#125 · Running Cold Email vs PPC Ads (for AI Automation)

youtube ↗Cold Email

What's the difference between your cold email system and a paid ads campaign with a full funnel in terms of ROI? Do you get better outcomes with cold email, and is that why you recommend it? What are the best outbound strategies to get clients based on your experience? Could you give an example with a $100/month budget?

I bootstrap the vast majority of my business using cold email, which is why I encourage everyone I know to use it. The cost per acquisition (CPA) with cold email is significantly lower than with paid ads—in 99% of cases it's not even funny how much lower it is. With cold email, you trade the inherent scalability and automation of ad platforms (like Google and Facebook's automated tweaking and tripwire offers) for the time you or a salesperson spend communicating one‑on‑one with prospects. Because you're investing that time, the CPA drops dramatically—for example, you might spend around $5 to acquire a $5,000 product, whereas with ads you could spend $350 or more for the same lifetime value. Even with a $100‑per‑month budget, you can't realistically run an ad campaign; the time, energy, and money required to set up and optimize the ads would be prohibitive. Cold email lets you use that budget effectively by focusing on direct outreach.

cold emailadsroioutbound

Related answers

youtube ↗Lead Generation

With a $150 budget, should I use Facebook ads or cold email marketing to sell my services?

Definitely go with cold email marketing. With $150 you can run a cold‑email campaign for about 2–3 months (roughly 60–75 days) sending around 300 emails per day, which gives you many shots at landing a paying client. Facebook ads at that budget are ineffective—you’d need roughly 10× the spend just to begin to understand whether the campaign is working, making it a poor choice for lead generation when funds are limited.

facebook adscold emailbudgetlead gen
youtube ↗Cold Email

How do ads compare to cold email for most purposes?

Cold email is generally better than ads for service businesses aiming to book meetings. With the same approach, a meeting might cost around $10, and if one in three meetings becomes a client, the customer acquisition cost is about $30 on a $5,000 deal—roughly 6% of the margin spent on acquisition. Ads on a B2B offer might be 2‑3× more expensive. The cold‑email advantage has decreased as the space saturates, but it’s still two to three times better than ads for many offers, so it’s worth starting now while the opportunity lasts.

cold emailadsB2Bmeeting cost
youtube ↗Cold Email

What makes a lead generation cold email system valuable and how does it compare to traditional outreach?

The most valuable part of a lead‑gen system is its scale. In the past I had to door‑knock, walk to each business, deliver a pitch, and wait for a decision—maybe one or two minutes per prospect plus travel time, so I could only reach 50‑80 businesses a day. With cold email you can send thousands of messages in the same amount of time it takes to write one campaign, instantly multiplying your leverage. Once the email is written you can reach a million people, giving a much steeper rise‑over‑run curve than cold calling or manual outreach. After the initial setup, the results far surpass the effort of doing it yourself, especially when combined with AI personalization that makes each email feel one‑on‑one.

cold emaillead generationscale
youtube ↗Cold Email

What is the best strategy for sending cold emails, when did you start your first campaign, how many days did you send them, and after how long did you get your first client?

I started cold emailing around 2018‑2019 with my business partner Gurinder; those early attempts didn’t work well. I kept sending emails for about three to four years before I made any money, and it was probably closer to two years before I saw real revenue. The breakthrough came in roughly 2021 with what I called 'one second copy': I ran many cold email campaigns and offered free sample articles that were produced cheaply using AI, which hardly anyone else was doing at the time. That got me attention from big companies like Kixie. The best cold‑email strategy is to front‑load value—give the recipient more work or benefit than you’re asking for. Instead of asking for free labor, identify a problem they’re suffering from, solve it, and attach the results to your email. For example, I once rewrote 40 YouTube titles for a follower, provided a one‑click doc, and they saw immediate CTR improvements. That’s how successful, ‘rich‑people’ cold emails work: you save them time or make them money, not the other way around.

cold-emailvalue-frontloadinglead-generationoutreach