a thread by @GT3TV
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Along with what I said about “raising the bar,” metaphorically, I don’t think you guys realize what it takes to make the economics of a truly scaled offer work.
A couple years ago when Tai first blew up with the OG “here in my garage” ad, I bought it...
Check this out:
Front end: $67 course plus $67/month forced continuity.
Then you get a $997 one click upsell. Then something like a discounted downsell for like $300, if you don’t buy, then like two more upsell/downsell sequences.
Don’t remember the specifics but it’s unimportant.
Remember this is all in ONE TRANSACTION.
And yes this is for info products but the principle applies to any B2C company selling mass market shit.
The front-end has like an hour long VSL and the upsells were more VSLs and some other long form copy pages.
Obviously he has an email sequence to follow up.
Plus now he has a phone sales team and a fuck ton more stuff to make the economics work out.
But wait, there’s more!
Plus when you try to cancel the (forced) continuity.
You have to go through like 5 steps:
- click cancel
- survey asking why you want to cancel
- confirming you really want to cancel
- denying a discounted offer as an incentive to stick (with another VSL just for retention)
Now, the question is...
Why was he going to these extreme lengths?
And the answer is funnel economics. The more you scale an offer you more you hit lower and lower quality audiences.
But there’s still buyers to be found and money to be made...just at a higher and higher CPA.
With easy shit like retargeting and 1% lookalikes, it’s not hard to have low CPA #’s.
Same with targeted audiences.
But that’s not what players like Tai are doing.
They’re literally targeting everyone (yes all ages/demos more or less) and trying to spend as much as possible...
So you end up having to make obscene CPAs work.
Like paying $500 or even $1,000 just to get the initial sale.
And for the most part, you can’t just accept it and wait to make it back within 6 months even if you know you will based on prior data...
Because it creates massive cash flow issues.
You’d need to go $500,000 in the red each month while you wait for the leads to even get to break even... much less be significantly profitable.
The answer is these crazy funnels.
Where the goal is getting an AOV as close as possible to those crazy CPAs
Which means you need a funnel that turns a $67 purchase into an average of like $500+
That’s why he needed forced continuity and $1,000 one click upsells.
And the funniest part is he’s in the biz opp space where it’s a hell of a lot easier to push prices for info products into that $500, $997, or $1,997 range.
Try to do that with a weight loss or dating offer at scale and tell me how it goes.
Anyway - the point is.
You don’t have a fucking choice.
If you actually, truly want to grow a huge business you need to be 1000x better and work 1000x harder than you think right now.
No one understands how hard it truly is to make shit like this work.
Raise the fucking bar guys.
Last last thing
This shouldn’t be demotivational.
99.9% of people don’t have the balls to do this. But that doesn’t mean you can’t. And it doesn’t mean it’s not a hell of a lot of fun to chase shit like this.
Hard work is fun. Challenges are fun.
And if you disagree, fuck you