[Email Marketing] Why you're better off selling a more expensive product

Greetings Warriors,

The purpose of this thread is to explain to you why I recommend you sell a slightly more expensive product (e.g. $47-$97) rather than attempt to sell a bunch of cheaper ones (e.g. $7-$14).

Alright, let's get started. What's the main goal of email marketing? Simple. You want to convert your leads into sales, right? Correct. But what percentage of these leads can I hope to sell to? It DOES depend on the price of your product. Clearly, more people are going to buy a good $4 product over a good $40 product simply because $4 means very little to them but $40 is more of a big deal if it isn't all it's cracked up to be.

Let me explain the other most important thing about email marketing. Squeeze conversions. The typical email marketer will have a blog and a squeeze page. Through lightboxes and sidebar opt-ins, you NEED to get your conversions from both your blog AND squeeze page over 33%. It needs to be here at a minimum.

You should be shooting for 40-50%. I know of a blog that converts at 55% just through lightboxes and sidebar opt-ins. That's a blog! Their blog converts better than their damn squeeze page does!

Lastly, you need a good sales page. If you have a crappy sales page, people who get excited about buying your product from your email campaign are going to be turned off. When you direct your subscribers to your sales page from your email campaign, it needs to turn them on even more!

Here's why you need a higher-end product. This is the scenario. Ignore organic traffic for the purpose of this thread. We're talking PPC and paid campaigns here to get traffic.

Let's say we are ready to invest in a PPC campaign. We put up $1,000 for a bunch of clicks onto our blog. Remember, our blog converts better than our sqeeze due to excellent optimization. $1,000 worth of clicks at 90 cents a pop is going to get us 1,111 views onto our blog (or highest converting page. For you, that's likely to be the squeeze page).

Since we're converting at a ridiculous rate of 55%, we're going to get 611 leads from that. We paid good money for our clicks, so it should be relatively well converting traffic here. Maybe we won't hit 55% exactly but it should be in the vicinity. For the sake of example, let's go with 55%.

611 leads. Now, if you're an excellent email marketer and have done your research on how to do a great email campaign, you should be able to warm these leads up nicely. Get them real horny for your product. Make them froth at the thought of owning your gear. Bam, send them to your sales page which only makes them more wet.

A good email marketer should look at 8-20% conversions here. Now, if you're selling a $3 product, you can expect high conversions. If you're selling a $47 product, it's not going to be as high. But you should still aim for 8-20%. The minimum I'd recommend is 8% for a $47 product via a PPC campaign to be successful.

Let's say we've managed to convert only 8% of these 611 subscribers into buyers. That's around 49 sales.

THIS IS WHAT SEPARATES THE BOYS FROM THE MEN.

49 x $7 = $343
49 x $47 = $2,303

If your product is $7, you are going to make $343 revenue, meaning you're losing money since you spend $1,000 on the PPC campaign. Yeah, you might expect higher than 8% conversions on a $7 product, but even if you converted at 25%, you're only just scraping even with $1,069. And by no means is 25% conversions easy on ANY product.

Folks, if you want to make huge money from PPC and paid traffic, you only need five things.

1. High converting blog/squeeze.
2. Excellent email campaign.
3. Excellent sales page.
4. Excellent, higher priced product.
5. 8-20% lead to buyer conversion rate.

The best part is that with our $47 product, we more than doubled our investment. What's more amazing is that we didn't even take OTOs and upsells into consideration. We would have probably converted 10-15% of the 8% who bought into OTO purchases also. That's even more money coming your way.

Thanks for reading. Hope you learned a few things about email marketing metrics.