72. How To Make Money With $7 Sales
06 October 2020 | By Salome Schillack
Today we're going to talk about those little, teeny tiny $7 offers everyone is seeing on Facebook and Instagram, and I'm going to teach you how to make money with your $7 sales ads.
These tiny offers and mini sales are really all the rage these days. And like most things that are all the rage (like giant wavy fringes in the eighties, wearing midriff tops in the nineties, or TikTok right now) it is something that a lot of people are going to try, but not everyone will pull it off quite like Melanie Griffith, Tyra Banks or Jason Derulo.
So how do you successfully sell a $7 mini course to a cold audience using Facebook ads? The first thing you should be sure of before you start running these $7 ads is you need to know where to find your audience before you start running these ads. We had this conversation in The Launch Lounge the other day about these $7 offers and someone was struggling to get their lead magnet ad cost down. And so she asked me if it would make more financial sense for her to run a $7 offer, where at least when someone opts in, she makes a little bit of the money back instead of a free lead magnet. Seems like a really good logical conclusion to come to.
And we looked at her lead magnet and the ads, and it became clear that she hadn't quite nailed her offer for her lead magnet yet, and was still a little bit unsure of how to write the copy for the ad that would entice her ideal customer to click on the ad and go to the landing page and then opt in. So while it seems tempting to want to create a shortcut to making money with these tiny offers, what these offers don't do is they don't help you better understand how to make an offer to your audience that is going to convert.
You get to do that very inexpensively when you use engagement ads to see what resonates with your cold audiences or when you're running list building ads, and you get immediate feedback on your offer simply by looking at your ad results for your lead magnet. So you have to know where your audiences are and you have to be fairly confident in knowing how to speak to them and make them an offer, before you want to run any of these $7 offers and replace one of your lead magnets with them.
The second thing I would love you to understand is that you're not going to make money with this $7 offer. In fact, you're probably going to lose money on the front-end. The money in these offers are in the up-sells. The way that these offers make you money is in that there is an order bump immediately when you click on the buy button. What that means is that there's a little checkbox below, usually below the buy now button that says something like, would you also like X, Y, Z fabulous thing for $17? And you just tick the box, yes or no.
So you click that button and it takes you to an order form where you check out and once you hit the thank you page, after you've bought this first thing, you are then offered another up-sell. And this could maybe be some amazing resource that you're getting offered for say, $47. And because you've just bought something, your credit card is quite hot right now, your buy finger is on a roll, you add the $47 thing to your cart. And once you've added that to your cart, then there's another offer for $97. And this thing could be so incredible that you want to buy this as well. And if you decide not to buy it, then you go into a down-sell. So then there might be an offer for a $67 thing. And so it goes.
And I will have to confess and to be honest, that I have followed one of these funnels down the track, starting from a $6 book sale, all the way to buying someone who I've been wanting to learn from for a long time, buying that person's entire library of online courses worth thousands and thousands of dollars for just 997, for under $1,000. And I was so happy with myself, so happy, but I wouldn't have gotten to that offer if I hadn't taken that person up on all the other little ones. And to this day, I am happy. That's the best $1,000 I've ever spent because I got probably $30,000 or $40,000 worth of online courses. And I actually take these courses. So when done well, these little suckers can really pull you in.
The third thing, once you know and understand where you're making money with this, the third thing you need to know to succeed at this is you're going to need a healthy budget. So if you're still on a tight budget, if you're still not sure how much money you can actually afford to spend on ads or you're still getting started, you're just up and running, you're in list-building phase, then this is not the right way to go for you. If you've already sold your online courses a few times, you're already making six figures and you're used to investing in ads and you know the value of your conversions, then it might be a good place for you to consider these offers.
If you're still on a tight budget and you're not quite ready to spend thousands of dollars on ads, then these tiny offers are probably not the best place for you to start. Think about it. You need to drive enough people to that $7 sale so that if a small number of them buy your $7 thing, you're still losing money on the front-end, but with the right up-sells, you can make a lot of money on the back-end, but you have to bring massive number of people through there, through that funnel in order to sell enough of your up-sells in the back-end. So you need enough budget at the front-end of this funnel to be able to drive a large number of people through all of the up-sells, because a handful of conversions is just not going to give you the critical mass that you need to make money on the back-end of this.
So if you're thinking about creating one of those offers and you know that you have enough to create up-sells and down-sells, and you can put a healthy ad budget on, please do it. I love seeing these $7 offers in my feed. And I love seeing how collectively as marketers, we have increased the value of the things that we're giving away for $7 compared to when I just started out and there were so many free things and they were not great at all. I feel like we're making the world a better place with more great $7 offers. And now that you've heard this podcast episode, you know how to pull this off with style.
So if you have a successful $7 offer running, and you'd like to be featured on the podcast, send my team an email at firstname.lastname@example.org and we are going to reach out and be in touch because I want you to get your $7 offer featured as an example here on the podcast so that all of our listeners can learn from you. So reach out, email@example.com and then let's get you featured on the podcast so we can create some great examples for everyone to follow and unpack some case studies.