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#296 · why your loom outreach isn't getting replies

youtube ↗Cold Email

Please review ListKit's $597 cold email offer, compare the cost of the included services versus buying them separately, and let us know if it's worth it. Also note that their AI script writer is trained on their most successful emails and presented as a bonus.

List Kit. I don't know what List Kit is. Oh, right. It's these guys. I remember. Okay. Well, the reason why this is going to suck is because I'm not going to be able to repurpose this. Anyway, whatever. Simple pricing everything included. Pick your sending volume. 1,000 cold emails per day is 30,000 a month. Zero additional costs. Triple verified leads, email engine, domains and inboxes. So, what you get is 30,000 emails a month. If you do the math on cost per email, 1,000 realistically costs about four or five bucks. Let's say five times 30 gives $150 lead cost, assuming high-quality leads. But they're probably not high-quality; they're likely trying to sell you the shittiest leads possible. Let's say that's $100 a month. So the actual cost of service outside of that is $497, roughly $500. Email engine, send high-volume cold email campaigns with inbox warm-up included. That's basically Instantly (Unibox), another $100 off, leaving $400. Domains and inboxes: at 1,000 cold emails per day with a two-step sequence, that's 500 new emails, which is about 25 mailboxes, another $75. With overages, say $100, making $300. Script writing agent, one-on-one concierge onboarding call, Slack community, cold email mastery course, domains — all virtually free. So you're paying about $300 a month for the service of sending the emails, plus the simplicity. You could save $300 a month managing it yourself with the steps I talk about, but maybe that's worth it for you. Let's see what their math is like: 1,000 emails per day, total replies 220, positive replies 11. That's a 5% positive reply rate on total reply volume? Actually they assume 5% positive reply rate on total reply volume, but I have campaigns with 50% positive replies. That's pretty crazy. Assuming 30,000 total emails, 220 divided by 30,000 gives a 0.73% reply rate, which is low. But average client LTV industry is big, maybe that makes sense. Hopefully everything I've said so far is amenable to you.

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Related answers

youtube ↗Cold Email

How do I do outreach and get faster results? I'm willing to spend $100 or more on it. Loom videos or asset based approach via sending automations.

Sure. Let me cover exactly how I would approach these hypothetical scenarios. If I had $100, here's exactly what I would do to acquire clients today. First, I would find the most affordable cold email stack, which is the biggest leverage. I’d use the Instantly growth plan at $37 per month, giving 5,000 emails a month and the ability to roll over non‑responding contacts. For mailboxes, I’d choose cheap inboxes at about $3 each; with five inboxes that’s $15 per month, providing roughly 100 emails per day per inbox. I’d also need two domains at about $20 total (non‑recurring yearly). That totals $37 + $20 + $15 = $72 for infrastructure in month one. Domain costs could be amortized, but I’ll treat them as out‑of‑pocket. Next, I’d get leads via Apollo and scrape them with Apify. Apollo’s scraper is about $120 per 1,000 leads, yielding roughly 600 email addresses, which works out to about $2 per 1,000 emails. Sending a two‑step sequence at 100 emails per day (50 new leads, 50 follow‑ups) over 30 days gives 1,500 emails per month. At $2 per 1,000 emails, that’s $3 for leads. Adding infrastructure, we’re at $75 total. With $75 you can reach 1,500 people, a cost per lead of five cents. Assuming a 3% reply rate, that’s 45 replies; with a 20% positive reply rate, that’s about nine positive replies, roughly one meeting every three days. Higher reply rates could increase meetings proportionally. You’d still have $25 left. I’d spend it on Upwork: each application costs about $3 after bidding/boosting, allowing roughly eight applications. At a 20% proposal‑to‑reply rate, that might yield two replies and possibly one meeting. Combined, this strategy could book about ten meetings in the first month for $100, a cost per meeting of $10. If your service is worth $1,000–$1,500, closing one yields a 15× ROI; conservatively over 90 days you could make $4,500 on a $300 spend for a 15× ROI. Adjusting for realistic closing rates (15‑25%) and reply rates could push ROI higher. Additionally, free Loom videos (under five minutes) can be used to follow up with leads acquired via cold email, adding extra meetings without extra cost. In short, with $100 you can run cold email, buy leads, spend a little on Upwork, and use Loom to follow up, potentially booking ten‑plus meetings and achieving a strong ROI.

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youtube ↗Pricing

Hey Nick, thanks so much for these valuable pieces of content. I'm able to run cold email effectively and generate leads with a reply rate of 5%. Hell yeah, my brother. The only problem I'm facing is to make the business profitable. For instance, if I charge a few dollars for my client, build a system that saves time for them, maybe generates revenue for them, but I'm not able to make enough money as I'm only charging a few bucks from them. Let me know I should plan my AI business to hit $50 to $100,000 a month. Keep doing the great work. Cheers.

You need to charge more, proportional to the value you provide. If you solve a $10,000-per-month money need, you can reasonably charge 30%–50% of that, i.e., $3,000–$5,000 per month. From the business owner's perspective, this is a simple ROI: hiring you should yield about a 3x return, acknowledging some uncertainty between the $3,000 fee and the $10,000 value. You can charge a proportion of the value delivered. Focus on profitability by charging significantly more for your services. On the expense side, avoid accruing unnecessary liabilities. Many who sell cold email or lead generation merely wrap a cold email product with minor added value and then bundle in unnecessary costs like email inboxes, platform fees, and domains. Instead, have the client pay for some of those costs so you're not left liable if you don't deliver results or fulfill guarantees. For example, one consulting client guaranteed a client $10,000 but only sought payment after delivering that amount; due to a long sales cycle, the client didn't receive the $10,000 for four or five months, while the consultant's ongoing email costs were $600–$700 per month, totaling $2,400–$2,800 over that period, yielding a 76% margin after COGS. Don't put yourself in that situation.

pricingvalue-based pricingROI
youtube ↗Cold Email

Could you make a video showing how to serve clients with a larger budget, something like $5,000 to $15,000?

Sure, I can talk about it now and, if there’s enough demand, I’ll make a full video later. The reality is that with a bigger budget you can move everything about ten‑times faster, maybe even a hundred times faster. For example, most people are limited to about nine mailboxes sending 30 emails each per day – roughly 270 emails total, or 135 new leads per day in a two‑step sequence. If you scale up to 90 mailboxes at 30 emails each, you’re looking at 2,700 emails a day, or 1,350 new leads daily, for a very low monthly cost (around $270 if you use a mailbox reseller). At a 0.02% reply rate that’s 27 positive replies, which can translate to three calls a day. With a good campaign you can convert 10‑15 calls per day, and even if 30% drop off you still get seven to ten quality calls. Assuming 45‑minute calls, you can fill an entire day’s calendar and close a couple of deals daily. If each deal is $2K, that’s $4K a day, or about $80K a month running 20 days, not counting upsells or retainers. In short, if you’re well‑resourced you can realistically schedule $80K‑plus a month with a productized offer by going all‑in on cold email, as long as you have enough leads to fulfill the volume. This means broadening your top‑of‑funnel targeting across more general niches. For a $5K‑$15K budget, $270 is only about 2.7% of the spend, leaving roughly 4% of margin for growth.

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youtube ↗Cold Email

When running a cold email agency solo, how many mailboxes do you require clients to set up, and how do you structure pricing and guarantees for booked calls?

I typically required clients to set up 9 to 12 mailboxes initially and warmed them up for 21 days. Sending around 270 emails per day across 6 days a week equals roughly 3,400 emails a month per client. To hit 20 booked calls over 60 days, you only need a booking rate of about 0.18% to 0.2% (roughly 1 booking per 500 emails), which is very achievable if your target list and offer are optimized. For pricing, I used two structures: a lower upfront fee with revenue share, or a higher upfront fee ($1,980 to $2,920) combined with a pay-per-booked-call model. To determine the pay-per-call rate: 1. Calculate the client's Lifetime Value (LTV). For instance, if a deal pays $5,000/month for 3 months, LTV is $15,000. 2. Ask for their close rate, but discount it by half because cold leads close at lower rates than referrals (e.g., adjust a claimed 20% close rate to 10%). 3. Multiply LTV by the realistic close rate to determine the value of a call ($15,000 * 10% = $1,500 value per call). 4. Charge 10% to 20% of that call value (e.g., $150 to $300, averaging ~$225 per booked call). Clients were happy with this structure because the upfront setup fee covered initial meetings at a low cost-per-acquisition, and subsequent calls were priced fairly relative to the revenue generated.

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