Money on demand! What a wonderful concept. But is it really possible?
As this isn’t a suspense novel, I’m going to come right and say it… Yes!
If you have the following things…
So how many leads do you need to buy before you can see a return?
This all boils down to just one number: your conversion rate. The rate at which you convert leads into sales.
Now this is easy to say and not always that easy to measure. Let’s take a quick look at why.
If you are selling cold sparking water then what your product is and what it will do for people are easily understood. So all you really need to do is set up shop and ask passers by how many they want. Your conversion rate could be calculated on a daily basis as the sale is not a considered purchase.
Where it becomes more complicated is when the sale happens several weeks after you bought the lead.
If you are selling a product that is going to make people richer, thinner or happier then you first need to find the right potential customer. Everybody becomes thirsty but not everyone wants to become their own boss.
Once you’ve found the right potential customer (your new lead) you need to show them how you can help them. What makes your business opportunity faster and easier to master than any other? Why will your system put money in their pocket faster than any other, or anything else they have tried?
To take your potential customer on this journey of discover you need to ignite their passion. We are all lazy, we are all busy and distracted so to hold our attention you have to appeal to our greed and love of stories.
To sell anything you have to do the following 3 things:
The good news, or possibly the challenge, depending on how you look at it, is that you need to do all 3 in one story.
Once you’ve written your story, you need to chop it up into bite-sized pieces, like chapters in a novel. The simple reality is that you can only demand so much of your customers’ attention. They can only absorb so much information in one sitting. Which is why you need one memorable idea per chapter.
The powerful, painful and inspiration story is your Hero’s Journey. This is your rags to riches tale. Where you show the reader how you were able to sail from the port of struggle to the land of happiness and abundance. To make it interesting and believable you need to describe all of storms you had to weather on your journey. All of the times when the waves kept crashing down and you thought you would drown. All of the times when you just wanted to quit and your pride, determination and survival instinct wouldn’t let you.
How you were able to steer your tiny boat through the raging storm and into calm waters is a thrilling tale with a happy ending. The fact that you can guide your reader through the treacherous waters in the shortest, fastest and safest way is something they will be willing to pay for. The more dangerous the journey the more you can charge for your product.
Your Hero’s Journey shows how you were able to sail from the port of struggle to the land of happiness and abundance. The hurricane winds and waves the sizes of skyscrapers are what you had to suffer through to get what you wanted. The problem is that it’s only your story. There are many who will think:
You’re special. I can’t do it.
To make them believe that they can change their life with your help, you have to show that people just like them have used your system to effortlessly improve their life. To reach the land of happiness and abundance without needing a raincoat.
The closer the testimonial is to their current situation the more it will move them to act. This is why you need a range of testimonials. To show beyond any doubt that anyone, no matter their background, can achieve unbelievable success with your help.
Let’s face it, traffic is expensive, the process of educating your customer is complicated, so you’re conversion rate is not going to be sky high. So, to have money on demand you need to sell a high price product.
If success boils down to just one number: your conversion rate. You may be wondering what good looks like.
Let’s start with what exceptional looks like. Frank Kern is a marketing legend who has done launches that have made $1 million in less than a day. Marketing mortals like myself look at that with awe and amazement. So what does Frank think a good conversion rate is? 1%!
That’s right. If you can convert just 1% of traffic into sales then you are doing exceptionally well.
What can marketing mortals expect?
My launches have pulled in £587,118 in just 9 days. And the conversion rate on new leads didn’t come close to 1%! It barely broke through the 0.5% barrier.
The number of new people that bought was tiny and because the product price was high enough the return on investment was still spectacular.
Hopefully it will help you set some realistic targets.
The other more important point is why the 1% target doesn’t matter.
If you’re planning to stay in business for a while then you need to focus on more than just the short term 1% goal. Yes this gives you the cash flow to stay in business right now and the bigger, more obvious opportunity lies in the 99% of leads that are now on your database. That is where the real gold lies. If you focus on loving and nurturing the 99% then you will make the sale on your next launch.
If you’re anything like me then your ego will always look at the 1%. Ultimately when the curtain falls on a product launch or marketing campaign the number that really matters is total sales. If this is 10 times more than the sales to new leads then you will have a profitable business that can truly generate money on demand.
What it takes to get there is the unglamorous value based marketing. Writing a sales letter and hearing the ring of the cash register is always exciting. And to make it ring louder and longer then you need to spend time, money and effort earning your customers trust. This really is laying the foundations for the sale. The only way to do that is to prove that you can help them reach the land of happiness and abundance faster than anyone else.
So I hope this helps you to set realistic expectations of your next marketing campaign. And it helps you to focus on both short term and long term goals.