The Break Even Funnel

The break even funnel is designed to get you your advertising spend back in as little as 2 – 3 days.

Today on Marketer Mondays I explain how we use tripwires and a 3 day email sequence in our break even funnels to quickly recover our Facebook ad spend.. 

Marketer Mondays:

Marketer Mondays is a weekly video show that covers a wide range of digital marketing concepts.
I share my personal experience from over 10 years of building multiple successful businesses.

Video Transcript:

Hey Everybody, Anton Kraly here from www.performancemarketer.com. We are back in Austin, which means I am back to the whiteboard, and in this episode of Marketer Monday I am going to talk to you a little bit more about the Break Even funnel.

Marketer|Mondays [00:00:10]

So, if you remember the previous videos, I have been talking about our main funnel types and how everything we do is a variation of one of them. However, I didn’t have a chance to get into too much detail so in this video I want to talk about the Break Even Funnel and go a little bit deeper into the different parts of it and how it works. The goal of this is not to make money; it’s to get the money that we spend on ads back in the quickest amount of time possible. We are paying for advertising and we are trying to get people to purchase something from us as soon as possible so that the money we put out for advertising, comes back into our bank account as quickly as possible. This is how you build a list for free, there is really no limit to the size that it can grow because you are getting your money back so quickly. Even if you’re using a credit card to pay for that traffic, you should be able to replace the cost within 48-72 hours.

[00:01:06]

Here’s the real reason: we are spending money for traffic. When we are paying for traffic, typically on Facebook (sometimes we use YouTube ads as well but the majority is spent on Facebook) we pay per lead. We have a target CPL that we are looking for which stands for cost per lead. Your cost per lead will vary tremendously based on the scale, how much money you are trying to spend, how many people you are trying to target and your industry. In some super completive, really high priced industries like legal, malpractice or anything with drugs and medications where the margins are so big the CPL is out of control. In a normal business, where there is not total competition because there is so much potential money to be made, you are probably looking at somewhere between $1-3 cost per lead. Ours is about $3 at scale; that means we are willing to pay Facebook $3 for every name and email address that we get. That’s our lead.

[00:02:10]

When we spend this money, what happens? Well, we tell Facebook that we will pay if they show our advertising to the audience we select and then they come to an opt in page. An opt in page offers something in exchange for a name and email address. We are not trying to sell anything so the money made here is zero. We ae sending people from Facebook to this page, they enter their name and email address and they get taken to thank you page. This is where they can download whatever it is they want, whatever we’ve offered them in the opt in page, they download it here. This is also where we make an offer. The offer on this page is sometimes referred to as a tripwire offer, you’ll also hear it referred to as a liquidator or an entry offer. There are a lot of different words but you need to know that this is not the main product you sell. This is something smaller that gets people to first make a purchase from you. Here we typically sell things between $9-97, depending on what it is and what market it is. An offer with a onetime fee of $9-97 made immediately after they get what they asked for.

[00:03:18]

What if they don’t purchase right away? Remember, I said you should get your money back within 2-3 days. That is because there is an email follow up that comes behind this. If they opt in here and they get the download, they’ve entered their name and email so we will follow up on day 1, day 2 and on day 3. All of these emails that follow up have the same message, but it is slightly tweaked to show off a different benefit of the product. All these emails with the offer are directing people back to this page, where they can purchase from us. That’s why we can get the money back in 2-3 days – it’s a very limited time and there is real urgency, there is real scarcity.

[00:04:00]

Why have we called this break even? Let’s say we are paying three dollars per lead, that’s our CPL, that’s our goal in our company. We spend $300 for 100 leads; we are paying Facebook for 100 names and email addresses. With your entry offers, liquidators, or trip wires (whatever you want to call them) you could get a 10% conversion rate, that’s a good rate but it is possible if you do it right. Pick a number between £9-97, let’s say $50 and assume 10% of the hundred leads buy that means you would do $500 dollars in sales on your entry offer. In this case, not only are you breaking even but you actually profit $200 dollars – it will be plus 200.

[00:04:48]

Obviously, the goal is not to make $200. You are trying to make a lot more than that but I want to show you this funnel: how it works and why I say 2-3 days. I’m not just saying it because I made up a number, it’s because we have this specific email sequence that we use behind this page, to get people to buy in three days, which should get us to profitability or break even. We have 100 new leads, 10 new sales at $50, we made $200 and now we can move onto the next funnel – that’s actually where we make the real money: our Primary Offer Funnel. Next week on Marketer Monday’s video I’m going to talk about that Primary Offer Funnel.

[00:05:24]

If you have any questions on this one, please go ahead and comment and I will be more than happy to answer in future episodes. If you got value out of this video, please give it a thumbs up or a like and if you are not subscribed to our YouTube channel yet definitely go over to www.youtube.com/performancemarketer and click subscribe. I hope you got value out of this video and I hope to see you next week for the next episode of marketer Monday. Thank you everybody.

Anton Kraly
 

Anton is a the Founder & CEO of Performance Marketer - a place where decades of real world marketing experience is shared. He began building business online in 2007 and has built and sold multiple seven-figure businesses.

  • Mohammed says:

    Hey Anton,

    Firstly Great video especially marketing on the thank you page.

    Do you have a real life example of what you just talked about, is there a page you can show selling on the thank you page,

    and can you show the auto-responder sequence showing urgency, how would you show urgency in an autoresponder?

    Again great video.

    • Anton Kraly says:

      Hey Mohammed,

      Glad to hear you got value out of it!

      I don’t want to share out thank you page links here because that will throw off our tracking stats, but I will cover this (and show an example) in a future episode of Marketer Monday.

      I will do the same for the urgency within the auto-responder 🙂

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