Our facebook ads had been kinda sucking these last couple of weeks, and we were having some trouble tracking down why. (ever felt that way?)
Our ad traffic was good, our cost per click or (CPC) was in the normal range we expect it to be, and our landing pages are tracking an over 20% opt-in rate.
Everything seemed good.
But we were only breaking even on our ad costs. Spending a couple hundred bucks, and only making a couple hundred bucks.
So, I decided to inspect a few things…
That’s when we realized, we need to step back and practice what we’ve been preaching. It’s all about the back end, meaning, what we’re doing after that initial sale to build value for our customers and provide them with additional products after their first purchase.
This video explains what happened, what we did to fix it, how our new ad campaign brought in $794.00 in sales from $67 in ad spend, and how you can apply this same technique to your business.
Watch the video below now.
Basically we wanted to tell you about a big mess-up we had last week, how we troubleshot it and what the results were after a couple of small changes.
For this funnel, and in this video, we are talking about a $10.00 report we sell called the “Fan Page Funnel Report” (FPF). This report is a quick guide to the “back-end” we discussed earlier. It teaches our fans to use small $10.00 reports to bring in leads, subscribers and customers.
The first step in our funnel is an ad that takes someone to a sales page with some great content and an opportunity to click-through (Click a link and visit a new page) to a checkout page for the FPF. We use a tool called SamCart to present our checkout pages and our upsells (Products we offer after the initial purchase which either compliment, or expand on the initial product our user is interested in.). SamCart is currently in beta testing, but you can get on the list to see the new features and updates coming, and sometimes chances to get in early.
The Initial Funnel:
Our initial funnel started out with the FPF for $10.00, which after they purchased put our users into an upsell funnel starting with a “Swipe File” which has a ton of done for you resources to get people up and running ASAP. The Swipe File was offered at 50% off, which is lower than we will sell it anywhere else.
After Swipe File upsell, we presented our customers with a 14 Day trial on SamCart, which is only given rarely while SamCart is in closed beta. The service costs $79.00 per month, after a 14 day trial period.
The funnel started out on a Fan Page Squeeze, which is basically a content page designed to get people interested enough to “Opt-in” and give us their e-mail in exchange for a free resource.
The funnel we just described above is a little different from what we usually run. Typically, we’ll offer our flagship product “Facebook Ads Academy” (Ads Academy) for a huge discount, as well as a smaller monthly subscription to our membership program “Facebook Marketer”.
Things on the new funnel were going pretty well, we weren’t losing any money, and were breaking even. Which, while not ideal is still OK, since we are building our customer base and e-mail list at no cost, and making people happy with low cost and free content. Those are all good things, but of course we would love to see some profit on top of it.
The “Problem” Funnel’s Math
$500.00 in Ad Spend
30–40 Report Customers
$300-$400 in sales on initial report
$100-$200 in Swipe File Sales
Total: $500.00 Ad Spend, $500.00 in Sales
We really wanted to get this funnel back to profitability, so we decided to remove the SamCart trial and try something else.
Our first step was to add Facebook Ads Academy back in at $497.00 after the Swipe File in the upsell process.
Secondly, we decided to add Facebook Marketer membership at the end of the upsell process at $97.00 monthly.
Initially we decided to test the new funnel using retargeting which is using tracking pixels generated and provided by Facebook while are on your pages to build an advertising audience that only shows ads to people who have visited those pages.
So we are only targeting people who have opted in and already become familiar with us. The ad took them to the video sales page which outlines a quick summary of the content, and then directs them to the full report.
So far it’s been great, we’ve spent $67.00 bucks on these ads, which isn’t a lot, but is enough to get an idea on performance.
We’ve sold 10 of these reports, $100.00
We’ve sold 2 of the $97.00 upsell.
We’ve sold 1 of the $500.00 product.
All from a $67.00 investment.
The “Solution” Funnel’s Math
$67.00 in Ad Spend
10 Reports Sold
$100.00 Initial Report Sales
$194.00 In Swipe File Sales
$497.00 (1) in Big Ticket Sales
Total: $67.00 In Ad Spend, $794 in Sales
That’s better 🙂
The key here, is that your upsell process matters, with that simple change, and only 1 or 2 people per day buying the bigger upsell, your funnel moves from breaking even, to extremely profitable. And as it scales, your profits keep getting better.
Since we are using an imported audience, there is one more important step. You can use a “negative” retargeting list so that once people have bought this initial funnel, they are opted out of any Facebook Ads for this funnel. That way you don’t keep advertising things people already own, and can change up your messaging and present them something new.
(If you want to learn more about Retargeting, check out this free PDF we put together which shows “11 Ways To Retarget” HERE.)
This whole process is what we call our “Fan Page Funnel”, you can go lower on the page to grab a free PDF outlining this as well.
If you’re curious about the report we’re selling and the philosophy in the video above, you can download our Fan Page Funnel Blueprint by clicking here.
For a little more in depth info, you can grab the Fan Page Funnel Report for ten bucks by clicking here.