Make Your Company Better Part 1 of 3
Hello everyone my name is Louis McKnight and for those of you who do not know me. I am the founder and ceo of this is how you market LLC. We focus on three areas of business customer acquisition, revenue, and growth. I believe every problem any company has is related to one of these processes being broken. Lets dig a little deeper then that right now
I think it is fitting that we start with this one first. Let me ask you one question. What is more important leads or sales ? Well in all fairness this is a trick question because you can not have sales with out leads and leads are no good with out any sales. This brings me to my first point and a myth that I would like to bust right now.
The Money Is Not In The List !!!
Let me give you an example. I have recently bought out a company that has a mailing list of 100k plus people on it. When I bought it they burnt out there email list and it was to the point where people were just not interested in the offer and we were lucky if we say $500 sales a month. They were selling a $50 dollar pregnant yoga for women course and that is all they were selling.
I Bought A Nightmare
Now I had my pregnant yoga for women course and blog that was loosing money. This is the problem that they were having and many people have this problem right now.
The processes goes something like this you buy traffic from some source like facebook, google ad words, linkedin etc. Then from that traffic you get sales. Then all of the money that you have made with sales ends up going right back in to advertising. So eventually you end up like the original owners of the blog and product I bought you sell it and cut your losses.
Here is what I did to change that. I simply added a $10 course. Then we emailed out this $10 course and guess what. We saw a $23,490 dollars in sales. Then we offered them the same $50 course as a upsale and 30% of them took the up sale. So what happened there ?
The Power Of The Self Ligating Offer
I will tell you what happened there. The $10 offer was a impulse buy however we really did them right with that product and gave as much value as we could. Then we did not try to sell them something else we instead asked them if they would like an upgrade and 30% of them took the upgrade.
The $10 product is never going to get us rich that is not what it is intended for. Let me break it down for you with some simple 4th grade math. Lets say I have spend $500 for 1000 clicks that is .50c a click normally I am getting more around 0.10c a click. Then out of those 500 people signed up. Then out of those 500 people 50 bought your $10 product and 5 of those upgraded. So it now looks like this.
50 low dollar offers
5 core offers
advertisement coast $500
50 * 10 = 500 advertisement paid
5 * 50 = 250 Louis paid
Now you are getting paid to get leads your advertisement is free and the money you make off your other product is pure profit for you. That is not to bad right. You have just become unbeatable because your funnel is set up in a manor that it pays your advertisement for you.
A funnel is just a processes map of how your customers and sales flow. Over the next year we took that company to well over 1 million in sales each month. So this proves that the money is not in the list.
So if you do not have a tripwire or low dollar offer between 10 to 20 dollars you should consider putting one in. Please stay tuned next time I will be talking about profit. You should also take the time out to visit my blog. Please do feel free to let me know what you think about my article.
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