With any investment you make with your business, you should always know what your expected return on investment is. No matter at which stage you are at this time, everybody can do this if they’re just willing to get down and execute a few key strategies that Igor will reveal in this episode.
[00:38] The podcast explores why people aren’t able to break even with Solo Ads and how to change that very quickly.
[02:50] You’re not going to break even:
- The way you break even and make money is not by expecting tons and tons and tons of sales on the front end.
- Did you know that in the restaurant industry, if the restaurant owner runs an ad in the newspaper, he never breaks even on the very first set of customers that come in?
- Wait at least 90 days in order to break even and or make money on the ad.
- Most people can’t wait 90 seconds to break even. Like I have sometimes people emailing us and they’re like, oh, dear, just started. I received 15 clicks. I got ten opt-ins, but no sales yet. When are the sales coming? I’m like, it takes a little bit of time.
[04:58] How to break even?
- The only way to break even is by building a good back end.
- If you’re not selling your own product, if you’re promoting a business opportunity, you want to choose to associate yourself or partner up with the opportunity that has a deep back end where they do sell products.
- You’re not supposed to be acquiring your customers at a profit. In fact, if you’re acquiring customers at a profit, you’re probably not acquiring enough customers and the money is really made on their second or third purchase and most people are just fix hated on that first sale.
[06:56] The downfall of Facebook Ads:
- With Facebook ads when there were no regulations, where there was no competition, everything was really cheap. It was like a wild, wild west. People did whatever they want to do.
- They had a huge margin for error and they got away with a lot of different things.
- But then the prices went up and they’re like, wait a minute, the prices of the ads go up, but I’m not making more money, so something’s got to change.
- And so they are forced eventually to get off of Facebook ads and look for other means of existing. After trying different advertising methods, they realize that all advertising takes cash and there is no other way but to learn to bring that cash in.
[07:35] The key to running a successful business:
- If you want to run a successful business, a business that’s healthy, a business that’s long term, a business that can sustain you and your family, a business that is scalable, then your only solution is to bring customers through cold paid traffic.
- Learn how to quickly turn them from skeptical to curious buyers into raving fans. Because it’s the raving fans that will end up giving you the most money over the shortest periods of time.
- And depending of course on your business, your customer lifespan can be different, but you are eventually looking at creating long-term high-average customer value.
[08:46] Don’t let go of your customers:
- My customer value has shot up because these people won’t leave. They won’t leave. They just keep giving money month after month, year after year.
- Holding on to the customer is infinitely more valuable.
- It is ten times more expensive to get a new customer than to keep an existing customer. And it’s ten times easier to sell something of value.
- I have clients who over a period of six to twelve months can buy as much as, you know, ten to $20,000 worth of traffic.
- You can always come up with more ways to give your clients more value. And the more value you give them in the form of saving time, saving money, and improving their life faster, the more you can charge for the obsolete.
[16:26] Tips to improve the backend:
- I want you to be asking the question of, how can I give my clients more value. What have my clients purchased from me in the last six months? What have they purchased from my competition in the last six months?
- Based on these questions, you can actually create amazing new offers.
- I guess the thinking behind it should be, how can I help my clients save more time, save more money, and save more trouble in their pursuit of the goal they’re trying to achieve?
- You can come up with ten templates of great ad copy that they can use and just insert their benefit of choice.
- Try and brainstorm how to fit their little headlines into those limited character spaces when they create.
[19:02] Igor’s book on email marketing:
- Visit www.igorsbook.com to learn more.