Why sell a $100 product when you're trying to make 25k?
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I spend a lot of time looking at others in the online marketing space to see what's working and what's not. And I stumbled upon someone whose main offer is around $25-30K for the full engagement. But... they just sent me an email trying to get people to buy a $100 offer. Why would you try and sell the $100 offer when you're really trying to make $25k? Makes no sense right? Well, it's all to do with activation of buyers. Cause there's a huge difference between freebie seekers and buyer leads. In fact, 1 buyer lead is easily worth 100 freebie seeker leads. I've seen it first-hand. I once worked with someone who was using free lead magnets and paying an agency to run their ads. They were getting leads, but could never get them to buy anything. Interestingly though, when they did ask those people to buy something, they'd unsubscribe. So we did something pretty simple. We turned their freebies into a paid offer and pushed the ads to that instead. It was a low-ticket thing and the focus was simply on being able to run ads, and having the sales pay off the ad spend. Of course, we got way fewer leads. Maybe 20% of what they had before. But when we asked these people to upgrade to another more expensive offer, they bought. Switching to paid first is what helped them hit their first $1k day and scale up from there. What most people don't understand when they see a big name running a low-cost offer is that it's not about the money from that offer. And often, it's not even about the payback on the ads they're running to it. It's about identifying the ideal leads. It's real hard and takes a lot of time to move someone from a free opt-in to a high-ticket offer. Low-ticket paid offers are part of a natural value ladder that builds towards the big ask. They not only smooth the path, but they also lower the perceived risk, and help add a little money to your ops as you go. The purpose of these is not to make loads of money, but to identify the serious people, so they know who to focus their marketing on. The serious buyers. Getting the right people in, and turning them into buyers, is a big part of the model I walk through in this video. It's about 35 minutes. Speak soon, P.S. I'm taking on 4 more businesses in the Growth Models Accelerator for October. Applications close on Friday 9 October and we start on Monday the 12th. If you'd like one of the places, the details are here. |