Do you think making 150 sales qualifies as good enough testing to justify paying for advertising?

13 replies
I'm hesitant to start paying for ads, because I don't want to lose money (because I don't have a lot to lose). However, I'm thinking that FB ads would be an excellent way to scale my business.

My product is a digital course that I have for sale on my website. I offer a lifetime membership to a member's area of my site, and so far I have made 152 sales. Only 1 person out of 153 asked for a refund so far.

I've read in many places that you should test your product idea before creating it. I didn't do that though. Instead, I made the common newbie mistake in creating the product first and then selling it. I guess I got lucky though because people seem to be buying it.

So far all of my traffic has been free...mainly through YouTube. I've tested various different pricing points....$47/lifetime, $59/lifetime, $67/lifetime, $10/month, $97/year, $97/lifetime. I've found that $59 for a lifetime subscription seems to be a good price point.

Regarding my list, people that purchase my course automatically get added to my email list, which just puts them on an automated set of emails that go out once per week sharing a blog post that is on the site.

The "list" is also intended for people that haven't yet purchased my course to keep coming back to my site (and hopefully they end up buying). Honestly, this list hasn't really resulted in many sales though...most of my sales come from people finding me on YouTube, clicking the link in the description and making the purchase.

So given this information, do you think that it is a smart idea to start delving into the world of paid advertising?

Or do you think I should just keep hacking away at the free traffic stuff?

Thanks!
#150 #advertising #good #justify #making #paying #qualifies #sales
Avatar of Unregistered
  • Profile picture of the author Steve B
    Originally Posted by Bkelly301 View Post

    . . . do you think that it is a smart idea to start delving into the world of paid advertising?



    Bkelly301,


    It's not the number of sales you've made, but the conversion rate that is key. Out of those that see your offer, what percentage convert into a sale? By knowing the rate, you have one measure of marketing performance and can determine how much you can spend on acquiring a customer without losing money based on your course pricing.


    I'm not "playing down" the fact that you have already made multiple sales - 150 sales, that's a good thing, of course.


    Set aside whatever budget you can come up with and do a paid marketing test. Track your results, tweak the offer, and optimize your variables. Keep the scale small until you have the highest converting offer possible. When you can buy traffic and make a positive return with it . . . then is the time to scale your budget. If possible, I would suggest you shoot for 1,000 clicks to your offer and see what that brings you in the way of a conversion rate (could be less if you can't afford 1K). The more clicks you can afford, the more likely your test will be statistically valid.


    The very best to you.


    Steve
    Signature

    Steve Browne, online business strategies, tips, guidance, and resources
    SteveBrowneDirect

    {{ DiscussionBoard.errors[11401180].message }}
  • Profile picture of the author Bkelly301
    Thanks for the tip Steve!

    I'm definitely nervous, but I guess I have to get over that and just start testing.
    {{ DiscussionBoard.errors[11401218].message }}
  • Profile picture of the author ryanbiddulph
    I'd say BK, feeling the fear of spending money is the quickest and yes, most uncomfortable way to release the fear so you spend advertising money freely. Right now you seem to be in the space of being afraid to spend money because you fear wasting/losing money; scarcity mindset.

    Think abundance. Spend money as an investment for the present and future. All ad money expands your brand awareness, and as a bonus, you may make sales too.

    Think less ROI and more MOE - My Own Energy - to understand that even if you sold zero copies, if the idea benefits folks, it is good enough and warrants spending aka investing.

    Ryan
    Signature
    Ryan Biddulph, Blogger, Author, World Traveling Digital Nomad
    If you want to become a full time blogger you can buy my eBook here
    {{ DiscussionBoard.errors[11401223].message }}
    • Profile picture of the author Bkelly301
      Originally Posted by ryanbiddulph View Post

      I'd say BK, feeling the fear of spending money is the quickest and yes, most uncomfortable way to release the fear so you spend advertising money freely. Right now you seem to be in the space of being afraid to spend money because you fear wasting/losing money; scarcity mindset.

      Think abundance. Spend money as an investment for the present and future. All ad money expands your brand awareness, and as a bonus, you may make sales too.

      Think less ROI and more MOE - My Own Energy - to understand that even if you sold zero copies, if the idea benefits folks, it is good enough and warrants spending aka investing.

      Ryan
      Good point!

      I do have to start getting myself into the abundance mindset and stop worrying about investing into advertising.

      Thanks for the reply!
      {{ DiscussionBoard.errors[11401241].message }}
  • Profile picture of the author boblev
    Hi

    #1 have you thought about advertising on the youtube ad platform?

    #2 Is your list segmented into buyers and those that have opted in for more info?

    #3 are you pitching complimentary affiliate offers to your list (see#2, the reason you want them on different list is because they have different needs that require a tailored approach)

    #4 Steve is spot on, you will need to start small, test, refine and scale..

    Bob
    Signature

    "The road to success and the road to failure are almost exactly the same." Colin R. Davis

    {{ DiscussionBoard.errors[11401251].message }}
    • Profile picture of the author Bkelly301
      Originally Posted by boblev View Post

      Hi

      #1 have you thought about advertising on the youtube ad platform?

      #2 Is your list segmented into buyers and those that have opted in for more info?

      #3 are you pitching complimentary affiliate offers to your list (see#2, the reason you want them on different list is because they have different needs that require a tailored approach)

      #4 Steve is spot on, you will need to start small, test, refine and scale..

      Bob
      #1 - No, but that is a good idea! Thanks for the suggestion!

      #2 - No, I thought about doing that. However, I'm trying to keep things simple with my list. I just send out a weekly email (setup through the auto-responder) that gives them a popular blog post and has a link to my course at the bottom of each email.

      #3 - This is a good idea. I haven't really thought about doing affiliate offers. I maybe I will throw that into the email sequence though!

      #4 - I dig his advice too!

      Thanks for the reply!
      {{ DiscussionBoard.errors[11401261].message }}
      • Profile picture of the author boblev
        "#2 - No, I thought about doing that. However, I'm trying to keep things simple with my list. I just send out a weekly email (setup through the auto-responder) that gives them a popular blog post and has a link to my course at the bottom of each email."

        This supports my point. People that are subscribed to the premium content don't need to be directed back to your main offer. A buyers list is gold because you've already established trust (assuming your content is valuable)

        put another way, if they ain't bought yet keep swinging away until they do....

        if they have taken the plunge, leverage that trust and sell them more stuff...


        An easy way to separate the list is to set up a an exclusive private facebook group and post a message in the members area directing them to a new separate optin form.You can then manually add them to your group and create a separate list of buyers at the same time.

        Bob
        Signature

        "The road to success and the road to failure are almost exactly the same." Colin R. Davis

        {{ DiscussionBoard.errors[11401309].message }}
  • Profile picture of the author IGotMine
    All ad money expands your brand awareness, and as a bonus, you may make sales too.
    Clearly, you have never spent a dime on advertising.

    This "mindset" will ensure your ROI is negative.

    The only thing you can do is a test. Start small and do your research first. Factors like the color of your site and buttons, one word of copy in your ad or sales copy, the continuity between ad and sales copy, and many other factors can have a huge impact.

    Check out, Perry Marshall. His free content is how I learned PPC, years ago. It's well worth checking out.

    Thinking about FB ads? Watch this:

    Signature
    Do you need REAL people visiting your site?
    Do you need sign-ups for your networking/MLM program? >>>
    PM me!
    {{ DiscussionBoard.errors[11401266].message }}
    • Profile picture of the author Bkelly301
      Originally Posted by IGotMine View Post

      Clearly, you have never spent a dime on advertising.

      This "mindset" will ensure your ROI is negative.

      The only thing you can do is a test. Start small and do your research first. Factors like the color of your site and buttons, one word of copy in your ad or sales copy, the continuity between ad and sales copy, and many other factors can have a huge impact.

      Check out, Perry Marshall. His free content is how I learned PPC, years ago. It's well worth checking out.

      Thinking about FB ads? Watch this:

      Building a FB Ads Funnel That CONVERTS - Ryan Stewart - Whiteboard Friday (Moz) - YouTube
      Thanks for the video!
      {{ DiscussionBoard.errors[11401271].message }}
  • Profile picture of the author Luis La Torre
    Hello,

    I think that your best bet before getting involved in paid advertising is researching your target audience, creating a sales funnel with split testing, set a start out budget on a small level, Keep it simple, the best thing to remember when doing paid advertising is that the moment you get to complicated and far fetched you'll lose out.

    Lastly, just remember to track all of your advertising campaigns.
    {{ DiscussionBoard.errors[11401336].message }}
  • Profile picture of the author nickyz1
    free traffic has been working great for you it's best you keep that up and start small with paid traffic
    Signature

    Make $100 to $500 a day by trading bitcoin free video. Watch a free video and start earning with your bitcoins today

    {{ DiscussionBoard.errors[11401793].message }}
  • Profile picture of the author Ian Jackson
    Get your GDPR in place, the go to Aweber or Getresponse, generate an opt-in form, list, funnel, products (yours or aff ones)

    I use single optin, but emphazise GDPR and what subscribers will get from me. Single/double, each has pros/cons; your call

    Then get a few good solo's (Udimi, check feedbacks), up to say $50-$100, that'll get you plenty of clicks and some numbers to work with

    Go to YouTube if unsure about specifics; Historically, I employed a good mentor (we still keep in touch), and use YT etc for research too.
    {{ DiscussionBoard.errors[11407881].message }}
  • Profile picture of the author Jason Kanigan
    Originally Posted by Bkelly301 View Post

    I'm hesitant to start paying for ads, because I don't want to lose money (because I don't have a lot to lose). However, I'm thinking that FB ads would be an excellent way to scale my business.

    My product is a digital course that I have for sale on my website. I offer a lifetime membership to a member's area of my site, and so far I have made 152 sales. Only 1 person out of 153 asked for a refund so far.

    I've read in many places that you should test your product idea before creating it. I didn't do that though. Instead, I made the common newbie mistake in creating the product first and then selling it. I guess I got lucky though because people seem to be buying it.

    So far all of my traffic has been free...mainly through YouTube. I've tested various different pricing points....$47/lifetime, $59/lifetime, $67/lifetime, $10/month, $97/year, $97/lifetime. I've found that $59 for a lifetime subscription seems to be a good price point.

    Regarding my list, people that purchase my course automatically get added to my email list, which just puts them on an automated set of emails that go out once per week sharing a blog post that is on the site.

    The "list" is also intended for people that haven't yet purchased my course to keep coming back to my site (and hopefully they end up buying). Honestly, this list hasn't really resulted in many sales though...most of my sales come from people finding me on YouTube, clicking the link in the description and making the purchase.

    So given this information, do you think that it is a smart idea to start delving into the world of paid advertising?

    Or do you think I should just keep hacking away at the free traffic stuff?

    Thanks!
    If this is the case then you should be looking at YT not FB for advertising.

    Every time you hook up a new lead source to your funnel, you go back to zero on the growth and knowledge chart.

    I recommend looking up Alex Becker's YT channel and watching his videos. Look for the ones that talk about using a second channel to run the ads, targeting those people who watch your main channel and building your retargeting list that way.

    Cheap leads especially compared to regular FB ads.

    I have watched (and commented upon) your threads for awhile and it's cool to see your growth. One major business model issue I see for you is you need an upsell, a higher ticket product or service for buyers to buy next. This is called laddering.

    Why?

    You need to be able to invest the entire revenue your first product brings in on Cost of Customer Acquisition. That's Measure #1. Start measuring it.

    Then you make your money on the upsell.

    It's a lot easier to get buyers to buy again.

    That upsell will have its own CCA, based on the number of buyers of the first product it takes to get a buyer of the upsell plus any other costs of getting that second purchase.

    Track and control these two things:

    1. Your Cost of Customer Acquisition

    2. Your Lifetime Customer Value

    and you will do well.

    Always be looking for ways to lower your CCA (strategic partnership with someone who has a list of buyers who overlap your niche and are likely to buy is one great way to lower CCA).

    Always be looking for ways to raise your LTV. There are only 3 ways to do that: more customers, higher per-sale prices, larger/more frequent number of purchases from upsells etc.

    With the 150 sales you have proven that people want this thing. Now you can build on that.
    {{ DiscussionBoard.errors[11407887].message }}
Avatar of Unregistered

Trending Topics