Proactiv

God, I forgot about proactive.

For some reason, I never used Proactiv.

I used Accutane.

Proactiv was everywhere.

Oh my God.

Yeah, just like tele...

There was telemarketers for Proactiv? I guess I don't remember that.

I definitely remember there was like infomercials and there was like obviously a subscription service.

I need to be looking out the windshield, not the rear view mirror.

There are three things that I can pay attention to, and the three things that I always refer to as my holy trinity of metrics is my lifetime value, as we just discussed, what are the actions I can take to make somebody purchase from me one more time, because, and I'll use an example of a company called Proactiv.

You're familiar with them, I'm sure.

The skin, yeah.

Pr- Proactiv spends over $300 for every new customer acquisition.

Well, if you're familiar with the brand, the whole product kit only sells for a hundred and some odd dollars.

Why would a company do that? Well, two reasons.

Yeah

The healthy number in there is that your customer acquisition cost should be one-third of your lifetime value at whatever payback window your cash flow can sustain.

Now, I know that's all Greek to some folks, but pointing out, and I'll use Proactiv.

We're all familiar with the acne treatment Proactiv, right? Very similar numbers to this brand, which is why I kept going back to it.

Proactiv spends $300 on customer acquisition for every new customer they bring into their ecosystem.

And they understand they sell the product for a hundred and change.

Why would they spend $300 on $120 transaction? And the reason is because they know they're going to get at least six more of those transactions and never have to pay that $300 tax again.

Do you guys want to talk about something

funny? Let's talk about Proactiv.

Do you remember

Proactiv? Yes.

I used it.

I

That's when you dominate.

How many have heard of Proactiv? Okay.

Do you know how big Proactiv is? Okay.

It's around about a billion dollar brand.

A billion dollar brand.

We can manufacture the cream right now, 'cause it's not their proprietary.

Stab a label on it, we can sell the same, essentially same product.

But can I compete with Proactiv? No.

I'll wash my face three times a day, and I'll still wa- wake up with like crazy zits on my face.

And so going to NRB, I, I was like, "Let me try that Proactiv stuff." I put Proactiv on my face, and apparently with Proactiv, it actually pulls all the impurities underneath your skin to the surface to clean house.

And I did that before NRB, and I wake up in the morning and I'm talking hundreds of whitehead zits all over my face.

Right, Jack? It was bad.

For both of us.

Then he wanted me to get Proactiv.

I was like, "All right, boy." He used to be in public squeezing pimples on my face.

So I, I had to take matters in my own.

He had, he held up those fat pants.

What about Diddy and Proactiv?

Great, great guy like Diddy.

Yeah.