Financial marketing

The Summit has a new name, new site, and new opportunities!

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We’re making some big changes to the Summit.

Starting with a new name & website – The Financial Marketing Summit 

We’re creating new networking opportunities, expanding the marketing resources we bring you, and working hard to make the event even more valuable to you and your business.

So check out the new website, register for the event, and keep an eye out for some major announcements.

And if you need anything – introductions, information, recommendations, or whatever – connect with me on LinkedIn and I’ll do what I can to help.

Best,
John Newtson

Bob has some of the easiest traffic to convert to trading offers (add him to your short list of traffic sources)

Bob Fladung from Ino.com is someone you need to know.

He should be on your short list of potential sources of traffic if you sell trading products.

As a general rule of thumb, if you’re sending traffic to a trading or investing offer and you CAN’T make Ino.com’s traffic convert, then you probably have a conversion problem in general.

I’ve run campaigns with clients in the past to INO that have generated some of the highest returns-on-investment that I can remember.

Over the years I’ve found media sellers have great insights into what is working out in the marketplace because they see hundreds of sales funnels, offers, and promotional ideas. And they know what’s working and what’s not.

That’s why I always like to pick their brains.

It makes me a smarter, more effective marketer.

So I had a long conversation with Bob about…

  • What types of traffic he has available.
  • What OFFERS he sees working best right now (Summer of 2016)
  • How to get the highest conversions when advertising to his traffic.
  • What kinds of volume you can expect
  • How he prices advertising .. and WHY (This is useful info to know).
  • Plus, we talk about how they’ve managed to maintain the quality of their traffic over such a long period ( a rare feat in our space)

And a lot more.

I’ve mentioned before that I believe every financial marketer should have a short list of “go-to” traffic sources.

That way you know where to test new offers, where you can roll out quickly when you have a winner, and basically turn your media buying into a more stable business process.

And Ino is on my personal short-list of places to test and roll out trading offers.

I highly recommend you take a few minutes to connect with Bob. Talk to him about your offers and what you have going on.

If you haven’t ever chatted with Bob then I encourage you to Click here to get Ino.com’s media kit and connect with Bob

Best,
John

Financial Traffic Series: Where to get high quality (and highly qualified) $3 leads in financial today

If you’ve been around the industry for awhile now then you know Tim Bourquin, from AfterOffers, is one of the go-to traffic sources in our industry if you are looking for high quality and highly qualified investor and trader leads.

What you might not know is that Tim started the Traders Expo with a classified add in a local newspaper. His initial response? Four guys showed up for a breakfast meeting.

He grew that until he was hosting 600 traders in a ball room TWICE A MONTH.

Eventually he sold that business to the Money Show but that experience also introduced him to the business of financial lead generation.

Now Tim runs a great business delivering investor and trader leads to publishers. (He also generates leads in other niches like internet marketing, travel & leisure, and others.

I wanted to interview Tim for a few reasons.

First & foremost because if you’re buying investor & trading traffic then he is someone you should know.

Tim gives you LEADS – not impressions, not email opens, but actual leads. People who saw your offer and manually selected to subscribe to your emails.

And he does it for about $3 a lead – which is one of the great deals available today.

He’ll even give you 100 leads for free so you can see how qualified they are.

Second, I wanted to introduce you to Tim because he is one of those guys who is always generous with his time and his expertise. He’s good people and worth knowing if you’re working in our industry.

He offered a lot of invaluable insights and advice to Jami & I when we launched the Summit based on his years of experience building and running the Traders’ Expo.

Third, this is part of a series of conversations I’m having with the highest quality advertising sources in our industry.

I believe we’re past the age of simply putting out “how to” information. The internet is full of how-to market, how-to sell, how-to do just about anything.

What matters now is connection.

It’s who you know.

And I want to make sure you know everyone who could potentially help you build your business.

So if you’re looking for traffic opportunities then go check out Afteroffers.com 

Best,
John

Get this Webinar Recording on New Video Conversion Boosters

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Just wanted to let you know that this Thursday March 24th, at 2 PM East (10 AM PST), I’m hosting a webinar with Ray Karpuska.
Ray’s a top video conversion expert who has boosted conversions for top internet marketers like Russell Brunson, Kelly Fix (“The Rich Jerk”), Mike Koenigs and others.
And he’s also boosted conversions for some of the classic direct response marketers like Jay Abraham and Jordan (the real “Wolf of Wall Street”).
Ray is doing a lot of really cool stuff. Stuff you can use in your business to boost conversions and sales.
He’s got a string of testimonials a mile long from top marketers.
See you on the webinar,
John

Ryan Niessen, full-service copywriting & funnel provider

Ryan Niessen, full-service copywriting & funnel provider

Ryan Niessen, full-service copywriting & funnel provider

Hi, I’m Ryan Niessen.

If you’re looking for an “A-Level” copywriter, that’s not me. I haven’t written million dollar campaigns, trained in person with the greats, or taught copywriting.

Frankly, I’m honored to be listed on the same page as the other legends of direct response here.

Why am I here? 2 reasons:

Reason #1: I have unique value proposition that attracts a different type of client than the other brilliant copywriters here.

  • I develop strategy.
  • I write copy including emails, landing pages, sales pages, VSL’s, launch videos, webinars, and more.
  • Plus, I implement – meaning I’ll build your funnel and actually execute your campaigns.

In other words, I’m a full service copywriting + funnel provider.

Reason #2: Almost three of my 4+ years in this space were spent as the marketing manager for a financial education company called The Elevation Group (EVG), which generated more than $30M and taught more than 50,000 members since 2010.

I learned from and worked with some of the best, which makes me uniquely qualified to serve you in a full-service capacity

Since leaving EVG, I’ve executed two 6-figure campaigns for small business owners who hadn’t previously reached that mark online.

I created a funnel and campaign that generated a 3924% ROI on only $822 in ad spend.

Plus, I’ve been trusted to quarterback an upcoming digital product launch for Fanpage Traffic Academy (a Facebook agency that works with people like Brendon Burchard, Russell Brunson, and Chalene Johnson.)

To discover how we can work together, message me on my LinkedIn profile here.

Full-Service Funnel Samples:

From $0 to $40 million in 18-months

How to scale fast

On August 7th, 2014 two guys working for someone else decided they wanted to go out on their own and launch their own website and business in the investment industry.

They approached Jeremy Blossom, of StrikePoint Media, a full service customer acquisition marketing agency dedicated to the trading & investing industry, with their idea.

After two months of preparation Jeremy launched his new acquisition strategy.
16 months later the brand new business had generated nearly $40 million in gross revenue – and are well on their way to breaking $100 million in 2016.

How’d they do it?

You’ll find out in 3-weeks at theInvesting Info-Marketing Summit because Jeremy has agreed to come do a case study on exactly how they did it.

He is going to show you exactly how he and his team scaled a company from scratch and made it the fastest growing company in its niche in a matter of months.

Including how they built the funnels, developed the lead generation offers, planned their media and more.

This is a rare opportunity to get an inside look into the full marketing strategy behind one of the biggest success stories in financial in the last two years. Go here if you’re not registered

Best,
John Newtson

Huge list of traffic sources for trading & investing publishers

financial traffic sourcesIf you’re looking for new places to get customers for your trader education or investing newsletter offers then here is a big list of places to start.

And if you have suggestions of other traffic opportunities please post them in the comments below.

Free Traffic Opportunities for Financial Publishers and Trading Educators

  1. The Investing Info-Marketing Summit Ad Swap Directory http://www.investinginfomarketingsummit.com/category/networking/joint-ventures/ad-swaps/
  2. Trading Pub http://partners.tradingpub.com/ or Contact Rollie White

Dedicated financial traffic media sources

  1. Financial Media Corp http://finmc.com/ Contact Paul Ruffolo
  2. Ino.com http://www.ino.com/advertising/ or Contact Bob Fladung
  3. Investors Alley http://www.investorsalley.com/info/contact.htm  or ContactBrett Klasko 
    (Here’s a video list review I did on this list awhile backhttp://www.investinginfomarketingsummit.com/get-new-customers/218/ )
  4. ButtonWoodResearch.com http://www.buttonwoodresearch.com/contact-us/
  5. Offertise http://www.offertise.com/contact-us/ & www.AfterOffers.com  or Contact Tim Bourquin
  6. Trader Planet http://www.traderplanet.com/advertising/
  7. Dedicated Emails List http://www.dedicatedemails.com/ or Contact Brian Litman
  8. Insider Wealth Alert http://insiderwealthalert.com/ or Contact Gary Mizrahi
  9. Oilprice.com http://oilprice.com/advertising or Contact James Stafford
  10. Money & Markets http://www.moneyandmarkets.com/advertising or Contact Chelsie Donaghy
  11. The Blaze & Glenn Beck Go here for an interview with national vp of The Blaze about their advertising opportunities.http://www.investinginfomarketingsummit.com/get-new-customers/want-to-get-15000-clicks-and-a-ton-of-new-customers-from-a-single-email/ And here for a list review I did awhile back.http://www.investinginfomarketingsummit.com/get-new-customers/the-blaze-list-review/
  12. Opt Intelligence http://www.opt-intelligence.net/
  13. Traders Reserve http://www.tradersreserve.com/
  14. Investing Media Solutions http://investingmediasolutions.com/
  15. Oxegen Media http://oxegenmedia.com/
  16. Street Authority http://www.streetauthority.com/advertise
  17. Newsmax & Moneynews http://www.newsmax.com/advertise/
  18. The Motley Fool adinquiries@fool.com
  19. Investorplace Media http://investorplace.com/corporate/advertise-with-us/#.U5mvkfldV8E
  20. Investors Business Daily http://www.investors.com/about-ibd/media-kit/investors-com/rates-and-specs and  http://www.investors.com/about-ibd/media-kit/investors-com/audience
  21. InvestingChannel.com  http://media.investingchannel.com/audience/overview/
  22. NASDAQ http://www.nasdaq.com/help/nasdaq-advertising.aspx
  23. Bloomberg http://about.bloomberg.com/fbk_adSales.html
  24. Marketwatch, Barron’s, The Wall Street Journalhttp://www.wsjmediakit.com/digital/  .
  25. Dean Media Group http://deanmediagroup.com/
  26. Schaeffers Research http://www.schaeffersresearch.com/edge/mediakit/
  27. Zacks.com http://www.zacks.com/advertising
  28. Investing Answers http://www.investinganswers.com/advertise-with-us
  29. Investopedia http://www.investopedia.com/corp/advertise.aspx
  30. Benzinga.com http://www.benzinga.com/contact
  31. SeekingAlpha http://seekingalpha.com/page/advertise_with_us
  32. TheStreet.com http://www.thestreet.com/tsc/onlinekit/index.html
  33. WallStMavenscom https://wallstmavens.com/advertising
  34. eFinancialNewscom http://www.efinancialnews.com/about-us/advertise
  35. GuruFocus. com http://www.gurufocus.com/sponsor.php
  36. ETF Daily News http://etfdailynews.com/about-wwwetfdailynewscom/advertising/
  37. ETF Digest http://www.etfdigest.com/aboutus/
  38. Minyanville http://www.minyanville.com/ads/
  39. Naked Capitalism http://www.nakedcapitalism.com/contact
  40. ValueWalk http://www.valuewalk.com/advertise-on-valuewalk/
  41. Kitco http://www.kitco.com/advertising//

 General Ad Networks that have financial opportunities

  1. Taboola http://www.taboola.com/
  2. Outbrain http://www.outbrain.com/
  3. Industry Brains http://www.industrybrains.com/
  4. Ad Choices http://www.youradchoices.com/
  5. Adblaze http://www.adblaze.com /
  6. Double Click by Google http://www.google.com/doubleclick/

Radio – places I know financial publishers have had good luck.

  1. Sirius radio – Channels Bloomberg & CNBChttp://www.siriusxm.com/advertise
  2. Glenn Beck Radio – http://www.glennbeck.com/content/program/advertise/

 Content Syndication Opportunities

  1. TheStreet.com http://contributor.thestreet.com/users/register?_ga=1.111988492.982993765.1444311298
  2. WallStMavens.com https://wallstmavens.com/contact
  3. SeekingAlpha http://seekingalpha.com/page/become-a-seeking-alpha-contributor

Sponsorship Opportunities at Live Investing Events 

1. New Orleans Investment Conference https://jeffersoncompanies.com/new-orleans-investment-conference/sponsors or Contact Emily Coia

2.  The Money Show & Trader Expo http://www.exhibitorcentral.com/main.asp#eight

3. The Value Investor Conferencehttp://www.valueinvestorconference.com/valueinvestorsponsors.html

And if you’re in the financial publishing industry and are not already a member then join the Financial Publishing group here on LinkedIn

Financial Publishing LinkedIn Group

Financial Publishing on LinkedInIf you’re a financial publisher, trader educator, or marketer in the financial publishing industry then make sure you join the community on LinkedIn.

It seemed odd that our industry didn’t have a dedicated group on LinkedIn so we created on.

We made it private so posts can only be seen by members. It’s a great place to network and share info. Just click here to join and get involved.

Why are internet marketing gurus scared of financial publishing?

It’s a funny situation.

I’ve talked to one after another of some of the biggest names in internet marketing – people teaching tens of thousands of people how to make money online.

And they’ve almost all TRIED to run a financial publishing business. They understand the money is there… if you know how to get it.

But they quit.

They leave.

They tell me (these are actual quotes I’ve gotten)

Trading is the hardest most competitive niche to do product launches in. It’s too hard to make money there.”

“I can’t figure out how to make it work so I stick with easier niches.”

“Back in 2005 financial was my favorite niche but that only last two years. It’s just gotten so much harder to make money there I’d rather just sell internet marketing products.”

So why is it, that the tools, the templates, the strategies that work so well for them in OTHER niches have failed them miserably in ours?

It’s popular in marketing circles to look down on people who say, “My business is different.”

But what if it’s true?

For instance, if you’re buying traffic in say, the weight loss niche, do you have to compete with national political parties with deep pockets who can buy up months of ad space for a year a time?

Not, but we do, the presidential cycle affects our traffic.

If you’re selling how to make money online products how often do you see a change in what types of products convert because the stock market went crazy?

Never. But it’s common for us..

If you’re selling how to date women products do you have to worry every couple of months that you’re headlines and promotions have to change whenever some major geopolitical event happens? Or when the stock market changes directions? Or when the government comes up with some new policy?

No, but in the financial niche we do.

The reality is, the financial niche is its own animal.

What the marketing gurus preach and what actually works in our niche are rarely the same thing.

Not because they’re not good marketers but because you have to take the time to really know our niche and what works and doesn’t work. Financial is a very dynamic niche in a lot of ways. In other ways it’s very conservative.

It’s dynamic in terms of the conversation our prospects and customers are having with the market. That affects the stories, hooks, and understanding that shows up in our promotions.

It’s conservative in that our customers tend to be late adopters on a lot of things. Things that work great in other niches may take a while to work in ours, or never work because the perceived lack of credibility they bring to the table.

The trading and investing niche has it’s own unique traffic opportunities not found anywhere else. We have a very competitive market in that there are a lot of excellent marketers and publishers going after customers.

We also have competitive business models, like brokers (for instance) who might give away how to information a small publisher would sell because the broker gets paid on the trading commissions, not the product sale.

So what DOES work?

The only real place to find out is from your fellow entrepreneurs, marketers, and super-affiliates who are working in this niche.

People like, Aaron Dehoog, he took Newsmax Financial from 15,000 paid customers to over 400,000 in a few short years.

Among his secrets is a 5-step process he used to increase his average sale by 165%.

Or Pyong Kim, the super-affiliate responsible for over $100+ million in affiliate sales, who can get traffic easier, cheaper, and more effectively than most publishers.

Or Cory Bridgewater, one of the biggest media buyers of trading traffic working today, he can dial in and get you a steady flow of 3,000… 5,000 or more paid customers month after month after month.

Or John Hutchinson, a publisher who got so sick of refunds he figured out a way to reduce them to less than 1%. AND wins 100% of the few chargebacks he might get.

All of these marketers shared their secrets, tips, and strategies at the last Investing Info-Marketing Summit.

You can get the recordings here.

If you’re trying to figure out what opportunities there are for you to build your financial publishing business faster than that is your best resource.

 

The Easy Money: Increasing revenue from the customers you already have

John Newtson

John Newtson

It’s an inevitable rule of publishing: if you have customers then there is money you’re leaving on the table.

Not because you’re not smart, or not a killer marketer but because you’re focused on creating products, acquiring new customers (the lifeblood of your business), and dealing with all of the operational issues every publisher has to deal with.

But if you take a little time out of your routine to think about ways to get more value per customer it will pay dividends.

In some cases you can see DOUBLE or TRIPLE your sales.To understand how that can happen let’s look at what’s known as a value grid:

Customer Value Grid

Your goal should be to move customers from the bottom left to the upper right of the value grid.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This simple framework for understanding how to value the customers you have is the foundation you can build your back end marketing on.

Prospects enter your business in the lower left hand corner – they see you but have yet to spend money.

Maybe they’ve opted in to get something free. Or maybe they are hovering over your customer acquisition promotion. In either case they have NOT spent any money with you… yet.

Your goal at this point is to move them from prospect to customer.

At that point they become a one-time buyer.

Your goal with one time buyer is turn him into a two-time buyer.

Your goal with a buyer of a low price product is to get him to buy a high price product.

Essentially you want to move him up the grid to the upper right hand corner – sales Shangri-La, where you have that hot core of customers who buy multiple big ticket products from you.

There are three simple concepts to focus on to do that:

  1. Increase how often a customer buys from you
  2. Increase the AMOUNT each customer spends with you at each purchase
  3. Increase the LENGTH each customer keeps buying from you

Here’s what that looks like from your bottom-line.

  #1 Increase the buying frequency of customers

Customer value: increasing buying frequency

 

 

 

 

 

 

 

Let’s look at what happens when you increase how often someone buys from your business (We’ll get into practical promotional ways to do this in a minute).

For starters let’s assume your average customer buys a single $97 product from you once a year and sticks around for for years.

(No, you’ll never have all your customers behaving the exact same way. In these examples we’re talking about what the average behavior is across all your customer groups).

In this scenario your average customer is worth $97 a year and $388 over his four year lifetime. If you can find a way to increase how often your average customer buys though you’re set to double your sales or more.

For example, if instead of getting an annual $97 sale what happens if you get your average customer to take  a $97/month membership and stick around for 6 months? In that case your FIRST YEAR customer value jumps to $582 – a 50% increase over the four year value of the guy who buys one $97 a year for four years. You’re making more money and getting it faster.

 #2 Increase the average order size

Next let’s look at what happens when you increase the average order size (amount of money spent per individual sale).

Customer value: increase average order of sale

 

 

 

 

 

 

 

In this scenario we start an average order size of $97 and move up the ladder to $997.

And if you’re wondering if this kind of change in order size possible? The answer is: Yes. I’ve seen it over and over again.

Recently we helped one large financial publisher that we occasionally consult with find a pool of customers who, on their initial sales, were worth THREE TIMES the total lifetime value of their regular customers.

So yes, this kind of thing is very doable. The trading and investing space supports a lot of high price buyers.

Anyway, here you can see that an in increase your average order of sale from $97 to $299 results in a 208% increase in your bottom line. I give you several ways below that you can start doing this.

#3 Increase the buying lifetime of your customers

Customer value Increase lifetime

 

 

 

 

 

 

 

 

Next, let’s look at the value to your business if you can find ways to keep your customers actively buying for longer.

I start with four years because in my experience that is a pretty standard time in the financial niche to keep an active customer.

The numbers speak for themselves.

Keeping customers longer is about building a relationship, particularly with your best buyers. And knowing when in your customer’s lifecycle they are likely to disengage with you. Then before that point you re-warm the list with special content, gifts, opportunities, and more (I have some ideas list below but this is a big topic that will require another post to deal with in depth).

The point is: What you do with a customer AFTER you get him can be a game changer for your business.

Think about the difference between two publishers who have 10,000 customer each.

The first one averages $97 a year per customer and the second publisher averages $1,197 a year per customer.

Publisher #1 – Doing okay:

Annual revenue per customer: $97
Total Customers: 10,000
Annual Revenue:
$970,000

Publisher #2 -The rich one:

Annual Revenue per customer: $1,197
Total Customers: 10,000
Annual Revenue: $11,197,000

I’ve had clients where we’ve managed to get $1,997 per customer on acquisition and have 10,000 customers. And I’ve seen publishers who couldn’t get it together and average $149 a year per customer and had 40,000 customers.

So what you do with a customer after you get him MATTERS. And which customer you TARGET matters.

In Trading I’ve had Hyper Buyers accounting for 15%-18% of customers that were worth $7,988 each (in just the first two-years of their life cycle)

Think about that. In the trading niche you have the potential to get some of the best customers in information publishing.

When I was writing a lot of trading product launches my campaigns generated millions in sales and thousands of customers. Over time we found that about 15%-18% of those customers were what I call “Hyper Buyers”.

Hyper Buyers would buy FOUR $1,997 trading services in under two years.

That segment of customers were worth $7,988 to that business.

Other publishers we knew were struggling to get $200 per customer. In fact, several publishers came to us and told us outright that they made MORE MONEY per year being our affiliate then they did selling their own products to their list.

Time for the nuts & bolts: Start by knowing your customer numbers.

If you’re ready to dig into your customer base and find more money then the first thing you should do is know the numbers behind your customer behavior.

By that I mean you should be able to answer the following questions because when you do new sales opportunities will present themselves. (NOTE: A tool like www.kissmetrics.com will show you this and much more. You can do most of this with a simple spreadsheet of customers as well. )

  • How many multi-buyers vs. one-time buyers do you have? Most of your customers will be one-time buyers: these are people you’ll want to target with special offers and trials to turn them into multi-buyers.
  • What is the AVERAGE time it took for a one-time buyer to make his 2nd purchase? 3rd? 4th? This data suggests the point in a customer’s lifecycle when you should be targeting a one-time buyer with a killer offer to get him to buy twice.
  • If you do lead-gen (vs. straight paid customer acquisition) what is the average time it takes for a lead to turn into a customer?
  • What is the value of your customers at 30-days, 90-days, 120-days? Knowing your lifetime customer value is great BUT the reality is you can’t make advertising decisions based on the value of a customer at 3 or 4 years unless you have a giant bankroll and no need to worry about cashflow. Knowing your basic numbers at each of these early stages does two things for you 1) It lets you know how much you can spend and still be profitable on your ad buys in the short term. 2) It gives you measurable targets to beat. A good initial goal would be adding 50% to the average order size.

Next, look at your best customers, the top 20% or so of buyers.

What do you really know about them? These are your golden tickets so you should know them intimately.

  • Where did they come from?
    • Traffic sources – maybe there’s a sweet spot of traffic you should be focusing more of your efforts on.
    • What promotion did they come from – specifically what was the primary PROMISE or BENEFIT of that promo?
    • What was the first product they bought?
  • What back-end products have they bought?
  • Are there any buying patterns that standout?

A quick personal story to illustrate how important this data is.

I once wrote two versions of a campaign for a client, one ran to pay-per-click traffic and one ran to affiliates.

On the surface the numbers were great, not out of line with what we expected on a good promo, but it was on the higher side for that business at that stage (We sold around $1.2 million in about 3 months).

But that’s not the end of the story.

The pay-per-click customers from that SPECIFIC promotion – and this was not true for pay-per-click customers of any other promo we ran – were the best customers that business ever found.

That customer group was not only profitable on the initial campaign (they paid for the ppc spend and made a profit) but on every other campaign we launched in the following 12 months that customer group bought enough to pay for that ad spend all over again PLUS make a profit.

They were golden ticket customers.

We found that the basic appeal of that promotion combined with that traffic source, for whatever reason, produced high-ticket multi-buyers for us.

You could have the same thing happening in your business right now but because you’re not looking at your customer data in detail you just don’t know it. And so are missing out on a big opportunity.

When you’re starting to dig into how to increase the value of customers then you need to remember one fundamental rule of customer behavior.

The Rule of Recency

Simply stated the rule is this:

The person who is most likely to buy your product is the person who JUST bought a product from you.

This basic behavior has been proven over and over again.

You already know your own customer list is the best list when selling your own new products. These people have proven to both buy the type of products you offer and buy from you.

You probably know the best outside list for you to hit is a customer list of someone who sells similar products as you have to have offer. Again, these people have proven the buy products like you offer.

But what you might not know is that the more recent those customer bought a product like yours, the more likely they are to buy another one.

In the direct mail business this fact is reflected in what are known as “hot lists” – list of customers who bought in that last 30-days. A hot list is more expensive but also offers a higher return-on-investment so is much sought after. If you can’t make an offer work to the hot-list then you’re not going to be able to make it work to the rest of that list.

Practical Ideas to increase customer value.

Let’s start with a few ideas to increase the average order size.

These happen at the Point of Sale, inside the offer or checkout process.

Point of Sale Idea #1: The Bump

The easiest way to understand a bump is the classic from McDonald’s. When you order a burger they ask, “Would you like fries with that?” it’s simple, effective way to increase the average order of sale.

Common bumps at the point of sale include:

  • A two-year option. If you are selling a one-year subscription you can offer a two-year at a discounted rate.
  • Lifetime membership. Same concept as above but for life, hence a higher price point.
  • Add something that helps customers CONSUME the product. Like adding an option to pay to get text alerts on a trading service someone is buying.

The best performing bumps are generally at a lower price then the product that is being sold. It’s like going into a store to buy a suit. Once you spend $600 or $1000 on a suit it’s very easy to “throw in” a few shirts or a tie or whatever because you just spent a lot of money and suddenly  another $50 or $100 doesn’t seem like much. The buying decision has been made, now there’s just a pricing decision.

Point of Sale Idea #2: The Two Pay

This is perhaps the easiest way to double you average order size.

You won’t believe it works until you see if for yourself.

A two pay is simply taking the one-time price of an offer and changing the copy to read “Two easy payments of”. So if you offer a product at $97 test “two easy payments of $97”.

Your effective price becomes $194 but you never use that number, you use two-payments of $97.

Here’s the crazy part: Often you’ll find there is ZERO reduction in response. None.

A friend of mine who is sharp marketer and copywriter did this in his own business. He was selling a $47 ebook and tested a two pay option, effectively boosting the price to $94.

He expected a drop in response at the higher price point. He didn’t see one. He instantly DOUBLED his sales.

I’ve even seen a variation of this on $1,997 trading services. We once had a product selling at $5k, and for editor-related reasons, couldn’t drop the price. We knew it was a bad price point for this and sales reflected that.

So we tested changing the offer to $1,997 a QUARTER. (The $1,997 price point had consistently beat every other price point in our tests for that type of product.) Suddenly the response rocketed up to what we expected for a product of that nature. And almost half the customers bought at least two quarters – so instead of $1,997 for a trading service we got $3,994 from half the customers.

Point of Sale Idea #3: The Upsell

This is both a proven way to increase your average order of sale and one woefully ignored by many publishers.

The main differences between a bump and upsell are:

  • The bump is built into the initial offer while the upsell comes right after they buy.
  • While the bump tends to be lower price than the main product offer the upsell tends to be the same or higher price than the main product offer.

For example, if you just sold a newsletter for $97 you know you’ve established a couple of things in the customers mind:

  • The customer is sold on the idea that this investment newsletter is worth $97
  • The customer is sold that the underlying concept of the promotion is one they want to follow.

Your upsell works best when you expand on those beliefs.

For example, knowing the customer believes the product is worth $97 you could offer a bundle of three similar newsletters at the same $97 price. If one newsletter is worth $97/year then getting three more at the same price point is no-brainer.

Also, knowing the customer is sold on the basic concept of the promotion you could offer an additional way to participate in that. You can see this reflected in the common ways many publishers structure their front and backend products.

Often these are split based on RISK & REWARD

An editor will have both a lower price front end product & a high price backend product built around a particular investment philosophy.

The low price product might focus on large cap stocks while the higher price will focus on micro-caps using the same strategy.

Or the low price will focus on stocks and the high price will use the same basic stock picking strategy but use options to profit from them.

In the trader education niche what you see more is that the higher the price the closer you get to the guru.

So a low price product gives the “how-to”, the next price up offers the “done-for-you actual trade alerts”, the next price up offers small group training, the highest offers personalized one-on-one training with the guru.

In each of these cases the next product up the ladder can be offered at a one-time only price as an immediate upsell. There will always be a certain percentage of customers who are ready to go “all in” with you. The upsell lets you get them while they are most motivate.

So those are a few quick and relatively easy ways to increase your average order of sales.

First, promote more often!

You don’t get money you don’t ask for.

And the reality is you only have so many promotional slots in any given week and in any given month, and any given year. Every slot you leave unfilled is money you didn’t make.

Some companies push one big backend promotion to their files each month because they use large launch-style campaigns. That gives them 12 big opportunities to push new products.

Others use individual promotions and are constantly testing new ones to maximize every available slot.

Others promote when they need money and leave huge portions of their promotional slots empty.

One common reason smaller publishers in particular don’t promote more often is that they don’t have enough products to push or the ability to produce new promotions.

It’s a sad state when a lack of copy is the reason you’re leaving money on the table. I put together The Big Book of Financial Copywriters so you wouldn’t have that problem. If you need a copywriter reach and talk to me and I can connect you with the writer best suited to your needs.

Second, try a “Renewal at Birth” offer

A renewal at birth offer is similar to the two-year membership bump but you push it to customers who didn’t take that offer.

Basically you give them an opportunity to renew their membership during the first 30-days of their subscription. You can use a discount but then you are potentially cannibalizing your future sales. So often it’s better to offer some kind of special bonus they can ONLY get with this Renewal at Birth offer.

This way you move cash forward in the business. And get the second sale faster.

Third, you can test setting memberships to automatically renew

Many larger publishers have moved to this model. Instead of a renewal at birth offer you simply set your products to automatically renew.

A couple of important points about this:

  1. You absolutely MUST make it clear at the point of purchase that the membership is set to autorenew.
  2. You absolutely MUST have an email auto-responder series in place leading up to the auto renewal reminding them the renewal is coming. The point here is actually to spike cancellations in order to remove people who might otherwise charge back or complain.

Here is an example of the type of language you need to use at the point of sale on a renewal.

autorenew sales copy

 

 

 

 

 

 

Fourth, understand some customers will only buy at certain price points.

We all wish every customer would buy our most expensive products (and ask for more!)

But the reality is that in every group of customers some will ONLY buy products in your niche up to a certain price point. They just won’t spend more than $97 or $197 or $997 on a product that you offer.

So AFTER you’ve done what you can to move people up in price on the backend it can be very worthwhile to go back to customers who did not buy and push additional products at the price point they already bought at.

Product creation is a constant in information businesses like financial publishing- and particularly important when you want to increase the value of your customers.

Fifth, segment your list.

This effectively increases how many promotional spots you have.

I was once able to add $100k a month in sales to small publisher SIMPLY by doing the following.

He would send out a dedicated email a couple of times a week to sell additional products to his list. Each time he mailed he would suppress the emails of the people who already bought the product he was promoting that day.

This meant that those CUSTOMERS did not get an email promotion if the ‘product of the week’ was something they already bought.

I simply had him begin sending an additional promo for a different product to those customers had had been suppressing. So he would send two to three product promos at the same time to different segments of his list.

That simple change added $100,000 in sales to his business each month!

Are you leaving money on the table the same way?

Sixth, test the “everything for life” offer.

If you are constantly creating a lot of new products then this is a really good offer.

Basically you create a lifetime membership club and people who join will get all your products and future products – FOR LIFE.

These kinds of things sell for $7-$10k or more depending on how much product you have.

One proven offer is to let people “deduct” the cost of the memberships and products they already have from the big total.

Again, you have to know your customer data to make this work best.

What you’re doing here is trying to increase the value of your multi-buyers so you want to know the buying patterns and spending figures of your top customers.

Then you want to use this offer to increase their value.

One publisher I know uses both inbound and outbound telemarketing to do this whenever a one-time buyer makes his second purchase or a two-time buyer makes his third. They have a customer service person call to make sure everything is good with the customer then soft-sell the membership.

Plus they regularly segment their best customers out to send them an promotion for it.

Seventh, get more fence-sitters to buy with the smart application of payments plans and trials.

Whenever you make an offer there are some people who are interested but not sold.

They’re fence-sitters. They want what you’re offering but they aren’t sure it’s worth it. Maybe they worry it won’t work, maybe they’ve been burned in the past by similar offers that turned out to be garbage, or maybe they’re just not sure the want to spend the money.

A good way to grab the fence sitters is with trial offers and payment plans.

Generally the way I think about it is to grab the full-price buyers up front. A large percentage of customers are happy to pay full price up front so take the cash.

Then go back to the non-buyers and go after the fence sitters. At this point you can bring in additional proof elements (like more testimonials) but change the offer.

  • A payment plan reduces the amount they have to pay at one time. This helps with fence-sitters who aren’t sure if the product is worth the price.
  • Next, offer a low-price paid trial. We once offered a $7 trial that rebilled at $497/month and dramatically increased response on a list that had been beaten to death with that product offer.
  • Finally, you can offer a $1 or Free trial. I usually reserve this for people I’m worried will not buy at all. But it can be very effective. At an old agency I worked out we had an inhouse product that had been our best seller but had fatigued to the point it sold minimally. We used a $1 trial that rebilled at full price ($197 of I remember correctly) and outperformed even the best sales promotion for that product when it was fresh by a factor of 10.

The idea here is to protect your cashflow by getting the full price buyers first, then going back to prospects and customers who didn’t buy with increasingly attractive offers.

NOTE: You MUST REWARD the full-price buyers otherwise you’ll train your list to wait for the payment plans and trials. So the payment plan might be on a higher total price or the full price buyers get a special (extremely attractive!) bonus that no one else gets.

Those are just a few quick ideas.

The most important thing that I wanted to get across though is that there is a lot of opportunity to dramatically increase your sales by thinking about getting customers to buy more often, increasing average order size, and increasing how long they stay with you (I’m putting together a separate post on that last one since it’s a long conversation).

If you need any help at all with any of these types of things feel free to connect with me on LinkedIn and I’m happy to answer any questions or point you in the right direction.

Hope this helps.

John Newtson

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