In this episode I walk you through a new Facebook campaign I recently launched, which failed. We were testing out a new concept (which worked beautifully) but the actual campaign didn’t do well. I walk you through exactly what it looked like and most importantly, why it DIDN’T work and what we’re changing for round #2 to make it work like gangbusters. Enjoy!
Visit http://www.JeremyReeves.com or email me at [email protected]
Hey, what’s going on guys and girls, Jeremy Reeves here again with another episode of the Sales Funnel Mastery podcast. Today, I am going to tell you about a giant mistake that I made last week, right. So, everybody you know, I kind of decided to do this podcast because everybody always talks about the amazing things that they did you know. They only talk about things that are going well you know.
So let me — I will kind of throw it in there real quick. I actually just got a testimonial from a coaching client of mine. We did a funnel day, kind of map out the funnel and then she (inaudible 0:38.5) coaching client to kind of you know, put the funnel together and she actually just emailed me over the weekend and told me that that new funnel is now converting 3 to 5 new customers every single day to a $350 product, so that is, whatever that is, like $1300 a day from nothing before that, and it is consistent too because it is through an automated webinar. We have this whole sequence set up. So I am pumped about that. So that is — we will start off on a good note there.
So what I would like to talk about is a huge mistake that I made with one of my own campaigns, right. So, if you are on Facebook maybe you saw one of my ads recently. I just post a campaign this morning. Essentially, what it was, was Facebook ads to a report, my top 10 resources and tools that I used to build sales funnels, okay. That was the free PDF download and then after that it was a $7 upsell to my 9 Growth Hacks for sales funnels, right. So 9 you know, funnel hacks if you will, right.
And then after that was an upsell for copy templates, okay. So that is the funnel, alright. So, I want you to think for a second about why that funnel is a terrible funnel, okay. I put this together really fast, I was testing a concept, that is why I put it together really fast. I think we put it together like 2 hours. It was just stuff that I already had, kind of just threw it together, you know, threw some Facebook traffic, couple $100, Facebook traffic and I was testing something else. So it was not really like anything they put any thought into. It was more of a concept that I was testing, but I want you to think of that and think of the funnel and I want to see if you can figure out what the problem was, okay. So again, Facebook ads okay, to a landing page and opt in page that gave away a free report and that report was the top 10 tools and resources that I used to build sales funnels.
The first product was 9 Sales Funnel Hacks, okay.
So think about you know, think in your head what might be wrong there, okay. I am going to give you a second to think about that and then I will tell you what went wrong and I will tell you some of the stats too.
Okay, so a couple of seconds. So did you come up with anything? Did you figure out what the problem was? So basically, if you think about it — so let me start with — I am going to give you an open loop here for a second, let me give you cliffhanger and I am going to tell you some of the stats first, right.
So Facebook ads were doing well. Not usually relevant and I think that — I think the relevancy scores maybe — I think it was like 4.5 something like that, not great. I was paying $2 a click, so not great, alright on the relevancy side of things.
And that I think was because, I just threw some — again, we are just testing a really quick concept. I just kind of wanted to see how it played out. So I did not put a lot of time into thinking about the audience, alright. It was just a whole bunch of internet marketing gurus and you know, things like that.
Actually we are testing a new thing with Facebook ads and that actually work out well.
So that was kind of okay, you know. If I had somebody else doing it for me you know, which normally I would then it would do better and if I actually put some thoughts into it, you know, the relevancy score would go away up the cost per click especially with would come way down you know, $2 cost per click is way, way too much you know, it should be a $1 or less really.
So that part was kind of okay for this test, right.
The conversion rate was about 50%, alright. So that was awesome because we are getting $2 of click, we are getting roughly $4 cost per lead, alright and you know, and the various ads had different metrics, but that was like kind of the overall.
The one that had most of the traffic was about 350. Another one was about I think it was about 5 and average about $4 cost per lead, alright, which you know, $2 cost per click, $4 cost per lead, gives you 50% opt in rate.
So that of course was great, alright. So 50% opt in rate to the report offering you know, the resources and tools that I used to build funnels.
So I got — I think it was 75 people threw it and my goal — now let me bring you up, let me pull up my thing here. This is what we needed to break even, okay. So this was going to be a campaign that we want to break even. I do not want to profit on it. I want to break even because I want to get new customers and essentially build my list and generate customers for free, okay, that is the whole purpose of this campaign, it is kind of the end game, it is something that I want to scale and spend you know, like $1,000 a day on or something like that you know, that would be, whatever that is you know, 500 new leads a day, something like that.
That is kind of where I want to take this and you know, I would not be able to — if I am going to scale it basically the further you scale, the less profitable you are going to be. So essentially, I want to break even on the first transaction, alright. That is the whole goal of this and to do that I made a little calculator and what we would — the numbers we have to hit are $2.50 cost per lead okay, that is achievable considering we already hit $4 and the you know, the cost per clicks for like $2.
So I could easily get that down to you know, $1 and get whatever like a 40% opt in rate and that would give me a cost per lead of $2.50, roughly.
So and then we will do a 1000 leads total let us just say it is a day or month or whatever it is. So tripwire price $7 and an upsell for $97 and if we get a 10% upsell on the tripwire so 10 out of 100 people buy the $7 product and then 2 out of every 10 of the tripwire buyers by the upsell, alright.
Very realistic numbers if you have the right offer and the right relevancy and the right targeting all that kind of stuff, that would essentially bring us to break even, okay.
The revenues spent or the whatever it would be, the cost per lead would be $2.50, the value per lead in that scenario would be $2.64. So that is basically an ROI of 106% so it is just above break even.
Those are the numbers that we are trying to hit with this new campaign.
Now, what was the ROI? ROI was 0, right. So we ran 75 leads through the campaign and got 0 sales. Now, remember, we got 50% opt ins in the front end, that is great, it is more than where we wanted to be so that is awesome.
We got 0% to buy the tripwire, okay, and by the way, this is only stats like immediate, they have not gone through the email sequence so we will get some sales, but it is not even near where we need to be because we need to be at 10% tripwire conversion, so I should have had 7sh sales by now or at least maybe like 4 and then let the email you know bring in the other 3 right.
So here is the reason why this one did not work, right. The reason is because of relevancy, okay. Actually, the reason is because of its relevancy and a problem, alright. So there is basically 2 reasons.
Number 1 relevancy. The thing we are selling is not relevant to why they join in the first place, okay. So they are coming on to the list opting in for resources, okay and then we are saying, hey, here are our sales funnel hacks you know, it is kind of a very — it is a little bit of a generic product. It is actually really bad ass product for $7, you should go buy it from the website. It is really, really, really good for you know, I mean for you know, for a $197, but the topic of it is very generic. It is not very specific to solving a very specific problem okay, and when you are marketing especially on paid traffic, you need a very relevant problem to give very specific solution you know, to that problem, alright.
So the problem was number 1, the relevancy between the opt in so the PDF that we are given away and the product, alright. So if you are looking at your funnels and you are having trouble with that, look at the relevancy between step 1 and step 2.
So that was the first problem, but the — I think the bigger problem here is that we are not attracting people with a specific problem, alright. So if you think about it, you know, the opt in — everybody likes tools and resources and stuff like that, but think about the person who — think about the people who are retracting, right. There is nothing wrong with them you know, specifically, but in terms of trying to sell them something we are not giving a solution to a specific problem okay. So they are downloading tools well, I mean what problem do they have. They are not dealing with anything specifically. So anything we offer to them is going to be like, you know, whatever, you know, they may or may not be dealing with that problem and you know, not only are we giving — not only are we not giving a specific solution to a specific problem, but they may or may not even be having a problem and we are trying to sell them a generic product, alright. So you can see on both sides the opt in and the product that we are trying to sell are not really relevant to each other. You can make a case for it but they are not you know, specifically congruent to each other, not specifically relevant to each other and were attracting people that are not dealing with the specific problem that we can then solve for them, alright and that is why this campaign failed, okay. And again, you know, this is not normally — I kind of did this to you know, show you guys and I realized it is kind of putting me in a bad light, but again, we put like 5 minutes of thought into this. It was like, hey, what do we have, let us just throw it together because we were testing a different concept, right, and so we were not really even looking for the results. We are kind of just testing something out that I cannot really reveal it yet.
So the concept that we were testing actually did work. So we got a win out of it, but you know, I saw the results on this, I just look at it this morning and I wanted to show you guys number 1 that you know, if you are listening to somebody that is teaching you about marketing, they should be telling you what they are doing are wrong too, because I know that for me, and I am sure for you too, all of your biggest lessons that you have learned come from your mistakes, right, not from your wins. It is always the mistakes that lead to the lessons.
So I wanted to show you this one and really to help you because a lot of people especially with paid traffic, it is hard to get to work you know, paid traffic and so you have to do a lot of testing and tweaking and you know, all kinds of different things.
So if you are doing paid traffic you know, the big thing with paid traffic is you need — you cannot be going to and reaching out to a general audience. You need to be going out and offering you know, picking segments of your audience and giving them a very specific solution, alright.
So the campaign that we are putting together now is for that. It is actually going to be for emails you know, so it is going to be a whole you know, a whole solving email problems essentially. I would not go through the whole thing yet, but that is essentially what is going to be. It is going to be a very specific problem, very specific solution, it is going to be a very logical kind of chain of products you know, that we are going to do and I can pretty much guarantee you that is going to be 10 times better than this especially considering this one did not make any sales. Now again, (inaudible 13:28.1) 75 leads you know, we really do not have enough to see but you know, again, we were just testing a different concept, but I thought it was a good mistake, a good lesson for you guys and girls to work.
So yeah, so that is it. I hope this helps you make 1 last mistake in your business. I am actually going to go to the drawing board a little bit later in my day today. It is gorgeous here in Pennsylvania, so I am actually going to be mapping out the next funnel later on today, you know, going to take out a cigar, you know, take my white board, take it outside, have a cigar and lay out the whole thing. That is what I do when working with clients is lay out because you need you know, you need the specific problem. You give them a specific solution you know, kind of take them down to funnel and that is what I normally do with clients. This time, you know, I am just testing on something real quick.
But anyway, I hope that helps you. If you would like to chat about doing one of these funnels for your business whether it is you know, converting to your existing audience, whether it is taking your existing funnel and making it thousand times better, this is kind of like what we specialized in is taking something that is already working well and making it just completely taking it to the next level. That is kind of like what we did with Melissa, who is now making $1300 a day from her funnel you know, which before you know, we started working together, she was doing actually, I will do a separate case study just on her once I get her approval on everything. I can kind of walk you through the you know, everything that we did for you know, it was a pretty bad ass. She is a bad ass entrepreneur, but anyway, I hope you enjoyed this and reach out if you are interested in chatting about a funnel, otherwise, if you are enjoying this podcast by the way, everybody you know is telling me you know, what an amazing podcast is because I just laid it out there, I am honest, transparent and I know you guys like that. I know you guys like that I actually deliver value, believe it or not you know, a lot of podcast it is all about you know, they bring on interviews and it is all about their stories and all that freakin crap. So you know that and we do not do that here.
So if you are enjoying this podcast, you know, tell all your friends about it. It is shred on social media. Give it a review that is the big thing here. That will lead to a bigger growth for the podcast you know.
So anyway, I hope you enjoyed this and I will talk to you soon.