Paid Advertising vs. Free Traffic Methods
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Hey guys, it’s Zach here again today. So, I was getting a few questions on why I use paid advertising? Why are paid ads so popular? Can you really bank on paid ads even if you’re just starting out?
I know you make think it seems too expensive, or seems like there’s a lot to it and a lot to lose…
But that’s pretty contradictory in fact, when it comes down to it you’re either going to be spending time or money and at the end of the day, there’s one and only one limited resource in this world and that’s time. Because at the end of the day you can utilize O.P.M. which is “Other People’s Money” and I teach you how to do that with our inner circle coaching but basically laid out, it’s simply taking investments and banking off of those investments and using them as frontend money in order to use paid ads.
Now, when we say paid advertising, that doesn’t mean that you have to be spending thousands or even tens of thousands of dollars to be successful, in fact it usually starts out with you spending anywhere from $50-$100 on a campaign to “test the waters” and get used to the paid method that you’re going to be using.
Now, with that being said, there are a lot of different paid advertising opportunities out there but we use: solo ads and Facebook ads the most. There are a few others that I talk about such as banner ads and retargeting etc. but whatever kind of paid ads you’ll be doing, you’re going to be starting that with what I call a ‘sample size’.
Now, a lot of these providers especially the smaller ones when it gets to Banner ads, and solos you know even certain pay-per-click campaigns those are going to be small budgets you know you’re going to spend $50-$100 going to see what you get and that’s why we want a front end offer because it needs to be a low price but a high value; which establishes authority. These are people who raise their hands and say “I know you now, I know what you’re offering and I trust you enough to give you my credit card here it is. I want that first item that you’re offering me.” And if you sell any up sells as one time offers or you know how to use an order form bump like I do for my free plus shipping, then you can obviously increase the average cart value which means you can now spend more money in those paid ads to acquire one individual customer.
For me some of my average cart values go somewhere between $25-$35 and of course the traffic really determines if it’s going to be on the low end of $25 or on that high end of $35. So, that’s the quality of traffic and that’s why I talk about traffic temperature and even more you’ll hear me say that not every click is the same. You know, if someone comes from a negative pre-frame and the article or whatever is saying you know: “Zach’s products weren’t what I expected, I didn’t like them, blah blah blah, I think he’s a bad guy whatever” it’s going to be a lot harder to sell that person versus an article or video that says “ hey Zach’s having a new product release go check it out!” When they click through to that link, what are the chances of that link that click being a buyer? Probably a lot more than the first pre-frame, right?
Exactly! So if that makes that makes sense then you understand that boy if I bought 100 clicks like that and I spend $100 for every click, I’m probably not going to make any profit and the average cart value is probably going to be $0. So you know that’s a terrible front end there. But at the same time once you do get a decent traffic you know my decent traffic starts and really picks up, and you get it up to $25 average cart value – from there you can spend $25 you know you’ll get one sale to get one person to raise their hand and say yes and from there, you’re leveraging everything.
So, do you have a clearer picture now of how Paid advertising is so much easier to leverage Vs organic traffic? That’s always the big debate. But you’re either investing time or money. Money is always replenishing, time isn’t.
So, this right here, you know this is the one limited resource in this world. We only got maybe I mean depends on how they advance the age and slow down the oxidation process for our bodies (which is the only reason we die by the way). You got 100 years, but if they slowed down the oxidation process we could extend that to a couple of 100 years – maybe half a millennia, but the point is that you got that that’s it you can’t really have ‘infinity’. You can become a billionaire, you can have unlimited wealth in a sense but in order to get there you have to think like a billionaire which is: “I don’t have time to wait for this you know, I don’t have time to wait for my investment to double over next year. I need to make sure that my investment can double over in the next you know 3months- 30days” that’s what you’re looking at. So, with the paid route, it’s all about leverage. You’re trying to really scale your business like I talked about earlier.
Let me just quickly draw this out. So this right here and you may even have something that I would consider free and here’s the price, here’s the value. With that being said, again as you go up this this debate right here maybe free you know sign up for something awesome and you know just give me your e-mail if you do a free plus shipping with a D.V.D. or something else that will compliment the front end which I love to do these two with your friend. You know a little slow for some reason and when that ends up happening again those are people who have raised their hand and the entire idea of your friend right here, is just to break even. All you’re trying to do is break even. That’s the whole goal, and if you can do that, then you have the leverage. I mean a lot of my students, and I’m so proud to say this, they kick my ass in what I teach them, they take their amazing ideas, implement them, and their ideas are probably more amazing than mine and that’s the beauty! I’m just giving you guys the tools and teaching you the frame work to take your ideas and make it even more amazing than this. I’m just teaching people how take their ideas and just expand on it.
$25-$35 that’s what the front end does, so I can pay $25 to get a customer and that front-end funnel is going to break me even. So, I can pay $100 for a 100clicks, my free plus shipping has about 8% conversion rate. When I do all my follow ups sequences right I get a 3-4% conversion rate. When you follow up with these people through a connection sequence, obviously that increases up to that 8% that we talk about, but the point is, right from the get go, you buy – you get clicks, that’s what paid does.
Paid means you get instant clicks. Organic means you are going to waiting days, months, years, God knows how long.
Well, paid is like this, paid can come here and just go very millennially, you have Time Vs Money whatever that is; that’s what Pid advertise is, you can work out the scalability and it goes on and on and on, that’s why we want to use paid. And we start out small $50-$100 if something didn’t work; we miss the least half of our money back on the front end that’s a pretty good traffic source to say the least. You know that’s decent enough to keep continuing keep split testing you know you maybe you make a separate funnel just for that traffic for that traffic source because they may think a different way because they’re coming from this specific area you know they come from an economics magazine and they’re learning about business, the way that I like to talk to you is by using my 100clicks a day calculator because that’s a numbers game, you know they love that in Economics. So, you know then all of a sudden my average current value can go up to $35-$40 because I’m split testing that one thing. And now again, that creates that leverage ability that’s Time versus Money you can easily boom boom boom boom just you can if you get that little small sample size to work, then you can go like that and expand extremely quick. Now, with organic it’s the other way it’s going to start out very slow you know I’m sorry I should relate this the other way for Money versus Time for this it’s going to take a lot of time and then the money’s going to come off like that and it’s really great because you can have you can get way more ROI from organic way more ROI than you can from paid but the time that it takes sometimes just unworthy of such a cause.
So, that’s what paid versus organic I always go with paid talk about pay because all you’re trying to do when you get this kind of bigger picture, all I want to give you guys every time is a bigger picture a little bigger picture you don’t need to understand the details that’s what you hire people for, that’s how you become a millionaire or even billionaire, because you hire people to have the expertise and then you just understand the big picture and the better you understand the big picture, the more you can go “this isn’t right”, “this needs to change”, “we’re not thinking correctly here so something’s wrong” and the fact that you can identify that something’s wrong that allows you to instantly become aware and becoming self-aware is the quickest way to grow. And action of course is something that comes behind awareness so now that you’re aware that Paid is much more powerful than organic why it is that awareness needs to come into the fruition of action and that’s what I want you guys to do, is take action go on understand how to build front end if you don’t have it already. Oh my goodness I should have this. I have here around here somewhere… Anyways if you don’t have it yet, get my book – ‘Sales Funnel Secrets’ again it’s going to teach you all of this how to build your front end, middle and back end. Of course I go into much more detail into what it takes to build a front end, I can cover right here in 300pages but what it takes to build it backend, and the middle I do need probably a few dozen more hours I’m sure you guys understand that to really understand how you get it to convert so well. But you build your front-end funnel to break even and now all of a sudden you have a huge giant buyers list because you’re getting $1 in $1 out and now with 500-1000 buyers the very next product you introduce whatever it is whether it’s a $10 product probably should be a $50 product little bit more reasonable or a thousand dollar product because these people know you like you can trust you and now the people who are ready to take that next step with you are going to. It’s a lot easier to convert 20people out of 1000 or even out of 100,000 again that’s just a 2% conversion rate for a thousand dollar product right.
But in order to make and that what they’ll end up equally is twenty three and that’s a that’s a heck of a payday guys right now just from introducing one product having one weapon are doing one mid ticket and now when you introduce your backend I’m telling you can 2X. to 3X. And that’s where the back end is for so again those are great paydays to have.
And now if you try to do these say and I explain why again you can price it better you should price higher but if you had say $100 product now all of a sudden you know you have to close out of a thousand, 200people to make the same amount of money do you see why this isn’t adding up properly for you how this can be a lot of time and effort spent without really what you expected to get back because you have to convert 10times as many people you know and one hundred dollars product is still going to take a bit of effort bit of sales copy and you’re not going to convert 20% of your people on your next product even if they are buyers because at the end of the day that 20% of people are going to you know you’ve got to get at least probably 50% of those buyers to your sales page interested understanding etc up so when you offer him the next thing that’s a little bit higher priced even $500 you can probably still get 40 of those people convert That’s 4% you know that’s not many of your buyers so when you do everything keep it within reason to believe that you know if I got 1-2-3-4 which you should aim for on a front end you know if you’re doing like a $97 product you should probably aim between 1%-3% conversion rate. But if you’re doing a free shipping you should name between 4%-8% you know so it all varies but when you go and hire just play it safe you know you can go boy you know now that I’ve broken even, I’ve paid, I’ve gotten these thousand people within a single month, because it’s easy and free to do right you know dollar in dollar out all I have is a huge buyer’s list, that’s what’s free that’s what’s valuable and now I offer those thousand buyers my next thing and this.
Month 20 out of those thousand are going to by next month another 20 are going to buy because they’re going to be at that step where they’re ready to take the next you know step up with you in your value added. So, you know on top of that I’ve got another thousand people to my buyers list you know them what’s going to happen I’m probably going to convert 20 from the previous month and twenty from this month and that’s going to make me $40,000 the next month and you can keep growing like that and that’s how that goes so again growth is extremely leverageable Well as you can understand to see in these silly little numbers here and there that paid again, it gives you this type of growth where you’re able to come in renewable to understand hey this is able to leverage right from the get go.
There’s no waiting, there’s no setbacks, there’s no nothing so long as your poll works as long as it’s up and running and you start having something where you’re breaking even after the front end or at least 50% I keep continuing I keep split testing until I can raise it up more and more because 54% from the get go from a cold never tested never done anything that’s a great stance to begin with and then you can split tests with that traffic more and that’s going to allow you to break even you go on you build more and it’s just it’s so easy to do. So, I hope that really helps you guys understand how to be actionable and aware on your advertising and getting traffic. So, with that being said, I hope you guys enjoyed it learn a little bit, tune in every day, I’m going to be teaching a lot more, bye bye.
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