One of my clients has a glorified lead magnet that runs $9. Companies like Clickfunnels used to (and probably still do) call these “tripwires,” a low-cost product designed to get someone into your system, so you can sell them more expensive products later.
Well, I just revamped a long welcome sequence of sorts to anyone who purchased this $9 lead magnet. And I wanted to fill this sequence with as many people as possible. So I recommended a simple weekend “product launch” campaign that went out last weekend.
Yesterday, when I checked their email software to see how many $9 lead magnets we sold to leads already on our list, and I’ll admit, even I was a bit surprised at how many sales my emails generated.
According to my counts, I sold 257 of these lead magnets for $9 (give or take a few that might’ve come in from social media).
Translation:
We generated over 2 stacks from this simple little campaign.
Best part?
Besides a few potential canceled customers, nearly all of these people were leads. Meaning, they were not customers. And we still generated over 2k in new revenue from this group.
But here’s the kicker:
As any direct response legend would tell you, the money is in the backend. And, yes, while we made 2k on the frontend, the backend is where we’ll really make the moolah.
I don’t know how many of our 257 new customers will become monthly or annual customers (my client slangs a subscription on the backend). But even if nobody converts to a full membership, which would be almost impossible, we still generated 2k from a list of leads who haven't paid us anything.
More good news:
This $9 offer already has a track record of converting around 20% to full memberships. And this was BEFORE I improved the welcome sequence.
Moral of the story?
You don’t have to slang expensive products to generate a positive ROI, especially with email. But you must have a backend in place to “jimmy” the customer retention laws, which states that existing customers are more important than new leads.
We just created 247 new customers. And it’ll be much easier convincing them to upgrade to a full membership than a brand new lead.
Now, it ain’t as sexy as a new funnel that converts 247 new leads into annual membership customers. But it’s more effective most of the time.
Anywho:
Do you have a low-cost lead magnet you can use to transform leads into customers?
If not - hit reply, and let’s chat.
John
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