In my previous articles I’ve already demonstrate that to build a steady income online and be able to have predictable and scalable result with your business, a serious entrepreneur need to privileged paid traffic methods instead of free ones. If you can’t control your traffic quality and quantity, well you simply don’t have a business, because no one succeed just by guessing or hopping… However, it’s always a good practice to constantly optimize your system. One of the most important optimization you can do is to reduce as much as you can your cost per lead, because traffic/advertising is always the biggest investment ever for any online business. That’s where SLO comes in… Self Liquidation Offer is one of the best strategy you can use to optimize your marketing funnel, and kind of allow you to build your list with high quality paid traffic, but for FREE! sound confusing or too good to be true right? Just keep reading and let’s break it down together.
– So What Exactly is Self Liquidation Offer?
Simply put, SLO is the fastest way to recover your advertising cost of a giving marketing campaign, so that you reinvest the same money in the next campaign while building your list for free. It’s one approach that helps you generate an emails opt-in, leads, or purchase, while simultaneously offsetting the cost of advertising.
– How Does it Work and why is this important?
Some new marketer spend thousands of dollars advertising their core business opportunity / product, and this sometimes results to negative cash flow at the end of the day. Why? well because marketing researcher has proven that this is the hardest time to make a first sale online, and most of the high profitable business opportunity can be considered expensive when seen for the first time. The secret nowadays reside on the relation building through the email follow up sequence in the funnel. So what we are looking for at first should not be to make profit anymore, but to build a quality list.
SLO is then a low price product (generally between $7 and $30), presented to the lead immediately at the “thank you” page after opt-in (It’s sometimes call the pre-sell page). The most effective SLO can be a Report or Video about any subject related to your core product / business opportunity, with valuable educational content easy to understand and implement. The best practice is to create your own offer (that implied you must have a membership site in back-end), but you can also license someone else high converting product to start with. For the internet marketing niche for example, you can create reports about any topic related to common problems new marketer are facing, and provide them some quick training solution about it knowing that your core offer will go deeper… Your report title/headline is important and must emphasis the result people will get without the related pains! you can write in the form “How to …. Without…”, or “5 ways to … Without …”. For example, “How to generate 50 to 100 leads a day for FREE”, or “How to make $10k month on autopilot, without picking up the phone!”. You can figure something better, related to what you’ll be promoting back-end.
– Case Study
Instead of advertising your business opportunity, most of top earner marketers believes it’s much more better to advertise your SLO first. Let’s see it in one realistic simulation.
Let’s say you have a high ticket product (coaching program for example) that you want to advertise. You create a facebook PPC campaign, and a solo Ad. Let’s assume you spend $2,000 per month to advertise on both channels, and that for this amount, you can generates 300 leads (considering 50 cent per click and 30% opt-in rate, which is the current average for my running campaigns).
Of those 300 leads, 6 become paying customers this month (2%). You charge $1k for your back-end product, so you generate $6k in sales. In essence, that means you spend $20 per lead ($6k/300) or $1,000 to acquire a new customer ($6k/6). You sell your coaching program for $1k each, so you generate $6k in sales and make a $4000 gross profit.
This is kind of good result, but I do believe that we can improve our advertisement. Instead of advertising the “Coaching Program” on the front end you could advertise a first step video training, or a report about one success story using you coaching program. You could sell it for $19.95 each. Let’s assume you spend the same $2,000 advertising budget. In this example, 300 people express an interest in what you have to offer (same as above). Out of those 300 people, 100 purchase your video / report for $19.95 each. This puts $1995 in your pocket with immediate sales, so even if you don’t sell the coaching program now, you keep the 300 leads in your list (with the possibility to up-sell other products to them in the future), for only 5 bucks!!!
Assuming also that you still generate 6 high ticket paying customers this month from the 300 leads. This puts another $6k in your pocket ($1k / sale x 6 folks). In this example you made $1995 from your SLO and $6,000 from your coaching program. That equals $7995 in revenue minus $2,000 in advertising costs. You now get $5,995 in profit, compared to the previous $4,000 from the first scenario. That is the power of a self liquidating offer.
You see now why it’s really a better approach to always sell low cost information product in front-end, so that you can easily convert them into “small buyers”, build the trust and up-sell your core offer back end for better results. In short, SLO allow you to:
- Build a list of buyer (instead of cold lead)
- Optimize your marketing budget management
- Scale your business by constantly reinvesting your “virtually unlimited” advertising fund
- Be among the top earners in your niche on a fast track.
Then it’s time to implement your SLO. Don’t wait, start now! If you are looking for a plug and play program where the low ticket and high ticket, the marketing funnel and the entire system are done for you so that you only have to invest in buying the initial traffic (remember you’ll recoup your money back with SLO strategy!), i strongly advise you read this book for more details about this system.