Dennis Yu

How to build SaaS software: Gavin Lira and Dennis Yu discuss

How to build SaaS software Gavin and Dennis here! And today, we’re gonna cover building dashboards and building software in general. And if you’ve never built software before, this is a great opportunity to learn from a lot of people. Waste a lot of money trying to build software as entrepreneurs, but they don’t understand things like this three-tier architecture I’m gonna show you. And I’m gonna show through examples of stuff that we have built for huge companies like Nike and Billy Jean. And Gavin will ask questions along the way. Yeah, Dennis is the expert here. I’m the student. So I’m excited to, learn and. So I’ve built some software for these huge companies and starting from Yahoo 20 some years ago. And you’re gonna see there’s the same framework. Now, this is independent of whether you’re using Pearl or PHP, Python, angular, JS, go, or whatever your favorite flavor is. This is about building things that actually collect data and actually do things. So Billy Jean came too. A few years ago. And he said, Billy chain, he’s huge on video. He’s got billions of views. And he said, I’m making all these fun videos and all this. And I’m spending a few hundred thousand dollars a month on ads, but I don’t really know what’s profitable. I know in general I’m profitable, but one day I could be down a couple hundred thousand dollars, or maybe my turn rates are higher, or this new campaign I launch is working or not working. I need a dashboard that can look at everything. So in the morning, I get a text message and it’s okay, this is how much revenue you have. This is what the lifetime value is. This is what your profitability is. This is how many refunds you have. This is your top campaign, just a few simple things. And he thought that this was a matter of just what most people think. Let’s just pull all this data from Stripe and Kajabi and click funnels and Google ads and Facebook ads. And just put it into a dashboard, should be easy. Something might just take a day or two. Actually, that’s not the case because. For some reason, I think if I open this up, you actually see that these are all animated. I wonder how I do that? Go to slideshow mode, maybe that’ll work. They’re all like gifts. Yeah. These are all animated. If I can get ’em to work. Whatever. So like anyone else that’s an info product seller or an agency or yeah, selling stuff. You’ve got lots of systems. So it’s systems for communicating, for buying ads, for CRM stuff, for processing payments. There’s also organic and paid social. So he’s across all these channels. And you guys remember he did a Facebook ads course, a YouTube program start your agency program. But regardless we wanna put it into three layers and this kind of wedding cake 3 0 2 architecture is something that you’re gonna see often. So this first layer is this data. So let’s get all the data he has in one place. All these different systems, a lot of ’em have APIs. For some of them, you can use API. Some of ’em, you can scrape some of them. You have to build your own integrations to get that data all in one place. And then that middle logic layer is where you’re doing calculations. So this is metadata formulas, calculating profit calculate, just business, logic, and rules. That is from the raw data all the way up. And then the UI layer is where you’re displaying it. That’s the application where people are clicking on things. Maybe they’re buying things. We have internal people, they’re doing reporting. We’re refunding people and customer service. People are using the application to integrate with the logic layer, which actually does stuff. The application layer all the way down to the data layer. So anything that goes in and out where a human. talk to the underlying database, and goes through the UI cuz people don’t want to program. They want to click on a button inside an app on a webpage, that kind of thing. So you have these three different layers and they’re separated. So let’s say we wanted to build a new UI, but we don’t have to rebuild the actual application itself. This is where all the processing occurs and we don’t have to rebuild the underlying databases and all the sources. Likewise, if we have this three-tier architecture, if we wanted to integrate TikTok ads, we could, that would just be another data source that plugs in and it fits in the overall model. We’d have to adjust our formulas, let’s say, calculating total spending it’d be Facebook plus Google plus email plus whatever, plus TikTok. So we’d have to have that other source. So other formulas and whatnot can adjust in this logic. independent of how it looks in the UI, like where all the buttons are and the landing page is independent of what happens on the bottom so this is an extensible three-tier architecture, pretty standard, right? Yeah. Okay. So we put all this data in here that Billy Jean had, and whenever you start building things if you ever built something like this, you’re going to always come into a situation where they say, oh yeah, it’s really easy. I have all the access everything’s already working. It never. It’s always a disaster. There’s always stuff that’s wrong. The logins are wrong. They keep changing, which breaks our systems. Cause then we’re using a certain login and then the password isn’t working. So it doesn’t bring in the data. So then we’re miscounting because the data are not coming through or there are other systems they didn’t realize they needed to use. So this whole thing about getting the data in, into one place and the data layer

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The mindset of an employee versus a profit maximizer

One of our team members asked if they should increase the budget on a campaign from $80/day to $140 a day.Here’s what I said. Please choose whatever budget you see fit in your expert opinion.You’re the pro! You know our business goals and are best positioned to determine what tweaks to make to maximize revenue at the target ROAS. As we know in eCommerce, unlike most agency work, it’s not about a daily budget (which is about managing expenses), but about maximizing profit (at whatever spend maximizes this). A typical agency employee has the goal to spend exactly $X as the budget– which can be too low if the campaigns are profitable, but too high if we’re wasting money. So use your pro skills to test and optimize, while we’re here to advise in our areas (me on strategy/optimization), the client on content/financials, Daniel on analytics, etc…

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Want to know how to spot in 15 seconds whether an analysis is worth reading?

Here’s an actual attempt at analysis that an internal team member submitted on the performance of a client. Look it over for second and see if you can tell what company it’s for. If you can’t, then it means they’re robotically going through the numbers– reading numbers off a chart, instead of understanding WHY a key business metric went up or down and WHAT we need to do about it. So here’s the tip– look for rich GCT (goals, content, targeting) in what you or a team member submits. If they don’t intimately understand the heart of your company, then they’re just mindlessly cranking out charts– something a simple computer program could do in converting stats to sentences. Are you or your team members guilty of this– to pretend to be doing analysis, when you’re just regurgitating numbers from a report? Look for GCT as the telltale sign.

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>>>>SAVE THIS<<<<<

Most of you don’t have Search Console activated in your Google Analytics. As a result, you can’t see what people are searching for even if they don’t come to your website. For example, look at Search Console query data, where we see that way more people are searching for a “3×3 video grid” than anything else where we show up in search. But if we sort by clicks, “Content Factory” and “Dennis Yu” drive the most traffic since it’s a higher intent search (brand terms) and higher average position. We can also look at the top content for our site (under “landing pages”, letting us know what we should write more about, what content to tweak (for a higher position), and what isn’t working. Let me know if you want our training on how to set up Search Console or have us do it for you.

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I am NOT a Facebook marketer

I am an expert at driving sales and I happen to use Facebook. I am NOT an analytics geek– I am relentless in creating the systems that generate jobs for young adults. I am NOT a book lover– though I’ve read over 4,500 books, I’m hungry for the knowledge I need to achieve my goals, which compels me to read. Nike is not a shoe manufacturer– but about “authentic athletic performance” and teaching “everyone is an athlete”. And they happen to make shoes. FedEx is not a package delivery company– they are about “peace of mind” and “the world on time”, though they have the largest fleet of cargo aircraft on the planet. WHO you are is not your activity– it’s your MISSION, not the TOOLS you use to accomplish it. I want to know WHO you are and how I can help you achieve your vision.

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Always Be Testing!

I thought this post was going to do well since it had a couple of photogenic people in an interview at a conference. Even though the engagement rate was close to 10% (17 out of 219), I got hammered by the Facebook algo, charging me $6 to reach 200 people. That is a $30 CPM (cost per 1,000 impressions), which leads to 40 cents per like. If we were trying to drive sales here, then this wouldn’t necessarily be bad. But for top-of-funnel awareness/engagementon this public figure page, I had to kill this boosted post. 90% of my boosted posts fail. And the 10% that win are not the ones I would have predicted. Trust the data— always be testing!

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Want to know how to spot in 15 seconds whether an analysis is worth reading?

Here’s an actual attempt at an analysis that an internal team member submitted on the performance of a client. Look it over for a second and see if you can tell what company it’s for. If you can’t, then it means they’re robotically going through the numbers– reading numbers off a chart, instead of understanding WHY a key business metric went up or down and WHAT we need to do about it. So here’s the tip– look for rich GCT (goals, content, targeting) in what you or a team member submits. If they don’t intimately understand the heart of your company, then they’re just mindlessly cranking out charts– something a simple computer program could do in converting stats to sentences. Are you or your team members guilty of this– to pretend to be doing analysis, when you’re just regurgitating numbers from a report? Look for GCT as the telltale sign.

Want to know how to spot in 15 seconds whether an analysis is worth reading? Read More »

Look Closely…

This university is selling a Master of Science in Analytics, but its landing page features people looking at a pie chart with no labels and grids that have no column names. What could they possibly be discussing? Answer– this common view of “analytics” is actually glorified report-making, while analytics is actually understanding WHY and making recommendations. Right, Brandon Ramsey?

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Facebook now lets you automatically boost posts

5 years ago, Facebook had an auto-boost feature where they would automatically boost your posts. But they killed it because not many people were using it and because the system was boosting posts about site outages, sales that had already expired, and other things.   So this new version gives you a bit more control: You can choose the default boost amounts (how long and how much to spend each day), the audience (from your list of saved audiences), and if you want to auto-approve: Some things I don’t like about this re-released product: Only one post gets boosted at a time– I like to be able to put more money on winners, even to have them live forever.  As a business grows, we would want to have a growing number of posts boosted evergreen (forever) as part of our Greatest Hits that live forever. The 60% threshold for “top posts” is arbitrary.  Instead of getting 60% more engagement than our average post, it should take the top 10% of posts by engagement or all posts that meet a particular fixed engagement threshold (like 10% engagement/impressions or 10+ second average watch times on videos). It’s buggy– I’m not able to switch the audiences. And the reported engagement figures don’t make sense– how do I have no engagement, yet 144 engagements? Have you had a chance to play?

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