WEBVTT

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-: Okay, thought leadership posts.

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This is my trick for writing good content

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that actually matches your opinion

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and you need to be the secret source.

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I think that's what a lot of people get wrong

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when they're trying to write content with GPT-4.

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So I'm just gonna type in here,

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write a blog post on value.

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Let's say the topic is

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the merits of value-based pricing for agencies.

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Actually, let's make this a little bit more interesting,

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the danger of value-based pricing for agencies.

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Okay, so if I just type, just let it type,

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it does a pretty decent job here.

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So it's just writing this out.

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And what you're gonna get

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is basically the average of the internet, right?

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So I'm just gonna stop this here

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'cause I don't need it to write the whole thing.

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But this is what a lot of people do.

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GPT-4 is really good at this.

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But it's saying it's increasingly popular.

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It seems like a win-win scenario.

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However, value-based pricing

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can also present significant risks, right?

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So financial stability, client relationships,

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et cetera, right, difficulty in estimating value.

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So it's picked up on some interesting things,

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but I would say that a lot of people complain

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about the writing here because it's kind of dull sometimes

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and actually a little bit too perfect

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and comprehensive, right?

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So how do you make it more like your own voice?

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How do you make it more interesting?

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So this is my sequence of prompts.

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I'm just gonna start a new chat.

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I'm gonna go GPT-4.

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And you need the browse model, so browse with Bing.

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If you don't have that, you can turn it on in settings.

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All right.

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So the first thing I'm gonna put in here is

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please look up topic and then provide a summary.

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So I'm gonna say

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the dangers of value-based pricing in agencies.

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And I'm choosing this topic

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'cause this is something I know very well.

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I used to run an agency and we did test value-based pricing.

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Okay.

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So now it's gonna browse the web.

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And the reason why we're doing the browse first

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is I found that it tends to hallucinate

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when it doesn't have at least a summary

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of what value-based pricing is, right?

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Like, and I'll say, it becomes less comprehensive

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if all you do is take your opinion.

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I also find that having the summary to look at first

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really helps you in the next section

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where we're gonna actually ask GPT-4 to interview us.

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So we're starting with this,

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it's coming back with a few drawbacks,

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a few different things.

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Actually, if you wanna see what it's doing,

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it found this Forbes article, found this Pricefx article.

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So if we wanted to actually dig into this,

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we could look at those.

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And sometimes I do while I'm waiting for it.

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We're just gonna wait for this to finish thinking.

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It's clicking on links, reading.

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So hopefully it'll be done in a second.

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One thing I would say is that the browse model

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is sometimes a little bit funny,

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like status clicks fail, that sort of thing.

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Okay, so it's looked at three different articles

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and done some comprehensive research here.

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So we'll see what it comes back with.

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Here we go.

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Now it's finished.

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So let's see what it's coming back with.

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Difficulty in evaluation.

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Yeah, that's important for sure.

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Implementation costs.

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Yeah, it can be costly to implement

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because the perceived value of the service

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needs to be strong.

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So actually, so if you don't know about value-based pricing,

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it's where, instead of saying,

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I wanna charge whatever it costs me to deliver the service

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plus 10% plus 20%.

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Value-based pricing is I'm gonna charge

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whatever the value of the service is,

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even if that's significantly more than the cost.

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So if you're doing a big,

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if you're churning out logos for small businesses,

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you might do cost plus and say I'll charge you 30% margin,

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but if you're doing like a logo for Nike,

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it might be, you might do value-based pricing,

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you might say, even though this took me 10 minutes,

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it actually really took me a lifetime to be this good,

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and therefore, a new logo for you is gonna be worth

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like $50 million, I'm gonna charge you $5 million, right?

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So you get 1/10, I'm gonna charge you 1/10 of the value,

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but for me, it only took 15 minutes,

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so I'm getting a huge margin.

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Also, the problem here,

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so a lot of people talk about value-based pricing

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as if it's a holy grail.

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And of course, you should charge more,

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like of course you should try to, but there are some issues.

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And GPT-4 has done a good job of finding these.

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Implementation costs are difficult,

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hard to evaluate what the value is,

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and there's also ongoing effort.

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So yeah, that's something we found as well.

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It's alright with the first contract,

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but then over time they expect more and more value

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and you, it gets harder to deliver.

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There's also overpricing and underpricing.

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You could actually charge too little

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because they estimate the value

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as being less than what it actually costs to deliver.

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I think that's why accountants and lawyers charge hourly

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because people always expect that accounts

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will take less time than they do.

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People always expect that law, legal cases

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will be settled quicker than they actually are.

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So I think that that's,

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in situations where perceived value is lower

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or the expected value is lower,

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then hourly pricing might be much better.

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And then same thing with the fifth one,

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limited applicability.

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It's not always suitable for every business.

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Actually, one thing we found was,

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when we were working with really big businesses,

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Fortune 500 companies,

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they just didn't let us get away with it.

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We had to quote the hourly rate

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for everyone working on the project,

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otherwise, they would have said no

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and we wouldn't have been able to pass procurement.

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Okay, cool.

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So, but that's what GPT-4 is gonna ask us.

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So the next prompt,

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and I'm just gonna bring up my prompts here,

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the next prompt is...

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we'll say, ask me five interview questions on the topic,

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All right, so,

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on, and the topic is the dangers

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of value-based pricing in agencies.

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And now, I'm just gonna relay

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some of the things that I just told you

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when we were talking.

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So the goal of this, I mean, this is really the meat

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of the technique I'm using here.

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We are trying to get like my professional opinion

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on these things, my shared experiences.

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I think people use ChatGPT the wrong way around.

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ChatGPT is an incredible editor, it's a really good writer,

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but it doesn't have life experiences.

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It's a computer, right?

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I have life experiences.

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And I wanna talk about those things,

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but I never have the time.

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So if I can just be interviewed,

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and we're gonna do this in a few minutes,

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then ChatGPT can write it up as a professional post.

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That saves me a lot of time.

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It's basically what ghost writing is, right?

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That's what ghost writers do.

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A lot of really popular social media accounts and blogs,

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especially if it's the founder talking,

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like the founder doesn't really have

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that much time to write that stuff.

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They get interviewed and then the interview notes

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get turned into a blog post by a professional writer.

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Cool.

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So it's asking me a few different things.

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I'm just gonna give really brief answers.

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Normally, I would give a bit more in depth answers

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'cause I actually really enjoy talking about my experience.

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But, and I think actually it might be even better

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if you could just talk back and forth.

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So if you're using the OpenAI app for iOS,

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you can actually do that,

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or if using Google Bard for this, you could do that.

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So can you share a specific instance

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in your professional experience

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where a value-based pricing strategy

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posed challenges for your agency?

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So I'm gonna say, one is,

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yes, we used to sell tracking implementation

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and we always under-priced when using value-based pricing

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because customers expected tracking

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would be easier than it actually is.

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Cool.

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All right.

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In your view, are there any particular types of agencies

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or sectors where value-based pricing

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is more dangerous or less appropriate?

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Yeah, I would say, sectors which,

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where the value is, well the perceived value is high,

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or the perceived value is high,

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higher than the actual cost will get away with it,

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especially if they have a monopoly.

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If you don't have a well-known brand name,

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or other people can do what you do,

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then you'll have to charge market rate.

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Monopoly profits only accrue to monopolists, right?

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Given the potential dangers of value-based pricing,

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why do you think agencies prefer this approach?

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I think the ability to charge more is exciting

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and you feel stupid for not charging more.

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There are also a lot of gurus out there

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who haven't actually run scaled agencies

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and talk a lot about this stuff.

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Some agency owners listen to their detriment, right?

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And I don't think that there's no value

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in value-based pricing,

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but I would say it's much less applicable

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than most people expect,

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or at least less than the gurus say.

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Okay, so next one is how do you approach the issue

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of potential overpricing or underpricing?

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I would say the way we did it

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was make sure your costs are covered in any scenario, right?

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So if at least your costs are covered,

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then everything else is upside.

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Okay.

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I would say, also try to differentiate your service

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so that the perceived value is higher

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and there's less of a market to compare you to, right?

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If they wanna work with someone who does Facebook ads,

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that's one thing, but if you're someone

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who specifically who's done like Facebook ads

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for Uber before and this is Lyft calling, right,

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like if you're the person who used to run it for Uber,

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you're gonna be able to command a lot of money

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from someone like Lyft, right?

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In their minds, there is no other person, right?

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Like nobody else is available,

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that their market is one person, and that's you.

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So you can command, you can set the market price.

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If you're just doing generic Facebook ads, you can't.

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Right?

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Cool.

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And then number five, it's getting hard to read this,

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so I'm just going to copy this, get rid of it,

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and just, I've just pressed Control X to cut it.

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It's a little bit of a UX issue.

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From your perspective, how can agencies mitigate the risks

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associated with value-based pricing?

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I would say that's probably the same,

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so same answer as above.

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I don't wanna hold you guys up.

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Okay, cool.

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All right, so there we go.

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It's now summarizing what I've talked about, which is good.

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I think this is actually pretty helpful just in general.

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I find that if someone asks me,

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hey, what do you think about value-based pricing?

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I find I can talk a little bit about it,

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but even just going through

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these ChatGPT-generated interview questions

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really gets me interested in the topic again.

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It makes me think, oh yeah, I have done this before.

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This is interesting, right?

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Cool.

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So, that's, now we have the summary

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and we have, so we have the summary,

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that's from like everyone else's opinion,

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and then we have my specific opinion.

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So the next prompt is to generate the outline and the title.

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All right, so let's do this.

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And I'm just gonna grab the topic.

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Okay.

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Now, what this prompt is doing is it is asking for,

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to generate an outline first,

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and also 10 very creative title options.

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Now, the reason why we don't just say "write the post"

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is that, well, two reasons.

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One is it tends to not be as coherent,

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like it starts writing and it stops,

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and then when you ask it to write again,

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it writes and kind of starts to duplicate old stuff.

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Two is you want the post to be relatively comprehensive

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and cover all the bases.

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But then, I would say that

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this is generally a good principle

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for working with complex-type AI projects or systems,

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when you need something relatively big to happen,

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like the 1200-word post,

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in general, use the least to most principles,

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so start with the smallest thing, like the topic,

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and then expand out to the next smallest thing,

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which is the outline,

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and then you can kind of write each section in the outline,

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and then you have the outline,

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then you can kind of write the conclusion,

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and then, from the whole post,

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then you can kind of write out

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like all the other promotional stuff.

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Okay, cool.

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So, I'm just gonna check the outline.

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So it's say understanding value-based pricing,

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appeal of value-based pricing, real world challenges,

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a case study.

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Yeah, okay.

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And then, dangers of value-based pricing,

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sector-specific considerations,

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mitigating the risks of value-based pricing.

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I would say this looks fine to me.

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And then, in terms of creative title options, here we go.

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"Navigating the Pricey Waters", I like that, it's funny.

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"Between Perception and Reality:

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The Hidden Dangers of Value-Based Pricing."

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I like that.

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Number 10.

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I like title number 10.

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And you could actually just come back and say,

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actually I want it to be something else.

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But I find this really helps me

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come up with a few different ideas.

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I really like number one as well.

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"Golden Goose or Hidden Trap?"

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Yeah, this is some really creative stuff in here.

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Cool.

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And then, I'm happy with the outline.

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And I'm happy with the outline.

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Cool.

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All right, so now the next prompt is,

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write me one section at a time.

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Incorporate my feedback for the next section.

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All right.

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And then, let's see what it comes back with.

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Now, the reason why you wanna do this

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and kind of get it at least two paragraphs per section

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is that I find when you tell it to write it all in one run,

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what happens is you end up being in a situation

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where it like, it gives you just like one paragraph

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per section and it doesn't end up being long enough.

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Then also, the other thing I find is that

17:27.900 --> 17:30.990
it's not that comprehensive, it's not that interesting.

17:30.990 --> 17:31.823
Cool.

17:31.823 --> 17:34.923
So the introduction's the most important thing.

17:36.090 --> 17:39.810
Yeah, so it stirs debate, lucrative rewards, it's alluring.

17:39.810 --> 17:41.100
Yeah, okay.

17:41.100 --> 17:42.573
It's not that simple.

17:43.537 --> 17:44.370
Okay.

17:44.370 --> 17:47.302
Attractive facade, lie a host of dangers.

17:47.302 --> 17:48.135
(chuckles) I love that.

17:48.135 --> 17:49.713
A nightmarish reality, this is really cool.

17:51.000 --> 17:53.910
Maybe just say like, mention in here

17:53.910 --> 17:58.910
that I'll be sharing my experiences with Ladder,

18:00.690 --> 18:05.690
the 50-person agency I founded, say marketing agency.

18:10.950 --> 18:12.100
Cool.

18:12.100 --> 18:12.933
And it's just gonna rewrite it.

18:12.933 --> 18:16.443
So this is one of the real benefits of ChatGPT.

18:31.170 --> 18:35.520
Okay, and then I'll say, yes, this is great,

18:35.520 --> 18:37.473
continue to the next section.

18:38.940 --> 18:41.670
Right, and you just keep going through like that.

18:41.670 --> 18:43.680
And I'm not gonna go through the whole post,

18:43.680 --> 18:46.680
just because I think you get the gist

18:46.680 --> 18:48.630
and it's starting to get pretty long.

18:48.630 --> 18:50.740
Now, the next thing you wanna do

18:51.750 --> 18:54.450
is you actually kind of wanna get it rewritten

18:54.450 --> 18:56.460
in a new style, right?

18:56.460 --> 19:01.230
So first thing we're gonna do is,

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I've actually run this prompt before,

19:02.760 --> 19:05.940
but briefly describe the writing style of Harry Dry

19:05.940 --> 19:08.130
from marketingexamples.com in bullet points.

19:08.130 --> 19:10.320
Now, this is un-bundling, right?

19:10.320 --> 19:11.850
If you haven't seen that lecture,

19:11.850 --> 19:14.310
we have that elsewhere in the course.

19:14.310 --> 19:16.470
But essentially what I'm trying to do here

19:16.470 --> 19:17.370
is get an understanding

19:17.370 --> 19:20.100
of like what style I want this written in.

19:20.100 --> 19:22.800
And the one that I like is this style

19:22.800 --> 19:25.260
of Harry Dry from Marketing Examples.

19:25.260 --> 19:27.660
And it actually knows who this person is.

19:27.660 --> 19:31.950
If you want to kind of learn from a style

19:31.950 --> 19:35.205
that you, that it doesn't know about,

19:35.205 --> 19:37.350
then you can actually just post in

19:37.350 --> 19:40.050
a bunch of someone's writing or your own writing

19:40.050 --> 19:42.660
and then ask for a similar style.

19:42.660 --> 19:47.160
Now, I won't use exactly say Harry Dry's style here,

19:47.160 --> 19:48.990
I actually have my own style that I use,

19:48.990 --> 19:50.370
but I just wanted to kind of show you,

19:50.370 --> 19:51.810
like you can actually kind of have it

19:51.810 --> 19:53.490
in the style of the HubSpot blog,

19:53.490 --> 19:54.420
you could have it in the style

19:54.420 --> 19:56.850
of Seth Godin or Malcolm Gladwell,

19:56.850 --> 19:59.940
you can do whatever it is you need.

19:59.940 --> 20:03.540
So I'm just going to show you, I've run this prompt before,

20:03.540 --> 20:04.440
describe the writing style

20:04.440 --> 20:06.300
of Harry Dry from marketingexamples.com.

20:06.300 --> 20:07.800
It's concise and to the point.

20:07.800 --> 20:08.633
One thing I would say

20:08.633 --> 20:10.260
is you need to ask it for bullet points,

20:10.260 --> 20:11.610
'cause otherwise it blabs on

20:11.610 --> 20:16.260
and it gives you different, I guess, formats.

20:16.260 --> 20:17.580
But this is quite useful.

20:17.580 --> 20:22.580
Now, once you have this, you can basically copy and paste,

20:24.240 --> 20:25.620
and then we're going back to here.

20:25.620 --> 20:28.410
So I have the first two sections and I'm just gonna do this

20:28.410 --> 20:32.133
and you're gonna say, I'm just gonna paste in this style.

20:33.600 --> 20:36.540
Actually, let me just paste,

20:36.540 --> 20:40.353
I wanna copy it with all the bullet points.

20:41.310 --> 20:42.693
So let me just find that.

20:45.420 --> 20:48.810
Okay, if I copy here, it brings some bullet points with it.

20:48.810 --> 20:52.710
So yeah, here we go.

20:52.710 --> 20:57.420
All right, so now, let's just say this is the final prompt.

20:57.420 --> 21:00.843
This is like how you get it done at the end.

21:01.920 --> 21:05.940
So I'm just gonna paste that in here.

21:05.940 --> 21:09.483
Rewrite the article in the following style.

21:10.440 --> 21:13.380
So once you have the article written, you could do this.

21:13.380 --> 21:14.760
Now, you don't necessarily have

21:14.760 --> 21:16.800
to use specifically these styles.

21:16.800 --> 21:19.830
If there's some things in here you disagree with,

21:19.830 --> 21:22.650
engaging and conversational, concise and to the point,

21:22.650 --> 21:24.990
relatable and accessible language.

21:24.990 --> 21:26.913
So maybe I don't want humor and wit,

21:28.320 --> 21:31.200
'cause then maybe that's a bit too much for me.

21:31.200 --> 21:32.973
Yeah, I think this is good.

21:34.440 --> 21:37.223
Yeah, it relies on examples and, okay.

21:39.390 --> 21:42.150
I'm not gonna have informal and casual tone,

21:42.150 --> 21:47.150
I'm gonna say professional and knowledgeable tone.

21:53.220 --> 21:54.053
Cool.

21:57.608 --> 21:59.520
And I'm gonna get rid of engaging and conversational.

21:59.520 --> 22:00.681
Cool.

22:00.681 --> 22:04.500
So now I've kind of edited the memes of Harry Dry, right?

22:04.500 --> 22:06.270
Like Harry Dry has his own style,

22:06.270 --> 22:08.820
I've kind of remixed it a little bit and changed it.

22:08.820 --> 22:11.040
And you could actually work on this quite a bit.

22:11.040 --> 22:13.320
You could bring in some of your own elements,

22:13.320 --> 22:15.330
like you can see what it says about your writing.

22:15.330 --> 22:18.003
You can mix two different authors together.

22:19.470 --> 22:21.630
Really the world is your oyster.

22:21.630 --> 22:25.350
But I find this is a really powerful way

22:25.350 --> 22:30.060
to basically get it in a good format.

22:30.060 --> 22:34.170
One, actually, one trick you can use, by the way,

22:34.170 --> 22:35.850
is if you're writing a guest post

22:35.850 --> 22:38.970
or you're kind of wanting it to get it past someone,

22:38.970 --> 22:41.340
like an editor, like say you wanted to publish

22:41.340 --> 22:45.540
on the HubSpot blog, you could actually have it rewritten,

22:45.540 --> 22:47.670
like write it yourself, have it rewritten

22:47.670 --> 22:49.200
in the style of the HubSpot blog

22:49.200 --> 22:52.470
so it's like much more likely to get published.

22:52.470 --> 22:55.320
You could actually even, if it's a smaller blog

22:55.320 --> 22:57.690
that ChatGPT doesn't know about,

22:57.690 --> 22:59.520
you could actually then just go

22:59.520 --> 23:02.910
and copy a bunch of the recent posts

23:02.910 --> 23:05.100
or the ones that rank the highest on SEO

23:05.100 --> 23:07.983
and then paste them in here and then ask it,

23:09.000 --> 23:12.180
tell me, briefly describe in bullet points

23:12.180 --> 23:13.383
like what the style is.

23:14.250 --> 23:15.383
Cool.

23:15.383 --> 23:16.216
So, here we go.

23:16.216 --> 23:18.900
Now it's been rewritten and I think it's much better.

23:18.900 --> 23:20.760
It's much more concise actually.

23:20.760 --> 23:25.760
So in the dynamic world of agency pricing, its appeal, okay.

23:27.630 --> 23:29.220
Yeah, I've had my share of encounters.

23:29.220 --> 23:32.010
Now it talks about Ladder, which is cool.

23:32.010 --> 23:34.050
And yeah, I think this is much better, right?

23:34.050 --> 23:37.860
Like it's much cleaner, it's,

23:37.860 --> 23:39.450
yeah, here we go, it gives a really good analogy,

23:39.450 --> 23:41.553
it's like trying to price a painting.

23:42.600 --> 23:43.800
Yeah, this is brilliant.

23:43.800 --> 23:44.640
Okay, cool.

23:44.640 --> 23:46.620
Now we're at a much better post.

23:46.620 --> 23:49.980
And, now the, I think the ethics of this

23:49.980 --> 23:51.090
is much better as well.

23:51.090 --> 23:53.460
Like I really don't like the idea

23:53.460 --> 23:55.860
of just having ChatGPT write all my posts, right?

23:55.860 --> 23:59.010
Like I actually have interesting stuff, I think,

23:59.010 --> 24:02.880
to share with the world, and now using it as a ghost writer,

24:02.880 --> 24:04.230
I think is much more ethical

24:04.230 --> 24:07.170
because I'm contributing to the training data, right,

24:07.170 --> 24:08.640
I'm not just consuming it.

24:08.640 --> 24:11.820
I'm actually giving ChatGPT a lot of direction here,

24:11.820 --> 24:14.190
saying like here's what I think about the topic

24:14.190 --> 24:15.960
and here are my opinions.

24:15.960 --> 24:18.600
I think this is much more likely to rank on SEO,

24:18.600 --> 24:20.970
but it's more importantly

24:20.970 --> 24:24.720
gonna be more uniquely interesting to other human beings,

24:24.720 --> 24:27.540
and it's not gonna be just like the average of the internet,

24:27.540 --> 24:30.930
like you would get if you didn't follow this process.

24:30.930 --> 24:32.158
Cool.

24:32.158 --> 24:33.240
So hopefully that's useful to you.

24:33.240 --> 24:37.470
And I'm using it yeah, a fair bit now

24:37.470 --> 24:41.850
and finding that it saves me a ton of time.

24:41.850 --> 24:45.390
This post, it's taken us 24 minutes,

24:45.390 --> 24:46.560
but I've had to explain it all to you,

24:46.560 --> 24:49.110
but I find that I can actually write

24:49.110 --> 24:52.230
like a four-hour post sometimes in half an hour,

24:52.230 --> 24:53.583
which is pretty amazing.

24:54.510 --> 24:57.510
Normally, it'd take me half a day, or even a day,

24:57.510 --> 24:58.770
to write some of these things,

24:58.770 --> 25:01.260
and now, I can just get it out of my head and onto paper

25:01.260 --> 25:03.360
and use my professional writer

25:03.360 --> 25:06.000
to make it professional for me

25:06.000 --> 25:09.093
and help me move on quicker to the next post.
