**The following is a guest post shared by JayKay Dowdall**
How did I get targeted traffic and turn a profit online with a basic funnel?
That question is pretty much the foundation of all questions beginners (and some pros have) with internet marketing.
During December 2017 I launched a campaign after some conference calls with one of my mentors and getting his feedback on a funnel I’ve been working on.
I spent $500 on the rights to an excellent course, including a few upsells, and respective sales pages, and next I needed to turn a profit.
It was in the anxiety and self-confidence niche, something which I have ZERO experience in, no JV partners, no existing customers, no subscribers, and no results in.
But hey, I like a challenge!
Before I could sell anything I was going to need traffic, as targeted as possible for as little as possible.
Solo ads it is.
I know solo ads get a bad reputation, and while there are a lot (A LOT!) of horror stories about low quality clicks etc, there are MUCH better results in niches outside of MMO (Make Money Online).
Solo ads are 100% the fastest way to build a list of subscribers, and that’s what I needed.
I spent $1,500 on solo ad clicks from different vendors and ended up with $900 in sales.
“WOW! What a loss!”
Well no, not exactly.
I might have only made $900 in sales, but I gained 950 subscribers on top of that. The subscribers are what I was buying, and frankly, even if I made $0.00 in sales I would have been okay with that.
This is the problem most people have with solo ads, and buying any traffic at all. They look at the immediate results: “How much did I make from this traffic?”
That’s the wrong mentality.
You need to buy traffic with an eye on future results. It’s an investment, and investments rarely (see; ever) pay off immediately.
So is this a win? Am I breaking even?
To understand that, you need to understand my strategy…
You will always – ALWAYS – lose money on paid traffic without a funnel.
Read that one more time, just to make sure it sinks in.
If you don’t use a funnel, you are literally throwing money away. You need to build a relationship for people to buy.
Let’s look at my funnel closely so you really see this in action.
This is the top of the funnel, where I “pour” my traffic. The solo ads I purchased are sending their clicks here.
This landing page offers a PDF, video, etc. something free in exchange for the email address of the visitor.
This is often called a squeeze page, a lead page, or an opt-in page. You can call it whatever you like, but the goal is the same:
Give something away in exchange for an email address.
Once they enter their email, they get their free gift emailed to them, and you get their information as a lead.
This is the single most important step in the funnel, never send your traffic to the sales page.
Even if you make a sale (which is less likely in this case anyway) you don’t OWN the subscriber/lead. You can never contact them again.
You are losing out on the people who purchased (GOLD!) and the people who didn’t purchase – which basically means you’re wasting good clicks.
Keep in mind that a prospect may need to hear from you 7-10 times before they trust you enough to spend money on YOU or a recommendation from you.
Owning this lead allows you to reach out via email and build up that relationship to eventually take them by the hand to the sale.
Without a list, you’re not building a business. You’re just hitting and hoping.
One of the biggest lessons my mentor has taught me is that the size of your subscriber/lead base is related to the size of your income. More leads = more income.
Immediately after entering their email address, the visitor (I’ll call them a lead from this point on) is shown their first product for less than $20, in this case it was $17.
This low-end offer needs to solve a specific problem for your lead.
If they buy the low-end offer, they get taken to an upsell page where they are asked to buy a premium version ($97) offering XYZ which is NOT included in the low-end offer.
If they buy the $97 version, they are asked to join a monthly recurring payment plan for a video course and private community on Facebook for $47/mth.
If they say NO to the monthly payment plan, they are offered a 14-day trial to the members area for $1, and then $47/mth after that.
As the lead goes deeper into the funnel, the potential to earn more increases.
The important thing here, is the lead tracking.
My autoresponder is sorting these subscribers into different segments based on what page they view. For example, a lead that views the page with the first product for sale obviously gave me their email, but if they don’t see the page with the premium version of the product, then they never purchased the basic version; they “fell out” of the funnel.
This lead is now segmented into a group that will receive email follow ups explaining more about the basic product, more benefits, more results, etc.
These follow-up emails bring me closer to the 7-10 interactions with me before making the sale.
After buying the basic product, they go back into the funnel. If they “fall out” before buying the monthly plan, they go into another automated email stream which explains more about the monthly plan, etc. and encourages them to buy.
This is the funnel at work, and it’s exactly why I’m not concerned about “only” making $900 from leads going through the funnel the first time. Those follow-ups are going to take each of those leads and get the sales for me.
KNOW YOUR NUMBERS!
It should come as no surprise, that failing to know how much a subscriber is worth to you (among other numbers) is going to be a recipe for disaster if you use this type of funnel.
I use a metric called CFV (Customer Funnel Value) which tells me how much a subscriber is worth in this particular funnel.
Here’s how to calculate it:
(MAX FUNNEL VALUE) x (1.5%) = CFV
MAX FUNNEL VALUE: The price of all the products in the funnel that a lead can purchase. In this case: $17 low-end offer, $97 premium offer, $47/mth offer (I’m assuming they keep the monthly product for at least two months, which is what I’ve seen on average for most monthly memberships I’ve sold at this price). The MAX FUNNEL VALUE in this case is $208.
I next multiply $208 x 1.5%. This is based on a VERY CONSERVATIVE estimate that 1.5% of ALL MY leads will be worth this price.
This means my CFV for this funnel is: $3.12
My CFV is telling me that my subscribers are worth $3.12 each.
If CFV seems likes you’re just taking a big shot in the dark and guessing – well, you are. You won’t know what your REAL CFV is until you are “done” with this funnel. I calculate CFV as 1.5% because: 1) My mentor told me to & 2)It’s always been lower than the actual value of a subscriber in my campaigns in the past, my true CFV is usually 30-50% higher than this.
If you have another way of calculating CFV or something similar, then please share in the comments**
I got 950 new subscribers, which tells me that my new leads are worth approx. $2,964, it also tells me that I should NOT be spending more than $3.12 for each lead.
You’ll recall that I made $900 from some initial sales, that means that there is $2,000 left in this group that I will make from some great follow-ups.
I ordered my $1,500 in solo ad clicks from 9 different solo ad sellers, and I tracked which vendors sent the most valuable traffic, since I would order from them again in the future.
How do I determine which clicks are most valuable? What percentage of clicks turned into leads, and what percentage of leads turned into sales – whomever provided the highest percentages are the “highest quality” solo sellers I will be working with again.
Take a look at my tracking from each solo seller below:
So, back to the question…
DID I WIN OR LOSE?
Let’s look at how much I spent:
$1,500 in paid traffic
$500 in rights to the products
TOTAL EXPENSES: $2,000
How much did I make?
$900 total sales
$2,064 in expected future sales
TOTAL EXPECTED RETURN: $2,964
So, $964 profit – was it worth it?
100% yes. Why?
That $2,964 in real and expected earnings doesn’t include selling affiliate products to this audience, or selling any kind of high-ticket items down the road.
When it comes to making money online, don’t get sucked into the thrill of short term gratification.
I may have lost money at first glance, but by treating this traffic as an investment I am 100% confident of turning making my money back with a healthy profit.