Episode Transcript
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Speaker 0 (00:00):
What if you're
running ads to a low ticket
offer but instead of breakingeven or profiting, you're
actually losing money, or even alot of money.
Well, that's exactly whathappened on a recent call with
someone that I had, and theywere spending like $1,000 on ads
but had only made $600 back.
At least they were quiteaccurate in their data tracking,
(00:20):
so that would be a 0.6 ROASreturn on ad spend not exactly a
winning funnel, but afterdiving in with them, I found a
few key issues and simple fixesthat should completely change
their results, and so you canimplement these same fixes in
your SLO offer, if you will, inyour self liquidating offer.
(00:42):
So in this episode, I'm gonnabreak down the tweaks that I
recommended, including thepricing strategy and upsells,
and also I made a recommendationabout how to make money from
the email list.
You can apply these to youroffer too.
So this person was runningtheir ads to a $19 mini course
with a $9 order bump, butthey're only making back 60% of
(01:02):
their ad spend, and I asked whatthe order bump conversion rate
was and they said 80%, whichsounds great.
Actually, that is amazing, butit's it's too high.
Remember, they came to me causethey weren't breaking even, and
so you know what I told them.
Well, I'll tell you later inthe episode, but also what else.
The other problem I noticed wasthat there was no upsell and so
they weren't capturingadditional revenue from buyers.
(01:24):
Remember that if you're runningcold traffic to your SLO funnel
and you know the messaging isright, you know the order bump
has allows you to obtain aresult that the first offer
works towards, but in a morequick way, saving you time, and
the upsell does the same thing.
You should see somewhere around15%, maybe 20%, if you're doing
(01:45):
good of the people who get thefirst offer, let's call it the
$19 offer, also buy the orderbump, and then another five to
10% of the people who buy yourfirst offer should buy the
upsell.
So if you're way better thanthose stats, then awesome
Congratulations.
You know your client, butyou're leaving money on the
(02:07):
table and you could increaseyour prices.
So why is 80% too high on theorder bump?
Well, typically, like I said,15 to 20% conversion is solid.
80%, the price is too low.
So that's where you want totest price elasticity, and what
(02:27):
I had recommended to this personis that they increase their
order bump price from $9 to $15and even $17.
And you're probably thinkingokay, quajo, how long do I test
this for?
Well, just do it for like twoweeks, right?
All you want to see is youwould expect that the conversion
rate drops a good amount, butif it's at 80% it can drop a lot
(02:51):
, right, until you hit like 15,20%, and so then you're just
running the numbers and makingsure.
But the idea is that, and whatI've seen, is that when you
increase the price, then yourconversion rate might drop some,
but you want your average ordervalue, aov average order value,
to increase.
So maybe fewer people get theorder bump, but because a fewer
(03:14):
percentage of people are gettingthe order bump, but it's more
expensive the order bump, thenyou're actually seeing a net
gain in the amount of money youmake.
Okay, now upsell time, super keyto a profitable funnel, Like I
heavily recommend.
In fact, I never recommendrunning ads to an SLO funnel
(03:36):
that does not have an order bumpand an upsell.
I know current or past clientscome to mind that have ever had
successful SLO ads.
First, when you're thinkingabout an upsell, the price in
general should be higher thanthe main offer.
And I say in general, becauseI've seen exceptions and you're
like Quajo.
(03:56):
Don't tell me there'sexceptions to the rule.
There are always exceptions tothe rule.
I am just some Facebook admanager with four years of
experience.
Yes, I have managed like closeto $4 million in Facebook and
Instagram ads, but I am not yourFacebook ad manager and I'm
just giving you my experience.
You have to test what works foryour offer.
(04:18):
Okay, usually an order bump ishigher price than the core offer
.
So with a $19 core offer, youcould expect like a $57, $97
order bump to maximize revenue.
The key here is what is thevalue that you're offering
inside of your order bump.
It should be a steal whateverprice you set.
(04:41):
And can we just enough with was$997, only now $27.
Let's go ahead and be honest,especially because I think it's
the FTC can come after you.
As in, you want to make surethat you're not making claims
that are not true.
So whatever the original pricethat has a strikethrough, want
to make sure that you're notmaking claims that are not true.
So whatever the original pricethat has a strike through is,
(05:03):
make sure that you have evidencethat you've actually sold like
people have actually bought atthat price.
Otherwise, please rethinkputting that on your upsell page
or sales page even right.
So an example of an order bumpyeah, could be a done-for-you
solution.
It could be a discount off ofyour membership if you have one.
It could just be another course.
(05:24):
I had told this person on thecall if they are selling a mini
course as the regular firstoffer and then they have the
order bump is marketing right,that teaches people how to
market Then what is the verynext immediate need?
That could be the upsell.
(05:45):
Your upsell could be anexclusive offer only available
on that upsell page.
It could also be an exclusivediscount.
Maybe the upsell is just acourse that for some reason you
decided to sunset in the past,but actually there was high
demand for.
You just want to make sure thatthe upsell is aligned with that
first low ticket offer.
(06:07):
Okay, now something else I hadsuggested to this person is that
they monetize their email list.
Right Now you might be runningads to your SLO funnel and
almost breaking even, but beforeyou decide to shut off those
ads, like, maybe you're getting0.9 ROAS almost one, right?
Remember these are amazingpeople to add to your list and
(06:29):
if you have a huge list, likethis person I was talking to had
17,000 people.
What if you decided to monetizeyour email list, especially if
you're in a niche that you knowcan get good money for ads?
You know, like you know, youcould be in the online business
niche, just to give one example.
Okay, so all that means is Iknow somebody who has a large
(06:54):
email list and what they do isthey sell ad space on their
email list.
Now I don't know specifics ifthat's like a banner at the
bottom of their emails or ifit's like for every you know
certain period of time, theysend out an email that
specifically promotes thecompany that's buying ad space
in their email list.
But they do monetize and theymake a good amount of money
(07:14):
somewhere around I think thenumber I was quoted was $2,500 a
month, right, pretty good in mybook.
So also think of any kind ofaffiliate software that aligns
with the results that you'regetting in your low ticket offer
that somebody's buying for thatcustomer.
(07:36):
You could sign up for thataffiliate software and then
offer that software you know inthe follow-up email sequence to,
or even inside of the minicourse or your load.
Whatever your low ticket offeris, you could offer that
software right because it helpsyour customer get their result,
and it makes you affiliaterevenue, maybe even recurring
affiliate revenue, and so thereare quite a few ways to monetize
(07:59):
.
What you really want to do,though, is make sure that you do
have that order bump and you dohave that upsell.
This is essential to running asuccess, like as to a successful
self-liquidating offer funnel,and then you got to do the due
diligence to lower your ad costs.
Too many times I see somebodyshow up or they are on a call
(08:23):
with me, right, because I doFacebook ads coaching calls
one-on-one and they had like onepiece of ad copy and one or two
graphics, and that is notenough to test to get good
results, and so, if you need agood framework to lower your
lead costs by up to 60% even,which will change the game,
(08:44):
change the game Ah, that's sucha weird cliche this will
increase the odds of you gettingyour low ticket offer funnel
ROAS positive, as in making youmoney and not costing you money.
I have that course.
It shows you the exactstep-by-steps that I take,
step-by-steps.
I take them in every clientaccount to cut down cost per
(09:07):
lead while still getting thehighest quality of client or
customer possible, and you getto follow that and you get to
see me pre-recorded doing thesame steps inside of client
accounts too, so that you cansee real life how this plays out
.
That is normally $37 for you ifyou go get it now.
It is $17 in the show notesbelow.
(09:31):
And with that, take care, beblessed and I will, or you will
see me in the next one.