Episode 135: Five Simple Strategies To Give Your Company The Incumbency Advantage (Part 1), With Roland Frasier

If there’s a company in your industry that’s the 500-pound gorilla, would it make sense to model what they do? Consider companies like Agora and Amazon. Would it be reasonable to assume that if you did what they’re doing, that you’d eventually end up with the same success?

In this episode, Roland explores this question and breaks down two of five strategies that you can apply to your business to increase your chance of success.

If you want to dig in further with Roland, head over to our home page and sign up for exclusive content from Roland. If you’re interested in working with Roland on your business, listen to the end of the episode for his invitation to his upcoming Intensive on March 16-17. Nobody teaches what Roland is teaching at this workshop (Leverage, Exit, Grow, & Scale)!  It’s a small, limited group – so act quickly.

Five Incumbency Advantage Strategies – Listen today for the first two strategies, and subscribe now on Apple Podcasts to make sure you catch the other three next week.

Strategy #1, Go Negative.

Agora is comfortable going negative on Ad Spend for up to six months. It’s a luxury of scale. To afford to go negative on front offers, you have to have a back end offer and ascension path that enables you to make up for the initial loss, AND earn an acceptable profit over a specific period.

“The more you can afford to go negative on Acquisition, the bigger the moat you can build between yourself and your competitors.” Roland Frasier

How do you get there? 

  • Start with an offer that works to paid media, initially to a niche, and prove that you have a product and an offer that works.
  • Then, begin expanding the audience and channels in which you make that offer. 
  • Keep in mind conversion rates, Return On Ad Spend (ROAS), and Average Order Value (AOV) will not be as high as you expand out into less fervent niche markets. Customer Acquisition Costs (CAC) will also increase.
  •  HOWEVER, as you watch these Key Performance Indicators (KPI’s) and run your conversion rate split tests, you’ll be able to evolve your funnel. The goal is that Lifetime Customer Value (LCV) and Acceptable Recoupment Period Sales (ARPS) would fall into an Acceptable Acquisition Cost period (AAC).
  • Knowing these analytics and numbers is critical. If you don’t have someone that has set up these analytics for you, that’s something you really need to do.

Limiting Beliefs

Frequently, smart and savvy entrepreneurs will fall prey to one of two primary limiting beliefs.

1, The business owner believes that they can’t spend more than a certain dollar amount per month on any one channel, e.g., Facebook


2, They believe that every Ad spend has to be recouped, possibly with some profit, on the first sale, instantly. 

Have you fallen into either of these categories?

To overcome the first limiting belief, if you already have a business that’s profitable on your current spend, why not increase your spending until your numbers tell you that your marginal revenue or profit doesn’t exceed Customer Acquisition costs?

To overcome the second limiting belief, be willing to create a value chain that permits you to go negative on your spend initially, and then earn that back, plus a profit, on the back end in some acceptable time period. Let’s break that down: Expand your product line to offer an ascension path that eventually allows your Customer Acquisition Costs (CAC’s) to equal your Acceptable Recoupment Period Sales (ARPS), AND your target Lifetime Customer Value (LCV), to balance out any negative Return on Ad Spend (ROAS).

“The key is you have to get creative and find complementary business offerings and partners to extend the value chain. You’re only limited by your own creativity and imagination”. Roland Frasier

Strategy #2, Hire The Best.

Agora attracts the best Copywriters and pays them accordingly. They didn’t start with the very best team, they started with one writer, and then built up. The key is finding the best talent you can afford right now. Once you start making money, use that to hire better and better talent, and pay them accordingly.

“Always be investing in the best team you can afford.” Roland Frasier


Click to find us on Apple Podcasts and other podcast players. 🎧 

Contact & Follow Roland

On Facebook 

On Instagram 

Through his Website 

Follow Business Lunch Podcast

On Instagram

On Twitter

Thanks so much for joining us this week. Want to subscribe to Business Lunch with Roland Frasier? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Click to find us on Apple Podcasts and other podcast players.

We’re so glad you’re here.

We're listening! Writing us a review not only helps us improve the show, but it helps other high level entrepreneurs like you to find us. Thank you!

Sign Up For News & Exclusive Opportunities