Hello everyone! I’m Hernan Vazquez, and today’s topic is about how to get paid to generate leads for your business…
How does this work?
Imagine that you have an acquisition funnel divided in several steps.
Let’s go over those steps:
Step #1 – Low front End Offer
This low front end offer which often comes in the way of a book. It’s a book funnel.
Usually the low front end offer can be anywhere between $1 to $10, and it can also be a $5 product, or it can be a $5 course or a $7 PDF.
Step #2 – One time offers
After this low front end offer you may have a one time offer on your funnel.
So, once people buy the book, course, product or PDF, meaning once people buy this front end offer they get presented with a one time upsell or maybe two. Depending on how your funnel is presented.
Step #3 – Thank you page
Which is the last step on your funnel.
The reason why we do it is the cost that we have for getting a new customer through Facebook Ads.
It's costing us based off of our advertising efforts, 30 dollars to acquire a new customer on Facebook ads.
And the problem here is that we're only charging $10 in some cases, meaning that we’re losing 20 dollars.
In some cases we'll also have something called an order bump which will increase our average order value for our entire funnel.
Some people will buy the front end offer, others will buy the order bump, or even they’ll buy everything…
Now if we divide the amount of buyers that we have for the front end offer divided by the amount of transaction value that we have, what we get is something called average order value. That's how much money people pay when they're coming in through our funnel.
So, you want to make sure that this average order value is close to the front end acquisition costs as much as possible.
If you have a $35 average order value versus a $30 front end acquisition cost, that means that you're making $5 per customer and you're getting paid to generate leads for your business.
Once people buy from you, then we can deliver them on the back end funnel, which is going to be your monetization funnel.
So, check this out and try it for your business, because I assure you this is one of the powerful tools that we have right now as advertisers!
You guys are great. And what's up everybody, thank you for Thank you for coming, the topic for today is going to be how to get paid to generate leads for your business. So that's what we're going to be talking about today I want to share with you guys how some of the biggest marketing companies and some of the biggest marketing guys out there are generating leads and also getting paid by generating those leads, if that sounds good.
Okay, so that's exactly what I want to share with you guys. But first, let me ask you guys a question. Do you think that you have tried everything to generate more leads online? If the answer is yes, I want you to go open a new tab and go now to perpetualprofits.net you know, Jay Abraham says the three drivers of a company growth driver number one is get more clients increase the amount of clients that you companies Getting driving number two is get more money from those plants increase the transaction value for each of those clients.
And number three, get them to buy from you more often increase the frequency of transactions. So basically if you get more clients a if B, do you get those clients to give you more money and see if you get them to pay you more frequently, your business will grow.
And that's something that I kind of put together for the digital realm, the online marketing side of things and I called it a profit loop. So if you want to learn how to create a profit loop for your business, go ahead and go to perpetual profits dotnet and get a copy of my brand new book perpetual profits now onwards where the how to get paid to generate leads for your business.
Now here's the thing. A lot of people are out there generating leads for their business but they're not getting paid. Okay, they're paying out of pocket for those leaks. Right. So they're going out there, they might run a campaign, they might run a lead gen campaign in my run this in my run that and what happens is that they're paying out of pocket for the leads.
But the big companies, the big dog, so I'd say the big dogs of the advertising world and the marketing word, they're taking a little bit of a different approach. They are getting paid to generate leads. And the very least if they're not getting paid, if they're not generating a profit, what's happening is that they are getting those leads for free. And here's how it works. So the way it works, it's pretty simple.
Let me show you guys this funnel that I have right here. We are running because I'm part of some of these companies as well. And I'm running those type of ads as well. We're running Facebook ads to something called a low front end offer. Okay, this low front end offer Usually, it comes in the way of a book.
So a book funnel, right if you see Russell Brunson He's running a book funnel with Traffic Secrets and expert secrets and now a well actually with.com secrets and expert secrets and now it's going to come out with Traffic Secrets. So he's running ads to these low fronted offer Dhingra, zero see Tony Robbins, Frank Kern, they're all running ads to a low front end offer.
Usually the low front end offer can be anywhere between $1 to $10. In fact, in some cases, it's pay whatever you want type of offers, which is something that I still need to test but pay whatever you want, and it's anywhere between $1 to $10. So this low front end offer can also be a product can also be like a $5 product, or it can be a $5 course or a $7 PDF or a $5 ebook or on some cases you can find like a $10 mp3 or flash drive, right.
So we're running ads to a low front end offer now these low front end offers, of course, has one time offers once you get and once you buy this book, once you buy this front end offer you You get presented with a once a one time upsell, right?
And then you might have another one time offer. And then we have the thank you page. Right? We have a thank you page here so that they can redeem. Now the reason why we're doing this is because it's costing us money to acquire a new customer through Facebook ads, right, we're paying, let's say that we're paying somewhere like 30 bucks to acquire a new customer through Facebook ads. It's costing us based off of our advertising efforts discussing us 30 bucks to acquire a new customer on Facebook ads.
And what the problem here is that we're only charging $10 we're only charging $5 five or 16 on some cases, right or $10 for shipping. So these are called free plus shipping offers right? So we're only charging $5 $10. So on this case, we will be losing money right 10 minus 30 will be 20 bucks on the whole per customer if we want to scale this. We cannot Because we're actually losing money here.
That's why these two bad boys, and then in some cases, we will also have whoop, let me do this. In some cases we'll also have something called an order bump, and the order bump will increase our average order value for our entire funnel. Okay, so we will have an Audubon, we will have a low front end offer, and then we'll have an order bump.
And then when people say yes, we will present them with Oto one which is usually anywhere between 97 to 197. Okay, and then we'll have another Oto, which is usually the same 97 whoops, to 197. Now, some people will only buy the front end offer.
Some other people will buy the front end offer and they will buy the order bump, some people will buy everything. Now if we divide the amount of buyers that we have for the front end offer divided by the amount of transaction value that we have. This is called average order value, right? That's how much money people pay when they're coming in.
Through our funnel, so that's called average order value, right? So if we divide, let me say that again, if we divide, let's say that we had 1000 book buyers or 1000, front end offer book buyers, and then we generated $10,000, that the total gross revenue of the funnel is $10,000. That means that the average order value is $10. Right? So you want to make sure that these average order value is close to these front end acquisition costs as much as possible.
If you're making money here, meaning if you have like a $35 average order value versus a $30, front end acquisition costs, that means that you're making $5 per customer. So you're getting paid to generate leads for your business. Now, this is our acquisition funnel, right? This is our acquisition funnel. Once people buy your thing, then we can put them on our back end funnel, which is going to be our monetization funnel. That's where we make our money not here. Right? We can make a little bit of money here.
Or maybe we can just say hey, you Before making $10 per book buyer, let's just scale this bad boy because the average order value will go down. And the average acquisition costs will go up, right when we're scaling when we're spending more money, so we will put them in a webinar funnel, after we're done with this. And guess what our webinar funnel will have much better conversion rate, because now we're putting buyers in our back and we're not putting leads in our funnel, we're putting buyers and you know, the value of a buyer is much higher than a value of a lead for a webinar funnel or for a back end offer.
So a lot of people are selling 990 $7 products with a back end funnel. Some people are saying are selling $5,000 products with a back end funnel, and all of that, but this is the secret, then you can scale your Facebook ads, you can start spending more money here and you will get much more people into your funnel.
So do you have a book? That's not enough? If you don't have a book, you can start with the end in mind. What I mean is that think about what you're going to sell after the fact. And then splinter a little bit out of that and then sell it here. But you also need additional products to configure this, because a lot of people are saying, Well, I do have a book, can I create a book funnel?
And the answer is no, because you need more products, or otherwise you will be losing money every time. Alright, so I hope that this makes sense. This is how you get paid to generate leads for your business. This is called a front end acquisition funnel. Most of the big Dawgs out there are using this acquisition funnel to increase the amount of people that they have, think about how you can implement this for your company.
Think about that. Okay, this is one of the powerful tools that we have right now as advertisers. And if you deploy it with something like ClickFunnels, and Facebook ads, it can work extremely well for you. I hope that this is helpful. Again, if you want to learn more about this, go to perpetual profits dotnet get a copy of my book is $5 60 cents.
Now here's the thing, you will get upsells and down cells, you will get an order bump In my book funnel now you know why right now you know why you're free to take them all or none of them. I hope in any case that this is helpful. Thank you for your time. If you have questions, I have a weekly q&a going out every week at 2pm.
Eastern, it's called marketing Atlas. So if you go to marketing Atlas show calm, you will be able to get your question answered regarding advertising, sales funnels and all that. Oh, that this helps. I'll see you guys really really soon. Bye bye.
Hernan Vazquez is a digital marketing trainer and consultant that built several 7 figure businesses from scratch. He specializes in helping business and students grow their online businesses through the use of Sales Funnels, Paid Advertising and Email Marketing.