Jason's How to Build Wealth & Golden Nuggets

[JasonR]

I have a question. My business is usually a one-time sale, it's very rare to get repeat customers but we get alot of referrals. So my LCV is equal to a single purchase. But LCV ranges from $500-$1000. My CPC is about $3.50, so I'm trying to figure out how I could apply this to my business. Average "cart" or sale is $5000. I have the opposite issue where my first sale is huge and I cannot think of how to keep the customer as they usually blow their wad initially.

LCV is Lifetime Customer Value.

Well, I would say you don't have a LCV problem.

But, knowing your business, I have a few ideas that may work for you, but can't really post them here without giving away your business.

Have you considered an email list? A customer who buys a $5,000 product/service, I'd imagine, would be likely to buy another one from you.

 

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[biophase]

deleted don't know if it was your niche

No it was not.

 

[biophase]

LCV is Lifetime Customer Value.

Well, I would say you don't have a LCV problem.

But, knowing your business, I have a few ideas that may work for you, but can't really post them here without giving away your business.

Have you considered an email list? A customer who buys a $5,000 product/service, I'd imagine, would be likely to buy another one from you.

Jason, we'll talk over the phone. I do have an email list. I just need to find more offerings and am working on that now.

 

[Kyle Tully]

LCV is profit right? Not customer's spending amount.

OK I see what you're saying, $5000 sale which is $500-$1000 profit.

With a CPC of $3.50 and low-end profit of $500 you can currently afford to buy 142 clicks to make a sale and still make a profit. If you're converting at 0.7% or better, you're in business. If not, either work on increasing your conversions, find cheaper traffic, or increase the LTV.

Whichever way you look at it you want to increase LTV.

That could mean things such as:

Increasing initial sale - bundling, packaging, warranties, service packages, higher end options, upsells, crosssells, downsells etc.

Increasing repeat business - email, direct mail, postcards, coupons, follow up calls, ride along offers, continuity programs, new products.

There are a million ways to do it depending on your product/service/model.

 

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[Vagabond 007]

I have a question. My business is usually a one-time sale, it's very rare to get repeat customers but we get alot of referrals. So my LCV is equal to a single purchase. But LCV ranges from $500-$1000. My CPC is about $3.50, so I'm trying to figure out how I could apply this to my business. Average "cart" or sale is $5000. I have the opposite issue where my first sale is huge and I cannot think of how to keep the customer as they usually blow their wad initially.

Without knowing more about your business, tough for us to help. I'm sure there is something we could come up with though. I've only come across about 2 businesses that don't really have repeat customers. One was a client of mine that is in the wedding niche. Although, technically he did have a repeat customer, but it's only happened once in his 20+ year career.

I'd love to try and help you more, so if you feel comfortable sharing some info with me via PM, feel free. If not, I totally understand.

 

[biophase]

Without knowing more about your business, tough for us to help. I'm sure there is something we could come up with though. I've only come across about 2 businesses that don't really have repeat customers. One was a client of mine that is in the wedding niche. Although, technically he did have a repeat customer, but it's only happened once in his 20+ year career.

I'd love to try and help you more, so if you feel comfortable sharing some info with me via PM, feel free. If not, I totally understand.

Well it's kind of like a wedding. People usually only buy it once in a lifetime. So I need to sell them something else that is comparable, but not the same.

 

[biophase]

OK I see what you're saying, $5000 sale which is $500-$1000 profit.

With a CPC of $3.50 and low-end profit of $500 you can currently afford to buy 142 clicks to make a sale and still make a profit. If you're converting at 0.7% or better, you're in business. If not, either work on increasing your conversions, find cheaper traffic, or increase the LTV.

Whichever way you look at it you want to increase LTV.

That could mean things such as:

Increasing initial sale - bundling, packaging, warranties, service packages, higher end options, upsells, crosssells, downsells etc.

Increasing repeat business - email, direct mail, postcards, coupons, follow up calls, ride along offers, continuity programs, new products.

There are a million ways to do it depending on your product/service/model.

I don't track conversions very well as much of first contact is made with a phone call. But we do convert very well once we have them on the phone. I know that I could use a different phone number in the ads, but honestly, conversion rates are not the problem.

The offer is good, but I'd love to be able to get more sales from our list of high net worth and disposable income clients. I have targeted 2 new offers, ranging from $5500-$18000 in price. I just need to become more of an authority in that space in order to sell these. At these price ranges you can't just plop up a website and expect people to charge that much on a credit card without talking to you first (although many do!).

 

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[Andy Black]

Hey biophase,

Are you in top ad position paying $3.50 CPC? If not, what happens to traffic volumes if you push bids?

How are referrals finding you? Are they searching for you on search engines? If people are searching for your brandname and/or website, are any competitors "brandjacking" by having ads above your organic listings?

Are you running paid search campaigns? Are these fully optimised so that you get more volume and maybe a lower CPC (allowing you to push bids)?

If there is search volume, then what search term would your competitors be spending the most per month on (volume x CPC)? Can you find out who "owns" that search term and reverse engineer their funnel? See if they manage to generate any repeat business?

Your posts have added such value in this forum that I would love to give back and would be happy to do a call with you to investigate the Google angle. Just PM if you're interested.

 

[biophase]

Hey biophase,

Are you in top ad position paying $3.50 CPC? If not, what happens to traffic volumes if you push bids?

How are referrals finding you? Are they searching for you on search engines? If people are searching for your brandname and/or website, are any competitors "brandjacking" by having ads above your organic listings?

Are you running paid search campaigns? Are these fully optimised so that you get more volume and maybe a lower CPC (allowing you to push bids)?

If there is search volume, then what search term would your competitors be spending the most per month on (volume x CPC)? Can you find out who "owns" that search term and reverse engineer their funnel? See if they manage to generate any repeat business?

Your posts have added such value in this forum that I would love to give back and would be happy to do a call with you to investigate the Google angle. Just PM if you're interested.

Hi Andy,

No at $3.50 CPC I am at around position 3.5. When I increase bids to $5.00+, I don't move up. I'm basically the first ad on the right side while my competitors are the top two in search most of the time. I'm only spending $35/day also. No reason why I am not spending more. I just set it at a number and that's where it's at.

I probably should increase my budget based on your post on increasing CPCs. Maybe bump things up to a $200-$500 a day and see what happens.

Referrals find us through their friends mentioning the brand/website. No competitors use our brand in their ads. I am running adwords search network and some remarketing, nothing too in depth or advanced. Our competitors spend alot of money on PPC based on how often I see their ads and where they rank, (100% of the time, top 1 & 2) and the terms that they use (broad search) lead me to believe that they aren't super savvy but have high budgets.

I have realized that I need to learn PPC alot more in depth. I have wanted to outsource my PPC campaigns, but since I run so many companies, I can leverage any knowledge I gain in PPC by literally 5X.

 

[LightHouse]

Biophase, I am sure andy will agree, but take a look at your impression share as well. If it is low or under 60-70% you probably need to optimize some things in addition to adding money.

The position isn't just determined by highest bidder, but it could increase your CTR which in turn can increase your position.

There is also several different quality scores. You have account level, group level, and keyword level (maybe one other, andy?) That are factored in, which is why you split them out to very tight groups of keywords to keep their QS up and not have less trafficked keywords affect the position of your higher trafficked keywords.


The other thing you may want to do, is run PPC for the 3rd site that is a review site. Position it as an independent review and you may get some leads from that as well.

 

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[jockinbox]

I'd love to be able to get more sales from our list of high net worth and disposable income clients

maybe FB ads?
I know you can target people who make more than a certain amount of every year
also its cheaper than Google considering you can make a page and get free traffic every time someone clicks "share" and all their friends learn about your biz for free

I probably shouldnt be talking tho, Bio knows exponentially more than me lol

just my .02 good luck!

 

[Ronak]

The offer is good, but I'd love to be able to get more sales from our list of high net worth and disposable income clients. I have targeted 2 new offers, ranging from $5500-$18000 in price. I just need to become more of an authority in that space in order to sell these. At these price ranges you can't just plop up a website and expect people to charge that much on a credit card without talking to you first (although many do!).

Hi biophase,

When I did consulting, I had a client in a similar situation where they sold 1 product, and had nothing else to sell them.

Similar to what you're doing, we found products in a related niche, but instead of trying to become the authority, formed JV's with those who already had it. Then, we set up a steady stream of content and gave away things of value, leading up to a specially formulated offer just for that audience, including better pricing and exclusive bonuses. The first time we did that, we had 6 figures in sales in about 10 days!

 

[Vagabond 007]

Well it's kind of like a wedding. People usually only buy it once in a lifetime. So I need to sell them something else that is comparable, but not the same.

Again, without knowing specifics, I can't be of much help. So take this with a grain of salt...

But, as of now, perhaps something else you sell them doesn't even have to be comparable. How about surveying your customers and try to figure out what else they buy/want? Then sell it to them.

Also look into JV deals. You may be able to make money just referring people to other businesses you partner with. Not that much additional work either.

 

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[throttleforward]

Also look into JV deals. You may be able to make money just referring people to other businesses you partner with. Not that much additional work either.

Especially since you are already on the phone with them. Other companies would pay huge for that - especially if you could do a "warm lead transfer" where you connect them live with the other company via 3 way call. You could charge hundreds just for that sort of lead alone. In fact there is someone on the forum who built a lead gen business doing just that.

 

[jpmartin]

Build a funnel, not an e-commerce store

Great to-the-point post. Here's another perspective - comparing with blogging (which imho) is a waste of time, unless you enjoy writing.

 

[JasonR]

Just put together a deal to launch another product in the pet vertical, something that already exists and is selling on the market, but with a little bit of a different spin and secret ingredient.

This one will go on Amazon, has great margins, and we will also build a direct response funnel out of it.

Haven't been this excited in a long time.

Investing pretty much every cent of profit back in to infrastructure, so we can turn $1 into $3 or $4 in the near future.

This short of shit makes me super F*ckin' excited.

Learn to leverage your networks to find mutual partnerships and JVs.

All I have to do is oversee this project, I'm not in the day to day grind of the work. All Amazon listings will be handled.

I can probably even borrow the money I need to start this, although I don't have to.

F*ck yah!

Edit to say: Think outside the box a little. Don't let money or lack of that "billion dollar idea" get in your way.

 

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[SJMM]

I am in the process of opening an e commerce store and I have been thinking about how I can do upsells with physical products but not the usual way its done. Like, I'm looking at a product and at the bottom of the page I see a "We recommend this" ad.

I wanted to do it the way informational products are done.

Tripwire-Brought
Upsell product #1-Bought
Upsell a complimentary product-Bought
Upsell a consumable product-Bought
Upsell the rebilling of the consumable product-subscribed

or
Tripwire-Bought
Upsell Product#1-Passed
Upsell Product #2-Bought
Upsell complimentary product-Bought
Upsell consumable product-Bought
Upsell the rebilling of the comsumable product-Passed

and so on. There are many combinations.

Do you think it makes sense?

I should just test it, right?

But should I test is after I set up my store or before.

I was going to use Shopify but i dont think they do upsells.

What do you think?

Thanks!

 

[Krzysztof]

@Maria, there is an upsell app for Shopify: http://apps.shopify.com/product-upsell

In fact http://boldapps.net/ has a bunch of apps for Shopify (the one mentioned above is theirs as well)

 

[s168]

Just put together a deal to launch another product in the pet vertical, something that already exists and is selling on the market, but with a little bit of a different spin and secret ingredient.

This one will go on Amazon, has great margins, and we will also build a direct response funnel out of it.

Haven't been this excited in a long time.

Investing pretty much every cent of profit back in to infrastructure, so we can turn $1 into $3 or $4 in the near future.

This short of shit makes me super F*ckin' excited.

Learn to leverage your networks to find mutual partnerships and JVs.

All I have to do is oversee this project, I'm not in the day to day grind of the work. All Amazon listings will be handled.

I can probably even borrow the money I need to start this, although I don't have to.

F*ck yah!

Edit to say: Think outside the box a little. Don't let money or lack of that "billion dollar idea" get in your way.

I think it's fair to say, Jason, that you're a great inspiration to newbies and those sitting on the sidelines. Many many years ago as a teenager that was me too. I hope this gives the energy boost to all those who need it and if karma exists, I hope you're gonna get a ton of good things coming back to you!!!

 

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[Kyle Tully]

I am in the process of opening an e commerce store and I have been thinking about how I can do upsells with physical products but not the usual way its done. Like, I'm looking at a product and at the bottom of the page I see a "We recommend this" ad.

Get one product up and selling first.

Worry about upsells later.

Shopify has apps that can do upsells, recommended products, and just about anything else you want to do

 

[Andy Black]

Go out and do things for people.

Learn to leverage your networks to find mutual partnerships and JVs.

^^^ Both of these right here.

Don't try and be that lone wolf making money pushing electrons about. It's all about helping people.

Anytime I move forward, it's because I've helped someone else.

Leave a trail of helped people in your wake. Good things then happen.

Good for you Jason.

 

[Brentnal]

On occasion I'd hop in the pool for 20 minutes, or take a power nap on the hammock for 20 minutes.

I didn't really know what a hammock was so i looked it up in google then i found this https://www.kickstarter.com/projects/treblehammocks/treble-hammocks pretty sick idea.

No intention to hijack this thread just nice kickstarter.
You're doing great JasonR

 

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[SJMM]

Get one product up and selling first.

Worry about upsells later.

Shopify has apps that can do upsells, recommended products, and just about anything else you want to do

Thanks for the advice. I am getting ahead of myself. Step 1 first and then 2,3 ,4...

 

[rkmalo1]

So my friend and I are buying another eCommerce store if we can find one we believe we can add value to and scale.

I was looking today and I came across this one:

Link removed.

Good job on crushing the competition! (not that that website looks too tough to outperfom but still). Execution matters!

*note* We're not buying that one

 

[MattCour]

So my friend and I are buying another eCommerce store if we can find one we believe we can add value to and scale.

I was looking today and I came across this one:

Good job on crushing the competition! (not that that website looks too tough to outperfom but still). Execution matters!

*note* We're not buying that one

Of course they don't list any financial info.

 

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[Vagabond 007]

@rkmalo1 and @MattCour -

@JasonR can obviously chime in and say if he's cool with it or not. But you may want to edit your posts so it doesn't give away anything in relation to what niche Jason is in.

 

[rkmalo1]

I def will if he wants me to, just figured since he did the podcast interview and it was discussed on the forum he doesn't care.


Sent from my iPhone using Tapatalk

 

[JimClark]

I def will if he wants me to, just figured since he did the podcast interview and it was posted on the forum he doesn't care.

What?

Why not ask for his permission first? Don't just assume he doesn't care.

Wonder how you would feel if this was your thread.

 

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[GuestUser113]

...

 

[rkmalo1]

What?
Why not ask for his permission first? Don't just assume he doesn't care.
Wonder how you would feel if this was your thread.

noted. linked removed.