246 - The Magic Of Internet Marketing Math - MarketingInYourCar.com

MarketingInYourCar - Podcast Video (Russell Brunson - FunnelHackerTV)

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YouTube Transcript: English (auto-generated)

00:00
what’s up everybody good morning i hope
00:03
i woke you up welcome to marketing your
00:05
car welcome to the marketing in your car
00:08
podcast where you can increase your
00:10
traffic conversions and sales in just 10
00:14
minutes a day and now here’s your host
00:16
russell brunson all right everybody I
00:20
hope things are going amazing for you
00:22
all today I just wanted to jump on today
00:26
in the office and that’s to slip out of
00:30
preparing now I’ve had a webinar in 40
00:32
minutes for the network marketing group
00:34
we’re taking through clickfunnels so I
00:35
get in and get that all prepped and then
00:38
I’m doing a webinar for clickfunnels
00:39
today and got some jiu-jitsu practice
00:41
tonight and talking to Robert Kiyosaki’s
00:44
people today a lot of fun stuff
00:45
happening so I’m excited about what I
00:47
want to talk to you guys about today
00:48
something even more important and it’s
00:52
one of the things that’s my favorite
00:53
part in the funnel building process is
00:55
the part of the stresses most people out
00:57
right so typically we create a funnel we
01:00
do our best foot forward then we
01:01
launched it to the world and wait to see
01:04
what happens and this is where like most
01:07
men are circle people i freak out like
01:08
Oh Russell my photos work oh this is a
01:11
scam no just get they don’t say that but
01:13
um a lot of people think you’re talking
01:15
to kill quick wants community or it
01:16
every day they launch something it
01:18
doesn’t wake money overnight and they’re
01:19
like oh this this funnel thing doesn’t
01:22
work anyway so it’s always kind of a
01:24
it’s always kind of funny so I want to
01:27
walk you through what’s been happening
01:28
with the biohacking secrets funnel
01:30
because we’re going to have phase right
01:31
now so he officially launched it
01:33
thoughts are launching attitude about a
01:34
week ago and so I think John spending
01:38
about a hundred dollars today just Ted
01:40
driving asked has seen seeing where
01:42
things shake out right it’s alyssa think
01:44
normal people like they drive as Frank
01:45
they do one or two things one the drive
01:47
ads for a day and then right Oh didn’t
01:48
work and they freaked out and they want
01:50
to shut it down we’re number two and
01:52
they drive ads for like two months and
01:54
it doesn’t work and then they come back
01:55
like I spent 20 grand and I didn’t make
01:56
any money I’m like to why did you not
01:58
stop so this is how we do it so we drive
02:01
some ads hunter bucks a day or so for
02:03
about a week just to see so we’re
02:05
spending you know five hundred to a
02:06
thousand bucks is to kind of get some
02:08
initial data and see what’s happening
02:09
right
02:10
so from that how yesterday we had a call
02:13
if Anthony had look over the numbers and
02:14
so the numbers were basically this we
02:19
were spending on average about twenty
02:23
dollars to on facebook ads give away
02:26
free book some sources were cheap for
02:28
summer more expensive as a whole about
02:29
twenty dollars per book was the average
02:32
and then our average car value so that’s
02:34
so so that’s the first metric which is
02:37
the key it’s the cost to acquire a
02:38
customer so you’ve ever watch shark tank
02:40
they would say what’s your cost required
02:41
customer and none of the entrepreneurs
02:42
ever know because the entrepreneurs are
02:44
typically idiots right they just don’t
02:46
pay attention so the first number you
02:48
have to know in your business is what is
02:49
your cost to acquire customers so I get
02:51
a baseline cost to require customer from
02:53
that initial week-long test right so
02:54
boom that’s that’s metric number one
02:56
that I need to know that measure number
02:57
to any knows what is my average car
03:00
value so from every person that buys a
03:02
front end product what’s the average how
03:04
much money they spend so all you do to
03:05
take all the money you collected from
03:07
this campaign divided by the number of
03:09
front-end sales you have and that gives
03:11
you your average car value when you guys
03:13
impressed I like a mathematician over
03:15
here anyway this says Russell who barely
03:18
passed math in high school and college
03:21
that gives your average car by so our
03:23
average car values seventeen dollars
03:25
alright so wherein lies the issue my
03:28
friends you’re paying attention right
03:30
we’re spending twenty dollars to acquire
03:33
a customer that’s worth that point of
03:35
sale seventeen dollars now obviously
03:37
that long-term customer value like to
03:39
cash and all that kind of crap is good
03:41
to know right it’s like yeah we may wash
03:43
three dollars every book we sold but you
03:44
know people always like link about
03:46
long-term customer value right a
03:48
lifetime value of a customer the LTV and
03:50
those things are good to know but for me
03:52
when I billion funnel I don’t care about
03:53
LT me because I want to funnel the least
03:56
breaks even upfront otherwise it’s not
03:58
worth it’s not worth running for me
04:01
excuse me and that should be kind of
04:03
case for you as well okay so like yeah
04:05
lifetime value is cool but don’t make
04:07
that a metric you drive your business on
04:08
right now because it’s just stupid
04:10
otherwise you’re just gambling but
04:12
hoping the next year t make more money
04:14
which is pretty will but like I want to
04:17
be break even a point of sale otherwise
04:18
it’s not worth it right alright so right
04:20
now we’re not a break even we’re losing
04:22
three dollars plus you look up we also
04:23
have the book printing plus the shipping
04:24
to another probably 10 10 bucks or so in
04:28
printing and shipping so we’re actually
04:30
negative thirteen dollars on every every
04:32
book we so right now okay so we’re not
04:34
break even so this one we’re all super
04:36
like oh this sucks I spent all this time
04:38
and effort I quit but instead you look
04:41
at its ok let’s look at all the pieces
04:42
the only three met there’s only three
04:44
core drivers in this in this thing right
04:47
maybe four so the first one is add costs
04:50
right now most of our sources we were
04:53
spending except 2 $20 on average twenty
04:56
dollars to acquire a book customer these
04:57
are from static facebook ads and so one
04:59
thing that I vanunu my business is
05:01
working really good right now it’s
05:02
Facebook live so he said hey Anthony do
05:04
a Facebook live that we can then drive
05:06
traffic to the book through Facebook
05:07
live so he did that and lo and behold
05:10
the first test was amazing he dropped
05:13
from twenty dollars to acquire customer
05:16
down to the ass coming through through
05:18
his facebook live were six dollars huge
05:22
huge huge difference so he told Anthony
05:23
every single day now your new facebook
05:25
live and one live and all of them are
05:29
pushing to the book offer and when
05:30
they’re done we’re going to put five to
05:32
ten dollars behind appetizing behind it
05:33
and the ones that take off will then
05:35
ramped up advertising ones that don’t we
05:36
want so that’s something my facebook
05:38
life some some videos hit some videos
05:40
don’t so the keys just doing one a day
05:42
putting 10 bucks behind each one and the
05:44
ones that that get some traction then
05:46
dumped you know as much money as you can
05:48
behind them so that’s number one so
05:49
that’s lowering the cost to acquire
05:51
customer number two metric was
05:54
conversion rates on the landing page our
05:57
conversion rates were bad I’m pretty
05:58
happy with him so I wasn’t stressing
05:59
about that but the order form bump
06:02
conversion rates were lower than I
06:03
wanted right now we’re at eleven percent
06:05
we’re taking the order form bump and so
06:07
I looked at it in
06:08
I think the copying stuff had was
06:10
confusing and so it is we simplified the
06:11
copy simplify the message it made that
06:13
easier so I don’t know that I don’t know
06:15
what the conversions of that yet will be
06:17
organ run this another week but my goal
06:19
is to get that from eleven percent to
06:20
about twenty if we get to about twenty
06:22
percent that that alone will get us to a
06:25
to a break-even funnel especially
06:27
considering the cost to acquire his drop
06:30
is dropping through the Facebook live so
06:32
that’s that’s a big thing the second
06:33
metric was our upsell right in our
06:35
upsell rate sucked it was real bad so I
06:37
looked at that’s okay we’re right now
06:40
with the upsell was song for a hundred
06:41
ninety seven dollars and it’s a weight
06:43
lost by racking weight loss course I’m
06:45
okay this is the commercials Horrible’s
06:49
like what did you do I’m like well I
06:50
think the pitch was wrong so I just
06:53
recorded a pitch myself through hit
06:54
there oh yeah after they have any we put
06:57
it up plugging some Bureau of Anthony me
06:58
and then we had him to get an outro from
07:00
him so he had a tweak the pitch but I
07:02
think it’s much better that was number
07:03
one and then change the pricing strategy
07:05
$107 up front who basically made it
07:08
where it’s a free trial he putting her
07:10
you know you say yes and build zero
07:11
dollars right now and seven days later
07:13
you build ninety seven dollars or you
07:15
can say twenty dollars and get 477 so
07:17
that we change the upsell pricing
07:18
strategy to that as opposed to straight
07:21
hundred ninety seven dollars and it’s
07:24
funny because I I think Anthony was
07:25
worried like well what man if we drop it
07:27
if we drop the price we’re gonna make so
07:29
much money and said I was basically what
07:31
you think about this way like at one
07:33
hundred ninety seven dollars you know if
07:35
we’re getting one percent conversion
07:36
rate you went out 100 or buying it it’s
07:39
only adding like listen to be in two
07:44
dollars to your average car value if you
07:46
get one percent conversion rate but
07:47
let’s say it’s ninety seven dollars we
07:49
get to ten percent conversion it means
07:50
one out of ten or buying it it means
07:55
let’s see what’s math on that means that
07:57
means we are making at a hundred dollars
08:00
making ten dollars I that increases our
08:01
average car value by ten dollars per
08:03
person so Mike we drop the price in half
08:04
we get conversion up to ten percent that
08:07
changes the whole metrics adds ten
08:08
dollars average cart by it every single
08:10
person I think the math right on that I
08:11
might be wrong good chance i’m wrong but
08:14
conceptually I hope that makes sense and
08:15
so we made those little tweaks and now
08:18
we’re do the next test so it has this
08:20
next week and we look at numbers give
08:21
the end
08:22
that and see where wrap and hopefully
08:24
between lowering costs to acquire
08:25
increasing or form bump take rates and
08:28
and an increasing the upsell take rates
08:32
we will be at break even or profitable
08:34
and a second we are a break even or
08:36
profitable now we’ve got something that
08:38
we can grow and we can scale we have a
08:40
lot of fun left so there you go that is
08:43
the magic of internet marketing math
08:45
hope you guys enjoyed that have some fun
08:47
without your next funnels and that will
08:49
talk to you again soon hey everyone this
08:52
is russell brunson again i wanna thank
08:53
you for listening to mark in your car
08:55
and i want to make sure you’re plugging
08:56
into everything that we’re doing on a
08:58
daily basis and so make sure that every
09:00
morning you’re plugging into the marking
09:02
your car training if you want a
09:03
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09:05
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09:07
come out you can also get links to all
09:09
the transcripts of every single show
09:10
we’ve done in the past but then every
09:12
night well not every night but most
09:13
every night i also do a periscope show
09:17
called the marketing quickie show and
09:18
it’s really fun you can go to periscope
09:21
and search my name russell brunson and
09:23
subscribe and every single night you’ll
09:25
get a notification what kind of chirp on
09:26
your phone you’ll have me jump on there
09:28
and give you kind of the end of the day
09:30
thoughts and ideas and marketing
09:31
strategy when playing with during the
09:33
day or maybe even an say n or you should
09:37
go to marketing quickie show calm and
09:39
over there you can subscribe you can see
09:40
past episodes you can read the
09:41
transcripts you have a bunch of fun so
09:43
thanks so much for being faithful
09:44
listeners again register at marketing in
09:47
your car calm and also marketing quickie
09:49
show calm

The Marketing Secrets Blackbook - "99 Marketing Secrets That Will Change Your Business… And Change Your Life!"

:arrow_right: Get Your FREE Digital Copy Of The ‘Marketing Secrets Blackbook’ Now!

How We Took ClickFunnels From ZERO To Over $100,000,000 In Sales In Just 3 Short Years.

Get The First 257 Episodes Of Marketing In Your Car For FREE On This Pre-Loaded MP3 Player…

:arrow_right: YES! I Want The FREE Pre-Loaded MP3 Player

Hurry, these are almost sold out.

Want 6 Months of ClickFunnels™ Full Suite for FREE?! (Massive Discount)

:arrow_right: Get Full Unrestricted Access to the Funnel Hacks System

Includes: 6 Week Master Class, Traffic Hacks, Inception Secrets & Email Sequences.