How To Make Any Affiliate Business Wildly Profitable Without Any Extra Expense
- May 25, 2016
- Posted by: Chris Daigle
- Category: Affiliate Marketing
The hardest part of any business is making profit.
Sure, anyone can start a business, but making sales from day one is what separates a business that’ll still be around 5 years from now versus the one that closes down in 3 weeks.
This is a challenge most online business owners face … all because they don’t focus on the one thing that matters most … profit!
When I first decided to create a front end product, my system looked like this…
A simple $49 dollar product that converted at 2%. I knew that if I could generate 3,000 visitors by spending $2,250 on traffic, I’ll see results like this:
This is not good! I’d be making a loss of $822.81 cents per month. My business won’t last very long if I continue to go down this path.
I wanted to push the conversion rate up from 1% to 2%, because I knew that I’d see the profits go up.
I followed the traditional ways of increasing conversion…everything the “gurus” taught like emailing your list and creating a better offer.
It worked and when I finally started converting at 2%, I saw results like this…
This is a significantly higher profit margin than converting at 1%. But there’s one problem…
I had no idea when I’ll be profitable…
There’s just no system to follow that’ll guide me through the steps on how to increase my front end conversion, without doing the obvious like testing headlines and changing Call-To-Action.
So to look for answers, I decided to attend a seminar mastermind group with some of the brightest marketers out there.
It was a tough decision because I was spending thousands of dollars of my own money. But I knew I was in the right room when I found out that I was the dumbest person there. If I could just soak in the information they were sharing, surely I can make profit in my own business.
It was one of the hardest things I had to do…ask for help. Everyone there was making 6 to 7 figure income per year, and here I am trying to ask a question about how to make more than $604.38. So I mustered up the courage, stood up and asked…
”How can I increase my conversion rate using a system?”
Out of the corner of the room, a very well known, very successful marketer raised his hand, and said “It’s simple, you just need to be more relevant”.
I had no idea what he meant…relevant? I thought I was already relevant. I’ve been providing my readers with 10X more value than anyone out there.
Then he went on the explain what he meant…and it was something that would change my business forever. I took down notes as fast as I could as he was talking, knowing how valuable this information was.
The simple analogy that cleared everything up for me
Imagine walking into a college campus on your first day…and you were told that everyone on campus would have to take the exact same courses for the next 4 years. That wouldn’t work because everyone is different. They have different taste in music, hobbies and even different taste in food.
Instead what they have you do is choose courses that interest you and the university will offer those courses to you.
Just like the college example, when someone comes to your website, it’s really important to divide your audience based on their interests. I asked my readers exactly what they wanted me to talk about…and I gave it to them with 10X value. This is known as segmentation.
Let me show you what I mean…
When I get traffic to my website, I have my readers fill out questionnaires like this:
This helps me find out exactly what my readers are looking for and how I can add massive value to their lives. Once I started testing this…the difference was day and night.
The email open rates just shot up, because I sent my readers relevant information that they cared about. I didn’t just send out mass emails anymore, I personalized them, tried to speak their language and really deliver value by offering a solution to their problem…whether they want to start a business as an affiliate marketer, build their list, sell physical products, etc. I was sending my message to the right people.
My “Aha” Moment
What if I took this to my old system and went one step further and created products strictly based on their interests…instead of making one generic product? How would that help me generate more sales?
I knew that I had to increase my 7 & 30 day Average Customer Value (ACV). But the old way of selling a low ticket price and providing massive value just took way too long.
Don’t get me wrong, I stand 100% behind the fact that you should always provide 10X the value the customer pays for your product…always…but I knew I could break even faster and still provide massive value.
So I decided to test with a $7 front end product that converted at 4%. I had 3,000 visitors and it cost me $1,500 for that traffic.
Hmm, not bad. I was still making a loss of 715.32 and getting similar results like before. It would me months to get get my money back and it’s also very hard to scale.
This plan is no good. I need to try something different.
I decided to add a backend product…but not just any backend product, a product that’s worth $15,000-$20,000 but I’ll only charge my readers $2,000. That’s massive value!
So I added a $1,997 back end product. It converted at a 5% and my system now looked like this…
The results of this test surprised me!
This was HUGE! My ACV went from $7 to $106.85.
Simply by adding a backend product, I’m able to generate a profit of $158.15. This doesn’t seem like much, but what this did was allow me reinvest all the profit into generating more traffic.
I decided to put the $158.15 and add that to the $50 dollars I was already spending on traffic costs. Look at the results I could get…
I could generate significantly more profit simply by reinvesting whatever money I made into traffic costs.
So I decided to carry on the momentum and just kept reinvesting the profit into traffic costs, and kept getting results like this…
By the time I had fully optimized the system, it was set to generate $10,989.29 per month.
These numbers might seem a bit daunting if you’ve never even created a digital product before.
But let me ask you, do you think you could provide your readers with an ebook worth $70 and sell it for $7? Can you overdeliver in that ebook and show your readers that you’re not trying to take their money, but that you actually care enough to help them.
If you can do that, they’ll be happy to purchase a consulting call with you when you set it up as a backend. Maybe you can offer your customers 1 on 1 coaching, maybe create a mastermind that meets once every quarter.
Your customers will be happy to pay for value if you can show them that they can trust you.
And I want to show you how you can do it …
– without making all the mistakes that I made,
– without spending thousands of dollars attending seminars and paying for flights and hotel,
– without spending the countless amount of hours behind a computer…wondering if what you’re trying will ever work.
This week I’m hosting a Marketing Masterclass called How To Make Any Affiliate Business Wildly Profitable Without Any Extra Expense where I’ll teach the exact tweaks that took this example from losing $822.81/month to PROFITING $10,989.29/month.
This Masterclass takes place on Thursday, May 26.
As usual, this material has NEVER been shared outside of the MyOnlineBusiness community … Hurry and reserve your seat here by clicking here.