That math ain't mathing


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
Unsubscribe · Preferences

Growth Models

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

Read more from Growth Models

I’m reworking a bunch of offers and ideas at the minute. And I’d love some feedback on what you’d find most valuable and useful. First though, I’m gonna explain the reasoning behind this little shift - I broke this down in detail in GM+ recently, but want to expand on it a little here. So I’m looking to create 12 offers so I can easily promote one per month to the email list. An easy cycle where, every month, we can offer something that helps people grow their biz. Also, these will double up...

I’ve lost the battle, but not the war with building custom AI Agents to create assets as products. I just can’t get it to replicate the same kind of output as the Custom GPTs. I’ve recorded a video below, but I’ll kick off with the difference in one area of one of these AI Assistants. So, for the $1 Product Strategy Advisor Custom GPT, the output for each stage is like the below… “1. Front-End Offer – $1 Title: “Client Magnet Scripts” What it solves: Freelancers struggle to start sales...

I'll be honest and say 99% of the applications of AI out there are little more than flashy demo reels which offer no real value. Yeah, it's fun to create an image of your dog dancing in a top hat, but it's not exactly useful. I've been working out how to make AI more useful for what we all do. And I've based what I've been doing all on one core psychological driver that's stronger today than it ever has been. People's impatience and need for immediate results. We are, as people, impatient. We...