No one wants to invest thousands and not be SURE of the return.
Okay…so SURE is not possible….but how bout pretty damn close?
This is how you can figure out what your course or product launch will produce.
Remember…
Any slight shift in numbers means DRAMATIC differences. I’m going to show you right now.
Let’s assume you’re starting with ZERO list.
1-2% is the industry standard for a buy rate.
Let’s say you want to generate $10,000.00 in revenue, and your product is $350.00.
If we take $10,000 and divide it by $350.00, that means you have to sell 29 units.
29 people need to buy.
If we’re looking at a 1-2% buy rate, how many people actually have to SEE your offer to get to the 29 units?
29 = 1% x Y
or
29 = 2% x Y
Alright…are you feeling the 7th grade algebra burn yet?
Let me help.
2900 people have to SEE your offer. Physically see the email the sales page the webinar, whatever.
For a 2% buy rate, 1450 people have to see your offer.
Now you might be saying…”SWEET! That isn’t bad!”
Welllll, since when have you seen an email open rate at 100%?
How about the 12th of never?
Typical open rates are around 20%. You may be lucky and have a 40% open rate.
Nonetheless, if we go with the law of averages…you need to do some more math.
2900 = 20% x Y
or
1450 = 20% x Y
The answer is between 12k – 14k LIST SIZE.
#whompwhomp
PLEASE STAY WITH ME.
YOU CAN…with good emails, bump your open rate to 30/40/50 percent even which will dramatically increase your bottom line.
And with smaller lists and good targeting, that’s totally doable. That changes your email list size to hang around anywhere between 5-10k or so in order to get between 1500 and 3000 people to see the offer.
ONE other important note!
If you can get people to SEE your offer in other ways, FB groups, interviews, public speaking, that counts too.
Alright…so cost for building a list strictly with ads is not cheap.
Depending on the industry, if you are using Facebook Ads to generate leads, you’ll have to pay somewhere between $.50 – $5.00 an email address. Obviously that’s a huge difference, but it’s impossible to estimate based on industry specifically.
I will say a $1-$2 lead rate is great!
Still…
It may cost you around $7-10k to get your list size to the point where you’re selling 29 units of a $350.00 product.
Bummer. All of your profits…gone.
OMG, this letter is such bad news.
BUT please…stay with me.
How can we change the tide of these glaring numbers?
How can we not be one of the 50/60/70/80% of people who see NO RETURN on their investment?
Simply by upping the buy rate.
{sheesh that looks huge! I’m not yelling..promise}
And I can tell you FOR SURE…that the sexy, quality, good-eyed design of your emails and sales page, can push the buy rate up from 1/2% to 3-4-5%.
If we summarize ALL the math above with a 5% buy rate?
It means ONLY 600 people need to see your offer in order to sell 29 units.
Even with a 20% open rate on emails, that means your list size only needs to get to 3000. And..if you can write some great emails and get your open rate up even higher? Than we’re talking only 1500 people or so.
Now that sounds a lot more manageable huh?
$2-4k in ads and you’ll bank $10,000.00.
That’s a profit of $6-8k on your first launch.
Good design and good copy on an offer can take you from $0 profits to $6k.
That’s just how important design and copy are to the marketing of your course.
So crunch your numbers and see!
And if you can’t do math, no problem. This Google sheet will do all the mad calculations for you. Just plug in the numbers and go to town!
April says
This sheet is genius and I been plugging numbers in every day for a couple clients and for myself for future products I’m creating funnels for! LOVE everything you do 🙂