¶ Reducing Ad Costs With Welcome Offers
your thinking of your welcome offer , much like all those candy bars that are by the cash register in a supermarket . You know it's , you've done your grocery shopping , but dang it that butterfingers right there . You want the price to make what you're selling an absolute no brainer Like , of course , I'll do that , alright , what's ?
up my friends . It's Rick here and we're going to be talking about how to reduce your ad cost by 40% or more One of the biggest questions that I get and Kwejo , I know you get this question all the time Yep , how do I lower my ad costs ?
And we're going to be talking about I don't want to say the best way , because there's always different ways you can do this , but we want to share this whole . Let's get it right out of the way right now tripwire , this whole concept of tripwire Right , it's so negative .
It's not the best name in the world , you know if you've listened . On previous episodes . We kind of joke and let's , let's rename this to welcome offer . We're not trying to trip people up . We're not trying to booby trap people . We're trying to give them a quicker win earlier on in their interaction with us as an online business owner . Right .
Offer them a good experience when they come in . I literally have a visual , when I think tripwire , of the house that I grew up in , you know , like currently it's my mom's house , although when we are recording this on October 12th , it is currently under contract , since my mom is in assisted living . We had to sell the house .
So but I think of that house , I think of the house I grew up in , I think of the back door into the . It was like a side door , I should say . And when I think tripwire , I think of a literal , like metal tripwire coming on the door so that when you walk through the door you trip , like yeah , that's not this is not very kind .
It's nothing good . It's either bad or it gets worse and , like the horror movies in the woods there's always a tripwire , you know . Or in hunger games , you know . It's just not . It's not good , it's never good . So , welcome offer for this episode . It's going to be a welcome offer . However , the concept is good .
Yeah , the concept is great and it solves the problem that a lot of online businesses have right , where they're paying for leads and they're just not making back their lead costs as quickly as they would like . Leads are valuable , but many people would love to reduce their lead costs by 40% , Sure .
And we're going to talk about it here today is like because I've shared a episode here previously I don't remember when it was a while back talking about you know who should and shouldn't do these types of offers , so we'll talk about that here today .
But you know , one thing that we all love is examples , like an actual case study , where you can see where , in this instance , here , where a welcome Would you call it a welcome mat A welcome offer .
Welcome mat offer . We'll use both . Welcome offer .
So a welcome offer was used and how well it converted and how did you get it , how did somebody get it to that point , etc . And you know you work with clients in your Facebook ads management business and your funnel fixing every single day that are doing these types of things . So you've got examples here that you're going to take us through today too .
Yeah , we have a really good example , but before we get to that example , shall we define what a tripwire is exactly ?
Yeah , for sure , because people get this mixed up with like a slow funnel .
So , for context , the tripwire is in a lead funnel and so you're sending paid traffic to an opt-in page so they can get your free lead magnet whatever that may be to help them right and directly on the next page they visit the thank you page Instead of just saying thank you . Now go to your email and pick up the lead magnet link download it .
There is a offer right there on your thank you page . It's a low cost offer and it improves if they buy it . It improves their experience .
They get the value that you're delivering in that offer and people who purchase from you once are more likely to purchase from you again , provided that you do the right thing and have lots of good value packed into that offer . So that's what we're talking about when we say well , formally known , a tripwire . Now we're calling it a welcome offer .
That's exactly what we're discussing .
It's awesome real estate , right ? Because somebody has just opted in . They've given you their email and said , hey , I want whatever the lead magnet is . You're like holy cow , I want this .
They opt in for it and then on the thank you page you know you're saying check your inbox , your lead magnet or whatever that they've just downloaded your PDFs on its way to your inbox . You can also click this link , download it , but then you also use that real estate , if you will , in that page to make this kind of offer .
Now , in your with working with your clients , do you find a price that tends to work and convert better than another I shouldn't say price range ?
Price range . Yeah , I mean strategically , you want the price to make what you're selling an absolute no brainer , like , of course I'll do that . And then , conceptually , your thinking of your welcome offer , much like all those candy bars that are by the cash register in a supermarket .
You know it's , you've done your grocery shopping , but dang it , that butterfingers right there , and it's so . The last time I had it , when it was wonderful . So I'm going to get one and add it into the cart along with some , some gum , and that's . That's kind of how it is . So the price range I would say would be under $10 , not lower than seven .
Like if I was just to spit out a price range of seven to ten dollars , you don't want it to have it be two , because what kind of value could somebody buy for two dollars ? We've all been to the dollar store and we know that like , well , actually my in-laws won't listen to this , but they like to give our kids like things from the dollar store .
I think it's my sister in law and I love how you're whispering right now .
Like they can't , they can't hear . By the way , I'm adding , I'm adding milk duds to milk duds because , like I don't know , we bought three bags of huge bags of Halloween candy . I bought them , like last week , because we have a target literally across the street from us and I was like oh , let's just get some candy and we'll start eating it now .
Well , one of the bags , has milk duds and Amy , my wife , loves milk duds and I just never got into them , but holy cow . I've been snacking on them and I like I told Amy yesterday I was like I think these are my new favorite candy . Those are dangerous . That's my welcome , matt right .
I got to take the bait and keep going on a tangent . Really quickly , go for it . One of the people who we coach , or who you coach , who I assisted , coached , coached inside of Accelerator .
Back when Accelerator was running , she posted this onto her social media , which was if I go into Target , is it possible to only get the one thing that I was going into Target for ? And my comment was that that submission is so impossible . Tom Cruise wouldn't accept it . And it's true , I can't go into Target without paying tons .
So , yeah , we don't want to undersell . And if you sell something like it's a tripwire offer for $2 , even if you did pack a lot of value in there , somebody might wonder are you really going to help me ?
So $7 to $7 . And also what I think of that in addition to a lead magnet . I look at it as a welcome offer , as the next step .
So they've just downloaded whatever it is this PDF or cheat sheet or video , whatever it is the welcome offer , this next offer that you're offering on the thank you page is the next logical step and then from there it's sort of like the next logical step is your main offer , or this is where you can start to do bump offers and stuff like that .
Before we get too fancy , before we get to main offer , the tripwire fills that sweet spot between your free offer and your tripwire is aligned with your main offer . And what's it good for ? Well , of course you can recoup some of your ad spend and in this example coming up , we'll show you how one of my clients actually was lowering his lead cost by 40% .
That's almost half , which , when you think about it , that's so good yeah .
Yeah , the other thing , too , I think a lot of people think about on that thank you page when you're making this sort of offer is what does this look like Like ? What does it look like on the page ? Is it like this whole other sales page ? What does it look like ? And I'd love to hear what you see some of your clients doing .
I know a lot of the tools , like the landing page tools , for example , will have these types of templates already done . Or you just sort of fill in the mad lib style where they have the sample text .
You just fill that in for whatever it is that you're doing and boom , you have this sort of thank you page , slash welcome offer page and it's done and out the door . What are you seeing in terms of these pages where it just makes it super easy to do and a great experience on that page for this offer ?
I'm seeing short and concise pages . That's what I'm encouraging too . But this is not a sales page , it's a tripwire offer . You should be able to explain it super concisely , maybe three bullet points . You know , think we all know those little order bump offers that have , like on the checkout page .
Tick this and it says a little box right there that tells you exactly what the order bump is , and it's not very big at all . Think like that . How can you express the value concisely ? Also , one thing I'm seeing that's working is the header at the top of the thank you page , those big bold words up there . They're not closing the loop .
You opt in , you're kind of opening that loop , right , you're putting in your name and your email and then that loop is closed , so to speak . When you hit the thank you page and it says thank you , or you're in or you've got it , go to your email .
They don't have that wording there , because when people see that , it's like automatically close the tab , yeah , or look , let's go back to cat videos on Instagram or Facebook . So they're not closing the loop at the top of their page and I like those two things together . Short page , not closing the loop .
That's a great point about not closing the loop . Are you seeing any kind of copy or words that people tend to use that sort of keep that loop open ?
So what I've done during funnel fixings questions or sessions , I should say is looked at pages , and the ones that I've had to fix were the ones that said just thank you . And so what we've kind of settled on with some clients is thank you and problem , or just now that you have that conceptually , now that you have this , how do you get that ?
Until they're asking a question , like when I say , now that you have this , it's like now that you've gotten the leading bank that delivers such and such results , and then I coach them to ask the question well , what about this other issue ?
You know , if I download a lead magnet that tells me how to start a dog walking business , it's like the thank you page offer could start with . Well , how do you keep all the dogs from not biting each other when you got seven leashes out of one hand ? Something like that . It starts with a question and then it goes right into the offer . Gotcha , okay .
Okay , yeah , yeah . But this is one of those things where , hopefully , if you're going to do this sort of welcome , that offer , that you already have it , like you already have it in your business , you've already created it , ideally , now you can .
You might be listening right now and you're like , well , this is really cool , I want to try this , but I have no idea what to do . This is an example where you can use chat GPT to help you come up with ideas for what this . You know what this could be .
You know and you tell it to act as I don't have , top my head , you're a world-class email funnel , email marketing funnel strategist . Right , people are opting into whatever the lead magnet is and tell them .
You know you can say what your offer is , describe your audience , and then you can say I want you to come up with 10 different ideas that I could offer on the thank you page as a you know , a $9 offer . You know what I mean . Like , just , it'll just give it detail , it'll give you all those ideas . It really is impressive .
¶ Improving Lead Costs With Jazz
Let's talk about a couple of examples that you've seen with some of your clients .
Sure , Well , we got one example mainly , which is , oh , you mean like lead magnet , like welcome offers . Yeah , I've seen , I've seen like a three-part video series that goes the next step following the lead magnet . You know , in this case the video series served to help somebody out more quickly . I've seen . Well , let's just dive into the main example .
I know the listeners like how can I tell me the example Just ?
tell me how can I save up to 40% in my ad cost ?
Like let's , let's jump there , let's break that down , break that down .
Yeah , let's break that down . And I do want to add one thing before we get there , which is paying for leads is worth it . Like , if we kind of zoom out , you want to be able to pay for leads to come into your business .
Like if you can't arrive at like , the Holy Grail of being able to get leads for free , that's okay , provided that your funnel inside of your business is healthy and it does a good job at converting your leads into sales and you have like an earnings per lead that's much higher than what you're paying , like for your cost per lead . It's okay .
I just want to say that it's okay if your leads aren't costing zero because of this miraculous tripwire . Yeah , just want to put that out there .
Yeah , so what type of ? And we're going to leave this sort of generic , you know , to protect the anonymity of the client . But what type of business is it ?
So this is a really cool one . The client teaches aspiring jazz artists how to get even better and specifically how to improv . Well , it's a really cool concept .
Okay , and so they're sending people , so they're running ads . To well , you're running ads for them yeah . I was going to say you're running ads for them . Yep , directly to a freebie , to a lead magnet . Yep , what is the lead magnet ?
It's called Jazz Improv Made Easy and if you are watching , we are actually opening the lead magnet up . We'll do our best to describe what we're seeing on this thank you page . That actually , you know , is reducing lead cost by 40% . So that's a plug . If you are watching on the YouTube channel , you can see this .
If you're not watching on the YouTube channel , start watching on the YouTube channel . The link is in the descriptions below .
So it's Jazz Improv Made Easy , yep , and is it video Like ? Do you know what it is ?
The medium is a PDF guide .
Medium . Thank you , yeah . Pdf guide Okay , Cool . And prior to having this welcome offer on the thank you page , their lead cost was $2.29 . Correct , okay , so even still pretty good Lead costs . Mm-hmm . Right . And what we're looking at ?
For those of you who are listening and not seeing this on the YouTube channel , we're looking at the landing page right now , yep , and the headline says Discover our proven process for improvising jazz solos like a pro . And the sub headline is sign up for free and start improvising your jazz solos in as little as 30 days .
Mm-hmm , super strong headline and sub headline . There is a time-based promise with this . There's a sort of a graphic of the PDF . It's like a little booklet and first name , email and then the instrument it asks for . The instrument has a drop down , so those are the fields . Then it says send me my free guide . And that is all above the fold .
By the way , yep , you go to that link and it's right there on the page , super clean . I like it .
And a very bright , a very bright orange button that , like this call to action button , is super clear . Yeah , can we just talk about that for one second , you can , you can .
I have gotten on the soapbox so many times here on the podcast . You all , please , please , please , make your calls to action buttons a different color on your landing pages , a different color than all the other colors . So I'm working with a client , right , I have a one-on-one coaching client right now . Yeah , you're just telling me .
Yeah , I was showing you this before we hit record . I was like , dude , check this out , and I showed Kwejo the landing page . So this person has a membership and they are running ads directly to the membership and doing extremely well meaning add to sign up for the membership , and so and they're in the middle of a promotion right now .
So I have things that I want them to change in the ads , but right now it's kind of an anomaly because the way that they've set the ads up is , in terms of objective and what they're optimizing for is not what I would recommend at all . However , they're getting good results . So I was like don't change anything right now except for spend more money .
Lass me digress , lass me digress .
Yeah , we go to the landing page and I'm looking at it right now . Actually , I'm not laughing at the landing page , but I'm just laughing because I'm like , here it is . There is no call to action button .
Above the fold , there is a lot of pink on the page and , as you do one scroll down , there's the call to action button where it says join for just X amount of dollars , and the button is pink . It's the exact same color as everything else on the page . And Kwejo actually said well , I actually clicked on the wrong button because it was the same .
So anyway , anyway , I digress Make your call to action button color different on that page . So $2.29 lead cost . Really nice opt-in page , very clean . And then on thank you page , is this still the opt-in page that you're showing on the screen ?
This is the opt-in page and I have to do window sharing magic . Please hold , please talk , rick . So what ?
we're looking at here and again . This can be very frustrating . If you're listening , definitely want you to go check it out when you get a second over on the YouTube channel . But there below the opt-in box on the top that we just took you through , they have a bonus opt-in , and so I'm very curious about how that is working out Now .
I used to coach this person myself inside of Accelerator and this person is very cash conscious , even though they're doing extremely well in their business . I love this person so much , very cash conscious , so you say like , all right , $2.29 for a cost per lead . Then they're like well , I want to get this down . By the way , they have a membership .
That's what their main offer is is the membership , and so this sort of PDF improv tips and stuff like that is a natural first step . It's a great front door into the business and thus into the membership . So now on the screen , we're looking at the thank you page after they opt in .
And here is the textbook example of not closing the loop . It says awesome In big red text Well , their logo is at the top of the thank you page . And then , in big red text , it says awesome , your guide will arrive in your inbox in 10 minutes . And then it says , until then , here's something that has helped thousands of our students .
And then we have another header underneath in black text with a question Does improvising over jazz standards feel confusing and overwhelming ?
¶ Funnel Conversion Rates Analysis
And then he goes into talking about the welcome offer .
Yeah what the offer is and it's got a nice image there , and then as you scroll down there , it's like a mini sales page . When I say mini like mini sales page , and then it talks about everything . You get in it all the contents in this playbook , if you will , and then this is what it costs . Sign me up .
Sign me up and it's a nice big red button and it kind of has this animation where it gets bigger if you scroll over it and it's just for $27 . So we just went to say what we recommended $7 to $10 . But here is an example of something that's more expensive .
So , like Rick has always said in previous episodes , and I definitely agree , you just have to test , you have to test . So shall we talk stats really quick .
Yeah , and just one more point on that . This person has done a ton of testing . Oh , absolutely Everything , from headlines to offers like which one works the best , to pricing , et cetera .
So , yeah , let's share some of the stats , now that we understand what the lead magnet is , what this welcome offer is on the thank you page , the original cost per lead of $2.29, . Now they have this welcome mat .
Yep . So as far as stats go on the opt-in page that we were looking at this one right here with the very contrasting call to action on the opt-in page , the opt-in rate was 35% and that is just slightly above textbook . If you can get 30% . Cold traffic , yeah , cold traffic . It's good , it's really good . So on the thank you page .
Now we're back to this welcome offer . 2.5% of people that landed on that thank you page purchased the welcome offer .
And I'm going to come back to that in just a second , but keep going All right , and so the next stat is now .
this is where this funnel gets really interesting . If you click this big red button which says sign me up for the playbook for just $27 , it takes you to oops , not that one , this one right here .
So this is another sales page .
Oh my gosh , hold on . Nope , this is real time . I clicked on the wrong link and messed it up . Let's go back to that link , so let's keep going .
So basically , there's a and is it on that checkout page right there ?
Correct . So when you click on the welcome offer on the thank you page it goes to a checkout page and there's a bump offer for $49 . And the offer is add the entire jazz play along collection to the order . Should we review this , rick , because these really do align pretty well Well yeah for sure .
Why don't we just recap what the lead magnet was , what that welcome offer was , and then this bump offer ? Just to clarify , that bump offer is on the checkout page . You've all seen it . So when you're filling out your information your name and address and your credit card number and all that stuff there's that box that says , hey , do you want this ?
Also , here is the special price . Check the box if you want it , right .
So the lead magnet is Jazz Improv Made Easy . Fast Track Guide , the three-step quick guide for playing amazing jazz solos without the overwhelm Cool . On the thank you page , the trip , the world trip wire . Ah see , I tripped myself up .
The welcome offer is jazz standards , another guide that helps you learn the 10 jazz standards , ie in layman's terms , the 10 most popular jazz songs . It teaches you those Cool . Then you click yes , I want For $27 . For $27 . Then you click yes , I want the playbook .
And we go to the checkout page and the order bump offer is add the entire jazz play along collection to my order . So basically , it's more . It's 223 MP3 tracks that you can just access and begin to play along with it .
Yeah , and the little mini headline for this offer is need some backing tracks to help you start crushing it in the practice room . So again , this is all relevant . Like they all line up and , if you notice , each one is building off of the other . So we went from free to $27 to $49 . And so for the welcome mat offer , 2 and 1 1⁄2% conversion on that .
And then once people get to this checkout page when they're like , oh yeah , I want that $27 standards , what's the conversion rate on this bump offer ?
This is a 31% conversion rate . 31% of the people that purchase this offer also get this bump offer .
And so you don't happen to know what the average cart value is per opt-in , do you ?
I have not prepared that stat , Rick . They're always out there in the data .
For all the data yeah , I forgot to ask you for that one . I might have it , though , in our spreadsheet , OK , so just to recap again the opt-in page conversion rate for the lead magnet it's 35% . Cold traffic , that's a really solid number .
And then , of those people who opt in on that thank you page , where they are presented with that welcome offer , 2 and 1⁄2% conversion , which is pretty normal , and I can talk about that here in a second . Then the bump offer .
So for people who take up that $27 offer , 31% is the conversion rate who also take the bump offer on the thank you page or , excuse me , on the checkout page .
Average order value is $38.79 . Amazing .
So $38 . And so , before we come back to that , what did all of this reduce the cost per lead down to ? We started with $2.29 .
Yep and it reduced the cost per lead down to $1.36 . Awesome 40% cost reduction , which is huge , by the way . Yeah , huge , let's keep going .
Yeah , so greatly reducing that lead cost a strong average cart value for people who opt in Right Other stats you got .
So there's another offer , because whether or not somebody purchases , or if they opt from the thank you page , if they say they don't want the purchase they get presented with . It's a $7 trial , seven day $7 trial of the membership .
So it's a down sell . Basically , it's a down sell . Yeah , and what percentage of people who get here take this offer ?
0.8% . So just under 1% . So not a whole lot , nope . So , to recap Yep , because there's so many offers . So , to recap , thank you page has a $27 playbook right Of the people that purchased the $27 playbook . Now we're on the checkout page for the playbook and there's an order bump for a jazz play along collection .
So 31% of the people that get the playbook also get the order bump . Awesome . If somebody decides not to purchase the playbook , then the final thing that they see or if they decide to purchase the playbook , the final thing that they see is a seven day trial for the membership which is here . It's seven day , $7 . And the stats on that are 0.8% .
Just under 1% of the people that make it to that final page end up starting the membership .
So not very hot that this page does not convert super high .
And that was the challenge is how can we get the most people into the membership ? But my gosh , reducing lead costs by almost 50% and then relying on the email nurture sequence , followed by a cell sequence , to then introduce somebody fully to the membership and give them another chance , that's .
I mean , we talk about it , but lifetime value of a member is going to be higher than a cost per lead . So as long as you're doing well within your funnel , your business is healthy .
And I didn't ask you about this number before , so I don't know . If you have it , scream them over . What does it cost to acquire a customer like a membership customer , not like average cart value or anything like that ? What does it cost to acquire a ?
membership . I'm not going to be able to find that number quick enough within the country into this episode .
So that's sort of like and yes , I'm throwing these stats like way to like on the spot . You didn't know . I was going to ask because you know we're we're talking about . You know this welcome mat offer and this . How this funnel can work for you is to reduce your ad costs .
Yeah , my point in bringing that up is don't forget , as you're running these ads to you know , yes , to upfront to pay for your lead costs . Then you're ultimately wanting to get them into your main offer , in this case , here for this client it's a membership .
So you can look at oh , it's costing me X amount of dollars to acquire a customer , and then there I always feel so weird saying this like the lifetime value , if you will , of that customer is X , and so you're comparing the two .
So , in closing , yeah , it definitely is worth it to test this welcome offer . It's okay to pay for leads . Make sure your , your business is funnel , is healthy . Go ahead and try to have a welcome offer . Just be ready to test . We cannot under or overstate that test . Test , test and if it's not working , that's okay .
Disappointments part of the journey , just test . It's like yeah , it's just numbers , right ? Yeah , eventually you'll find the right solution . It may not probably won't , I should say make you all of your ads been back , but that's okay if your funnel is healthy , and I think that's where we'll stop .
Sounds good . Hopefully this has given everybody you know some inspiration , some ideas or what you could do in if you've got a lead magnet right now and you're running ads to it and you want to start reducing those ad costs . Hopefully this has given you some ideas on how to do that .
Yeah , hopefully it inspires you to to start and test . And if you want to take another step and end up getting expert eyes or opinions on your funnel , I do these funnel fixing strategy calls and we can dive into the numbers , see where , like , the highest point of leverage is in your funnel , then start to see improvement .
Just head down to the show notes below and book a call . What's the link also to go to ? That link is quajocom , that's Q-U-A-Y-J-Ocom .
Forward slash funnel fix Quajocom forward slash funnel fix .
I'm actually typing it into my computer right now to make sure Forward slash funnel hyphen fix . Funnel dash fix . That's Q-U-A-Y-J-Ocom forward slash funnel dash fix .
You should have a pre link also set up so that when people put quajocom forward , slash funnel fix without the hyphen it redirects to that page too .
I should . Fun fact , q-u-a-y-j-o is not even how you spell my name . It just makes more sense phonetically and I've come to use it in all my branding . Maybe I'll go ahead and clue you in , or the clue the listener in , on another episode about my heritage and where my name came from . For now , thanks , rick , for co-hosting this episode .
It's been good , always fun . All right , take care everyone .
Bye , bye .