"The Lonely Funnel"
A Story of the "Perfect Funnel" and the "Newbie Marketer" that had BIG Dreams, a Great Product and ZERO Concept of how to Drive Traffic.
And to really get the story going... the "Newbie" had little funds for a Traffic Plan (or did not want to spend any money).
Whether you are a Marketer, a Funnel Consultant, an Agency or an enthusiast trying to learn what to do next in the BIG WORLD of Online Marketing, this Blog Post will either be a Much Needed Lesson, or for the experienced, a story they have heard all too many times. But there is more to the story and how it unfolds. Read On... Laugh, Cry or whatever. The "Lonely Funnel" Story most likely will not become a movie. (Maybe a Video), but read, learn and comment!
So on with the story and the "INFAMOUS" Email that had to go out to the client after months of Funnels Building, On-Page SEO, Copy Tweaking and a much anticipated launch date. Yes it was a slow process, but it was a Funnel Project we took on at a less than normal FREE structure, but would work on it in between clients and to be used as a filler project. It was a community member referral and we figured we would try to lend a helping hand. So admittedly we did not blaze an Launch Speed Records on this one.
The backstory here as we referenced above was this: Funnel Ready T minus 9, but Client does not want to "INVEST" in Traffic. They want to get some traffic going and some early sales to fund the "Traffic Plan". Hmmm? I wished it worked that way. I would be RICH!
So the EMAIL:
I want to respond to your email regarding the proposed Traffic Plan. We made every effort to trim all of that we can while still creating a solid traffic plan that will grow your revenues and business and ultimately scale with your plans for growth.
And an important prenote: Before our scheduled call to discuss the traffic plan read this email completely and visit the links as the content will come into play on our call.
(Please Read all of this thoroughly - it is REAL, Research and an Eye Opener for you all on C.A.C. < Customer Acquisition Costs> and "The Cost of Marketing" )
I hope the Email yesterday was not too direct. Your New Site, Funnel Pages, GetRespones Markekting Automation / Email Workflows and ThriveCart (+ Product Options) are all set.
We all understand that Online Marketing can be a challenge and create tech overwhelm, frustration and headaches. And then layer in traffic generation and investing money in site visitors and potential sales when you do not really understand what your agency or digital marketing consultant is really doing on the backside can be scary.
However, It would be a HUGE waste to stop 3 Feet of the Finish Line. The MMT and I have spend a ton of time analyzing the markets, competition and what is working and what is not. And we have created what is in our opinion the best traffic strategy, plan & proposal for you all.
And just to give you some insight on other Funnels, Industries, PPC Spends, Customer Acquisition Costs etc... We are doing a Funnel for a Software Company in the Northeast and here are a few project details. (And this is a real client scenario)
Just the Funnel + 4 Product Launch pages (19 Pages) No Website - just the Software Launch Funnel is over $17,000 and the Monthly Maintenance (with ZERO Ad Spend) is $1500 +/- a Month. They will have on average for all Lead Generation methods: PPC to Look-a-Like Audiences on Facebook Groups for their target audience, Retargeting Ads, Chatbot Ads, Social Media and SEO roughly $2000-$3000 a Month. Do the Math. With a Goal of 20 New Customers a Month. $6,000 a Month X 12 = $72,000.
All for a $300 per Year piece of Software for a DIY niche audience. On the low end with a Spend of $2000 a Month ($24,000 a Year) they will 1st year INVEST $60,000 in marketing to generate $72,000 in Sales. A Whopping $12,000 Profit.
But that is the Foundational HEAVY LIFTING. Once it is up and running, the Ad Spend will go down, the Social & SEO will take over (50% Reduction in Paid Advertising) and the Annual Renewals will Kick in at a Rate of roughly 50 to 75% Renewal Rate. So in year 2 they 1.5 to 2X or the customer numbers so say $140,000 and they reduce the spend by $12,000. So the Marketing Costs (Funnel Build is done - so no repeat on $17K), 50% Ad Spend so $12,000 and the Marketing Maintenance may go UP a bit so say $2000.
Marketing Mgmt - 24,000 + Ad Spend - $12,000 = $36,000 + say $5K for Site, Funnel and Infrastructure updates, upgrades, videos, added display advertising and other channels. (Industry Publications, Groups on Facebook & LinkedIn, Industry Sites (Ad Space) etc. So lets say year 2 Total is $41,000 in SPEND (Money Out) and Sales are $140,000 - they Profit $99,000 +/- And so on and it becomes exponential.
And the Kicker here, this is 1 Product they are OFFERING. But it is being treated as an independent product launch, and doing planning and projections as if it were a standalone product that needed to be self sustaining. Smart in my opinion. That way it is not bleeding their other offerings and is setup to become profitable as a new revenue stream.
NEXT > Your Online Business, Site and Funnel:
Now for "YourCompany.com" ... If you remember the example and projections in our original EMAIL to you all. At $5K Monthly Sales. Top Line Sales of $350,000 +/- a PROFIT MARGIN of $215,000 and that was with a total marketing plan investment of 60K for the year and that number included the Facebook Ad Spend and other related paid traffic methods. So Marketing Management and Ad Spend Dollars combined. Your Market (Men's Performance Supplements) is much larger, more of a moving parade (meaning that it REFRESHES it Self OVER and OVER) and the overall CLTV (Customer Lifetime Value) is higher than the above software funnel sample. And you all are fortunate in that your operational costs and product costs are super low. Making things much easier to absorb and get to a positive ROI point in our marketing.
So before our next marketing call - read through these LINKS on Customer Acquisition Costs. (C.A.C.) These resources are invaluable for you and can be used as a case study of sorts for virtually any business type just to get a general feel for C.A.C. baselines.
From DM Labs and others on REAL Online Marketing Costs:
https://www.sec.gov/Archives/edgar/data/1094058/000119312510267441/dex991.htm (this is OLD from 2010 but relevant) and CAC was $43 to $50
This is from a respected Content Marketing Agency:
(note: it took 7 months to see an INCREASE <just an increase - not success> from ACTIVE & AGGRESSIVE Content Marketing. - then Layer PPC on Top for immediate Results)
By t he way - their PRICES at the above company START at $6,000 a Month ~ Really!
https://www.growthramp.io/services/ (Not a Plug or a Dig here - just a REAL example)
I am not making this stuff up. This is the REALITY of Online Marketing.
And lastly from a NUTRACUETICAL Manufacturer (Private Label) ABH Pharma
Why do we show this? It is straight from the "Horses Mouth". They want you to sell their product and succeed. If you succeed, they succeed. So they provide an entire strategy. You all have the advantage of manufacturing your own product so you have not wholesale to retail margin concerns. Your revenue potential is much higher and you are in total control.
But this is the GIST of this entire email
(and the BLOG POST Content as it the email was repurposed as a Real World scenario)
Notice that doing NOTHING is not mentioned in ANY of the above Links.
Everything is PAID - even NOT PAID Traffic is PAID.
(the On-Page SEO, self created Blog Content and everything else that may be responsible for generating organic traffic that results in sales)
Yes you have PPC - Pay-Per-Click, you have PFCM (I made that up) Pay-For-Content-Marketing, you have PSEO - Paid-Search-Engine-Optimization (SLOW but necessary), PTBABB (made up too) Pay-The-Big-Agency-Big-Bucks.
And then you have the DN Method (Do Nothing), the Low Cost BNT Plan ("Better Than Nothing") Costs on average of $500 a Month (We offer this! - Really).
And then Lastly the BEST SPEND on the Web is this one: PMMT (Pay MMT) is in my humble opinion your Best Marketing Bet!
I hope that this Email is taken in a Light Tone - but with a VERY Serious Business Look. We are invested in this at a MUCH Deeper Level than you Realize. It is called COST OF OPPORTUNITY. We often spend more time on projects than we should, but we are committed to your success. And yes we do often do performance based compensation after the 3rd or 4th month of the initial traffic plan. Why do we wait? So our clients can get to positive ROI as rapidly as possible so we do not want to dilute the return until they are comfortable, confident and have full faith in our ability to produce results for them. Most clients are excited to bonus us for that type of marketing partnership commitment.
If you all choose to do nothing, it is super infortunate and I will simply have to take the INFRASTRUCTURE and Replicate it and Sell FLINTSTONE (or similar) Vitamins to recover for my Time and Energy!
Oh and here is my SpyFu research (PPC) for Flintstones Vitamins (this is REAL)
If the link does not work (I have PAID Account - see the G-Drive Link Below)
Oh and By The Way...
My AVERAGE COST to acquire a Client (Marketing Agency Client) is $154 (CAC)
Look for the Calendar Invite for our upcoming call!
Sales Funnel - Digital Marketing Consultant
So that is the STORY of the "LONELY FUNNEL"! A Great Site, Funnel and Marketing Automation with NO Traffic, NO Sales and NO Hope of Success.
Traffic Strategy Consultation
Learn more about our high performing traffic stategies
Want to create a solid foundation for your online business? Are you ever curious why 1 Online Presence succeeds and so many others fail?
Because a HOUSE Built on a Shaky Foundation will fall. Plain and Simple.
Let us help you with a Better Foundation!
Then it will be time to move to your Funnel Builds, and then open the Floodgates. aka Traffic!
Schedule a Strategy Session today!
So this was a REAL Email that was sent "Very Respectfully" to a Client trying to explain that Traffic is Critical to your Funnel Success. No Traffic and you have a VERY "Lonely Funnel". A very sad story. So realize, with all of the funnel craze, all of the GURU's B.S., the over promotion and the absolutely delusional chatter in the Digital Marketing realms. There are 3 things that are absolutely critical to your Online Success:
The Star of this Story is the "FLOODGATE" aka Traffic, lots of Traffic... Lot's of the RIGHT TRAFFIC!
Open the Floodgates and never have a "LONELY FUNNEL"!
The Client in the above Email has seen the Light and has turned the corner with their Traffic Plan and no longer have any hesitancy in investing in high quality, conversion-centric traffic. The Funnel Universe is now a better place because of it. Don't let you Funnel be Lonely!
We are a Certified Business Performance Coach with the "Fletcher Method", we are also affiliate partners for their Marketing Education Community!
Insert your tweetable quote/phrase here