In short
Podcast Episode Notes: Why Framing Is Everything
Podcast Overview Title: Marketing School - Digital Marketing and Online Marketing Tips Hosts: Neil Patel and Eric Siu Episode Duration: 11 minutes and 18 seconds Key Themes: Framing in marketing, customer psychology, long-term brand building, SEO, content marketing.
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Episode Summary
In this episode, Neil Patel and Eric Siu explore the concept of framing, its psychological implications in marketing, and the importance of long-term strategies in brand building and customer acquisition.
Key Concepts Discussed
- Framing Effect
- Definition: The way information is presented (or framed) can significantly influence people's perceptions and decisions.
- Example: Child mortality data can be framed negatively (4.4% of children die) versus positively (improvement from 50% to 4.4%).
- Decoy Pricing
- Explanation of how pricing strategies can manipulate customer choices.
- Case Study:
- Example from The Economist illustrating how presenting options with a decoy (an unattractive option) can lead customers to choose the desired offer.
- Brand Building Over Time
- Insights on why significant brand awareness and word-of-mouth marketing often take around 10 years to develop.
- Discussion on Single Grain's journey and Eric's experience in transforming the business from a struggling entity to a well-known brand.
- Evolution of Marketing Techniques
- Reflection on SEO, referrals, and content as essential components that evolve over time.
- Emphasis on the slow but steady growth in brand recognition and customer loyalty through consistent marketing efforts.
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Detailed Breakdown of Discussions
- Framing Effect Explained (00:00 - 03:00)
- Introduced by referencing a tweet from Caleb Waitney.
- Positive vs. negative framing and its impact on perceptions of child mortality statistics.
- Decoy Pricing Case Studies (03:00 - 05:01)
- Discussion on how presenting an unattractive pricing option can steer customers toward a more profitable choice.
- Example from The Economist with three pricing options:
- Print only: $530/year
- Digital only: $460/year
- Print + Digital: $640/year (labeled as best value).
- Single Grain Reset Story (05:01 - 08:01)
- Eric's experience with Single Grain, initiating from a difficult position that required multiple resets.
- Discussion of customer acquisition strategies at the beginning, which included SEO and word of mouth.
- SEO and Referrals Mix (08:01 - 10:27)
- The evolution of lead generation from being primarily SEO-driven to incorporating referrals and content marketing.
- Reference to significant milestones (2014 to 2019) in building brand awareness.
- Why Marketing Compounds After 10 Years (10:27 - End)
- Insights on how marketing efforts become more effective and easier to sustain after a decade.
- Discussion on the importance of patience and consistency in achieving long-term results.
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Key Takeaways
- Understanding Framing: Marketers should be aware of how the framing of information can influence customer decisions.
- Decoy Pricing Strategy: Use unattractive pricing options strategically to guide customers toward preferred choices.
- Long-Term Mindset: Building a recognizable brand and achieving significant marketing traction typically requires sustained effort over many years.
- Adaptability in Marketing: Strategies, like SEO and referrals, should evolve with the business to maintain relevance and effectiveness.
- Value of Brand Recognition: As familiarity with the brand grows (around 10+ years), word-of-mouth referrals and customer loyalty increase, leading to higher retention rates.
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Resources
- Hosts' Links:
- [Eric Siu - Leveling Up](https://www.youtube.com/@LevelingUpOfficial)
- [Neil Patel](https://www.youtube.com/@neilpatel)
- Free Resources:
- [Growth Newsletter](https://levelingup.beehiiv.com/subscribe)
- [Ubersuggest](https://www.ubersuggest.com/)
- [Answer The Public](https://www.answerthepublic.com/)
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Conclusion This episode underscores the significance of framing in marketing, the necessity of a long-term approach for brand development, and the evolving nature of successful marketing strategies over time. Neil and Eric provide actionable insights for marketers at all stages of their journey.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00What is it? Why framing is everything? This comes from this guy, Caleb Waitney on Twitter. So this is, you like data. Okay, this is framed in data over here, what I'm showing here. On the very left side, you can see the framing here is the world is awful. Okay. And globally, it says 4.4 % of all children die before they are 15 years old. This means every day 16 ,000 children die. Right. So the way you look at this, it's negative framing. Yeah, the world is awful. How many children die again? 16 ,000 children die every day. Oh, that's sad. Which is a lot. It's like, oh, crap, I didn't know that, right?
0:34Yeah. But then you look at the middle one, the world is much better. In the past, around 50 % of all children died. Today, 4%. 4.4 % of children die. So it actually has gotten a lot better. It's like, oh, okay. Okay, that's good. And then you go to the very right side, the world can be much better, okay? So 4.4 % of all children worldwide die. In the European Union, only 0.47 % of all children die, half a percent, right? Meaning that, hey, we know we can already do this, so we can actually make this even better. Yeah. But this is all the same. It's all data being manipulated into a different headline.
1:11Yeah. It was either New York Times or The Economist or one of them ended up doing framing with pricing on their page for like an upgrade subscription to like their digital newspaper. and it was three plans and I'm butchering this because I don't have the pricing in front of me. But it was something like a monthly, a yearly or something like that and like some bonus offer and they made one of the plans look so bad or yearly or annual or every six months, they made one of them look so bad so you would just take the middle offer or the right offer. So in other words, sometimes when people do pricing, I'll actually give you guys a idea for this for software.
1:55If you're selling software for$10 a month or you want to do, call it$100 a year and you give two months free and no one's taking either of them. Sometimes you'll do like, you know, six months for$30 and people are like, wait, that's a really good deal because on an annual basis is only 60 bucks. Let me take that and they'll put like best value. you're talking about The Economist, right? So here's one from The Economist. This is kind of similar. There's a better American example, but this is in New Zealand pricing, right? So right here at the very top, we're looking at three pricing options. You have print package only, so no digital, okay?
2:33So you only get the magazine. So in New Zealand dollars, this would be$530, okay, for one year. Now, if you go digital package only, it's$460, okay? But if you go print and digital, it's$640, best value. So why would you not do print and digital? You would be stupid not to. Yes. But the one I was talking about wasn't that one from The Economist. It was one where they made one of the offers so terrible that you would pick the one that is the cheapest. And by far, it was the best steal. Yeah. Yeah. I'll have to find it. But it was The Economist or New York Times or one of them. But either way, sometimes people put on their pricing page offers that are terrible just so you take the one they really want you to take.
3:18This one's interesting. I don't know if this is from economists, but this is interesting because it says on the very left side, it says chosen by 16%. On the right side, chosen by 0%, chosen by 84%. I think this is the case study, but I think you're probably referring to something more like this. It's more something like that, yeah. Anyway. And sometimes people do take the bad offers. Yeah. I don't know why. A very small percentage, but sometimes people just have a preference. Maybe they don't want digital at all, like if you're older, you know? Yeah, I actually miss the newspapers. like the actual ones you hold in your hand.
3:50That's why I only buy physical books. I don't buy Kindle or anything. I like holding it because it also forces you to focus and you're more immersed in the book. If you're on a digital device, I'm going to be prone to doing other stuff. Yeah. So, yeah. All right, here's another one. How long have you been doing single brain for? Oh, I actually looked at it on LinkedIn. It says 12 years, nine months. All right. And I have this topic here. 10 years, that's how long it really takes for marketing to kick in. Assume you're consistent for all the 10 years and you're trying hard. Okay. If you looked at your business, you weren't there from day one, but you have a lot of the stats and data.
4:31Yeah. You were there, what? You're like three, four? It's single grain started in 2009. I didn't join until 2012 or 13, 2013. So yours was, you guys had a reset. So let's call it, you started when the - I took over in 2014. All right. So it's been a little bit more than 10 years, 11 years. Yeah. And you agree, the company pretty much just reset from there. Yeah. I've had to reset the company twice. No, but when I mean reset, it was really tiny back then. Oh, yeah. You grew up from pretty much nothing to where it is today. You agree with that statement, right? So you're pretty much starting all over.
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7:28You're talking about with or without you. When you took over in 2014. When I took over, just to make it clear for everyone, And Neil generated a lot of leads from his old blog. And he actually sent the leads over to Single Grain because Single Grain was started by Neil's cousin, Sujin. And when I took over, I think at a certain point, even before that, we stopped the Neil Patel lead flow, right? Yeah. From what I remember. I believe so. But in general, the business didn't work out. People didn't want to be part of Single Grain anymore. Eric wanted to take it over. I think we gave you our shares or maybe for a dollar.
8:03Legally, I had to buy it for a dollar. So you basically gave it. Yeah, I think other people sold you their shares. I bought you and Heaton's shares for$1. The rest was through profits. Yeah, so then, and I don't think we took profits. I think we just gave it a dollar. You just gave it, yeah. And Eric was starting over. At that time, how were you generating revenue? So we had customers already that we were holding onto, but I would say that some of it was word of mouth and then some of it was through SEO. Yeah, but when you had customers, I don't think it reveals much. your revenue was, we can always cut this out if you don't want, but you're talking about sub million bucks.
8:36It was really tiny. It was nothing. Yeah. It was very little. Yeah. Yeah. So back then you were getting some through SEO, some through word of mouth. Okay. Go back or then fast forward five more years, go to like around 2020. Well, fast, if we fast forward, uh, five years, yeah, let's go to 2019. Let's go to 2019. Okay. So by that point, we, when I first started at Single Green, we started doing a lot of guest blogging. And there was a period of time for three, four years where we started ranking number one for digital marketing agency. And that's what allowed us to get all the leads, to hire the people that we needed to hire, to grow.
9:11And it wasn't, so this gets a little complicated. I don't know if you want this in here, but like 2014 to 2015, it wasn't until really 2015 to 2017 or so, I really started to focus on it. Because even the first year when I took it over, I made it go from bad to worse. Remember that? But yeah, so I made it go from bad to worse. We dropped all the way down to one employee and then thank God the rankings kicked in. And then we started getting all these leads. And then we were referring to leads to another agency that we're both referring to. And then eventually we were able to - Back then, I think it was the San Diego agency, right?
9:40Yeah, the San Diego agency, yeah. But then I would say, and Noah was part of this, probably, Noah, because you joined in 2017 or so. 2017 to 2019 was like the most fun, like ever, right? Yeah, the office in downtown San Diego. The office in downtown. town. Like I loved everybody. It was great. And then Eric was a six at this point on the scale of one being really easy to go, 10 being hard. He said I was going up. Two years at the end, I was going up. Okay. But you didn't leave until 2021 where things were, you know, we had a lot of cleanup to do at that point. Yeah. Okay. So how were you getting your business around 2019?
10:21majority through seo all right yeah now fast forward to 2024 yeah okay 10 years now yeah you can say now it's the same thing yeah how are you getting most of your business honestly honestly there's still a good chunk from from seo not nearly as much before it was like 80 plus percent from seo now it's a combination of referral and then people consuming content from different places and referrals that's a referral already yeah yeah what would you say is non-ranking. How much of the business do you think is from people just knowing the brand at this point? It's tough to say because... Give me a range.
10:56It's not 1%. It's not 50%. Let's say it's like 15 to 20%. So your brand is kicking in where you're getting customers. Yeah. Because a lot of them say like I either follow Eric or I've known single grain for a while. Okay. Yeah. And those customers, are they tending to pay on the lower end of your... Those are down to pay more. And so they are the higher end, middle, I would say middle to high. Yeah. Yeah. And what's the churn on those customers? They stay longer. They stay long by how much longer? Tough to say right now. Because we have such a reset in the last few years. Yeah. Would you at least say 10, 20 percent, 50 percent?
11:32For sure. For sure. Yeah. Yeah. So in other words, your brand's getting out there. It's kicking in. You're getting better quality customers and they're staying longer. And this is why I tell people it takes 10 years for marketing to really kick in because you start getting a lot more word of mouth where that doesn't really kick in in the first few years unless you're lucky and you created this ai tech that just does everything for everyone and it's easy and it's really free or cheap yeah but in most cases marketing does not kick in as or word of mouth marketing does not kick in which i believe is the best form of marketing until really 10 plus years you do see traction going up to it.
12:15But after 10 years, that's where it really starts growing. And from years 10 to 20, that's where we see great lift. We did a study on this and I think it was something like 18 % or something like that of your ideal customers should know about your brand roughly around year 10. There you go. Yeah. And the same for you guys. For us, we haven't been around 10 years yet. I think this is year number eight. But you've been marketing for over 10 years. Yeah, but our agency is starting to get known. And when I ask our team members, keep in mind we have data analytics, we track. The hard part with the marketing agency, unlike most fields is if, in most fields, when you're selling to someone, you're selling, at least on the enterprise end, you're selling to C-level, you're having a direct conversation with them, you know how they found out about you.
13:08The marketing category or the marketing agency world is a little bit unique. When you're selling, you're typically selling through procurement and procurement reaches out. This is specifically for enterprise. And when procurement reaches out and you ask them, how did they learn about you? Almost always, they don't have the answer. Nor do they care. Nor do they care. Yeah. And typically, people who are in charge of sales for us will ask. but when someone says oh i don't know is either a referral or employee mentioned it or award or we heard about you or maybe google's website recommended you and they go on and on they give you like six or seven examples you know at that point they probably don't know they're just rattling off a lot of random things like it could be a conference that we saw you at yeah you don't want to keep pushing them to find out how they heard about you and why they included you because if you bug them, they may exclude you from the RFP and just be like, screw you.
14:08We don't want to work with you. You guys are irritating. But that makes sense. But how about that's the enterprise side, but what about MPXL? Your small business division? I would say it's less than 20%. I would say it's close to 15 % that are referrals now. Partnerships probably make up another 12, 13%. So I would say and then if you exclude ads, so the rest are ads and inbound, like from rankings and ads. What percent do you think come from ads?
14:45Maybe 10, max 15. I'm 99 % confidence at least 10%. I'm 99 % confident it's not 15%. So it's somewhere in that band. Yeah, it makes sense. It's funny, yesterday I was recording this new style for my short form content. So I got all these scripts, right? And one of the scripts was around like X years to see success in marketing, X years to see success in the podcast, X years to see success in business. A lot of it's like years and years and years. And that's how long it takes. I was like, oh, that's a good format. It's a good format. By the way, I'm going to try this out. But the way they scripted everything, it was like 24 pages of scripts for short form.
15:24I'll send it over to you. Like, I do think if this works out first, I was like really hesitant. I was going to record yesterday. I was so pissed off. I was like, I have to do these new styles, all these things. I don't even like, I have to do these clone videos at the summit I'm standing and then I'm behind a green screen and all this stuff. I'm like, I don't want to do any of this, right? After I did it, I was like, yeah, I think this will work. So I'll let you know. And then you should work with these guys too if it works. How much does it cost? It's cheap. Less than a thousand a month? Less than 5 ,000 a month.
15:52Okay. That's a good deal. And they create the scripts? They create all the scripts, 30 scripts. And I was like, this was really well thought. Manually or they're using AI? I actually think they're doing it manually. You know what I did afterwards? I took that 24-page script and I made a Gemini gem from it, right? Because you can just take the document. It's like a custom GPT. But Gemini is connected with YouTube. So I took our long-form podcast. I was like, hey, I want the same level of scripts from this 80-minute podcast. And it actually did a good job. Oh, cool. Yeah. So anyway, a little hack for you guys.
16:22But anyway, that is it for today, guys. Please don't forget to rate, view, subscribe. And we will see you tomorrow.
From the publisher
In this episode, Neil and Eric dive into the psychology of framing, from how child-mortality data shifts when reframed to the power of decoy pricing in guiding customer choices. They discuss why consistent brand building compounds most after 10 years, share lessons from Single Grainβs reset, and explore how SEO, referrals, and content mix evolve over time. Plus, they highlight tools, strategies, and the long-term mindset marketers need for lasting results.
TIMESTAMPS
(00:00) Framing effect explained (03:00) Decoy pricing case studies (05:01) Single Grain reset story (08:01) SEO and referrals mix (10:27) Why marketing compounds after 10 years
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Welcome to Marketing School, one of the top business podcasts with over 61 million downloads. Each episode delivers actionable marketing tips and strategies from two entrepreneurs who truly practice what they preach. The show is hosted by Eric Siu, founder of Leveling Up and Single Grain, and Neil Patel, co-founder of Neil Patel Digital and recognized by Forbes as a Top 10 Marketer.
LEARN MORE ABOUT THE HOSTS
Eric Siu β Leveling Up: https://www.youtube.com/@LevelingUpOfficial Neil Patel: https://www.youtube.com/@neilpatel
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