Episode #041: Breaking Down Our Newest Funnel
Breaking Down Our Newest Funnel
Wanna see behind the scenes of our newest funnel?
We get into the nitty gritty and talk stats, profit, sales, allll the good stuff!
I hope you enjoy this episode!
-Zach
Links Mentioned on the Show From Zach:
Not Your Average Membership Use code PODCAST to get 30 Days for $30
Full Transcript:
This is Not Your Average Online Marketing Podcast episode number 41. In this episode, we're breaking down our newest funnel, how it's performing, giving you some stats, telling you what is and isn't working and breaking it down. If you're ready to go behind the scenes of a funnel, this episode is for you. Stay tuned.
Hey, hey, hey, not so average marketer. Welcome to another episode of the podcast. Now, I'm really excited because I'm going to take you behind the scenes of one of our newest funnels. I'm going to be really honest with you, it's not exactly profitable yet. And you might be listening to this episode going, "Zach, why would you take us behind the scenes of a funnel that's not necessarily making money?"
Well, the good news is it is making money and it's pretty darn close to profitable. I'm going to explain how and why that is as we dive into the episode. I want to start by explaining kind what we did over the last 30 days or so to kind of prep our business for this new idea. I met with my coach and I was kind of talking about how we wanted to bring more people into our membership, which if you're listening to this on your podcast app, you just heard a little short advertisement for that membership. We're trying to grow our membership to about 500 people at the end of the year. We're sitting right around 300 right now. I said, "I know that I need to generate more conversions, more customers, more engagement, even when I'm not actively launching the membership."
We kind of dialogued and figured out that one of the things we could do was set up some automation to kind get new people into the membership. What we did was a couple of things. First, you guys know that I'm a huge advocate if you're a regular listener of low ticket offers. I absolutely love low ticket offers. I think that they're really powerful. I think they can work really, really great, and we love low ticket offers. They just work really, really well for us. We started by saying, "What can we take as a low ticket offer that's directly related to our membership?" And our membership is all about growing your email list with Facebook Ads, creating consistent revenue, setting up a low ticket automation and funnel.
We said, "What if we took our Facebook Ads Bootcamp, which is a $25 product that we have, and it teaches you how to set up list building ads in about five days or less, and we sold that for $25 and we moved people who bought that into the membership?" We started kind of asking, how would we do this? And to be completely honest with you, what we have found is not that it's impossible, but lately it's been harder to run ads directly to a low ticket product. Again, not impossible. It just takes a lot of time and testing. While I love getting low ticket buyers, I kind of ask myself, what is my big goal for the year? I went back to the drawing board and I met with my team. One of our big goals for this year is to get a lot of people on our email list.
We want to build our email list. Right now it's actually sitting right around 15,000. We're at 15,413 at the time that I'm recording this. We want to get it to 20,000 by the end of the year. We have a lot of work to do. The reason we want to do that is because we're trying to get more people listening to the podcast, get more people into the membership. I just want to be clear. I'm not saying there's anything wrong with running ads directly to a low ticket product or selling low ticket products directly. But for the grander vision of our business and the impact that we're trying to make, it's really important that we grow our email list.
I just kind of started asking these questions to myself like, well, if I want to grow my list and I want to connect my low ticket product to my membership, how can I make this all work together? I want to walk you through how the funnel is set up, what it looks like, how it works, and how we positioned it. I already told you what the low ticket offer is. That's kind of the middle of the funnel. But the way the funnel starts is we created a Facebook Ads swipe file, which contains some of our best performing Facebook Ads, and it teaches you kind of how you can leverage these Facebook Ads to get results in your business. We started this in early August. It's now August 18th at the time that you're listening to this.
I'm actually recording it this morning, so I can give you the most updated stats. We've had just over 700 people go through the funnel. Now, of that 700 people that have gone through the funnel, about 3% of them, 22 to 23, our stats aren't super clear because there's one sale we haven't figured out where it came from, but about 3% of people that have gone through the funnel have bought our bootcamp. They opt into the freebie. They've gone on to buy the bootcamp. And of the people that bought the bootcamp, about 30% of those people then go on to buy the membership. The question becomes, how are people moving through this and how are we of getting them to take action?
We start with an email swipe file, or I'm sorry, a Facebook Ads swipe file that we send out via email. As soon as people opt in, we have what we call a trip wire. A trip wire is basically where as soon as someone opts in, the thank you page for the opt-in is an offer to buy our $25 bootcamp. Now, not everybody takes us up on that. Not everybody who sees that offer buys it right away. In fact, we found about 50% of the people who are buying the bootcamp are not buying it on the thank you page. What we do is we have a sequence of emails that we send out for the bootcamp. Now, generally what we do is a series of four to five very concise high value emails. Now, we tried something a little bit different this time.
We are sending out a series of 10 emails over the course of seven days that really hammers home all the benefits of joining the bootcamp. The first day you get two emails. The second day you get two emails. The third day you get two emails. And then every day after that, we send one email, and each of those talks about the benefit of joining the bootcamp. Now, one thing that I want you to understand, because the question now becomes, okay, so if somebody buys the bootcamp, how do you move them into the membership? We do this two ways. As soon as you buy the bootcamp, we have a video upsell on the back of the bootcamp that offers people the ability to join the membership for part of the price. Now, what do I mean by that?
Basically you just paid $25 for the bootcamp. Our membership is $49 a month. You can apply the $25 you just paid for the bootcamp into your first month of membership. For just 24 more dollars, you can get a full month of membership, instant access to the bootcamp, plus a slew of additional trainings. We have a video upsell that really positions this as like, oh my gosh, total no brainer. You should definitely check this out. Now, the other thing that we do is once you buy the bootcamp, you're then going to go through a series of emails that promotes the bootcamp. Once you buy the recordings, we have a series of emails that go out to all new recording purchasers, because the bootcamp is pre-recorded, that says, "Why should you join the membership?
What is the benefit of the membership?" We continue over the course of six days to just let them know, hey, here's the benefits of joining the membership. Here's how to get the most out of the membership. And really it's positioned as, hey, we want you to get lots of value from the membership. If you want, you can still apply that bootcamp coupon. We have a series of emails that go out after you purchase the recordings that encourage you to use that bootcamp coupon for the $25 off to enroll in the membership. Let me just take a step back because I know I've given you lots of information, but I really want to walk you through kind of how this works. Basically, number one, you opt in for a freebie. That's our Facebook Ads swipe file.
As soon as you do that, you get offered the $25 Facebook Ads Bootcamp for Lead Generation. If you don't buy that, you'll go through a 10 email sequence that promotes the bootcamp. If you do buy it either in that sequence or from the trip wire, you go into a seven email sequence that promotes the membership for $25 off if you apply what you paid for the bootcamp. Now, I want to be really clear. The reason that we feel good offering a discount for the membership is that the bootcamp is part of the membership. We offer that bootcamp inside the membership training. If you just paid for the membership, why not give it to them at a discount because they've already paid for part of what's inside the membership? That's the process.
Now, the reason I'm sharing this with you isn't so that you can go out there and copy it exactly or try it for your business. I'm sorry. It is so that you can try it for your business and you could copy it exactly. But more what this episode is about is getting you to think differently about the things you could be doing in your business. What's working? What's not working? What do you want to change? What do you think of this funnel? How does it play out in your mind? Are there places you could add sequences or trip wires or additional offers or email sequences that could continue to push things to the next level for you, right?
That's the point of this episode is to help you think about these things, because I want to get really down into the nitty-gritty and talk to you about the numbers of how this funnel is actually performing. First things first, we started this funnel in early August and we've spent just under $1,800 on the funnel. We've spent $1,783.52. Now, how much revenue has this funnel generated directly is $671. If you're doing the math on that, you might be saying, "Zach, that means that you've spent $1,112.52 at a loss." That's a loss. Well, yes and no. Because at this same time, we've generated 548 new leads from Facebook Ads. Those leads are coming in at $3.25 a piece, which honestly is a little higher than I want.
I want to work on the Facebook Ads and the targeting and the strategy there. But after you take out the revenue, the $671 in revenue, we're actually averaging around $2 cost per lead, right? Because we have that funnel, we're actually generating leads at about $2 a piece, and six to eight of those new people we can track became members. The average member in our membership is worth about two to $300. Now, because this is a new funnel, we don't know how long people will actually stick around, but people stick around on average four to six months, which is worth two to $300, which means we've actually generated about 1,200 to $1,500 in revenue over the next four to six months.
If you're doing the math now, our funnel is actually profitable a hundred to $400, give or take, over the next four to six months. Now, we have other offers in our business. We have our agency. We have our coaching program. We have one-on-one clients. And that means that we can afford to spend a little more upfront than we're making in the long run because we have other sources of cash flow. What that means is we're actually growing our email list for free, so to speak. It's growing and in the long run, we'll generate more revenue than we're spending on growing the list. That's a really, really powerful thing to think about.
Now, if you don't include that and you say, "Okay, I just want to look at how much revenue has been generated up front," we're still getting leads for $2 a piece and we have 548 new leads from Facebook Ads. We have over 700 people who have opted into the freebie, but about 550 of those came from Facebook Ads. What that means is that I've only had about 22 sales of the bootcamp, which means that over 525 leads have not bought an offer, but they've raised their hand and said, "Yes, I'm interested in Facebook Ads." I've actually added 500 new people to my email list total, right around there, because some people were already on my list, some people opted in from social media, and that's okay.
But we've added about 500 people to our email list who are interested in learning more about Facebook Ads, which is exactly what our membership is about. In the long run, what that means is that when I launch my product, when I launch my membership, when I launch my coaching programs, when I launch my standalone workshops, I actually am building an audience of people that I can promote to. It also means that I'm growing everything. My list grows everything. When I release this podcast, we'll probably have more listeners this week than we did last week. When I release a blog post, we'll have listeners. As I'm working on one of our new project is TikTok, I can email my list about being on TikTok and get them to come follow me.
There's just so much benefit to growing the email list beyond just, oh, how do I create direct revenue today? I've talked about this on the podcast before, and I want to take a moment to talk about it again, that what we're seeing is this big trend that it's not about how you make a ton of money in a launch really quick, really fast, kind of as fast as you can. That's not what it's about anymore, right? What it's about is creating and nurturing long-term relationships with new potential customers and leads. The way that I'm thinking about this is, hey, it might take me three to six months to recoup my ad spend in terms of recurring subscriptions and new members.
However, I'm adding hundreds of people to my email list, growing my podcast, growing my reach, creating more virality. It's allowing me to grow the business faster. There is just so much power in having an audience, and that's what I want you to think about. Even though this funnel originally started as, how do we grow our membership, I think of this as our audience growth funnel. It's always growing our audience. Now, there's two other things that we're doing with this funnel that I want to point out just to kind of throw out there. They haven't been wildly lucrative or successful yet. But to be honest, even at 500 people, we just don't have a ton, a ton, a ton of traffic, but we've been running a couple retargeting ads.
Inside of our Facebook Ads account, we have a retargeting ad for everybody who checks out the membership site that reminds them, hey, don't forget to come join the membership. And then we also have as well a retargeting ad for everybody that has visited the bootcamp page or opted into the freebie that reminds them to come back to the bootcamp page and joined. Now, we haven't directly tracked any purchases, though we have found that people clicking on these ads are buying other products on our website, so they've actually been profitable retargeting ads. But what we're really testing is to see how we can get people back to our website and continue to keep them in our ecosystem and continue to keep them looking at our products.
Super quick recap, we've spent about $1,800 on ads. We've made about 700 in revenue, which means we've spent about 1,100 total on 548 leads, which breaks down to about $2 cost per lead for six to eight new members in the membership, which will bring in about a thousand to $1,200 over the next three to six months. And just like that, we're looking at an audience building funnel. As you're finishing up this episode, I want to remind you that we'll link everything up in the show notes for you. We'll link up that Facebook Ads bootcamp that you can check out for $25 if you want to see the funnel. We'll link up our membership, which we talked about at the beginning of this episode with little pre-roll advertisement, and we will also have a complete transcript of the show.
We'll have a full transcript and show notes over at heartsoulhustle.com/nyap041. Again, that's heartsoulhustle.com/nyap041. We'll have a full transcript of the show waiting for you that you can check out there, and we'll have everything linked up as well. I want to leave you with this thought, funnels can be great and funnels can work well. But if you're like me and you have a low ticket product, your funnels need to be more focused around the idea of building an audience and thinking long-term. We know that the next time we launch, we're going to have an even bigger audience to promote to. We know that we're going to have more people connected to and engaging with us. We know that our podcast is going to get more listens.
And because we talk about our membership on the podcast, we're going to get new podcast membership signups. We already saw our podcast has converted to two new members this week. There's just so much value to building a funnel, even if it's not profitable right out the gate. And that's what I wanted to share with you. We have a new funnel. We're tweaking it. We're optimizing. We're looking at stats, and we'll talk about that on future episodes. But the goal is to always be growing, always be growing the list, always be growing the audience, always be growing the engagement, and then refine, tweak, and improve. We are here. We are right alongside you.
Our funnel is not perfect, but it's in progress. And as we continue to refine it and improve it, we'll update you guys on the show. But my hope with this episode is that you get lots of inspiration about what you can be implementing into your business, your funnels, and your profitability. Again, if you want to check out the show notes and full transcript, it's heartsoulhustle.com/nyap041. I hope you get lots of value from this episode. And until next time, stay not so average.
