So I always like to end the year with a blog post with the top 5 things I’ve learned in my business with the hopes that it will hope a few people along the way.
Please do not take this info for granted, it’s cost me Hundreds of Thousands of Dollars in Education, mentors, and hard fought experience to discover all of this.
Don’t Load Up on Recurring Offers in Your Front End Funnel
Anybody that runs a successful funnel in the business opportunity space knows that there’s a lot of friendly fraud present. (Consumers buying products and then disputing that purchase with their credit card company)
For the past few years I’ve always ran two recurring offers in my front end sales funnel (first offers a new customer sees) and it’s obviously done well from an average cart value standpoint. However from a Chargeback standpoint, it’s always hurt and merchant accounts have been a nightmare to deal with.
My biggest problem was, how do I attain the same ACV as having 2 recurring offers in the front end, and the answer is, you’re not going to be able too if you truly want to scale, you just get too much friendly fraud, hence causing MIDs to be shut down.
So how do you get a high Average Cart Value without dealing with a ton of friendly fraud? Well here’s what I’ve done:
Made my front end offer a recurring front end. I pick up a lot of revenue with a recurring front end. You get a lot more buyers with a trial front end, plus the LTV has always been higher than just going with a higher price point and no trial
I added a High Ticket Upsell (4 payments of $497) and it just goes through Paypal. (The higher the price point the more friendly fraud) So the buyer now has to login to Paypal to pay and I spread my risk out more by having the payment run through Paypal and not a regular merchant account.
Keep the prices low on your initial offers. When I ran $197 and $97/m recurring upsells, the CB rates on them were 13% and 10%. The lower the price point, the less friendly fraud you will receive.
Keep in mind, this is the Biz Opp space, if you’re not in it, you probably won’t understand a lot of the frustrations we go through as merchants in this space.
2. You Need to Hire Good Salespeople + a Setter
To truly scale in this space, you need to have good sales people that are constantly selling High Ticket Packages to your customers.
If I had to start all over again, here’s EXACTLY how I’d do it:
Script out everything so you can have a “Setter” calling all of your leads all day. There job is simply to get people interested in whatever you are selling over to your real sales people so they can close the deal.
This setter can be had for $10 an hour, plus $10 for every successful set made by you. Even if you don’t have the money now, just get a setter and put it on your CC or something, you want them making the calls and getting people interested over to you.
You don’t want your top salespeople prospecting, or answering emails or all of that (mistake I’ve made) You want them simply on the phone closing deals all day.
At first it’ll only be you who can really close, I’d have a script that essentially brings them down a slide to a close. What I mean by this, is they go through a set of “Yes” questions that moves them closer to the sale. (If you want my script, reach out to me and I’ll see what I can do for you [email protected])
You just want to have your setter bringing you closes all day. So prospect goes through sales funnel, they get your product and then your setter is calling them to sell your service/consulting or whatever it is.
Your setter should be calling your lead at least 10 times until they get an answer. Realize that each lead is going to cost you $50 – $100 to acquire so make sure you are working them hard.
After you get good at closing deals and you have a system setup where your setter is bringing you at least 2 qualified closes a day, I would look to hire a closer. Your packages that you are selling should be at least $2,000, all the way up to $25,000.
When you are hiring your closer, you need to be able to paint the picture that they are going to be able to make $50k – $70k a year at least, or you’ll have to hire a hungry college student who you can mold yourself. (I wrote a post on hiring a closer here)
3. Social Proof is the Key to More Higher Ticket Sales
If you’re in a niche where there’s a ton of skepticism, (biz opp, weight loss, etc..) you need a lot of social proof in order to close bigger deals.
To get someone to plunk down $2,000 – $10,000 for your consulting or service is a tough sell. Especially if you’re selling consulting, because it’s a non tangible item.
So a few things we do to show more social proof is have all of our customers join our Partner With Mike B group, and then we post in the group when a new member joins our Gold Commissions License ($3,500 package)
Then we post when a member makes a High Ticket sale in our group:
This does two things, it causes the members in the group who don’t have our Gold Commissions License wonder how they can get High Ticket commissions, and it also shows our current GCL members that other members are making commissions and that this actually works.
If you don’t currently have a FB group where your posting clients results, then you’re missing out on a lot of extra revenue.
4. Always a Way To Accomplish Something
This is the mindset you need to have as an entrepreneur, if you don’t have this, as the stakes get higher you’ll fail. There’s always an angle you can use to get what you want.
There’s gonna be days where a merchant account is holding your money, your best employee just left the company, you owe affiliates a ton of money, and it looks like you’re done.
You have to get into a mindset that there’s always something that can be done, maybe you have to get a Line of Credit to pay your affiliates for the time being, make a call to resell your best employee, have your affiliate manager reach out to all of the affiliates and let them know what’s going on.
There’s always something you can do to get what you want, you just need to exhaust every single avenue there is to find it. Don’t let a problem paralyze you from moving your company forward, someone in your niche has been through it before and has the answer for you, reach out, ask them, hire them as a mentor.
5. Coaches and Steps
One big thing that really helped us sell more, increase retention, and have a 800% increase in course completion is the use of a Coach and specific steps for your customers to take.
If you have a digital marketing course, chances are, 2% of the people actually finish it. People usually just buy things online and never actually finish the whole course.
What we transitioned to in the middle of the year is a 6 step system that you couldn’t access until you’ve reached out to your coach.
This does a couple things, it allows you to have a more personal touch with your customers, the completion rate is a lot higher on your course, and you can sell more high ticket offers to your customers due to the customers reaching out to your coach at the end of the course.
I set this all up with Infusionsoft and my amazing developer. A customer comes in, goes through initial funnel, gets assigned a coach, and the coach gets assigned a student, now it’s the student’s job to reach out to the coach to get access to the course.
The coach then talks with the student for a little bit to see where they’re at in their online marketing career and then unlocks all the steps.
If you want more opportunities to get to know your customers, sell more higher ticket packages, decrease refunds, and increase retention, I highly recommend this setup. (If you need help with this setup, reach out and we can get on a call [email protected])
I hope you enjoyed this article, these lessons have really made me a lot of money and cost a lot of money to learn (I really mean hundreds of thousands of dollars..)
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