AS 83: The Battle for Dominance – Amazon vs Shopify vs FB – Interview w/ Jonathan Foltz
01 Apr 2017
Jonathan Foltz shared tons of golden nuggets. This is a definite listen for those who want to explode their business off the Amazon channel and diversify their business. He leverages the Facebook Advertising platform and pulls millions. I will probably be re-watching this a few times.
He is a digital entrepreneur that has started 16 companies and does not intend on stopping.
He has built a couple million dollar companies and his marketing agency, Digital Age Business, runs 4 separate Shopify stores of their own.
As a philosopher and futurist, he has been speaking around the country about the new Digital Revolution that is upon us and how we can take advantage of it.
In this episode, you’ll learn:
- How to create successful Facebook campaigns
- Strategies that Jonathan leverages with Facebook Ads
- The future of technology
- Futurism & singularity discussion
- Step by step Facebook strategies that work today
- Testing Facebook campaigns and ad sets
- How much money to spend when testing
- What works better, video ads or image ads
And much more. Transcript coming soon.
Get in touch with Jonathan:
DAVID ALADDIN: Great to have you on the show, Jon.
JONATHAN FOLTZ: What’s going on, brother. How are you? How’s everything?
DAVID ALADDIN: Good. Good. Take us to the beginning before things got crazy. Where did your journey begin?
JONATHAN FOLTZ: Well, my journey definitely has been pretty crazy. But I think it first started off when I was a kid, you know, like I think when I was like 14-15 years old that was when entrepreneurship started to come into play. I was lucky enough that I got my father to buy us a computer that had like a CD burner in it, and what I was doing back in that day, just like a lot of kids were I just happen to be one of the first ones to do it. We’re making CDs for other people.
We’re just like download stuff in the internet. At that time, obviously, it wasn’t the right thing to do but like, this was before everything started coming down. Kids didn’t know better. I was 14-15 years old, downloading music and then selling it to our friends for 5 – 10 bucks. Little CDs. And then I was selling baseball cards, basketball cards, and I had a little bit of success then. I had made one specific CD and I brought it to school, and I think this was around 9th grade or something like that, and I brought a boot bag full of CDs to the school and I literally sold out every single one.
Very next day every single kid in school was like going after something that I did, and it showed me like that was my first step of like, man, you know, entrepreneurship is bad a**. You know, like I don’t have to rely upon my parents now for money. I can do this on my own. So that started the whole entire journey that I was on. So, that’s just one thing and as soon as I got in high school, I graduated at Palmetto High School which is the same high school that actually Amazon, what’s his name, Jeff Bezos do. Believe it or not, there’s a lot, it’s crazy because it makes me feel good too about the trajectory because we’ve had actually some incredible technological entrepreneurs come out of Palmetto High School.
There have been a lot of them. So you know, that’s something like, man, that’s pretty amazing. Is it something in the water?
DAVID ALADDIN: What are they feeding you?
JONATHAN FOLTZ: What do they feed us, you know, like what the … is in those? There’s some nuclear water in the system or something, but yeah. Anyway, it’s just, it could also be coincidence at the end of the day, but right after high school I went to Deberi University which was very business and technology oriented which basically I am very much so right now. And I ended up quitting school, because I have a scholarship, I ended up quitting school just to go back into more entrepreneurship. I was running like a little pet shop and then a few little businesses on the side, you know, right out of high school, I was already doing this with a partner that was much older than me. He saw the potential. While I was doing that actually… this is where I think it got a little bit interesting and this is what literally changed my whole, entire trajectory of my life. Believe it or not, I was also into some bad things, you know. I was definitely into one of the businesses that I had was actually growing of marijuana. Believe it or not.
DAVID ALADDIN: Oh, man. Interesting. Yeah.
JONATHAN FOLTZ: Yeah.
DAVID ALADDIN: Well, you never know. It’s not bad anymore, technically.
JONATHAN FOLTZ: Dude, I mean, now.
DAVID ALADDIN: Depend where you live.
JONATHAN FOLTZ: The leaf lies down here in Florida, right?
DAVID ALADDIN: Right.
JONATHAN FOLTZ: So, there are other places where you’re allowed to do that, but I actually got into trouble. My entrepreneurial journey actually took like a dark twist, because I was very much… though I want to help people I and I loved to be able to serve at the same time also got greedy. And that greed itself landed me basically in jail. Believe it or not, I was actually prisoned, and I was heading on a bad trajectory and once that happened it basically got me on my huge knowledge stint because right now, anybody that knows me I’m like the most hardcore knowledge seekers on the planet. I’ve read over a thousand books. I’ve attended some of the most high end classes that you can on human behavior, psychology, personal development. All that type of stuff. That’s something that fascinates me and I really want to find out the secrets of the universe and do something great for humanity. And if it wasn’t because of me landing myself in prison because you know growing marijuana like obviously what the hell was I thinking. At that time though, I was greed –based and bad influences around me, right? So I had some bad influences surrounding my businesses partner wasn’t the best person to take advice from though he was a genius businessman. That’s where I learned a lot of my business set of skills from him.
He was just taking us on the wrong trajectory and I went on for the ride and it ended me up a spot in the prison system. But, while I was in prison, this is one of the most interesting things; this is where I started to read like a madman. You know, like a madman, like I sometimes I’d read a book a day I was reading at least 2-3 books a week at least bare minimum, you know, shorter books. I can literally read the whole entire book in one day and you know, I get to meet the most fascinating people on the planet.
I was actually very good friends with, there is a governor of Florida. He was actually the longest running governor of Florida. I became almost like best friends with this guy for about a year. So his name is Childers. And he was also in the jail, prison system. He said he was set-up, I don’t know what the idea is, but he was a running senator for 32 years. He was the Dean of the Senate for 4 years and he was the President of the Senate for 2 years. So I was able to associate myself with incredible people that you probably would not have the chance to while you’re in the outside world, right?
Another man that was actually a big time lawyer that did some big IPOs. I also got to sit down and strategize and you know like they just wanted to have intellectual conversations while everyone else was having conversations about money, sex, drugs and stuff like that. Like you know we’re having awesome day as we communicate on how you move amongst the vultures and I happen to put myself in the right circle so I was able to learn some techniques and the mindset of you know these truly, truly successful individuals that are making big moves. So I think that was like my catapult, you know. That was my catapult. I was already entrepreneurial and because of this situation, it got me thinking even more and expanded my mind. Like I no longer saw the world for what it is and I really want to do something good because the last thing I want to do is end back up in jail again. You know, like that’s the last…
DAVID ALADDIN: I don’t know. It worked out for you the first time.
JONATHAN FOLTZ: Yeah, Sort of it like…
DAVID ALADDIN: I think the strategy is you got to drop high school like Bill Gates.
JONATHAN FOLTZ: You tell the kids right now like you guys…
DAVID ALADDIN: And then you got to go to jail and that sets you on the path. I think one of the biggest common things with me and you have this moment of quietness where you’re able to focus and sit down and read a lot of books. For me that was actually at work when I was just filing papers all day, every day. So I was listening to podcast every day.
JONATHAN FOLTZ: Oh.
DAVID ALADDIN: That set me on my journey.
JONATHAN FOLTZ: Yeah.
DAVID ALADDIN: But yours is actually jail, which allowed you to sit down and focus on entrepreneurship and the journey that you are about to take. That’s awesome.
JONATHAN FOLTZ: I think there’s a lot of value and there is a lot that comes from silence. You mentioned something really good and it happens. You go back in history you will find some of the greatest minds on the planet went through extreme adversity, near death experiences. But a lot of times what happens though, they were exiled who came back the ability that was exiled, and they have this time to sit, ponder, think and go within.
DAVID ALADDIN: Okay.
JONATHAN FOLTZ: And that is one of the missing components that are happening today in this technological world that is upon us because we’re bombarded by social media. We are bombarded by so many different people hitting us up, and the communication lines were so open that it’s hard for us to sit down and look at the bigger picture. We’re just so focused in the so called rat race that we can’t really think outside the box and what ended up happening let’s say for you in that situation that you’re just filing paper work and not having so much interaction in and out with individuals is that you’re able to focus and think, think about more about what’s happening in life. I guess definitely for me I was, I have some time on my hands, basically had me thinking about the bigger picture and obviously at the end of the day it’s like what is the purpose to life? You know, like was I here to go do stupid a*** and spend time in jail I mean no. That’s not, that’s not what I’m put here to do. So I got really go within and learn more about myself.
DAVID ALADDIN: What is the purpose of life in your opinion?
JONATHAN FOLTZ: Okay. This is actually a study that I teach and I’m, it’s literally one of the most important studies that most people don’t know. You’re going to hear me more in this industry talk about it. There’s not one other person that I know that talks about it, and it’s called Axiology. An Axiology is the study of values and purpose. And from one of my teachers, basically his name is, Dr. Demartini. Literally one of the greatest minds on the planet by far. He is considered a sage. A sage would be individual like Elon Musk, Bill Gates.
Dr. Demartini though he’s less known. These are individuals that can be remembered hundreds if not thousands of years from now. And what Dr. Demartini teaches is about the basically not the entrepreneurial journey, but like the ideological philosophy, philosophical journey that we’d go on in order to understand ourselves and it actually derives from the teachings of Aristotle. And Aristotle what he taught us is something called Telos, which is Teleology, which is the end of mind, which means the purpose. So what he did is he studied what made us have a purpose. And one of the things that happen today in society is that the majority of us have no idea what our purpose is.
I would say, you know, like at least 95% of the population, we don’t have any exact statistics on this, but I would say at least 95% of the population have no idea what they’re actually here for. If there’s any reason for us, some of us are just chasing after money. Some of us are just trying to make ends meet. Some of us just want to go and date as many girls as possible. You know, sometimes we have no idea what we’re here for. So on this study which teaches you about the value systems of humans, ourselves and others, it teaches you what you valued most and there’s a hierarchy between low and high and the top three values usually, usually you know dictate what your purpose is. So for me, just to give you an example, my purpose is, and its always changing slightly, is that I want to help humanity in a big way. You know it’s going to be through technology and education. So if you’ll ask one of the things like really big for me and then you’ll see my top three values which are business, knowledge and social change, you know, like trying to have social change and social influence and help people. Those three pretty much dictate a little bit of what my purpose is. So, let me ask you a question. Do you have any idea what your purpose is?
DAVID ALADDIN: I’ve, my purpose is actually trying to figure out my purpose. I have a slight idea of what it is, I feel like business is one of my main purposes, just to grow a very large business, employ a lot of people and to use that money to give back to people. And to use that money to launch inventions that I always wanted to create in this world. So, I’m, I feel like we’re talking a little bit earlier before the show started and I wanted to create businesses that I’d have the funding necessary to launch some of the stuff that are a little bit bolder.
JONATHAN FOLTZ: Yeah. I mean, it does take capital. Capital is an important thing. I think we’re both in the same line with that. What I’m doing now is facilitation for being able to come out to the world in a bigger way, have new technologies. There’s like, actually, believe it or not, I have some inventions of my own that I want to come out with, but a lot of funding and time just go into those. The more capital that you have it’ll a bit easier for sure. But what I think…
DAVID ALADDIN: I…
JONATHAN FOLTZ: Yeah. Go ahead.
DAVID ALADDIN: I think? We both grew up watching Dexter’s Laboratory and we’re like, just want to be like him.
JONATHAN FOLTZ: Dexter’s Laboratory. That was a good show actually.
DAVID ALADDIN: I know.
JONATHAN FOLTZ: And funny. So, I mean, what are the exercises that I definitely would tell you and tell anyone listening actually, there is, if you go to www.drdemartini.com, there’s a free test on the right hand side called, The Values Determination Process. That’s actually the best give, mind you, this is going to be one of the greatest minds, he is one of the greatest minds on the planet and he’s giving you this for free. The rest of his courses are very expensive. And what it does, there are 13 questions he asks you to determine your values. So now once you’ve determined your values system, and what you actually value, you know more about yourself because what, literally everything you do is based on your values system. If someone tries to get you to do something that is low on your value list, you’re not going to do it, and you’re going to procrastinate.
You’re going to, they’re going to think you’re an a** h*** But when they ask you to do something that’s highest in your priority list, the highest on your value list, you’re going to jump at the first take a lift. So let’s say that for you, if it’s about Amazon or if it’s about, hey let’s get this awesome person, let’s get Elon Musk on the radio show, you think you’ll even hesitate for one second?
So you’ll have him on your show? …, no! You’re going to jump at that right away because you value that very highly. What is behind it that you value, we don’t know exactly, you know, the business perspective. You never learn more information and shared messages to the world, but at the same time if someone asks you to, hey, let us go cook with one of our friends. Well I don’t know if you’re a cook or not. So what would you rather do? I, are you … kidding me? This is not even a question. I’m jumping to go talk to Elon Musk on the radio show, right away, and that’s dictated by advice, this one because of what you value.
So once we understand our value systems, and there’s another thing too that I do, this is very powerful, is hiring individuals. If you haven’t, take that test, okay. If they’ve actually taken the Values Determination Process, you can now see what they value most, so in order to get the things done you need, okay, you help them get what they want and what they value. And if you speak to them in their languages instead of injecting your values into them, for example, I like to travel. I have other people on my team that they don’t like to travel at all. So if I tell them, oh, men, cool guys we can be able to travel, if this launch goes well, they’re going to be like, okay, who cares? That’s what you like, I don’t like that. So I’m just, I’m speaking to, my values, but I’m injecting my values into them and that’s the worst I can do to them is going to possibly cause resentment. They’re not going to care.
But if, let’s stay, there’s family, they love family and that’s a high value for them. Hey guys, if this launch goes well you’re going to get a half vacation paid so you can spend time with your family, go up to Orlando, I mean, they’re going to be like, oh, man … So I’m speaking to them in their value system and that right there is so advantageous it’s not even funny. Just learning this set of skills that most people on the planet have an idea of what it’s about yet.
DAVID ALADDIN: How many employees do you have currently?
JONATHAN FOLTZ: Right now we have probably around 8 employees. We have about 8, about 8 full time people, about 9 of us and then what we do is sub-contract and then we have Freelancers, and we have people that help us with our shipping, shipping like in-house. So that tends to like go up and down and sometimes we’ll have more admins than other times just depending on what we’re scaling like one of our e-Commerce stores. So we have 8 full times.
DAVID ALADDIN: For everyone listening, Jonathan, you don’t sell on Amazon, correct? You sell completely on Shopify stores, right?
JONATHAN FOLTZ: I haven’t gone on Amazon, man. I haven’t…
DAVID ALADDIN: Exactly.
JONATHAN FOLTZ: Yeah.
DAVID ALADDIN: One of the biggest reasons why I wanted to hear his expertise and get him on the show, because he’s grown 4 different Shopify sites completely outside of Amazon and he’s scaled them up pretty big. So let’s go unto that. How did you scaled your Shopify stores?
JONATHAN FOLTZ: Well, just to get started, what’ll tell you is that my marketing agency, we have built probably over 500 websites for people including myself, I don’t know maybe like 4 or 5 of my own before I even got into Shopify. Believe it or not I only got into Shopify about a year ago. When I actually heard through, believe it or not, it was Tai Lopez, had a guest on…
DAVID ALADDIN: Oh, man.
JONATHAN FOLTZ: Yeah. Believe it or not, dude. Like, you know…
DAVID ALADDIN: He’s real?
JONATHAN FOLTZ: Yeah, swear, dude. It’s crazy. Because, crazy as it sounds, people might hate on Ty but you know he was actually one of the reasons that got me into this new model of business after people had been telling me, I had a friend of mine, that was, hey you’ve got to get into Shopify, stop doing client’s websites because I was doing a lot more clients stuff and he was telling me like you get on to Shopify, clients making $250,000.00 a month. I was like, dude, if they’re making so much money why aren’t you doing it? So, I didn’t believe him until I saw this webinar by Justin Senor on Tai Lopez’s page and I had done a business very similar previously with prenom demande And I love it because I was like holy …, I’m like I launched the business called, Herp Life, which my first e-Commerce store, believe it or not, in this Shopify e-Commerce niche in the sector. So what I did was I launched it about 3-4, like 4 years ago now and actually we went to a physical show and we sold out of everything but the prime issues so hard, you know, buy the shirts, then get them printed, make sure printing came out good.
Make sure we have all the sizes. I just didn’t like it. We did it so well. At that time I was building one of my other companies which were called, it was, it’s on The Reptile Niche and that ended being a multi, not a multi but a million dollar company. It was actually, at the time of the sale at the beginning of last year, we were evaluated at a million dollars so I ended selling that to one of my partners, his name is Ricardo Martins. He’s one of the partners that help me also built it up. I founded it got a couple of partners on board later down the road we took it to a million dollar company and ended up, one guy ended up leaving, the other partner, he ended up purchasing the company.
And then that’s when I kind of like when I sold that company, which was actually in the Reptile Niche, believe it or not, we have, we are an import-export and propagation company. So we’re literally dealing, and lots of e-Commerce and lots of social media. This before we even knew about Shopify. And I was like when I found out about this whole new model in Shopify, which is like, just like the beginning of last year, I opened my first website which was Herp Life, and this whole new model of business, although we’re marketers, so I have a marketing agency, we worked with giant companies all around the world Like Coca-Cola, Audi, Maserati. Our team has worked literally with some super amazing product, projects. One of my business partners actually out at Pakistan, he works on some incredible stuffs, too.
So like we have an awesome background but coming to Shopify, which was blowing away, though it’s very, it’s still in its infant stages in my opinion. I still think it’s worth a billion dollar company. I think its still in infant stages, because there’s not so many things that you can do on it and people are just coming up with these new apps that enable to do anything and that’s the reason why I kind of like Shopify better than Amazon model was that I’m about building brands.
And one of the things I believe in, you can tell me a little bit more because I am a little naïve to the whole Amazon thing, but one of the things that I do believe to be so is that with Shopify its more sustainable to build a brand. We have our customer retention, we can later market to them if we target these guys, and it’s more building brands. I feel like with Amazon, one of the reasons I didn’t go in that direction though it’s an amazing model because people were trying to buy.
There’s so many benefits, there’s an equal amount of benefits and drawbacks I believe. But at the same time the benefits that I saw since I come from a creative marketing agency is that we are building now a brand on a platform that is helping entrepreneurs. And also…
DAVID ALADDIN: Yeah. I agree. I’d much rather have a Shopify that pulls 7 figures than an Amazon store that pulls 7 figures. You have all the IP on your site you know.
JONATHAN FOLTZ: Is it true, too, I mean what I’ve heard, and I mean I guess this also on the supplement side you know discern things that you can be sound but Amazon could just pull you out, like they can pull you out.
DAVID ALADDIN: Yep.
JONATHAN FOLTZ: Is that true, or…
DAVID ALADDIN: It’s definitely true, you could definitely get, you can get taken out tomorrow, I don’t know. You might have that red notification that says you’re suspended tomorrow. But that’s why, you know, I, like everybody on the show believes that you need to be in ten, twenty different places at once. And so everyone that’s on them is also trying to expand into their own shop: into Wal-Mart, into jet.com. Not the Wal-Mart retail per se but Wal-Mart online Market Place. That’s what I’ve been doing, to a lot of people I’d been doing but I love how you mastered the art of getting your e-Commerce site driving all the traffic to that and you know you’re not getting that in the Amazon side. So let’s go more into that. How are you driving traffic? How are you building your e-Commerce stores up?
JONATHAN FOLTZ: Okay. So, in the past we’ve used SEO. I love Word of Mouth, obviously. Word of Mouth is one of my favorite. But now that we’ve been doing Shopify, the majority, which also can be little dangerous, it’s just that there are some gray opportunity. Like I haven’t even concentrated on other ways, just Facebook.
DAVID ALADDIN: Yeah.
JONATHAN FOLTZ: So I have been doing actually Facebook at probably about 7 years now. So I would definitely consider myself a Facebook Ads expert. It’s been about 7 year in the last year though, I would definitely say that I’ve gone into it so much deeper than I ever have before because its so, it could be so profitable to drag, direct traffic and have instant sales. I mean it’s almost like a science. And the more you learn about it, building this different type of audiences, building look like audiences, shipping throughout the world, figuring out where your cheapest traffic is going to come from, later retargeting them, creating VPAS… there’s a lot of like, there is so many different ways and strategies that we can use in order to bring fast traffic and instant traffic. That it almost in a way, it took me a little bit away from the whole brand creation. There’s a longer process where there’s like content creation, good social media, it’s almost because it’s so instant. You could literally just get it going.
DAVID ALADDIN: Like a drug.
JONATHAN FOLTZ: Yeah. Yeah. It is like a drug. I remember it was 3 feet from gold, the one that I did, and within 200 and 21,000, it was zero to $21,000 in about 3 weeks. And one of the things about that, that was all Facebook. Like I literally didn’t go into SEO yet, like it was working so well. I was just trading and that’s only because our supplier … up, man. I mean our supplier literally, I think if I’m not mistaken it was December the 4th, around that time our supplier did the paper work wrong and this is the time when , if you understand like getting things from China around Christmas Time is not these, like the times are slower, it’s more expensive. And also not only do we have this later ship times which everything was going to plan and he basically des the paperwork wrong and my stuff get stock in China. So now I have to find the stuff here in the United States and one of the things is, I already knew automatically, I was like, oh man, this is not going to be good. So I’m here finding the products in the US which I actually did find but the problem is they’re almost double the price. So all of a sudden, something that was super profitable, profit margin were like 40 – 50% or something like that literally dropped overnight between 5 – 15% which is super dangerous because if you have low margins like that any small mistake you’re going to go under. And if you’re scaling really hard I highly believe our biggest day which I think was December 4th was about $21,000. So the day, the couple of days before were like 17K.
I messed up, too. Like this is something I lost a lot of money because we were around 17K, I got greedy. I changed one of our product prices from and I’m sure you guys are all about this, too. I know you got this very well where that one little price discrepancy so I went and I took the price from $35 and I changed it to $39 and I scaled up, so I was looking to do by 25 – 30K the very next day and it literally, my conversion rate went from like 2.8% to like 1.8. And I’m talking about that’s like the third of your f*** sales just because that I want a little price difference and it kept me down to like $17,000.00.
So that was a huge mistake. I literally, just that one decision that I made probably lost me $7,000 – $8,000 in a single day. So I learned my lessons to be careful especially when you’re doing higher numbers on like you probably find out before then what that price fluctuation is going to be where people are going to, want to buy. So I already hit the sweet spot and I tried to be a little greedy because I’ve done it in the past where you can raise a little bit it doesn’t change the conversion rate that much.
DAVID ALADDIN: Sometimes it goes, you know, the conversion rate goes up. It’s really weird.
JONATHAN FOLTZ: Yeah. Yeah.
DAVID ALADDIN: I don’t know if you’ve seen that. Okay. So can we go, let’s go more technical. So let’s say I have this product, what do you think works better, images or videos, for you?
JONATHAN FOLTZ: I mean dude, I’m just. Literally man, rarely do you see me post something that’s not a video.
DAVID ALADDIN: Interesting.
JONATHAN FOLTZ: Certainly it’s all video. I mean if you guys have seen like at the WA Conference in Facebook. Even Facebook tells you that the direction you’re going is all video. One of the things that they want to do and they’ve talked a lot on the subject is that they want to turn Facebook into pure video. You’ll see now when someone goes live it pops up on your feed, right? So like it pops up on your feed, the ones coming out first, getting way more impressions, first of all, when you’re doing video ads. So for me, most of the stuff I do, I literally have, I do videos ads. I was using an app called Quik, which literally I’ve done a lot of the video. Believe it or not, I have an agency. We have guys that do video. I have a video guy now but he’s local. I have a couple designers that help me do that. And even my business partner, he is a producer/director and I literally the ones that we made go most viral. No joke. There are homemade videos that I made and I’m not an expert at it. So that means anyone can do it themselves. Like one of the ones, I think one of the products we sold at least $100 – $120,000 and it was through a little, it was only, it was actually, believe it or not it was a test to find my audiences, okay. So I actually used the test ad that went viral and it just kept on going. I was like, … it. Let it just go.
DAVID ALADDIN: Let’s scale it up!
JONATHAN FOLTZ: And I scaled it.
DAVID ALADDIN: Yeah.
JONATHAN FOLTZ: We did very well, something that I was testing. So that goes to more of your questions to technical aspect is that what I like to do is obviously the video ads is the best way to go. Like depending also if you have a new pixel, old pixel. This store that we did that scale, we’ve already replicated that same process like a few times now, also. And it’s through some of these techniques that I’m going to tell you guys about right now and one of the things we did is that we obviously do a little bit of research on the target demographic that going for, right.
So depending on what target demographic, you knew. Like one of my companies is, we do Reptile stuff. This is not the one that we scale to look like that, but this is the very first shop that I had. To sell through Reptiles, what you want to do is find all those Reptile related niches. So you can go do the testing, so sometimes I like, if it’s something brand new that I’m going to or a new niche, you got to spend a little money to find out about your audience. You’re gaining data, so like a lot of people are like I lost $500 already, or I lost a thousand dollars. I always try to correct people. I’m like no; you have spent $500 – $1000 gaining data on your demographic. If you look at it as a loss your mentality is already thinking that you’re losing, in reality you have not.
So if you haven’t been paying attention to the numbers, that’s why you’ve lost. But if you’re paying attention to the numbers which I think is literally one of the key things that you could do when doing any Facebook Ad campaign is pay attention to your demographic, pay attention to your numbers. So what I like to do, let’s say I have that video ad go up and I’ll find out what pages are the most engaging. So what I’ll do is I’ll put it as target demographic, then I’ll start with PPEs, you know, Post Page Engagement because this will get more virility though it doesn’t mean that they’re going to be purchasers but at least it gets it in people engaging in it.
I like people get engage with my ads so people see that there’s people interacting because then they’re more willing to purchase or also interact to the ad, right? And simultaneously, I’ll do a website conversion ad to push for purchases even if it’s in the very beginning of a campaign. Like even if it is, okay. Facebook also knows information. They may not know your Pixel but they also know who are the purchasers out there.
DAVID ALADDIN: Interesting.
JONATHAN FOLTZ: So one of the things that you want to do, you run them simultaneously and what I’ll do is I’ll do, a lot of times I’ll start with a $5 ad sets, so I’ll do a campaign let say it’s a Reptile t-shirt or something like that. So it’s a Reptile t-shirt and what I’ll do right now is target let’s say, Reptiles intersected by Bob Clark reptiles, buy Savannah Monitors, by snakes, by, and these are all final ad sets. So I’ll do a whole bunch like and then what I’ll do is you know like…
DAVID ALADDIN: No, no. Yeah.
JONATHAN FOLTZ: Yeah. I’ll put a whole bunch in there so that I start to figure out who my demographic isn’t, who is it that I’m going to be targeting, at the same time I’m also gaining insights on who likes this actual ad, right? People will actually be clicking on to it. Some of those ads were not going to perform well after two or three days.
I’m usually going to shut them off and I’m going to let the performers run. If there’s any performers that are doing well and much gaining sales, then I’ll duplicate that ad, and then I would go ahead and take it into a brand new campaign. I’ll mention a number 2, I like to put the country code too, like in the campaigns so I’ll put WC Reptile Shirt dash USA and then dash Canada if it’s another one, dash United Kingdom, dash Australia, because you can sell all over the US. I like the big four: US, United Kingdom, Canada and Australia are my favorite. Some of my suppliers can also get supplies over there in a pretty good time. You have to be very careful shipping into countries that there’s going to be problems and such like South America, you can even have problems like getting there on time.
So what I will do is I’ll just see who’s performing who’s not. I’ll duplicate the winners. Let’s say I have a really big winner, and then I’ll create something like lifetime ads. So lifetimes instead of getting a daily budget, I’ll fight orders. What I’ll actually do is to start off at $350 for 14 days, which means that’s $25 a day and go after conversions if conversions are working obviously. Sometimes you’ll even have purchases coming out of post-paid engagements. So that’s pretty interesting. But at least now I’m finding out who is actually interacting with my ads. So okay for this niche or for this product, these are the people that are engaging. I’ve shut down all the once that weren’t working.
Now I concentrate and I start to look and gaining the data, you know you may want to write these down, put it into a excel sheet, you might just remember. I’m just one of those people like I’m so into my ads and everything like that. I kind of almost memorize a little bit like who’s winning, who’s not. Facebook will later recognize. They’re also; they’ll start to pop up in the first things once you’re finding your target demographic. I hope I’m not going too fast for you, brother.
DAVID ALADDIN: No. No. I’m just like deep in thought right now. I like it. I’ll just go back and overview it. So at first you do the research process. How many $5 ads happen at that point? Is it like tens or hundreds of $5 ads?
JONATHAN FOLTZ: Oh, I mean, you can do, I have done up to like 40 or something like that?
DAVID ALADDIN: Very cool.
JONATHAN FOLTZ: I think up to 40, sometimes even $10, depending if I really believe in the product or not. I think that has a lot to do with that too. So I’ll start out bigger if I believe that there’s something that’s going to be a winner, like the one that I did in December, I knew it was going to be a winner. And I was also doing like, at sometime I was doing panel canvass which those were extremely popular, those are still very popular right now. You just have to have a good supplier because most people who are getting them are getting them from China. And one of the problems is if you’re not, shipped them in e-package, and shipped them to the wrong country they take kind of long, so people have to remember that they are used to Amazon. So you know like what Amazon has done.
Freaking high standard and like even when I have it on my website, let’s say I am making e-packages from China, and such, one of the things that happens with that, I try to build up on fulfillment. Like I’m doing a lot of self-fulfillment here in the United States for various reason But when you’re doing that let’s say you can have it on your website that it ships in 5 – 10 days or arrives in a week to 2 weeks, or 2 – 3 weeks, people don’t read that. They’re, this is impulse traffic that we’re getting. We are getting very impulse. There is a very big difference. In Amazon, they are going to shop. That’s what you guys have as an advantage there because you are going there to shop and you’re literally going in there to find out information about a product that you want to buy. When you’re on Facebook, you’re not looking to buy. You know what I mean?
DAVID ALADDIN: Nope.
JONATHAN FOLTZ: Business being our main way of advertising. You’re not looking to buy so we have to grab your attention, take you away from what you’re doing, you know like end into a, hey you need to buy this.
DAVID ALADDIN: So, yeah. What’s the conversion rate on, you know your look like audience they click on your website, what’s the conversion look like when they go to your website?
JONATHAN FOLTZ: When you’re doing retargeting like someone has already visited your site and everything like that you can have a much higher conversion rate so that can be sometimes around 10-15%.
DAVID ALADDIN: That’s pretty good, yeah.
JONATHAN FOLTZ: At least in some of our cases. And then, I think what industry average is usually its around, I’ve heard some people like in the biggest companies in the world its under like 1% but like in the e-Commerce space you’d be hearing between 2 – 3%. Some people say a little bit less but between 2 – 3%. Lately we have been getting probably around like 5%. So I have been averaging around like 5% with some of my campaign. We’ve just been also, I’ve been very busy. A lot of stuff that I’m doing, I think that could go a little bit more if I stared retargeting a lot of people. With the conversion rates we’re going to get 5 to 5 out of a 100 people have visit our website to purchase a product. And that’s like usually 15% or something like that. So 33% of people that are adding to cart are actually purchasing.
DAVID ALADDIN: I’m not going to lie. I barely use, I’d, you know, I’ve experimented with this because, but when it comes to like retargeting, are you retargeting the people that have visit the website who have added to cart or did you like mixtures of that?
JONATHAN FOLTZ: You could do everything.
DAVID ALADDIN: That’s right.
JONATHAN FOLTZ: Hey, hey, hey. If you haven’t done that you are missing out.
DAVID ALADDIN: I know.
JONATHAN FOLTZ: Like you have no idea. So one of the things I see… and this is going to be an advantage. You’re probably going to start making money right away is use the Retarget App. There’s an app called Retarget.
DAVID ALADDIN: Yeah.
JONATHAN FOLTZ: And download that into Shopify store, come up with a cooler phase of getting people back into your thing and they do the rest of the work. All they do is they take 10% of your add expense which is nothing. Like it’s nothing because I’ve had some time 1 – 5, 1 – 6 returns on it. Right now I think I’m averaging about 1 – 4. So if I put in $10 I’m making 40 bucks.
DAVID ALADDIN: I see.
JONATHAN FOLTZ: And also like upper margins are pretty well. Like that’s pretty good. But I’ve had times where it’s like freaking insane, you know sometimes even 1 -10. So that’s one. Then there’s another one that’s actually very interesting. I had a couple of good campaigns with them. Lately there has been a little slower getting back to me and stuff like that. I just want to put that one small drop there. Pretty good company and they’re a big competition to retarget and it’s called Shoelace.
DAVID ALADDIN: I’ve actually used that one.
JONATHAN FOLTZ: Yeah, You’ve used them? Yes. So they have the journeys, and stuff like that which is pretty interesting is just like that some of the campaigns they do is more for brand recognition. Of which I like. I’m trying to build a brand, like my company is trying to build brands. I don’t want to have a fly by night…
DAVID ALADDIN: Exactly.
JONATHAN FOLTZ: Which I think is what a lot of people are doing. The problem is that right now, we have a big influx of retail companies going down and everything like that. But the promises also we have a lot of competition of entrepreneurs that are learning about this. So if you’re just doing the regular Joe website, no branding, little by little these consumers are getting smarter and they’re getting ripped off by people. While there’s a lot of people out there ripping people off. And one of the big issues with that and I’ll tell you right now, a lot of entrepreneurs have run into that and I’ve had a time with myself not ripping off, but we had late ship times. For example the companies that we’re working with write me up, just completely screwed us. They were Print On Demand Company and I was talking to the owner and one of the things that he was like, oh, we’re working on stuff, the ship times were late, and all of a sudden one day they shut down their company. And I got stuck like chuck right before Christmas time on one of my companies.
Actually, believe it or not, it was Herp Life, and I was so busy with these other company that I kind of slow the process so I had very slow ship times. I had to make a lot of refunds. You know people didn’t like it because guess what? They ordered a shirt for Christmas they’ve been waiting for two weeks then all of sudden I get a ping from them that they just shut down from one day to another. So there are a lot of people who are now getting ripped off by legitimate people that are trying to hurt them. Us, we’re obviously fund of their money we told them hey if you want to get a discount, we’ll hook you for that. We’re sending 3D [inaudible]. People have waited.
You know thank God a lot of people were willing to wait. Also that shows us that we had a good dedicated minor people that love what we’re doing. And they believe in us. But other people they won’t ship on those stuff for a long period of time. And you know, like people get mad, so the consumers are going to get smarter and smarter. So it’s like now you really have to actually build a brand because there’s going to be so many, new people coming in that are not learning how this works. And they don’t learn how this work, their business is done.
You know within a, you have a big scale. You have a hundred thousand dollar a month and … Cool, you’re not paying attention to the customer service, you’re not paying attention to fulfillment and then all of a sudden you’re getting shut down by Shopify, PayPal. There’s one subject that a lot of people don’t talk about enough it’s that with the amount of scaling you can do and the opportunity, there’s also the drawbacks, which is you know like if you’re not ready and you don’t know how to build business and you don’t know how the structure works you can be left in a situation where you’re out of money. And literally you went from a positive situation into negative 10 to one thousand dollars. And I’ve seen that happen.
DAVID ALADDIN: When you mentioned your video that you used, can you describe the video that was really effective just like you holding the product there. Is there in death? What’s going on?
JONATHAN FOLTZ: So, so… I’ll give you a little key what it is that I am doing. I’m not going to tell you exactly what it was but basically…
DAVID ALADDIN: Tell me exactly. No.
JONATHAN FOLTZ: You know, basically it was Shoes. Shoes are not the easiest to get into. We’re doing self-fulfillment too. So like one of the problems of shoes is…
DAVID ALADDIN: Shoes.
JONATHAN FOLTZ: When you’re actually doing shoes…
DAVID ALADDIN: They’re big!
JONATHAN FOLTZ: Have you ever noticed how like you can get shoes, you might be a, I’m a 10 but sometimes I’m a 9.5, sometimes I’m a 10.5, depending on what shoes it is. So a lot of people will get the shoes and in the wrong size. You’re going to deal with returns, and you know like it was a big mess at this point. And this one is so easy. I literally just filmed me trying the shoes on showing the shoe, not even my face but just in the bottom. And in the quick app you can just put the information like this is what the shoe is, this is the design, this is the name, and you can add all that stuff in there.
So basically what I did through the quick app right on my phone I created something extremely simple and I said its, and one of the things I said we need to be careful about this now, like I talked about a limited time offer so I’m not sure if like Facebook is holding us against that little bit more now like what’s happening right now, Facebook is definitely getting more in tune with like their ad policies and everything like that so we need to be careful you know that were not putting anything to too exciting or too much like, buy, you have to buy one right now, 75% off. In their guidelines I don’t even think you are allowed to have more than 50% discount so I try never to show that it’s more than 50% discount anymore. You going to like, be careful of what and watch out for.
DAVID ALADDIN: Yeah, so I saw like Shopify master’s doing like free product. All you have to do is pay shipping. I’m guessing, that’s not allowed on Facebook ads.
JONATHAN FOLTZ: Okay. So, I was just having this conversation with someone that has been talking to Facebook reps and supposedly a lawyer through Facebook. And supposedly that’s against the regulations now. So, I’m not confirmed that. But I stopped doing it. I did use free plus shipping in the very beginning, a lot of people using it. All the guys were teaching it. You know. I thought it was correct, but like now I just stopped. But, it was a very good technique and I’m not going to say, Ads surprise still trying and go through. But, you might get shut down because of that. You know. So, like, or your ad, so, I’m still waiting to confirm that.
So, I have heard about it in the grapevine but I haven’t seen anything on paper that shows it. So, for me, I can’t say yeah, you may. But, it was a good strategy back in the days to gain data not makes money. It’s not a good money making strategy. You know. So, lot of times like I was telling you want to gain the data to see who your buyers are? and I one of the things too, I love to ad, is that when your gaining that data you still hope that you’re still getting people to go to your website, right? So, do you still getting people go to your website let’s see your conversion rate is that 0.5 or 0.2 you know you know does the discrepancy in the ad between your product pages or price. And also there’s something going on there why you’re not converting high. But the reason we want to drive as much traffic anyways.
You know. Even if it’s a little bit lower converting it’s the critical look alike audiences. So, I’m literally and I talk about this, that I chase after look alike audiences because, once I do a look alike audiences you have a 2.1% for 1% and 4 million, 6 million, 8 million ,10 million yellow white spread products. I mean, you can scale tremendously and these are the people that best describe the users that are going on to your page. So, you know, like that data right there is crucial on referable to make those look like audiences. That’s where you start getting a lot of power.
DAVID ALADDIN: So, the look alike audience based on the people that just clicked on the ad and you can create that from just click, clicks?
JONATHAN FOLTZ: So. Yes, You. There’s many different ways to create a look like audiences but you make custom audiences and you make custom audiences through the people that visited your site.
DAVID ALADDIN: Very common.
JONATHAN FOLTZ: The people that have liked your page, people that have purchased on your page. You know, one of the things that I’d like to do on my made look like audiences, usually have to do with the people that I visited on a certain page. So, let’s say that I had a canned list that was sound very well particular one. I’ll make a look like, I make a custom audience based on the people that have visited that page itself. Then, take that custom audience and then create a USA 1, 2, and 3%. And so you break it up into three groups that are 2 million each.
DAVID ALADDIN: I got you. Yeah.
JONATHAN FOLTZ: Yeah, 2 million each and then you can do a Canada one. You know, and then you do a Canada one as long as you get into Canada. And you make a UK one, which comes out GE or GA or something. And then you have Australia. And then you have Australia. And then you do Australia, you know, 1 or 2%. Usually I do USA in 3%. Canada and UK and Australia make like 1% only and then a 1 and 2% possibly, if I believe in the product enough.
DAVID ALADDIN: And when he’s, by the way, when he says 1 or 2% that’s how narrow the audiences is.
JONATHAN FOLTZ: Oh, yeah. Let me…
DAVID ALADDIN: Because people will understand that.
JONATHAN FOLTZ: Yeah. Yeah. Okay. So when you do a look like audiences you have a 1%. Okay? So, it starts off with 1%. So, that means the 1% of people that look most like your audience out of the United States. Then, you can do a second one, which will be the, and that person is 2 million, so that’s 2 million out of the possible 200 million of users that are going off Facebook in the United States. You could create a 1 to 2% which is the second threshold, which is another 2.1 million individuals. Then, you could do a 2 to 3%. Which is that and you can make the sizes bigger if you want. I like to chomp them down until like 2 million bits though. Even from there, I’ll even break it down into at times, I’ll break it down into age groups within it so, like let say
I’ll do a 400, and let’s say I have a look like audience 1%. Then when I do a campaign, I’ll have the group 1 which is like 18-25, then 25. The Group 2 was 25-35, then 35-45 will be group 3 and then 45-65 will be group 4 and there around 500,000 each. So that way I’m actually like hitting multiple age groups at the same time and some of those will perform better than others. Yeah.
DAVID ALADDIN: Is there a way to quickly create the forty campaigns? Or are you going through each screen one by one?
JONATHAN FOLTZ: Honestly, I mean, I think there’s like a couple of apps out there that do it, but I honestly I do it on my own. Oh. Okay. You know, there is a way to do it a little bit faster because if you were doing your ads manager takes longer, so the way to do it is through the power editor.
DAVID ALADDIN: Gotcha. Yeah.
JONATHAN FOLTZ: So you’re going to the power editor. You click into your campaign, it takes you into, you know, let say you just had one add app and it’s add set, you click on it. You press duplicate and then let’s say you do put there 4 or 5 of them. And then you have the 4, 5 and 11 but then you going to go and edit each one. And once you’re done then you could go ahead and press the little green button at the top right and then you’re all go ahead and like update every single one simultaneously.
DAVID ALADDIN: Where did you guys go? We’ve got Facebook Ad to master now. No. Did, the information you’re providing is invaluable and it’s allowed me to figure out a lot of the things that were very foggy. Especially, like the custom audiences. I was always just doing custom audiences based on email addresses that I have been collecting. But you’ve opened my eyes up in. Go ahead.
JONATHAN FOLTZ: Dude. You can even do a decent new one that I love using. Actually, you can even do a custom audience based on a video that people watched to 95%. You can make it look like…
DAVID ALADDIN: Wow. Yeah.
JONATHAN FOLTZ: Based on that which is…
DAVID ALADDIN: Yeah.
JONATHAN FOLTZ: That’s been converted pretty well for me now to.
DAVID ALADDIN: Let’s step outside of Facebook Ads. The technology of Facebook itself is just, it seems they have an unprecedented parallel, I mean, advantage in terms of how targeting there, you know, you can target people nowadays. What are your thoughts on that?
JONATHAN FOLTZ: It’s pretty crazy. I mean one of the things that I’ve told clients in the past and like what I tell now like I coach and counsel with individuals. What I tell them now is like, right now what are the main things you want to look at because the traffic is so cheap. Is Facebook ads, because there was never been in the history of mankind something that knows you probably, better than you know yourself. So, depending on the information that people are putting on which people are putting on everything. I also highly believe and this is the technology that Google handed far like 3 or 4 years ago where they have speech recognition marketing.
So, what I believe now, after having conversations with friends, we’ve just literally talking like I think I was at the Marketers mansion, I’m in Phoenix the other day and we were talking about, I forgot what it was, like Cambodia or something. I forgot what I was that we are talking about. This happens to us in several occasions. I’m just the last ones that, one of us goes on our phone, one of the first ads that pops up was the conversation we just had and he had not put anything into Facebook, Google anything at all. We’ve just having the conversation. And this continues to happen to me and others. So it’s like they’re getting information in many different ways that we do not know about.
I mean and they’re buying this information, too. So, they purchase. People don’t understand that Facebook purchases a lot of this. So, it’s not only people think it’s, oh, it’s just the information that we’re putting in Facebook and everything. No. It goes much further than that. They’re buying this information. Your text messages, possibly voice recording messages and everything like that and your conversation, you are having in Facebook. Literally, on Facebook itself are being recorded and their being translated into things that you’re talking about, so, they could target you.
So, like people don’t understand this technology is extremely advance. The most advance on the planet and right now it’s still theoretically cheap, you know, until, the biggest companies in the world are realizing it now. You know, they are realizing it so, we have a very short whip pen window of opportunity to get this really cheap traffic until it becomes kind of like Google was back in the days. You know, Google was an amazing way to get out to the customers. Now it’s a little bit harder. Though a lot of those people are now entering into the Facebook space. So, I think that there is also going to be a shift back into like Google searches a little bit. I believe.
DAVID ALADDIN: This podcast has been super crazy. It’s taking me out of the Amazon space. Even if it was just a freaking hour. I’m telling you, like and most of my audiences completely into this scene and were always pushing the envelope into figuring out how to expand our businesses in multi directions, because, we all understand Amazon can kick us out in one day or the next day or a week from now. Who knows?
JONATHAN FOLTZ: And the key is you’re not even building the sustainable brand. I mean, I’m big on building sustainable brand and the problem is like, where did you guys get emails from your customers? Where you could set up an email? And after that, you see like every customer is worth, you know, people also dispute this but some people say depending on your business model, each customer is worth a dollar. You know what I am saying. A month.
DAVID ALADDIN: Yeah.
JONATHAN FOLTZ: So, you have let’s say a 10,000 email list. That’s $10,000.00 you can make if you’re doing a really good campaign.
DAVID ALADDIN: Good. Yeah.
JONATHAN FOLTZ: A brand new product just came out. Say thank you. Hey, guys, thank you. And while you do sometimes, hey, thank you very much. I appreciate everything that you’ve done for us and supporting us. Here’s a 20% off coupon, because you guys were awesome. Enjoy. Then all of a sudden that day, you know, an extra thousand bucks. I mean just by sending out an email. You know, like very easily. So, to me it’s like, it has its advantages and that’s why I’ve gone full pledged into it. And that’s what helped me out like very much get into this specific niche and I’m enjoying and going full blast in it as we speak.
DAVID ALADDIN: Yeah. All right. We got about 5 minutes left. Let’s talk about digital frontiers and then what is that?
JONATHAN FOLTZ: All right. So digital frontiers, man, I just announced it a few days ago actually while I was out in Phoenix, and it’s a new brand that, as you guys know I have created multiple amounts of companies. You know I have now Digital Age Business which is our marketing agency which is open on 2009 as a BBA. And you know we build it throughout the years more so now on the last 4, 5 years. Were not one of those brand new agencies that came out like we’ve been doing this for awhile? And digital frontiers was an idea that sparked from – so really this were and I might go a little far off but guys this is like literally some of the most incredible things that are happening on the planet right now. So the guy that I follow named, Ray Kurzweil, and Ray Kurzweil, is literally, probably the frontiers man of the world when it comes to futures. Okay. So like I’m a futurist I know Rey is one and he talks about a concept called the Singularity. Are you familiar with the Singularity?
DAVID ALADDIN: Yeah, 20 and 29, it’s going to happen.
JONATHAN FOLTZ: Yes. Some people say, 2029? Yeah. Yeah. You know it then. He says 2045. Okay.
DAVID ALADDIN: For those that dawn was saying, it was the Singularity.
JONATHAN FOLTZ: Yeah, for the Singularity, and it’s going to happen. It’s going, unless we have a meteor hit the planet. No longer sci-fi, guys. This is like real stuff, you know. At first I thought it was fake, when I first heard about it, but the Singularity event is when human consciousness integrates and synchronizes with technology. And as people don’t even know like technology is going so fast it’s not even funny. I was just hearing something right now that our cell phones in the year 2020 to 2021, the technology we have here is going to be a technology that is much faster on a little single chip. Okay. And this is, this is right around the corner, guys. So on a little single chip we’re going to have better way faster technology than we have on our cell phones right now. So that right there is like something to show you like imagine 2029 like you’re saying, 2045, so when this happens life on the planet literally is so much different because what Ray predicts and some of these other futurist now, is that we will become one billion times smarter.
DAVID ALADDIN: Wow.
JONATHAN FOLTZ: So think about that for one second, okay. If we become one billion times smarter can you even imagine what life will be like on the planet where robots already are like super advanced artificial intelligence already exists? This right here will be, you’ll have technologies ten thousand times faster, that will be on little nano box that can fly everywhere, anybody wherever it is, okay. This is real stuff guys. I was so amazed, I was so baffled that it’s, that some even think about this. Then I learned that he also believes that he’s going to live forever. And like what the …, like this guys is nuts.
DAVID ALADDIN: Yeah. To further that concept, my opinion of the Singularity is actually, computers and AI, it’s when they start creating inventions faster than humans can. It happens so fast that none of us can comprehend that the mode of innovations that are going on at a particular time anymore. And so they kind of like surpass the human ability to do it rather than merge with the, but I’ve heard the other side too were humans and AI are merging together. That’s inevitable, too. I think.
JONATHAN FOLTZ: That’s, it’s, right now we’re already, it’s happening already. Our phones are part of us.
DAVID ALADDIN: Yeah.
JONATHAN FOLTZ: This where, it’s called the transhumanism, where we’re going to be able to merge together with technology in order to keep up. That’s why I was talking to you before this call about Elon Musk and his neurolink, where he’s already working on the technology right now to merge the human mind and the brain with technology and computers. That’s already happening, so it’s inevitable.
DAVID ALADDIN: Feel like we could do an entire episode on futurism. It’s kind of fun, too.
JONATHAN FOLTZ: Dude, yes. So, I’ll do it quick, coz I know there’s not a lot of time, but.
DAVID ALADDIN: Go ahead. Yeah.
JONATHAN FOLTZ: So, Ray Kurzweil, he starts talking about this stuff, from my men, this guy’s nuts, but I really go into it. I really like, I like it. In a way it was kind of like storytelling, but it’s like, there’s no way it’s real. And I start to find out that this guys freaking on point. He’s one of the greatest inventors. He is actually considered the Thomas Edison of today. He also was hired by Google as their chief architect, and he is running now their artificial intelligence programs and their launch every program. So I was a little… I was wait a second, I’m like this guy knows what the … he’s talking about. So he has a cool concept and this is where, this is kind of like what shifted my whole entire trajectory of what I want to do in the world is that he has something called the lab accelerating returns. And the lab accelerating returns, what it states is that we are now, our paradigm shifts on the planet are doubling in speed every time they reach a new level.
So back in the days of paradigm shift was one we learn how to make fire, you know depending on everyone’s religious beliefs, that could be different but, you know, what we learn how to stock. When we learned how to, one of the notions of like putting hieroglyphs on the walls, so other people can get information. When the printing, a few hundred years ago the printing press. Mass information can now go out to different distribution of, and distributed all over the world. So we’re dancing faster, okay. You know as of late, it was when computers and internet came about. Okay. That was a paradigm shift. Oh my, god.
Now we have internet, we’re connected around the world and next one was social media. Okay. So what’s the difference though, that used to be millions of years apart thousands of years ago there thousands of years apart, a few hundred years ago, they’re hundreds of years apart. We are now, some people, they have different timelines on this but I’m going to go by Ray’s, for he’s the leading futurist in my opinion, right now and were on the ten year cycle. So were about to hit the five years cycle.
So what happens next? There’s a two and a half year cycle, one in the quarter, six month, three month, one and a half, now were under a year. So we’re actually just having a conversation to, where we’re talking about like, man, every single day there’s a new technology that’s blowing us away.
DAVID ALADDIN: There are ten we haven’t heard about, you know it’s.
JONATHAN FOLTZ: There are ten you haven’t even heard about.
DAVID ALADDIN: It’s crazy.
JONATHAN FOLTZ: What happens in 10 years? They’re going to be happening every hour, every hour, every minute there going to be something that blows your mind away, is going to be happening. So the reason that we started Digital Frontiers now is because we see this evolution and this, and in my whole model behind Digital Frontiers means digital revolution because there’s a revolution here. You know like this is an actual revolution that’s happening on planet and the problem is, just like you said, a lot of people are going to be left behind and they did not even know that a lot of these things are happening so we want to create a community of education, philosophy, futurism because we’re going to definitely get into a lot of things that are happening in the future and we’re going to help entrepreneur be ready for this new shift and this new epoch that as Rey would call it, that is a punch.
DAVID ALADDIN: Is it possible to be ready though, like what if it’s too fast for us to be, to comprehend you know to…
JONATHAN FOLTZ: Which some of us won’t?
DAVID ALADDIN: Yeah. I feel like what we begin to understand, it’s already going to surpass us, and that’s going to more stuff coming out that we’ve, now we’re out dated in the suns, you know.
JONATHAN FOLTZ: In a way like were, were going to have to merge with technology. I mean that’s, that’s why I think the Singularly event has to happen, where or artificial intelligence is going to, robotics, because I think there’s three stages of the fifth, of the fifth epoch, because that’s what we’re entering right now, it’s called the fifth epoch and it’s genetics, nano technology and robotics, GNR it’s called GNR. So genetics are going to be completely changed around this. We’re going to have, we’re going to be able to glitter in it’s your 2025 to 2029 were going to be able to reverse medical illnesses and all that…
DAVID ALADDIN: I just saw, I just saw, is how like, won’t people talk about connecting the neuro link. How we’re going to tap into that where we understand what’s in the other data base faster than what we can perceive, you know, currently as our brains you know like, when you see something, when you read something, your understanding has earned speed but you know computers can have an unlimited mono speed that which it can received data and information and hopefully analyze it and understand what it means. How does that integrate into our brain you know, I find that part the most trickiest part…
JONATHAN FOLTZ: Exactly. What’s happening, I mean already like you know the quantum computer and one of the problems with the brain itself is that we don’t have the stamina on this extremely, extremely smart and it definitely, it adapts rather quickly than not quick enough were technology and mechanics and stuff can and electricity in stuff that we just cannot view. So what’s happening is that we’re going to have to merge in their brains actual chips.
DAVID ALADDIN: What are you guys talking about right now?
JONATHAN FOLTZ: I mean that’s the thing though, I mean that sounded so outlandish back in the days, but this is the world that were entering. So the people that want to be ignorant to the subject, you are the ones who’re going to be left behind. So you know, like media. I, I still look at this stuff as sci-fi. Now, after doing the proper research and listening to the smartest minds on the planet. Okay. Smartest mind on the planet, the futurists that are making the moves, the ones that are consulting with the largest companies in the world are now all about it. I mean, I’ll give you a good perspective, okay. This is going to be a great perspective for everyone and I’m going to ask you a question. And there’s a question for everybody. If you had to guest Elon Musk, okay, so out of the three companies, the major companies that everyone knows about. Okay. We have Tesla, we have Spacex, and then we have Solar City, right? So those are the three major companies that you know about that he has, right. Out of those three companies where do you think he spends the majority of his time?
DAVID ALADDIN: I’m waiting for the audience to have their answer. Oh, let me think…
JONATHAN FOLTZ: Everyone guess really quickly.
DAVID ALADDIN: I’m going to say, Tesla.
JONATHAN FOLTZ: Okay. Tesla. All right. That actually, it was a little bit of a trick question. Okay. Because actually people know that’s the majority to population that’s what we know. Believe it or not and right now I know he is working on the neuro link, so that could have changed. But as of just about a month and change ago he was asked and who’s like he’s talking about how he spends 80% of his time now working on something called Open AI. And it’s a company that is trying to come about with artificial intelligence and bring it to the masses. Because he believes that those are desperate need on the world right in the world right now. Okay.
So every time I want the greatest minds on the planet his spending 80% of his time. Okay. That means that he has only six and a half percent of his time to be able to go into the other things and even less so because he has a family right. So he is spending 80% of his waking hours working on artificial intelligence because he believes that there’s such a necessity. It’s also a non-profit organization but it work like a start-up, he says because they are so eager and they know that this is something that the humanity needs so much. So that shows in just a little take of like how close we are for these things to actually start happening. You know like…
DAVID ALADDIN: I’ve heard that he sleeps on the Tesla mini manufacturing line. So I would say it’s about 7 hour’s right there where he spends a lot of his time, so.
JONATHAN FOLTZ: He is like, like I was right there often because he sleeps. Every single…
DAVID ALADDIN: But I’ve heard about Open AI project. The guy got his hands in too many things. I don’t know how he does it. You know, it’s incredible what he’s created. In such a short, it feels like it’s a short time. It’s only been like, maybe 15 years at most and he’s created these 3 major companies and don’t forget about PayPal.
JONATHAN FOLTZ: PayPal? The world forever man. You know.
DAVID ALADDIN: Yeah.
JONATHAN FOLTZ: It’s… just to create all this. Imagine he had never sold it. People said that was the stupidest mistake he ever made in his life. I mean, but look at what he’s done with it. Sometimes, there are greater opportunities on the horizon. Like for me, I sold a very profitable, my import- export and Propagation Company. That was, I, we’re really looking’ to this really, really big numbers just this year and the next year, and I ended up selling it for less than [inaudible] And I missed out on a few job opportunity because I see what’s happening right now with technology, the e-Commerce side, the internet marketing. And I don’t want to missed out like I really did not want missed out on it so I left something in order to go after something I believe there’s much more value and I can literally help change the world. You know.
DAVID ALADDIN: What we’re doing today is most likely what were not going to be doing in ten years from now, you know, it’s not crazy like.
JONATHAN FOLTZ: Dude.
DAVID ALADDIN: Where’re we going to be?
JONATHAN FOLTZ: Trajectory. And with technology now? I mean, man. Things are moving so much faster. Information comes in so much faster at lightning speeds, you know. We’re not even seeing like, this is the part I missed to put into that whole thing we’re talking about, you know. Love is celebrating returns. Right now, everyone has the vision of us going in a linear road. Linear model. So it’s literally just you know maybe going up a little bit and everything like that. The problem is, it actually grows exponentially. So we’re actually entering into the hockey stick stage of the elevation. And what you’re going to see a little bit of more does so reentering right around here and this is what’s about to start happening. We’re growing exponentially, with the speed of how technology’s going to grow, so.
DAVID ALADDIN: He’s pointing to the sky, for those who are not listening?
JONATHAN FOLTZ: Yeah. Like, yeah. If you guys can’t see what I’m doing, I’m showing the hockey sticks, so right at the level of the hockey sticks start really start accelerating up so fast that most people, like I said are not going to be able to able to drop. And that’s why digital frontiers men were there. And just to go a little bit more into DFM which is our initials. This has a couple of things that we’re going to be doing to help entrepreneur. I mean we’re also now that you are asking about Shopify and everything like that we’re actually going to be selling a course on building a sustainable brand which is what we’ve been doing forever that’s what I do in the bigger circle in the million dollar company.
And then, what I’m going to do, is like teach people the different intricacies of Shopify and Facebook Ads scaling, in order to have a successful model. And I’m literally taking people into my business to actually look at what we do. You know, I mean, like how is it that I did it, and how is it that you can do it, and I’m making a guideline that you can just follow through. It’s really going to be very different because it’s going to be a lot about branding, there’s a lot of mindset, I’ll talk about the philosophy behind these things, so lot of time people like the technical side only, so not only did I do the technical side but I’m adding so much value on a high level to bring forth high level entrepreneurs on the planet.
So you know, that’s something that I think is going to be very different than what people what re doing in the industries right now. And my whole thing is like I just want to help people as much as possible make entrepreneurs very successful so that they can go out into the world and create awesome things.
Popular: The masterlist of resources we use and recommend.
We are the fastest growing Amazon FBA Podcast with over 150,000 Amazon sellers tuning in. See why this is the best Amazon Podcast.
Amazon Seller Tools for ourselves, and for you, which we use to supercharge our Amazon listings and build epic kindoms. Comes with a 7 day trial.