Ross Christifulli, founder and CEO of LeadCarrot, now approaching almost 2k users, walks us through how he acquires and automates client acquisition using his own technology.
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Here are some questions that the video had covered:
01:21 What is LeadCarrot and how does it work?
01:59 How many people are currently using LeadCarrot?
04:06 What’s the pricing model look like for LeadCarrot?
08:00 What’s the value ladder for LeadCarrot?
10:46 What was the biggest needle mover for LeadCarrot?
12:06 What do you guys do to start conversations?
14:32 What’s the most successful automation that you’ve setup in LeadCarrot that either saves you the most time or makes you the most money?
15:48 What does your sales process look like for LeadCarrot?
18:40 How revenue has LeadCarrot generated in the last 12 months?
22:45 What’s your favorite software tool?
23:24 What’s the number one tip that you can give to new entrepreneurs?
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What’s going on everybody. We have Ross Christifulli from lead carrot all the way out of Wisconsin. Ross. Tell us what it is that you do and how you generate money.
Yeah. I also have an agency like most of you guys here, so that’s my main thing. And then we also have a leak here. So I’m the CEO and co-founder of lead carrot and I’m married the two together. So I say it’s my main thing because every single agency client I get,
I love it, man. And if you could strip everything away, who do you think your ideal customer avatar is? And now I know, so Lee and I just want to make sure. And also if the audience knows exactly what we’re talking about, so leave carrot in your agency are essentially under the same umbrella. Right.
But my agency serves a different audience than we care.
Okay. So let’s do this just for the sake of metrics and time let’s fully focus on lead carrot. That way once we start drilling through, it’ll make more sense. Cause you’re probably doing maybe different types of marketing and stuff for both. So not to confuse the audience, we’ll stick with lead carrots. So I guess for lead Garrett, who’s your ideal avatar
Agency owners looking to acquire clients.
Awesome. And how many team members do you have on your team? If you can just peel the onion back and break that down for us really quickly,
Five people on our team for lead care when it comes to like our support and this and that. And then we do have another portion of lead care now, which is our call center. And right now we’re getting near 30 people in there. So those are for the callers, right? Yeah. Those are calls, but I just wanted to make we care. It’s a pretty small operation. So
Yeah. I mean, you guys are running lean, which is great and you get, you’re doing good. I know, obviously we know each other, we always talk off camera in private conversations and I know you guys are doing very well. How many, how many active members are currently using lead carrot today?
Just under 2000. It floats back in just under two times.
And these are, are these are these active, do you have like a free trial version where some people are free trial? Okay. So right around 2000 people on active subscriptions using lead care. And these are separate 2000 separate companies right now, not really people. Gotcha. Cause people, obviously those of you guys out there who are familiar with CRNs and automation platforms and stuff like that usually it’s one company and then there can be multiple users housed in that one company. Right. So
We don’t even count. I’m sure that there’s probably more users, but I’m counting it just like
Ms. Peer members. Yeah. Accounts. Exactly. Okay. Awesome. and if you could take your entire list and put it together, let’s say Ross tomorrow wanted to send a message to his audience. Right. how many people would be on that list? If you combined your Facebook group, your, your email list, your everything that you have, your social media platforms, everything together, you want to send a message. How many people would you actually
Probably 15,000, but I don’t know why deliverability rates sucks right now. So I’m pretty sure that I would not hit all 50,000. I would attempt to email people, but I don’t know how many it would land.
Let’s dive into fund metrics really quick. What’s the open rate on emails that you get?
To be honest, I have absolutely no clue. I don’t even see the here’s. The thing is I don’t, I am probably the worst when it comes to caring about that metric, because all I care about is the sale. That’s crazy. But like I’ve found that open rates for me don’t necessarily equate to more sales because it could have been a really Clippy title and everyone opened it, but it didn’t convert. So I can just email blast that I send out about two to 3% of them will convert into whatever that offer is. That’s the metric I’m focused on, but I don’t even send my own emails out. And that’s why I say I don’t really quite know what the open rate is because I don’t live and breathe within that number.
That’s good. And what’s the pricing model look like for lead care? Let’s say I come in and want to use it today. What am I looking at? What are the fees?
Yeah, there’s two options. You have a $47 option, which is cause we do data searching like data scraping and stuff. That way that gives you 315 searches per week. And you can have up to three teams, three users, three pipelines on the two 97 model. You go up to I believe it’s 1800 searches per week. And then you have unlimited users, pipelines, et cetera, just all your own clients.
So just so the audience understands another probably going to ask questions in their head. Well, what is this searches? What does searches mean? Right.
Yeah. In my old course, I used to teach people like how to scrape data and I use like Chrome extensions and I would go to Google and I would type blank, you know, loan officers. And then I scrape all that data and then we would take that and we would go find all their social media data and all that. And then we just decided, let’s just build a button where you push it and it does it all for you in a couple of minutes. And so data becomes a bottleneck. Any business, you ran a call center, you understand how that goes. And so for us, it’s just a way to be able to scrape contact data, social media data. It also pulls things up like, do they have a pixel or not? Are they mobile friendly? What are their Yelp reviews? Like their Google reviews. So that way you can quickly get some of that.
You’re saying essentially a searches I go in and I plug in salon, Miami, Florida, that’s one search. Then I start two minutes later, I go on I’d plug in salon. Boise, right? That’s another search, right. Just we’re all on the same page. Okay, cool. And I know that, I know that a lot of people in the industry, so, you know, a lot of people are using [inaudible] right now. What’s like the biggest comparison that you would say between lead carrot and [inaudible] as far as [inaudible] I know they don’t have the whole CRM automations and all that, which is one, but from like a data perspective, if somebody is looking to just purely get data out of it,
I’ll tell you this, because I’ve done the side by side comparison of both from just a data standpoint and there’s pros and cons to both of ours. Eventually there’ll be more pros than anything with ours, but here’s what I found. So their big thing is that we don’t have, as they support bulk scraping right now. So you could put in like 10 cities and like type it in and then I’ll go scrape them off for you at once. Lead care does not do that yet. But with that, what I’d like to say is that it takes like an hour or two for you to get that data. Well, maybe not that long, like 30 minutes to an hour where I could literally search all 10 of those in about five minutes and have the data on Leecare is as they kept you out at a daily amount of searches.
So they might allow you to do 10 searches per day. And that’s because they’re trying to manage the queue system on the backend without bogging you down. We don’t do that. We say 315 a week. And the reason why that’s important is because as an agency owner, if your sales team runs out of data, you don’t want to be like, I can’t scrape anymore until tomorrow. I don’t want to be scraping all week. Like I want to sit down on Sunday night and straight for the entire week. And I don’t want to have to think about data for the remainder of the week. From a data standpoint, it’s all the same crap. I hate to say that, but it’s all public data. Not like we’re pulling something from equal facts or places that people don’t know how to get it from. It’s all public data. I will say this, that when I used to utilize [inaudible] I got a lot of these email addresses that looked like they were auto-generated. I don’t know. I’m not gonna make the accusation. I’ll let people say from himself, but my bounce rate was higher.
Hey, makes sense. And do you have a value ladder right there for lead care? And how are you getting people in? And are you getting them in straight into lead carrot? You’re going through a VSL. You have a coaching program on the back end for lead care. Talk to me about that really quick. Yeah.
So for the Lead Carrot, the big thing for us was at first we just wanted to get users are, and then we were losing users because they weren’t activating in software. There’s something called, you know this, but I’ll explain this to the audience, use their activation, which means, you know, they hit certain key KPIs. So like they added their integrations. They created a pipeline that scraped data, they added the leads and we were seeing people sign up, but we saw only a small fraction of people actually activate. And when that hit, if they don’t activate, then they’re not going to continue using it in their lives. So what I found is if I created a mini courses, like you might remember, I was putting out the cold email machine. I’m pretty hard. Or my five day email sequence. I’m giving them a mission up front that when you sign up, you’re going to go accomplish this mission to get clients. And by doing that, they would go set it up. And that’s helped our retention substantially because we’re activating a much larger number of users. And our term has dropped. I mean,
You’re making your products, you’re making your product stickier. You’re indoctrinating them. Not only indoctrinating them, but you’re essentially telling them, Hey, I know that if you do a, B and C, you’re going to stick around longer. So I’m going to bring you through a process to make sure when you sign up, you do a, B and C, right? What’s your, what’s your turn rate right now. If you don’t mind me.
Yeah. Our churn rate right now, it’s still higher than what we would like. So for every 10 users that we have that sign up about four of them leave within 30 days. So we’re
Turn right around like 40% would you say? Yeah. Okay. Hey, and you guys are, I know you guys are somewhat of a newer platform, right. Which is fine because even DAS is a newer platform and we have turned as well. Every company does. Right. So that’s totally fine. But I know, I know, like I said, I know you personally, you’re working on optimizing that just like all of us software guys are, so that’s good. Yeah.
And part of that is you know, people will come in and I get it. But as a software, that’s newer, you might have a frustration with like your onboarding process. Like some people get it and some people just don’t and you know, and then on the other side of it, there’s also a little glitches and things that might pop up here and there. And then the other aspect of it is as agency owners, which is what our main audience is, most of them are beginners and they get this with the hope of landing a client. And you can, if you actually go use it, but it’s just a tool like you still have to know how to swing the hammer. And so if they don’t buy into the monthly and the client $47 a month becomes hard for them to, you know, for someone who’s a stirrup
Perkins become difficult to pay without revenue coming in. Yep. So what would you say is the biggest needle mover for lead care? What was the one thing that you guys did that took you from a to Z so fast? Like the, the biggest thing that made the biggest impact on lead character?
Yeah. The thing that made the biggest impact was when we first started leakier we were only a scraper, which was fine. That was great, but I’ve used it as like the gas. And when we provided a vehicle as well, that that gas can go into,
We had an automation system. For those of you guys who are not familiar with lead care, they have a, you know, full blown CRM with, you know, pipeline automations and a bunch of really cool stuff.
Yeah. So that would be the biggest needle mover. And we ever, it’s funny, you use that term every single week. Me and Andre get on a call and say this week, what’s the next needle mover. Cause your audiences to feel like you’re cause like we’ll hold back features and stuff for a little while. So that way we can release them and keep that momentum going. And sometimes the needle mover has nothing to do with new features. It comes out it’s me, teaching people a new way to apply new features. Like yesterday I showed a how to create a text message bot within the Garret. So a client lead can come in and it’ll say, Hey, did you schedule yet if Nazi schedule, when they hit schedule great. But here’s the calendar and a schedule. Like I showed them how to do that, that the abilities and the tools have been there for the last six months. People just never thought to use it in that way. So that the other needle movers, just teaching people the application of it.
Yeah. And that makes sense. What wa what are you guys doing right now to start conversations, to get actually people into lead care? What’s like the top of the funnel look like for you.
Yeah. Right now it’s pretty much all through ads is how I’m getting people in. People thought I have a lot of content that goes out there and then it doesn’t take long of digging into who am I to start finding lead Garrett. So there’s that. And then there’s word of mouth. But for us, a lot of it is ads and lead magnets and stuff like that. I have an agency and I use it in my own agency. So as I’m sharing content, people are seeing that. And it’s more of me documenting my processes within my own agency and showing people how this works.
What do you think the split would be between paid and organic of people signing up to lead carrot?
The source that is probably right now, a solid 50, 50 obviously not exact, but our organic stuff is actually starting to take over the, not in a, in a bad way, but our organic stuff is starting to blow up. I’ve never been a good organic marketer my entire life. Like, it’s just not what I’ve been my strong tos. Like I, you can get 10,000 people into a software like you did organically. I don’t have that skill and that’s not what I’ve done. And I think it’s really cool when you can do that because of the people you tend to have more meaningful relationships with. I’ve always done everything through just paid ads and like, Hey, you know, it’s working,
It’s working. So, you know what I mean, Pat yourself on the back.
Yeah. It’s a great, I’m a big fan per point of fans, but what I’m getting at is I truly think that it’s good to have a little bit of both. And my organic stuff that I’ve really been pushing is mainly YouTube. I will shoot you well, YouTube ads, but also YouTube organic.
I got you. I see what you’re saying. So pushing your posts, you’re posting a lot on your YouTube channel and you’re getting the subs up the view times up and the more people that view and subscribe we’ll eventually probably buy.
Yeah. I don’t even have a large YouTube channel. And if you look at my videos, most of them only get maybe like a hundred views or so, but the people who are watching are vine, that’s the thing that I think is meaningful about YouTube is I look at that and I’m like, I have such a horrible statue, but yet I can clearly see, like this is helping us convert. So I’m just going to keep posting on YouTube. And, you know, they say that all it takes is a couple of videos to Prague. And then all of a sudden, you, you,
What do you think the most successful automation is that you have within lead care? What’s like the coolest automation that one either saves you the most time, or just makes you the most revenue for your company. What’s the one, the one
The jerk feature and the Dre, the reason I like the drip features, because I can fill one pipeline, I could sit down and fill up a pipeline with, you know, five, 10,000 needs. And then I can set up that drip feature to say, I want 500 a day to go through my outreach sequence. And what that does is that allows me to be hands off because my I’ll see like calls coming through and appointments being set from our team because I have it all automated. So it’s like if they don’t respond to the voicemail and they don’t respond to email, it goes into my call center, my call center then gets that and tries to get them back. So like, I can, it’s like literally the very first thing in front of the machine. And if I set it up,
What’s the machine essentially.
Yeah, exactly. The data is the gas. So as long as I keep that with data now, soon we have an automation coming where it’s going to detect like, Oh wow, you only got 500 leads left. So you can set that limit. It’ll auto go straight more data from a city. You haven’t straight from pull that data in. And then the machine is like, you know,
Never-Ending essentially. Yeah. Well, that’s great. I know this is a stupid question. What’s your favorite CRM?
Yeah. What is your sales process look like for lead care? Is it low touch or is it just like people coming in they’re signing up? You’re not really, you’re not really doing
Pretty low touch. Yeah. We tried actually, we had hired somebody from ClickFunnels and we tried to do like the one-on-one live demo thing. And when it was working, like we were getting people to sign up. And the, I guess the thing about those is we’re always pushing just animal to make it worth his time. If you just side-by-side, it, people were buying Luke here because of the data, the content, the things that we had, and we didn’t need it. So the sales blog pretty much the only sales person for the care right now, which I know sounds a little cliche. Cause Russell Brunson says that as well, but that’s just the truth. Like,
Yeah, I’m in the same boat as you and I feel the same way
And so forth. I will say this, our support team is also kind of like sales. And the reason for that is because our biggest acquisition on lean carried is we run Google ads to blogs. And while they’re reading the blog, it engages them through a chat box and it’ll engage those people who are reading. And when they respond, it’s my support people that are actually selling. So. Gotcha.
That makes sense. What, what are you, what are you a hundred people hit the lead carrot website. How many people are signing up? What’s your average conversion rate. 3%. Yeah,
Yeah. Which is good. What are you doing with the other 97% of the people?
Well we retarget on ads, but I also had where, when you’re going to exit out of the stream, there’s a pop up that says, Hey, do you want my free five day agency sequence for nurturing your leads? And it’s five days of copy that it’s the same copy I’m using in my own agency. So if somebody opts into an ad or to schedule an appointment, they start getting my emails that warm them up before our call. It’s the same exact thing I’m using. I give it to, and then once they get it on the thank you page of that is a video of them seeing how to install that into Lee Garrett with another prompt.
So you’re educating them on something AFT obviously I’ve lead carrot to use it. Right. Which makes sense.
You don’t have to, like, if you have active campaign or one of these other softwares, you could plug the copy into it. So I’m not trying to, like, I don’t want them to feel like I’m bait and switching them, or like doing something, trying to deceive them into joining a leaker. The goal is to get them on there. But the video shows them. It’s so easy with Lee because like there’s softwares out there. Like, I won’t say there’s a competitor agency software, probably everyone knows. And if you wanted to set up like an automation, the opportunities page in the automations, you have to try to like dynamically think you’d be like, okay, if they’re in here this, so I’ve got to set up this trigger in this action. And it’s so confusing. You have to really think about it where Liz Lee cared until like, you’re just putting it where you want in the pipeline. You don’t have to think about it.
That makes sense. How much revenue has lead care generated in the last 12 months?
The software on his phone probably isn’t generating as much as the upsells within the software.
Let’s go, let’s take one step back real quick. So what are, what are those upsells so that the audience can understand it
Within the, within the software? So I have been, and the other thing too, is that we sell annual membership. Somebody in the past, we sold a bunch of lifetime membership. Wow. But like the thing is, is that you might have say almost 2000 users, but maybe 800 of them are annual subscription. So it was like your monthly reoccurring revenue. You always think, how can I keep that MRR out? Like, even though it’s not necessarily monthly review, it’s basically upsells to increase the lifetime value of existing people. So I’ve got my other engageable products that I’ll sell them and things that way,
What’d you say, lead care, just the software itself does over seven figures in revenue, just from
The software side of it.
Obviously you’re doing over six.
Want me going like deep into a number of details just yet, but we’re not a seven figure software yet. And I have no problem sharing that during experiencing, oftentimes because of the cost of running leak here and like development and different things that we have going on, I actually have to take money from my agency and be like, we care it’s running out of money. There’s let me,
Let me tell you something. We built dash clicks with our agency money. So we’re in this and, and you know what I realized, especially for software creators, most software creators will build software to solve their own problem. First number one. Okay. Most softwares, if you look at it, also start from agencies, they were agencies. And then they built this product to solve a problem within their agency. They use the agency money to fund the software and they realized that just the software is better than having an agency. So they start focusing on the software side. Not that everyone does that. Obviously we have our retail agency and we have dashboards as well. Right. Very similar to the T I delete carrot. Right. And then you have your own internal agency, which both have separate revenue models and are both producing revenue. But by, yeah, I see a lot of commonalities in that, especially from people who are creating software sees, I see a lot of people coming from the agency space, creating a software and funding that software with the revenue from the agency.
One thing that I think people don’t think about though, and I knew I don’t want to go into off shoot. Cause I knew you wanted to do rapid fire questions here, but a lot of people think they start a software and that that’s going to be the goal of mine forever. But what they don’t realize is like all of a sudden there’s new platform updates, Google Firebase just did an update and this and that. And there’s so much cost in to running it. And I’m actually the kind of person where I don’t mind putting money in the league here. So the reason we have those times, if I didn’t run any ads, we would probably never run into those issues where it’s like, we care turning it out of money. So we carry the dress to put more money in, but I run it like as close as I can to, you know, we don’t have like, Leecare, doesn’t have this huge bank account because Ross spends almost all of it on ads in development.
And then what we do. And I just know like, Hey, my business is going very well. My agency is a seven figure agency. You know, like we’ve got a lot of good things. So if we come to the point where we need that, I’ll put money back in week here. But if you look at it, we are not VC funded. Most softwares, they get millions and millions of dollars funded into them and they burn through that cash. So quick on stupid stuff, they just burn through that cash. And they’re not even profitable for years. So I’m totally okay with running it the way that we are is that right?
You’re running lean, but you’re what you’re doing is you’re building an asset digital asset for yourself,
Right? Yeah. I see the line. Yeah.
Yeah. Which is great. Okay. I’m going to ask you a question aside from lead care. What’s your favorite software?
Right now Kartra I don’t like, but I do like Kartra because I love the video hosting in I can do so much for tagging people who watch specific parts of my video. I know if they saw my offers and didn’t see my offers,
I’m using it a lot for remarketing for the most proud of. Yeah.
It’s a tie between Kartra and Zapier.
Okay, cool. And then if you could give a new business owner, one piece of advice to shave years of wasted time, what would that one thing be?
Just focusing and also along with that focus, the reason is not just, it sounds cliche to say just focus, but it really does matter because focus makes you relentless. Yeah. Yeah. That’s what I’ve found. So people will, two people can do the same exact thing in one gets an amazing result and the other didn’t. But typically if you start peeling back layers of that onion, one of the person didn’t get results. They struggled with the shiny object syndrome. They had all these different things going in plans. And I know people who right now they’re like, they have no income and like, yeah, building an eCom store, an econ funnel and an agency it’s like, dude, none of them are working. Stop them do just one. The other thing that goes with that is don’t look at people and chatting myself and think that you need to do what we’re doing right now in order to be successful. You have to think, what did we do when we first started? Because I couldn’t, if I tried to do everything I’m doing right now, even just three years ago, I would have never been successful. I couldn’t have done it, but you have to go through those steps. And that’s why you have to be careful. You can get into a program where people are like, hire all these people, do this, this, this, and you have no revenue. That can be a struggle like you need to, you got to
Baby steps, baby steps, one step at a time. I’m a big believer in slow and steady growth. As long as the growth is there. And it’s steady. I don’t like the big ups and downs in businesses. But guys you guys heard it first Ross, Christa Foley, all the way from Wisconsin would lead carrot. Ross. Thank you so much for joining us brother. And I’d love to have you on in the near future, man. That’s a great one.