One of our clients is in the trading industry.
He sells Forex Trading information and has a range of programmes.
One of his funnels is a ‘Free + Shipping’ funnel.
You will have seen these before – essentially, you’re offered a copy of a book or something physical for free, and you just have to cover the shipping costs (which are usually over inflated).
Here are some examples:
You with me?
Well, we’ve had this funnel in place for our trading client, and on the face of it – it’s converted really well.
We drive traffic to the page, and it converts at a strong 13.98% – it then up-sold 14% people onto a $47.00/continuity programme.
This meant that average cart value (the value of each person that signs up) is $26.60 and the EPC (Earnings Per Click – IE, the cost of everybody that visits this page) is $2.01.
Here’s the stats to back it up …
(SIDE NOTE: I emailed my list about this page converting at 13% and I have numerous emails saying “that sounds too good to be true” blah blah blah – seriously, by now you surely know that I don’t make shit up to sound better.)
Anyway – we had a problem …
In order to print, package and mail the book, it was costing us close to $20.00.
We were using a fulfilment company called Selbyprint.com (very good for off-the-cuff fulfilment/mailings).
There’s a great UK version called Scribble Mail (www.scribblemail.co.uk) – that handle all manual fulfilments and post bespoke direct mail campaigns … I also own 50% of the company LOL.
Because of the huge cost to fulfil (mainly because the audience is international, and international postage costs a fortune) … we were just about breaking even.
Don’t get me wrong; breaking even for a front-end funnel is good – but we wanted some profits out of this (mainly due to the hassle of mailing).
So, we had an idea …
“What would happen if instead of selling a physical book where they had to pay the $4.95 postage, we sold them a digital book for $4.95 instead?”
In principle, this would wipe out all of our fulfilment costs and give us more profit …
… but the key question was, would this make it harder to sell and kill our conversions (because in principle, we’re selling an eBook).
Well, we made all the changes and ran the funnel selling the digital book for 30 days.
Want to see the results?
Well, here you go:
Ignore the ‘Gross’ – because we scaled back the ad spend to test this – but look at the other numbers.
The EPC is now $1.77 – this is great because it’s now mostly profit.
The Average Cart Value is $22.65, which has dropped very slightly.
But look at the conversion rate of the page; it’s up to 14% – it’s pretty much stayed the same.
The up-sell conversion has dropped from 14% to 11.39% – but the earnings per view on that page are up by 80%.
This funnel now spits out some good profit … and who’d have thought that the digital book would sell just as well as the physical.
Now, you probably want to see the sales page that’s converting so well, right?
Well, here you go: