Why your solo ads aren’t breaking even

There’s two schools of thought about breaking even with solo ads.

#1 – Get a good sales funnel and expect to make some of your money back quickly, while banking on getting the rest over the long haul through your follow up.

#2 -If you’re not making all of your advertising dollars back immediately, don’t waste your time tweaking, because it’s probably the traffic.

I agree with neither.

Both schools of thought are wide of the mark.

Truth is…

Most marketers have the wrong idea about what it takes to breakeven
with paid traffic.

Some believe it’s all about their sales funnel and follow up.

Others bank on the clicks… and if clicks don’t convert, it’s clicks’s fault.

But neither one is right.

The secret to breaking even and pocketing a huge profit on your solo ad buys lies in one of the single most overlooked and forgotten elements of your online biz.

Would you like to know what it is?

It’s in this week’s episode of the List Building Lifestyle Show.

Click here to download the new episode now

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Igor Kheifets


This program is brought to you by thepodcastfactory.com.

Jonathan: You are listening to The List-Building Lifestyle with Igor Kheifets. What is up, my man?

Igor: Well, everything is great, man. Another week. Another show. I am super pumped up because today we’re talking about what people don’t break even the solo ad and how to change that very quickly.

Jonathan: Wow, and that’s the thing, man. That, like all the things in the world that people want to do, and even me, like I started this in Google AdWords trying to do this whole break even thing and it’s like the Holy Grail of internet marketing and very few people accomplish it – and you’re telling me that you know how to do this?

Igor: Oh, yes, and not only that. I’ve helped many people do it as well, and that’s why I’m confident that no matter which stage of evolution, you know, our listeners are in at this time, everybody can do this if they’re just willing to get down and execute a few key strategies that we’re going to talk about today.

Jonathan: Oh, wow. I’m excited and hopefully I won’t get distracted taking notes.

Igor: Alright! Well, so, I’d like to start off with a little story, an experience that I’ve had recently where one of my clients, one of my biggest clients, you know, really great guy, amazing leader and very famous in our community and somebody who is, you know, I personally respect and admire a lot because he literally changes lives every day by pushing people up to financial freedom.

And if you’d like to know his name by the way, just hit me up on social media,like my Facebook or something or just send me an email and I’ll let you know who that is, so you can join him.

So this client of mine approached me and he said that his advertising budget got cut by like 60%, which is a lot.

Jonathan: Wow.

Igor: I mean, he had a big budget and now he’s forced to cut it, because of reasons not in his control and so he was asking about other ways of driving traffic which weren’t paid traffic. And so I told him that that’s the wrong question to ask, because all he needed to do is to change his approach at the backend and close more backend sales and create more backend cash flow which is what’s going to basically save his business and provide him with the necessary cash flow to scale it again to the next level.

Which really ties down to the big question, how do you break even on your advertising, whether it’s Facebook ads, and I, you know, I hate Facebook ads but, hey, if you’re sticking to Facebook ads and they work, then listen up, this is for you as well.

So the way you break even and make money is not through expecting tons and tons and tons of sales on the frontend. You know, I often get these clients where thy reach [03.00] out to me and they’re promoting like a $7- informaiton product or something like a WSO or maybe JVZoo product.

Jonathan: Yeah.

Igor: And, you know, they get a price quote and they’re like ‘Dude, to break even I need to make 15 frontend sales. This is never going to work. You need to drop your price,’ and I’m saying ‘No, dude, you’ve just got it all backwards, because you’re the one who needs to build a back end.’

So, you know, with just one or two backend sales at say 47, 97, 197, you can actually not only breakeven but make money as well. That’s the only way to do it.

I mean, Jonathan, 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, you know, set of customers that come in? He actually does not make money bringing on all these new people coming in.

Jonathan: Yeah, so is it with them coming back or is it with the waiters and waitresses selling them more booze?

Igor: Well, it might be both, but I’ll tell you this and I only know this because I study Dan Kennedy who’s like consulting with tons and tons of restaurant owners, and what he says is that the restaurant owner actually makes money on the promotion when you come back second time, but with a friend, or if you come back a second time he’ll break even and then when your friend comes in, because the client, you know, you recommended the restaurant to your friend and the friend comes in for free as a referral, then he’ll make money. So he’s actually forced to wait at eats 90 days in order to break even or make money on the ad.

Jonathan: That is like ages. That’s like decades in internet marketing time, 90 days.

Igor: Oh, yeah. That is just crazy. I mean, most people can’t wait 90 seconds to break even.

Jonathan: Right.

Igor: I have sometimes people emailing us and they’re like ‘Oh, the ad just started. I received 15 clicks. I got 10 opt-ins. But no sales yet when are the sales coming?’ I’m like ‘You know, chill. This, you know, takes a little bit of time.’

So anyway, the only way to break even is by building a backend. And if you’re not selling your own product, if you’re promoting your business opportunity, right, you want to choose to associate yourself or partner up with the opportunity that has a deep backend, you know, where they do sell products and doohickeys and widgets, you know, like Dan Kennedy would say that cost 500 bucks, a 1,000 bucks, 1,500, 2,000. I mean, there are some opportunities that sell packages up to 20 grand, right.

Jonathan: Wow.

Igor: And just selling you one of these in here is a huge slack adjuster, right?

Jonathan: Yeah, definitely.

Igor: So, again, there’s no magic here just like we keep telling you, and in order to break even you need a backend, and that is just impossible to do it on the frontend. I know of maybe two customers in history that I’ve ever served, okay, and one of them is not me, basically that were able to do that.

Anyone who I know, whom I work with, who buys thousands and thousands of [06.00] clicks from me on monthly basis always has a great backend, which delivers high ticket sales and creates the cash flow opportunity that’s necessary to scale their business with more advertising, which of course end up being paid not out of their pocket, but out of their profits.

Jonathan: Yeah, yeah, and I don’t know who it was, so I’m going to take a page from your book, but I’ve heard it in direct mail for years, you’re not supposed to be acquiring your customers out of profit.

In fact, if you’re acquiring customers out of 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 fixated on that first sale, I guess. And really, isn’t that rookie thing or do more experienced marketers suffer from the same thing?

Igor: Well, you’d be surprised, but plenty of experienced marketers suffer from this, especially if they’ve been used to getting customers from an unpaid traffic source or from a source that’s really, really cheap. I mean, this was really just a big shock for anyone who started with Facebook ads when there were no regulations. Where there was no competition everything was really, really cheap. You know, it was like the Wild Wild West.

Jonathan: Yeah.

Igor: You know, people did whatever they wanted to do. They had 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 has got to change.’

So they are forced eventually to get off of Facebook ads and look for other means of existing. And they after trying different methods, they realize that all adverting takes cash and there is no other way but to learn to bring that cash in.

And the, you know, if you run a successful business, a business that’s healthy, a business that’s long-term, the business that can sustain you and your family, a business that’s scalable, then your only, our only solution is to bring customers through cold paid traffic and learn how to quickly turn them from skeptical to curious to buyer and to a raving fan.

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 a long-term high average customer value.

Jonathan: Yeah, that’s interesting. I’m sitting here evaluating some of the things I do in business, but, you know what, I think we’ve ever talked about it, but it’s...I do rentals and I have real estate. I’m a landlord.

And that was one of the things that actually had – the guy that you talk about actually all the time, Doberman Dan was the guy that helped me with it – but I had a problem with renewals and then he helped me to come up with some direct mail ideas to get renewals and 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 and it’s really…I mean, I can acquire customers, but holding on to the customers is infinitely [09.00.5] more valuable.

Igor: Absolutely, Jonathan, because it is 10 times more expensive to get a new customer than to keep an existing customer and it’s 10 time easier to sell something of value, of course, not just anything, something of value to your existing client, because they’ve already given you money, they already know you deliver, they don’t have all this skepticism and bullshit built into their consciousness about you, and it’s just so easy to come up with an amazing offer or with an amazing new approach and talk to your existing clients.

I mean, I have clients who over a period of, you know, 6-12 months can buy as much as 10 to 20,000 dollars’ worth of traffic and not because I’m aggressively like telling them to do it. No, it’s just because I don’t forget about them, because I treat them well and because occasionally I would follow up with them and sell them the stuff they already want to buy, because they’ve proved that they want to buy it by buying it from me earlier.

Jonathan: Yeah, and there’s another point worth mentioning here that I think is important for our listeners and that’s the fact that if you’re competing with someone and you’re in the same market with them and you have just a frontend and they have a backend, they’re going to be able to way out-spend you in ads so they will bury you and they will kill because they have something in place to go ahead and spend more money, because they know their customer value.

Igor: Oh, yeah, exactly, and not only that, they’ll get better customers. Because you something in place to go ahead and spend more money, because they know their customer value. will end up been stuck with bad customers that don’t want to pay you and who don’t want to pay you on time while they’re going to get all the good ones.

You know, Dan Kennedy said it once and it kind of stuck with me ever since and, see, Jonathan I promised that I’m quoting somebody…

Jonathan: Nice.

Igor: …See? So he said if you can’t spend a dollar to acquire a customer you don’t have a business – meaning, like, unless you’re able to acquire your customers with actual dollars, meaning that you can acquire many of them, that means you don’t really have a business. You have a Russian roulette of sorts, you know, you’re just waiting for a customer to come in and you don’t know where he’s going to come from.

But the reality of it is if you want a long-term business that sustains you, a business that is scalable, a business that pays the bills consistently and predictably, then you need to orchestrate a mechanism where your customers are coming in not because of luck or karma or whatever, or Christmas, but because you made it happen.

Jonathan: So let me ask you this. You do coaching. You have client, you do different kinds of consulting work. Is this one of the things that you help people with? I mean, do people come to you without a backend and you help them or are you only working with people who have that stuff in place?

Igor: Oh, work with both kinds, either somebody whose backend is pathetic and doesn’t produce and people who don’t [12.00] have a backend, because it is very easy to create a backend, especially if you have an existing… You know, just a handful of buyers is enough because based on their behavior you can tell a case where they bought this sort of product and let us now think of the next step in the evolution of that product.

So if they purchased – let’s say, they purchased a diet book. Let’s go ahead and create a whole 30-day diet plan, so they don’t need to plan their own diet. You just give them the diet and you say ‘Okay, so you just stick to this regime for 30 days and you’re going to, you know, lose 2% body fat.’

Or if you want to take it to the next level – you know, Kim Kardashian and this is probably just a stupid celebrity thing, but when she got pregnant the second time she had, first up she hired like a personal trainer who would follow her around all the time so she doesn’t like break and eat all the stuff that she’s not supposed to eat, and…

Jonathan: Wow.

Igor: And he even put a lock on her fridge, alright and with a [password]. It was like a password-protected lock so she get close to it and basically all the nasty stuff that she’s not supposed to eat was over there and only her husband had access to the key, right.

Jonathan: Wow.

Igor: To the combination. Anyway, but that’s like an extreme that I’m talking about, but you can always come up with more ways to give your clients more value, okay, and the more value you give them in the form of saving time, saving money, improving their life faster, the more you can charge for the upsell.

So you can, you know, no matter how deep your backend is you can always come up with more amazing backend offers to help your best customers step forward and give you even more money and feel even happier doing so.

And if you don’t have a backend, man, the world is your oyster. You have so much money that you can be making and all this money is really just waiting for you to pick it up. You know, I like to call it ‘money hidden in plain sight’ because…

Jonathan: Yeah.

Igor: 99% of people, even those who do start, you know, study marketing they really don’t see it and it’s tragic.

Jonathan: Yeah, I’m…right now it’s bringing back some memories of business I had before. I don’t know if you know Jim Yagi – he’s a Pay Per Click guy. He’s one of Ben’s buddies. But I hired him for some consulting and I spent quite a bit of money on it, and I remember, I mean, I remember like it was yesterday.

I was doing this little business and I only had these little one-off products and

I had a decent email list and I went to him and I’m like ‘I need more traffic, man! I need more traffic!’ and he looks at my business and he tells me it’s complete shit and I need a new business, and it broke my heart, man, and it hurt.

But then when I went and I looked it, I rebuilt a business that next year it was six figures. It went from like a $10,000 a year business to six figure business by ripping it apart, redoing [15.00.2] it and the main thing was extending that customer value. I was selling one-off products and then I went to 1.97 a month subscriptions and the difference was night and day.

Igor: Well, first up, I’m really happy that you’re…that he crushed your dream, but…!

But, yeah, you’re absolutely correct and whenever I come to a realization that‘hey, my business isn’t moving forward,’ it’s, you know, I know it’s time to create a new offer whether – and usually that’s not a frontend offer, because my frontend offer is just fine and it feeds new people into my universe, but it’s the backend where it will really make an impact. It’s the people who will buy the second upsell. It’s the people who will buy the coaching programs, are the people whom I can really truly help, because they put so much skin in the game, they will not ignore my advice. They will act on it.

Jonathan: Right, and I think that’s…we talked about that, I believe, when we were talking about moving the free line. I’m trying to look back at our notes. Actually I think that was our first show where we talked about it where people are not putting skin in the game, they won’t value it and the more people pay the more they value it, funnily enough.

Igor: Yeah, yeah, and that’s why, you know, I gave the example of ding the whole speedreading thing and deliberately paying multiples of what I could just so I don’t let, you know, get myself off the hook.

Jonathan: Yeah, man. Great, man. So any other tips you want to give about the backend as we’re coming to a close on this one?

Igor: Well, I just want you to start asking different questions. I want you to be asking the questions of –

- How can I give my clients more value?
- What have my clients purchased from me in the last 6 months?
- What have they purchased from my competition in the last 6 months?

And based on these questions, you can actually create amazing new offers, right, and the goal and the I guess the thinking behind it should be –

How can I help my clients save more time, save more money, save more trouble in their pursuit of the goal they’re trying to achieve?

So if your clients are trying to make money through, say, Facebook ads for example – but first off, of course, you should tell them not to Facebook ads – but in case that is what you’re doing, you’re teaching them how to do Facebook ads, then perhaps you can come up with 10 templates of great, great ad copy which they can use and just insert their benefit of choice so they don’t really have to try and brainstorm how to fit their little headlines into those limited character spaces when they create a Facebook ad.

Or maybe you can create 10 ideal customer avatars and just give them the profiles of the customers and say, so if you’re selling weight loss, you know, you want to target this sort of customer. So you target somebody who likes The Biggest Loser, you target somebody who lives in Nebraska or whatever, I’m not sure…

Jonathan: Nice…

Igor: …If they live in Nebraska or fat or whatever, but I’m just saying that the more…

Jonathan: Take that Nebraska. [18.00]

Igor: …That the more headaches you can take away, the more time you can help them save, and the more you can help them not to think, if you will, right so the better it is.

Think about it as if you’re a lawyer and they just got sued. Like does anyone really want to go and study law and figure out all this stuff? No, we just go and pay big money to lawyers, because we know that they know and they save us a lot of time.

Jonathan: Yeah.

Igor: Like we can actually, we have the...I think we have the constitutional right to protect ourselves in a court of law, but we don’t do it. We just go and we buy a lawyer’s services even if we’re dead broke. Right, Jonathan?

Jonathan: Yeah, I’ve seen people go into debt to work with lawyers, so, yeah, for sure.

So what do you have coming up for us next time, Igor?

Igor: Well, next show we’re going to be talking about my Prospect-Seduction Blueprint and it has a sexy name and it has to do with sex, so there we go.

Jonathan: Alright, looking forward to it. So that’s a wrap for The List-Building Lifestyle, episode number 6.

Thank you, Igor. And thank you guys for tuning in. We will get back in your earbuds next week.

Thanks for tuning into The List-Building Lifestyle show. If you’re digging what your hearing, your next step is to go to iTunes and in the search bar type ‘List-Building Lifestyle.’ You’ll see Igor’s face smiling at you. Go ahead and click on that. Subscribe to his show and if you’re feeling really generous and you want to help us out, then give us your rating and review to help other smart people like you find this show.

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Who Is Igor Kheifets

Igor Kheifets is the 3rd highest-earning super-affiliate in the internet marketing niche.

Igor’s 2-step system has helped him consistently rank as the highest-earning and the highest-converting (measured in commissions earned per click) for industry’s leading vendors including but not limited to Matt Bacak, John Crestani and Anthony Morrison.

Igor boiled down success in affiliate marketing to a set of predictable easy steps anyone can take to generate commissions.


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