In episode #8 of the Sales Funnel Mastery podcast, I’ll show you the FASTEST way to exponentially increase the effectiveness of your sales funnel. In it I’ll show you how a simple 10% increase in conversions can translate into a 43% increase in profits.
During this show you’ll discover…
- Where to spend the most time testing your sales funnel (this is CRITICAL to know if you’re trying to ramp up as fast as possible)
- A 10 minute strategy that can double the amount of front-end sales you make
- How to price your upsells for maximum effectiveness
This is a can’t-miss episode. If you aren’t split-testing EACH step of your sales funnel, this should show you how vitally important it is to do so.
Listen To The Podcast!
www.FunnelFormula – Go here to get a calculator and free training video showing you exactly how much you can increase your profits by adding a properly built sales funnel.
Here are the numbers for the ORIGINAL sales funnel…
CTR – 1% (10,000 visitors)
Optin – 30% (3000)
Salesletter – 2% – 60 sales x $97 = $5,820
Exit Popup – 2% – 60 sales x 1 and then 96… 66% stick rate so average to $60. 60 x $60 = $3,600
Upsell #1 – 20% of 120 at $47 = 24x$47 = $1,128
Upsell #2 if yes – 5% of 24 at $397 = 1.2 x $397 = $476
Upsell #2 if no – 2% of 96 at $397 = 1.92 x $397 = $762
TOTAL REVENUE = $11,786
What Happens If You Get A 10% Increase In Conversions?
CTR – 1.1% (11,000 visitors)
Optin – 33% (3,630)
Salesletter – 2.2% – 80 sales x $97 = $7,760
Exit popup – 2.2% – 80 sales at 72.6% stick so average to 70.4. $70.4 x 80 = $5,632
Upsell #1 – 22% of 160 at $47 = 35.2 x $47 = $1,654
Upsell #2 if yes – 5.5% of 35.2 at $397 = 1.76 x $397 = $698
Upsell #2 if no – 2.2% of 124.8 at $397 = 2.74 x $397 = $1,090
TOTAL REVENUE WITH 10% INCREASE = $16,834
43% increase in total revenue
Hey, this is Jeremy Reeves here and I want to welcome you to another episode of the Sales Funnel Mastery podcast. Today I’m going to be looking at the compounding effects of split testing your sales funnel. This one is actually going to be a little bit of a doozy. If you like the fall, I’m going to show the numbers that I’m using to get the results that I’m about to talk about.
What I want you to do is go to www.jeremyreeves.com/salesfunnelnumbers. I’ll also put this in the description of the podcast and everything, so you can go right to it. That’s going to help you follow along a little bit better as I go through these numbers.
I’m going to take you through a sample scenario of someone who set up a fairly decent sales funnel. Some of the sales funnels I create for clients are a little bit more advanced than this, but this is a good foundational sales funnel that I recommend for most people. The one that I’m going to be doing is for an information product, just because the numbers are easier. Sometimes it’s a little bit harder to do for an offline business or something like that, it’s not really applicable to other places. This is something that you can run the numbers on your business and make it applicable.
We’re going to start off and we’re going to say that your business—and it doesn’t really matter what business it is, it’s just the numbers that we’re going to go over here. We’re going to say that over whatever period of time, say it’s a month, this person gets a million page views; which isn’t really that hard if you’re doing any kind of paid advertising. Getting a million page views isn’t too bad. If you get a one % click-through rate, it gets you 10,000 visitors. You might get that a month, maybe it takes three months, whatever it is.
We’re going to assume that the person gets a 1 % click-through rate, so it’s 10,000 visitors. Then they send them to a landing page, where it offers some type of lead magnet to get them on an email list. That opt-in page converts at 30 %. That’s 3,000 visitors that they’re getting to their sales letter. Out of those 3,000 visitors, 2 % take an offer that’s $97. That’s 60 sales at $97 is $5,820.
What this person also does is add an exit popup to that sales letter. If people click off the page, they get an exit popup that says, “Hey, maybe you didn’t want to pay the $97, but here’s your chance to get it for $1. You can pay the rest in 30 days.” We’re also going to assume that it’s a 66 % stick rate on that. I’m just rounding here, but I’m going to essentially bring that average price because you’re going from $97, and about a third of those people are cancelling, so you’re not going to get that money.
I’m going to take it down to an average order value of $60. That’s an extra 60 sales, because that exit popup also converts at 2 %, same as the sales letter. Essentially, you get about half your buyers from the exit popup, half your buyers from the sales letter. That brings you in an extra $3,600. Right now, you’re up to 120 buyers.
Now, they go into your upsell funnel, so all 120 people get upsell number one, 20 % of those take that first upsell at $47. That’s definitely reasonable because that’s about half the price of the original product, original sale; 20 % is a reasonable number. That gives you 24 buyers at $47 each, which is an extra $1,128.
Out of those people who said “yes,” that’s 24 people. That’s assuming a 5 % of people that bought the upsell go on to upsell number two. We’re going to split them up between people who saw it and people who didn’t. 5 % of the people who said “yes,” also take upsell number one, also take upsell number two. That is priced at $397, roughly four times the price of the original product. That gives you 1.2 buyers at $397 and gives you an extra $476.
For all the people that said “no,” to upsell number one, they get one additional upsell. We’ll call that upsell number two, to people who say “no” to the first one, 2 % of those 96 people paid $397. That’s another 1.92 people. I know the numbers are weird, but we’re just going off averages, at $397. That brings you an extra $762.
That is the end of your funnel. You can add other stuff. You can add retargeting. You can add all kinds of different things, direct mail, to improve those numbers; but just for the sake of simplicity. Again, if you’re having a hard time following along the numbers, I know that’s a ton of numbers, just go to jeremyreeves.com/salesfunnelnumbers. If you go to my show notes, that will show you all these numbers. I’m going to put them in there.
That brings your total revenue of $11,786. If you’re getting 10,000 visitors and, let’s just say you’re paying a $1 per click, you’re barely breaking even. You’re only profiting roughly 11.7 % or so. Your profit margin is really low. Unless this is a 100 %, you have no employees, no operating costs, anything like that; you’re probably in the hole here. You’re probably not even making money.
All I’m going to do, and this really shows you the power of the compounding effect when you start doing split testing and you split test, not only your landing page or your sales letter or whatever, but everything in the funnel, which really isn’t hard. It’s really easy to do.
Instead of a 1 % click-through rate on your banner or ad or whatever it is, you get a 1.1 % click-through rate. That brings you 11,000 visitors instead of 10,000; basically, an extra 1,000 visitors. Instead of a 30 % opt-in, you get a 33 % opt-in. Instead the sales letter converting at 2 %, it converts at 2.2 %. Instead of the exit pop converting at 2 %, that also converts at 2.2 %.
Instead of your stick rate being—Stick rate, by the way, if you don’t know, let’s just say you have 100 people that sign up for a program, if 66 % of those people stayed on to pay for the full product, for the $1 trial, then that’s a 66 % stick rate. Instead of a 66 % stick rate, we bump that up 10 % and it goes to 72.6 %, so 72 out of 100 people are sticking with the program, essentially.
For upsell number one, instead of 20 %, at this point, I’ll give you some updates on the other numbers. At this point, instead of having 120 buyers, you have 160. Instead of a 20 % upsell number one, it’s going to jump to 22 %, because it’s a 10 % bump. You’re giving that out of 160 people, so that gives you 35.2 buyers at $47.
Upsell number two, for the people who said “yes” to upsell number one, we’re going to take 5.5 %, instead of 5 % of the 35.2 people who bought the first upsell. That gets you 1.76 people buying that upsell at $397, for an extra $698. The last step is 2.2 %, instead of 2 % of the people who said “no” to the first upsell, will say “yes” to the second upsell. Now, you’re with 2.74 buyers of upsell number two at $397 each, and it gives you an extra $1,090.
If you only increase these pages, the conversion rate on each of these pages, by 10 %. This is not hard, as I pointed out. That’s an opt-in rate of 33 % instead of 30; a sales letter conversion rate of 2.2 %, instead of 2 %. That’s, essentially, you’re selling out of every 1,000 people, that’s 22 people instead of 20. It’s not that hard. They’re just tiny little tweaks. You can do this. This is really, really easy. If you know how to do it right, of course.
Now, the original total revenue was $11,786. With the 10 % increase across the board, that number jumps to $16,834; which is a 43 % increase in total revenue. That gives you, you can probably – if you have somebody working on this for you or you can do this yourself or whatever, you can have essentially an extra, roughly $5,000, just by adding a 10 % increase to each step of the funnel.
If you think about that, it’s pretty amazing. It’s a 43 % increase in your total revenue that you’re bringing in. You can hire more employees. You can get affiliates now to start mailing for you and show them good numbers. You can start acquiring your competitors, so you have less competition in the marketplace. You can buy more traffic. You can do all kinds of things. 10 %, I’m telling you, is not hard to do.
That’s it. That’s pretty much what I wanted to show you today. How just adding a little bit of increase to your sales funnel and having that whole sales funnel to add increases too, can add tremendous amounts of increased profit to your business. Then once you start testing, some of these you might get 40, 50, 100 % increase.
Imagine if you instead of 1 %, maybe you bump it up 50 % by coming up with a really, really good banner campaign, a really good hook on the front end of your sales letter to 1.5 %, which gives you 15,000 visitors instead of 10,000. Then you’ve bumped up the entire thing again another 50 % because at the top of the funnel, that’s where it makes the most difference. It makes less difference in your sales funnels. That’ll be a topic for a future episode, so we’ll get into where to focus your attention when you’re split testing your funnel.
That’s all I have for today. I hope you really enjoyed that. If you want to see these numbers, go to www.jeremyreeves.com/salesfunnelnumbers. It should be in the description, the show notes. You can go there and actually look at these numbers. I actually have a calculator that you can also get if you go to www.funnelformula.com. That calculator, you can put these numbers in and put it in your funnel. It shows you what kind of increase you can get by having a systematic sales funnel in your business.
I hope you enjoyed that. I hope you really opened your eyes to if you already have an existing funnel in place, make sure you’re split testing it because it is super, super important. If you have any questions about this, just send me an email. I hope you enjoyed this and I will talk to you soon.