Free lead magnets are cutting your growth by 2/3rds

I've completely stopped creating new lead magnets for my business.

Why?

Well, I could go over the same old ground and once again hammer you with the messages of...

• Freebie seekers are not buyers
• Payback period is key to staying alive

But, there's another reason.

One which is - in my opinion - more important and underpins the other two.

In fact, this underpins the entire success of your growth strategy.

Look, running ads or paying for any marketing for your business comes down to one thing.

The economics.

If you have to spend $100 to acquire a customer then you need...

• $100 in the short term to break even
• $100+ in the long term to profit

It's not rocket science.

It all comes down to getting that investment back ASAP and then increasing the LTV to turn a healthy profit.

Free lead magnets make this three times harder.

Let's say you have a free lead magnet that has a 30% opt-in rate (the average CVR), and the thank you page is a self-liquidating offer.

You're paying an average $3 per click for your ads.

Which means you're now paying $9 per view of your paid offer.

That free lead magnet filter is tripling your...

• Cost per view fo your paid offer
• The time it takes to reach 100 people
• The length of time it takes for you to find a buyer

And this is all assuming that the free lead magnet is a perfect tie-in with the paid offer.

If there's a mismatch here, you can expect even lower CVRs on the paid offer.

There was a time when this approach worked. When ads were cheap and people were more receptive. But that time has passed.

Efficiency is the name of the game now, and the most efficient method of running ads is to look at how you can get that payback period as short as possible.

You do that by putting the paid offer at the front, and not hiding it behind a free lead magnet.

Pete "paid offers up front" Boyle

P.S. - If you're questioning how you can run ads direct to a high ticket offer - you don't. You create a small offer that identifies buyers and then ascend them to the HTO.

I teach you how to craft that initial offer in the $1 Product Challenge.