The Power of Acquisition Funnels & Low Ticket Offers To Sell Online Courses

Ever scratched your head at those ads with people selling products like books, workshops and mini-courses for super cheap?

In this video from my YouTube channel, I’ll let you in on the secret of the self-liquidating offer (aka acquisition funnels with low ticket offers)

 

Introduction: The Power of Self-Liquidating Offers & Acquisition Funnels

With the rise in online competition, changing privacy laws, and increasing ad costs, businesses are always on the lookout for innovative and profitable marketing strategies.

One method that’s we’re seeing be more and more effective is the power of acquisition funnels and the self-liquidating offer.

In this post, we will break down what a self-liquidating offer is, how it works, and how it can help you make a substantial amount of money if you are selling digital products like courses, coaching programs, high ticket offers, and more.

What is a Self-Liquidating Offer?

A self-liquidating offer is a funnel through which a business sells a low-cost product with the intention of covering advertising expenses and acquiring new customers without losing money.

The beauty of this model is that you can spend on advertising and earn it back on the same day.

For example, if you spend $2,000 on advertising and make $2,000 in sales, you’ve acquired new customers without any financial loss.

Understanding the Economics Behind Self-Liquidating Offers

The main goal with this type of offer is to make the funnel profitable.

To achieve this, you need to focus on economics engineering.

Essentially, you want to make sure your Cost Per Acquisition (CPA) is less than your Average Order Value (AOV).

If you spend $55 to acquire a customer and the AOV is $65, your net profit is $10 for each customer.

CPA vs AOV: The Balancing Act

This balancing act requires some basic math.

You pay for clicks, and a certain percentage of those clickers end up buying your product.

If you’re paying $4 per click and 7% of clickers buy, your CPA will be $55.

Your AOV needs to be higher than this to make a profit.

The magic equation to keep a close eye on is: CPA < AOV.

Increasing Average Order Value

The secret to achieving a profitable self-liquidating offer lies in increasing the AOV. This involves various techniques:

• Order Bumps: Simple yet effective, order bumps can easily double the total order value. For example, if you’re selling a book, offer an audiobook version for an extra fee. Many customers will take this offer if it aligns with the main product.
• Upsells: These are additional, congruent offers that customers can add to their cart after the initial purchase. Think of it as those tempting items in the grocery store aisle just before checkout.
• Cart Value Maximization: Combining order bumps and upsells can exponentially increase the cart value. A $6 book could lead to a total cart value of $265 with the right combination of add-ons.
• Follow Up Strategies: Making sure you have a robust email marketing strategy to nurture all the leads and customers that come into your business will make sure you keep your AOV as high as possible.

The Power of Breaking Even

Breaking even on ad spend can be a game-changer for businesses.

By carefully crafting a sales funnel with both low-ticket and high-ticket offers, companies can not only recoup their initial investment but also generate substantial profits with acquisition funnels.

Achieving Profitability and Growth

The magic happens when you spend $5,000 on ads and make that amount back in a week.

Even better, imagine doubling your investment and moving some customers into your high-ticket programs.

Here’s a detailed breakdown of how this can happen:

1. Spend $5,000 on ads and make $10,000 by week’s end: This not only gives you 284 new customers but also the opportunity to guide 1-2% of those into your high-ticket programs. With a $5,000 high-ticket offer, that’s an additional $30,000, leading to a total return of $40,000.
2. Order bumps and upsells: By offering additional products or services that align with the primary offer, businesses can maximize the average order value (AOV). This approach helps in creating a situation where the AOV is higher than the cost to acquire a customer (CPA), allowing for scalable spending on customer acquisition.
3. Building a list of paying customers: Unlike conventional methods of attracting leads, this approach filters out freebie seekers, ensuring you build a community of people truly interested in your products or services. They are more likely to engage and ascend to higher-ticket offers.
4. Creating a 24/7 Customer-Generating Asset: By fine-tuning the economics of your sales funnel, you can generate customers daily without being dependent on creating constant content.

Challenges and Considerations

However, this type of funnel comes with its challenges:

1. Complexity: Managing multiple order bumps, upsells, and downsells requires detailed optimization, making it a potential full-time job.
2. Conversion to Cold Traffic: Not all funnels work with cold traffic and running Facebook ads isn’t always easy. Ensuring your front-end product resonates with your audience is key to success.
3. Offer Importance: A hot offer can make up for many other shortcomings. It’s the heart of the funnel.

The Importance of a Backend

The backend offer is where the real profit is made.

Running on razor-thin margins without a backend can be stressful.

But if there is a substantial high-ticket offer at the backend, the entire funnel works more efficiently.

It can absorb the days when the return is less than the investment because the backend ensures overall profitability.

Wrapping Up

The model of breaking even on the front end and profiting on the backend provides a strategic way to grow your business.

By focusing on aligning offers, optimizing the funnel, and considering the backend, companies can create a sustainable and profitable marketing system.

While the path to perfecting this funnel might be complex, the rewards can be substantial.

Understanding these dynamics and being prepared to invest the time and resources into optimization can pave the way for success.

Whether you’re a seasoned marketer or just beginning your online business journey, mastering the art of breaking even can be your key to unlocking growth and profitability.

It’s not just about spending money on ads; it’s about investing in a system that continually fuels your business with new customers and revenue.

 

[optin-monster slug=”rfbaktwcdzgbbcr0gxwq” followrules=”true”]