The Most Powerful Force You Can Harness: Slow, Incremental, Constant Progress - Ideas of wealth cre — Wealest

The Most Powerful Force You Can Harness: Slow, Incremental, Constant Progress - Ideas of wealth cre — Wealest

It's not about intensity, but consistency. The small things that you do consistently matter more than the large things you do sporadically. Consistency allows you to capture the awesome power of compounding - where small gains compound on each other to create massive change over time. As the Austrian philosopher, Ludwig Wittgenstein says, “To understand is to know what to do.” When you know what to do, success follows.

Two models happen to be found in all three buckets: mirrored reciprocation and dogged, incremental constant progress over a very long time period. Mirrored reciprocation is the simple idea that you get back exactly what you put out into the world. Newton’s Third Law of Motion states that “For every action, there is an equal and opposite reaction.” Every interaction you have with another human being is merely mirrored reciprocation - put out what it is you want to get back from the world. Over the long term, you’ll get what you deserve.

Compound interest, what Albert Einstein called the most powerful force in the universe and the 8th wonder of the world, is nothing more than dogged incremental constant progress over a very long time frame. Product growth is also a compound effect. How many people do you know that are constant at what they do? I know a couple. Warren Buffett and Charlie Munger. Everybody wants to be rich like Warren Buffett and Charlie Munger. I’m telling you how they got rich. They were constant. They were not intermittent. The secret to success is consistency, not intensity. Intensity makes a good story, but consistency makes progress.

Understanding Customer Acquisition Costs

When it comes to growing a company, understanding customer acquisition costs is crucial. The free channels are often hard to scale up rapidly, so if the company wants to grow fast post-investment, the obvious route is SEM (Search Engine Marketing). It is important to break down overall CPA (Cost Per Acquisition) into spend that attracts new customers versus bringing back old customers. Additionally, it is necessary to break down the major acquisition channels into free versus paid.

When analyzing CPA, it is essential to consider the conversion rate from visitor to customer, as it often varies dramatically by channel. It is also important not to include SEM spend on brand terms within SEM CPA. Clicks on brand terms will have a much lower CPA, so it is best to think about them in the same way as direct visitors to your site.

Differentiating between acquisition costs of new versus returning visitors requires investing time and money into your web analytics system. When starting out, you may not have meaningful returning visitors, so this doesn't need to be a priority. In an ideal world, you would start with the moment where the user pays and track back all the marketing costs from there. However, a common compromise is to compare 'Cost per Sign Up' across marketing channels.

To effectively reduce CPA in each channel, it is important to get more sophisticated in SEM and increase conversion rates. Additionally, focusing on growing the volume of acquisitions through free channels, such as CRM (Customer Relationship Management), can lead to success. Setting realistic targets for reducing CPA and increasing volume is crucial.

Typically, CPA will start high and go down as you become more sophisticated. However, it may start to creep up again as you start looking for volume from less relevant search terms or with broader targeting. Often, the best value can be found by being the first to optimize for a new audience, such as on Instagram or Snapchat. It is also advisable to start layering in paid acquisition, starting with the cheapest channels, until you hit your maximum budget or CPA creeps up too high.

Three actionable advice before conclusion:

1. Embrace consistency: Remember that consistency is the key to success. Small, incremental progress over a long period can lead to massive change. Stay focused and committed to your goals.

2. Understand mirrored reciprocation: Recognize that what you put out into the world is what you will receive in return. Act with intention and positivity, and you will attract the same energy back into your life.

3. Optimize customer acquisition costs: Take the time to analyze and understand your customer acquisition costs. Break them down by channel and focus on reducing CPA while increasing volume. Experiment with different strategies and allocate your budget wisely.

In conclusion, harnessing the power of slow, incremental, constant progress and understanding customer acquisition costs are two essential factors in achieving success. Consistency, not intensity, is the secret to reaching your goals. By consistently putting in the effort and making small gains over time, you can compound your success. Additionally, understanding and optimizing customer acquisition costs is crucial for business growth. By breaking down costs, focusing on the right channels, and continuously improving conversion rates, you can acquire customers more efficiently. Remember to embrace consistency, understand mirrored reciprocation, and optimize your acquisition costs to unlock the full potential of your endeavors.