SFR 273: Simple Marketing Math
After the basic marketing principles are learned, tracking effectiveness really just comes down to simple numbers\u2026
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One of the BIGGEST reasons why people don't move forward in this game is that they feel that they\u2019re unqualified for what they're being taught.\xa0
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Meaning, they say:
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"That\u2019s awesome, but it will NOT work in my situation."\xa0
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Besides doubt itself, that attitude has killed more dreams than almost anything else
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The belief that what they're learning doesn't actually apply to them is, in my opinion \u2026
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\xa0One of the biggest reasons why people don\u2019t move forward in their lives and get what they want.\xa0
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I have a bee in my bonnet about this\u2026 and frankly, it pisses me off!\xa0
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I've had so many people say things like:
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\xa0"Stephen, you're in the info product space, therefore what you\u2019re teaching can't work for me, because I'm selling e-comm..." or whatever.\xa0
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\xa0So, I wanna teach you how I used specific marketing principles and applied them to an e-comm funnel!
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I'm following marketing and sales principles, not funnel principles.\xa0
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The marketing and sales principles tell me what to do beyond, "What\u2019s the model?\u201d
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\xa0...and so I just follow these principles.\xa0
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It doesn't matter what you sell, it has nothing to do with that.\xa0
BEST MARKETING PRACTICES, (NO YOU\u2019RE NOT THE EXCEPTION)
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*TRUTH NUKE*
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You\u2019re selling to a 100,000-year-old brain, so unless you've found that one person in 100,000 who\u2019s found a way to negate the human brain, this applies to EVERYONE.
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And *YES* \u2026 it\u2019ll work for you, even if you're in...
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- Retail
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- B2B
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- Multi-stage high ticket sales.\xa0
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And it\u2019ll work for you EVEN if you don\u2019t collect the cash on the internet\u2026
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Those types of things are mechanics.
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\xa0I want you to understand marketing and sales at a deeper level than just \u2018how do you sell in just a single scenario.\u2019
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The principles are the same and the product really doesn't matter nearly as much as people think it does.\xa0
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(Yep, still pissed, but I'll stop pounding that point now!)
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The bottom line is, everyone could achieve so much MORE if they just actually start executing!\xa0
SELLING CAPITALISM SWAG
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I love selling info products for a lot of reasons, but today, I'm gonna walk you through how I boosted the cart value for some physical products\u2026
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I\u2019m gonna share the case study of my recent Capitalism Swag funnel.\xa0
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This is something that it might be advantageous for you to go to salesfunnelradio.tv to watch\xa0 - click the link and it'll take you straight to the YouTube channel\u2026\xa0
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*However, my blog writer is awesome - so if you prefer to read you can stay put! \U0001f609
DIGITAL MARKETING STRATEGY - MY OPENCART
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So this a screenshot of the stats dashboard\u2026
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The cart was open for about five days, but the stats cover a week, 'cause there were a few follow-up sales that happened because we had some "seen but not purchased" email sequences going.
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So this is July 17th - July 24th, 2019.\xa0
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There are a few key principles I wanna share with you guys on this, but first, let me show you the funnel...
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FUNNEL PAGE #1:\xa0
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We gave the option to buy the Capitalist Pig t-shirts.\xa0
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(...and by the way, you can go to capitalismswag.com and sign up for the notification list if you wanna jump on the next drop.)\xa0
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The whole goal of Capitalism Swag is to make rather jarring t-shirts which say the message so that you don't have to.\xa0
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The offer was a $32 t-shirt; which was NOT cheap, but not crazy expensive either.\xa0
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I mean, there are t-shirts out there that cost way more than that\u2026\xa0 but it's towards the upper range.
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And let\u2019s face it\u2026
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\xa0It would be really weird to sell discount Capitalist Pig t-shirts - that would be against the actual message.\xa0
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Anyway\u2026
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- There was a male fit and a female fit.
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- You could buy 1-5 shirts of any size.\xa0
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- \xa0We added a $19 bump -\xa0 which was a hat.\xa0
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It's so dumb to not have a bump!\xa0\xa0
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Anyway, the bump was 19 bucks, which is very comparable for a hat.\xa0
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FUNNEL PAGE #2:\xa0
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On the next page, we offered a hoodie for $69...
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A little bit more expensive, but it was a super nice one.
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...and it was like, \u201cHey, whatever size shirt you chose on the last page, that's the size of the hoodie you\u2019ll get.\u201d
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For the next page, I remembered a powerful lesson I learned back in the day when we launched the Expert Secrets book\u2026
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DIGITAL MARKETING - EXPERT SECRETS STYLE
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I\u2019m very observant, it's one of my superpowers, and when I was at ClickFunnel I observed what Russell did like crazy!
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One of the things I noticed was that, a lot of times, when Russell sold a book, something physical, swag, or whatever it might be\u2026
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The first few steps in the funnel were physical because the perceived value is extremely high\u2026
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However, the cost of goods was also high because you\u2019ve gotta...
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- Pay for them
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- \xa0Print them
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- Put them in a box
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- Ship them (...and if you\u2019re not the one doing it, the costs go up, and I'm not gonna be the one doing that!)
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So that means super high costs at the top of the funnel.
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However,\xa0 as we moved down the funnel, (and it was the same in the Expert Secrets book funnel), the upsells get more digital.\xa0
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Q: What's the cost to fulfill something that is digital?\xa0
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A: *NOTHING*
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It doesn't cost me anything to fulfill on digital, but I do have to sell it harder.\xa0
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We know that the second \u201cYES\u201d is\xa0 ALWAYS easier than the first\u2026
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\xa0So if I'm selling physical, I might as well have a digital something down the road\u2026
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Which brings me to page #3...
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FUNNEL PAGE #3:\xa0
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For page #3,\xa0 I was like, "Well, what can we add that would be digital?"\xa0
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And sure enough, we had this thing called OfferMind MasterClass, which included a ticket to OfferMind.\xa0
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It\u2019s basically an OfferMind ticket for $297, but they are also getting the OfferMind MasterClass with it as well.
FUNNEL PAGE #4:\xa0
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Finally,\xa0 we had \u2018Thank You\u2019 page that was actually a \u2018Thank You\u2019 page webinar with a special deal.
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\xa0It was a $3000 product for 50% off called My Funnel Stash\xa0
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Now, this is really key as we move forward\u2026
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It\u2019s the reason why if they clicked \u2018buy\u2019 on the 50% OFF offer, then the actual order page, the fulfillment, and all that was actually in a different funnel... (which is why it's NOT part of the stash dashboard)\u2026
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... but we had sales directly from My Funnel Stache from this funnel.\xa0
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Now what I'm gonna do real fast is use another marker to go through this, (and let me kinda zoom this up here a little bit so you guys can see it a little better)...
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So now it\u2019s time to walk through some numbers\u2026
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CAPITALISM SWAG - THE NUMBERS
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We had\u2026
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- \xa01751unique people saw the first page.\xa0
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- We had 121 bought a shirt = 6.9% conversion rate
- \xa012 people, (about 10%-\xa0 I forgot to click the down button and see), bought the hat.\xa0
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- 20 people bought the sweatshirt = 15% conversion rate
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- We had 12 people buy OfferMind MasterClass = 10% conversion rate
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- \xa0We had 2 people buy the offer on the \u2018Thank You\u2019 page webinar - now that's NOT a lot, but the price tag is high.\xa0
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It's incredible, but it was also a screaming success.\xa0
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I launched to a hot-list and didn't spend any ad money.\xa0
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...and what's interesting is what happens next, check this out...
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So if we look at this on the stats dashboard right here real quick; we had $10,700 come through just on the shirts, NOT including the \u2018Thank You' page webinar.\xa0
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\xa0We had 2 sales, (which is another three grand), so our actual gross amount of revenue from this funnel was $13,786.95.\xa0\xa0
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Now the reason why these numbers are such a BIG success is that there were only 121 buyers.
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So if you divide $13,000 by the 121 buyers...\xa0
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...instead of it being an $89 cart value, (which is still awesome for a $32 shirt, it's like them buying three of everything), it was actually $113!
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The BIGGEST thing I want you to know right now is that I'm NOT sharing this with you guys so you're like, "Oh, this is how he got us..."\xa0
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NO, NO, NO! This is *smart marketing*, (if I'm allowed to say that about myself)... \U0001f609
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This is using is the marketing and sales principles of funnels to sell anything.
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The whole point of this funnel was to help people gain more awareness and go purchase OfferMind tickets\xa0 - that's why everything after this goes to OfferMind\u2026
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\xa0#OfferMind, #OfferMind, #OfferMind.
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Capitalism Swag was created as a front-end for OfferMind.\xa0
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It's also to help people create messages on their chest that say, "Hey, I believe and don't believe this!"\xa0
But as a business, it's a front-end for OfferMind - that's why we created the whole thing!
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This was such a huge deal because instead of it being $89, the average cart value became $113 because of the \u2018Thank You\u2019 page webinar offer\u2026
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...it was like everyone bought an additional t-shirt, even though only two people bought that final BIG offer.\xa0
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BOOSTING YOUR AVERAGE CART VALUE
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Okay, so think about this for a second\u2026
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There was a $113 average cart value (no ads to hot-list shot, and it was only open for five days).\xa0
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- We had \u2018seen but not purchased sequences,\u2019 so if people saw the hoodie but didn't buy, we had two or three emails that reminded them.\xa0
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We had a number of people buy after that.\xa0
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- We had \u2018seen but not purchase\u2019 sequences that came in, "Hey, I see you didn't get the OfferMind Masterclass..."
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... and we had a number of people that came and bought that.\xa0
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- Of the 121 who entered the funnel, we got a substantial boost to the revenue by having a \u2018seen but not purchased\u2019 sequence.\xa0
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- We had a substantial revenue boost by having a few digital products in the back that were very valuable.
- There was also a substantial revenue boost by having 12 people buy another $20 hat order bump on the first page.\xa0
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These are powerful principles.\xa0
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We also had the option to add downsells to a couple of the pages\u2026
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- If people didn't click \u201cYes\u201d for the OfferMind MasterClass there was a downsell which offered it as a two-pay option for (I think) an extra $30, $40, $50.
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So downsells on either the OfferMind MasterClass or My Funnel Stache dramatically helped the revenue.
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APPLYING PRINCIPLES TO ANY INDUSTRY
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I had a chance to go consult with a clothing company recently and the principle of increasing average cart value was one that I went through with them\u2026
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The question you ask is\u2026
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How can I increase the average cart value of those who are already buying and those who are already in the motion of purchasing?\xa0
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Q: You know what happens when you give people the option to spend more money?
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A: They spend more money!
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So instead of only being able to spend $32 on ads...\xa0
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(Right now, I have the cost of goods and I have all that stuff as well, so it's not that full amount)...
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...there\u2019s a significant amount more cash I can spend on ads because of those higher-priced digital upsells.
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Now I can spend\xa0 $113 I can spend to acquire a single customer.\xa0
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...that's crazy.!
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Can you tell me another t-shirt company that has the ability to do that kind of stuff?
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\xa0There's not many out there!
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That's why I wanted to share this with you\u2026
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BREAK THE RULES
If you already have a funnel that's up and running right now, instead of going and trying to build another funnel, (which I'm not saying to not do)...
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But go back to your initial funnel and look to see where the obvious places for upsells and down sells are?
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If you\u2019re thinking: \u201cHang on a minute, Steve! You put a webinar in the back of an e-comm funnel???\u201d
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\u201cHeck Yeah, Son!\u201d\xa0
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\u2026\u2019cause it doesn't matter!
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The rules are more blurry than we tend to make them.\xa0
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If you\u2019re thinking \u201cWhoa, but that's an info-product practice!\u201d\xa0
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I have another question for you\u2026
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Well, are you sure?\xa0 \U0001f609
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TWO PRINCIPLES
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Sooo\u2026
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#1: If you already have a funnel up, I challenge you to go in and say, \u201cWhere can I grab more cash off the table?\u201d\xa0
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If you don't have a funnel up yet...
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- \xa0I encourage you to just get something out there.\xa0
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- Solve a problem
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- \xa0Make something in the marketplace that's of value, and just put something up.
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- \xa0Start gathering data to start tweaking stuff and that alone, right there, will start dropping false beliefs more than you trying to plan the crap out of it.\xa0
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- Stop! Get it up! Just get it out the door!!!
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#2: \xa0I want you to ask yourself the question: How can I increase the average cart value?
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MAX CART VALUE (& WHY IT MATTERS)
Now, I wanna run through one last piece on this to just to illustrate the principle\u2026.
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\u2026 cause this whole game is a lot more engineer-able than most people realize!
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Let's say I was to buy EVERYTHING in the funnel, check this out\u2026
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- $32 for the shirt
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- \xa0$19 for the bump
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- \xa0$69 for the hoodie
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- \xa0$297 for OfferMind Masterclass
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- $1497 for My Funnel Stache
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... if I was to buy every single thing inside of this funnel, I would spend $1914.
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\xa0If someone was to buy everything from the funnel, I call that The Max Cart Value.
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\xa0...I don't know if there's another term for it, I just kinda I call it that.
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I've seen my average cart value be as high as a third of the max cart value, but that's not too often.\xa0
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So, let's take SaaS, for example, (aka the software industry)...
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\xa0For SaaS, a lot of times, it\u2019s $100-$250 just to acquire a customer trial - that's not abnormal.\xa0
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So if I know, \u201cOh my gosh, I need to be able to fund $100-$250 just to acquire a trial,\u201d then my max cart value better be 10x that amount.\xa0
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\xa0So I if I divide my $113 average cart value by the Max Value of $1914 - that's 5%...
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... so if I needed $100-$250 to acquire a customer, I would need to boost my average cart value.
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Does that make sense?
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MATH & MARKETING PRINCIPLES
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- One way to approach this game is to know, "Hey, this is how much money I make on average when somebody comes through my funnel."\xa0
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- The other thing to consider is how much \u2018typically\u2019 somebody in your industry is spending to acquire a customer
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- ... and then, just try to get your max cart value as high as you can to give you the best shot at acquiring that customer for FREE.
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\u2026 and if that didn\u2019t make sense, go rewatch on YouTube... 'cause that\u2019s a powerful, powerful principle!
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When I started realizing that principle, I was just looking at the average cart value and asking...
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\u201cHow can I get my average cart value really, really massive?"
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But now I look at the max cart value\u2026
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I\u2019m like, "Oh man, I need to add another upsell in here that's worth like $500? Yeah, yeah, yeah. Let's put a $497. What is worth way more than 497?\u201d\xa0
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I boost my max cart value which, in turn, increases my average cart value and that will help get me above my cost to acquire.\xa0
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The relationship between the...
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- Cost to Acquire
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- Average Cart Value
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- Max Cart Value
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\xa0...is one of the things I'm looking at A LOT\xa0 when I developing funnels now.\xa0
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And let me repeat, it doesn't matter if your business is...
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- \xa0E-comm
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- \xa0Info
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- High ticket
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...and it doesn't matter if you collect the actual money online or offline!
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A lot of people get leads like this, the first funnel you see is not what they actually sell, but where they get the leads.
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You\u2019re using an offer for something else is paying for the leads, you're liquidating all of it, and then you're collecting all the cash on the back.\xa0
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I can feel there's not enough story in this episode, but I'm hoping it's walked you through a little bit more of how my brain works when I'm starting to design funnels.\xa0
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I have six funnels on deck right now, and they're big ones, they're hard ones, they're challenging funnels to think through and put together.
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...and I'm excited about them!
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\xa0But this is what I'm looking at\u2026
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\xa0How can I spend the most to acquire a customer?
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I wanna be able to spend more money profitably than all my competition to acquire a lead.\xa0
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Not only am I awesome at fulfilling on it, but\xa0 my offers are amazing #I\u2019mTheOfferGuy
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\xa0But if I can speak louder and be amazing, that's *HUGE*.\xa0
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Sometimes, people are like, "Oh Stephen, I'm not gonna speak louder 'cause my products so good."\xa0
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*DO BOTH*
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- I'm gonna speak crazy awesomely loud, (which you all know I can) \U0001f609\xa0
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- I'm gonna be able to spend more money to acquire a customer than everybody else because I understand these very simple principles.
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So go in and start thinking through that\u2026.
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- Do you actually know your cost to acquire a customer right now?\xa0
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- Do you know your average cart value?\xa0
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- What's the most amount of money somebody could spend in a buying session?
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- Can you increase that ceiling?\xa0
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Then watch your average cart value increase as you increase your max cart value ceiling.\xa0
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...that's the game!
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Once you realize that, you're like, "BOOM! Now, I got this huge list of people who are buyers."\xa0
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And then I can go dump all of this $13,000 in revenue back into...\xa0
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- Fulfillment for the t-shirts and all that stuff
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- Back into ads\u2026 or in this case, OfferMind to make it even cooler\u2026
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...we\u2019re not taking profit, I want to dump MORE money into cooler, bigger projects! \u2026 it\u2019s exactly the same principle.
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Hopefully, you enjoyed this!\xa0\xa0
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If you did, I\u2019d love a review from you, go to sjlreview.com - that\u2019s Stephen Joseph Larsen!
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Be honest.\xa0
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If it's brutal, be brutal, but if you wouldn't mind, leave me a review.\xa0
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And then, go implement *this* in your business\u2026.
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\xa0Go figure out\u2026
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- \xa0Where am I leaving more cash on the table?\xa0
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- Start thinking about the principles of \u2026
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- Cost to Acquire
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- Average Cart Value
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- Max Cart Value
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...and when you start looking at it you\u2019ll realize, "Oh my gosh, this game is not as much about guessing and getting lucky as I thought."\xa0
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I remember when I realized that myself!
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I'll see you next time\u2026 and hopefully, I'll see you at OfferMind.\xa0
BOOM!\xa0
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If you're just starting out you're probably studying a lot. That's good. You're probably geeking out on all the strategies, right? That's also good.
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But the hardest part is figuring out what the market wants to buy and how you should sell it to them, right?\xa0
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That's what I struggled with for a while until I learned the formula.\xa0
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So I created a special Mastermind called an OfferMind to get you on track with the right offer, and more importantly the right sales script to get it off the ground and sell it.\xa0
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Wanna come?\xa0
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There are small groups on purpose, so I can answer your direct questions in person for two straight days.
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You can hold your spot by going to OfferMind.com.\xa0