Not discussed often and probably for a reason. Its cause most marketers aren’t really thinking about it and neither was I for the longest time. Now, I’ve seen the light at the end of the funnel which really just leads customers into another funnel. The back end profits funnel!
How is that for funnelception? We as marketers are often so focused on acquiring customers at the lowest price possible, while that is definitely kool, what would happen to your business if you couldn’t acquire customers at that price anymore?
Well it’s actually not that bad. For instance if you’re running even at least you’re building a list rapidly fo free. You didnt lose anything but you gained tons of new customers and leads. Who is easier to sell to? Cold or Warm. Warm is the correct answer of course!
So now it’s your duty to turn that list into profit. Email marketing is just one of many ways to capitalize. Why do you think so many major players in the business world aren’t afraid to LOSE to acquire a customer? It’s because they know the Lifetime Value of the customer which far outweighs the initial loss.
I hope by now you’ve seen some of those subscription boxes. Those are businesses with reoccurring revenue each month. We can learn a lot from them as many will acquire customers at a loss first but then become profitable in the 2nd month and beyond! Now I’m not saying you should go out and start a subscription box, cause you could start a digital product, newsletter, club, or even more of the same product if its a consumable! Boxes take a considerable amount of work and effort each month (not worth my time)
So do you think it may be a wise idea to at least be willing to spend an allowable amount to break even or take a tiny loss? I hope you nodded your head because this is what all the nest companies are willing to do at the very least.
For so long I’ve been too passive about my CPA (Cost per Acquisition) and now it’s time to get AGGRESSIVE in marketing. Just make sure you have your backend systems in place to make sure that you do profit!
At the end of the day, the one who is willing to spend the most to get a customer always wins (with a back end profit strategy in place)! Of course you better KNOW your numbers. Don’t just guess, take out the calculator and do the math. Its simple addition, subtraction, and multiplication.
And I’m willing to bet 99% of you out there aren’t willing to try it. Haha even I know the average LTV of my students. (No surprise that I have some backend profits after joining my course) This allows me to spray Facebook ads all day everyday building my list, students, and I guess “street credit” if you’ll call it that. But really the only way to call me out is in a bboy battle