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Growth Models

That math ain't mathing

Published 13 days ago • 1 min read

Had someone reach out after yesterday's email about the idea of using FE offers to attract leads at cost (or slight profit) and build a list of buyers.

They said...

"Hey Pete, I'm not sure I get it. The image has you making sales at $30ish, and you said the average value of a customer is $49. How does that work with your $1 offers?"

A couple of things to note here.

1, the $1 product pricing is to help validate the idea.

Once you've sold some and can prove people will pay, it's about figuring out the elasticity of that pricing.

As in, where's the ceiling where people stop buying.

My $1 Product Challenge course is now running at $27.

After testing, this is the "sweet spot" I've found where...

  • I still make sales
  • I cover my costs

And overall, I et the best revenue per customer.

"Hold on"... you might be thinking "that math ain't mathing. How does $27 equal $49".

It's all to do with the upsell systems.

Look, when someone buys a product from you, you're solving a problem for them.

Solving one problem often creates a new problem.

For example...

  • Initial problem - being overweight
  • Initial solution - help lose weight

That leads to...

  • Secondary problem - maintaining goal weight
  • Secondary solution - nutrition system to maintain a healthy weight

Get it?

You build these onto your front end offer to help increase the order value.

here's a day snapshot of one of my products.

15 customers, but 24 transactions.

That means some of those people bought more than one thing, which is how the AoV raises up to $49 from a simple $27 front end.

If you've got the right upsells and the whole system works together, this is how you increase the amount of money you can make.

Just gotta make sure the upsells are valuable, useful, and aligned with the user's goals.

More detail about this in the $1 Product Challenge which you can join here.

Or, if you want more help with defining your offers nad building this system, you can apply to work directly with me here.

Hope that clears things up.

Pete

Vagrants, Vagabonds, and Villains Ltd, Unit 16535, 13 Freeland Park, Wareham Road, Poole, Dorset BH16 6FA
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Growth Models

Analysing and experimenting with growth marketing

I've spent ~10 years helping digital brands grow. I share what I know and what I'm experimenting with in this newsletter.

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