ahead and vet those applications over the next little while here. But I think that's going to do it for us. Join anything else you want to mention. That's it. Nope. All right. Cool. All right. Well, thanks for listening to everybody. Again, go apply. Go click that link. We would love to see you. And yeah,

that'll do for us. All right. Take care everyone.