Do you ever feel like you're getting
punched in the gut when you look at how
much money you're spending on ads?
I know I do.
And those ad costs just
keep going up and up and up.
So we decided to do a series of
experiments and we asked ourselves the
question, how could we
get paid to generate leads?
Well, those four experiments took us from
covering about 70 to 80% of our ad costs
to now getting paid to
three workshop series and each workshop
built on each other.
And it all really revolved around helping
people use AI in their creator business.
So for example, the first workshop was
all about how to clone your voice.
Because I don't know if you've ever
experienced this, but like when you are
prompting AI, whether it be chat GPT or
Claude or whatever it might be, and then
you don't get the kind of output that
sounds like you, it can be
super frustrating, right?
Because then you end up
spending a ton of time editing.
Well, that's what we wanted
to show people how to fix.
And we walked people through a process
for creating your very own voice guide.
And now with that voice guide, any output
that you get from AI
sounds exactly like you.
And it just saves you so much time.
You can be so much more efficient.
So that was an example of the first one.
Then the second workshop,
it built on the back of that.
So once you have your voice guide, how
then can you use AI to produce content
that you're proud of and
to do it very, very quickly?
So here in this workshop, we showed
people how to go from like a seed of an
idea to literally 30 days
of content, again, using AI.
And again, it coming out
sounding exactly like you.
Like this is content that
you'd be proud to publish.
And then the third workshop was like, now
that you're creating all this content,
how do you use it to grow your list?
And so in this one, we talked through how
to use AI to create a
list builder, a lead magnet.
And we actually walked people through how
to create the lead magnet that has been
our number one lead magnet for nearly 10
years, helping us generate
hundreds of thousands of leads.
And by the way, people did it right there
on the spot during the workshop.
It was incredible.
So anyway, that gives you context.
These were three different workshops, and
we sold each of them separately, but they
also worked together.
And so when we started
selling them, they were $47 each.
And then we had an immediate upsell where
people could get the other two workshops
for an additional $27.
It was a no brainer, right?
People were saving a
ton of money on that.
And that's one of the big reasons that we
had a 70% take rate on that
upsell, which is fantastic.
So during the workshops, if somebody
didn't take that upgrade, we gave them
the opportunity to upgrade
to the other two workshops.
But this time the price went up.
So if they didn't get it immediately, it
was no longer 27, it was 47, but that's
still a deal because
they're getting two for one.
So it allowed people who didn't get it
initially to get it again
and still get a great discount.
Now, here's the thing.
Through this funnel, we were making back
between 70 to 80% of our ad spend.
And that's not bad.
That's actually pretty darn good.
And a lot of people
listening would love that.
But here's why it wasn't enough.
Because if we really wanna scale this
thing, we not only wanted to break even,
but we were asking ourselves, how could
we actually get paid?
Like how can we make even a little bit of
money on the front end?
Because if you do that, then you can keep
pouring fuel on the fire and you can keep
growing that list of
customers very, very quickly.
So we sat down as a team and we decided
to run a variety of
different small experiments.
We didn't wanna blow up the whole thing.
And this is, by the way, a
mistake that a lot of people make.
If it's not getting the result that they
want right away, they're
like, "Oh, doesn't work."
And they just cut it or
start something totally new.
Or they don't look to tweak
what they're already doing.
And so we didn't do that.
We didn't start over.
We just continued
doing what we were doing.
But we started to test
a few different things.
And that's what I wanna
talk you through here today.
Because there were four experiments that
we did that took this not only from
covering 70 to 80% of our ad spend, but
to the point now where we are making a
bunch of money on this on the front end.
And now, now we can scale.
Okay, so experiment number
one is we raised the price.
So remember how I said there was an
upsell where when somebody signed up for
the workshop, they could get the other
two workshops for $27.
Well, we raised the price of
that upsell to $47 right away.
And then, like I said, during the
workshop itself, if they didn't upgrade,
normally they would have
the chance to upgrade at 47.
We raised that price to 67.
Now, we were concerned.
Would the increase in price
affect our conversion rate?
And here's the great news about it.
The conversion rates didn't drop.
Not even a little.
They stayed consistent.
So we essentially gave ourselves a big
fat raise and we were kicking ourselves.
We were like, we should
have done that earlier.
But nonetheless, this is
all part of learning, right?
This is all part of the experimenting.
And my guess is that you are probably
leaving money on the table
because maybe you're like us.
You're just assuming
that people won't pay.
But you don't know
that until you test it.
And the market is, the market,
and the market will tell you the truth.
So, first thing that we did was we raised
the price of our upsell from 27 to 47,
and it did not affect
our conversion rate.
So therefore, we just got paid a bunch
more money, which was great.
Experiment number two, we added a bump.
Now, I don't know if you're familiar with
a bump, but typically on a checkout page,
there's like a little tiny checkbox where
you can get something extra.
It doesn't require a big upsell page or
anything of that nature.
It's just very straightforward in terms
of what it is and people can just check
it, yes, I want this or no, they don't.
So we decided to add a bump.
And it was a tiny checkbox on our
checkout page, and it just said, do you
want my top 80 Claude prompts?
Add them for $27.
So again, this is an AI workshop.
So people are kind of tuned into AI, and
this was a no-brainer.
And it immediately added a whole bunch to
our average cart value.
Like the average cart value jumped
significantly because
it was super popular.
And here's why bumps work so well.
You know, my buddy Brian Moran, who
founded Samcart, I mean, they look at
literally billions of
dollars of process transactions.
And what they found was that order bumps
convert at 30 to 40% on average.
So that means for every 10 people who hit
your checkout, three or four of them are
saying yes to the bump.
Think about that.
You're not driving any more traffic.
You're not creating any
more products, really.
You're just asking a
question at the right moment.
And almost half the
people are saying yes.
And so there's a whole psychology of
this, but the bottom line is that this is
a lot like the impulse
rack at the grocery store.
You know, you don't go into the grocery
store looking to get gum and candy, but
that's not why you go in there.
But you come out with buying gum and
candy because it's right
there at the checkout line.
That's exactly what this
little bump does on a checkout page.
When it's tailored around something that
people want and it's obvious, it's a
small ask, but it has a big impact and
it's literally zero extra effort because
you're not having to find new customers
or drive new traffic.
So this little bump, it added a
significant deal to our average cart
value, which was fantastic.
It just continues to make this whole
funnel more and more profitable.
Now experiment number three.
We didn't make any other offers in the
first two workshops.
In the third workshop, we decided to make
a real back-end offer.
And so at the end of workshop three, we
offered a year of
these monthly workshops.
So what we said was we are going to be
raising the price to
these workshops, which we are.
We're gonna raise them from 47 to 97.
And if you were to get all of them for
the year, that would be
nearly $1,200 worth of value.
But if you sign up today, we will give
you all 12 of these
future workshops for $397.
So it's a pretty
significant savings, right?
But then we also said, but if you sign up
in the next 24 hours, you'll get all 12
of those workshops for $297.
So this was an absolute no-brainer.
And it was a chance for
people to lock in real savings.
And the crazy part was, I mean, this is
hindsight, but it sounds obvious when I
say this, but because we got people a
great result during the workshops they
attended, it was a natural next step for
them to want to continue to work with us.
Now, do we know what all 12 of the next
workshops are gonna be?
No.
And we said this upfront.
We said, look, we don't know.
We know what the next one is gonna be,
but the world of AI
is changing so quickly.
And so we just wanna make sure that we
keep your finger on the
pulse of what's happening.
And we wanna make sure that these
workshops are designed to
help you get an outcome.
And by the way, that was a real key
insight that we learned
from this workshop series.
Because we weren't teaching as much, I
put teaching in quotes, but what we were
doing was we were helping people get a
result and an outcome.
And we used AI to help them get that
outcome easier and faster.
And that whole piece about helping people
get an outcome is really important.
Because what it does is that in their
mind, it creates momentum.
And people love coming away with
something accomplished.
There's a feeling of
accomplishment there.
And that feels good, right?
And so that's why these workshops were
super popular and we had raving fans.
So it was a natural extension, this
offer, because they want more of the
thing that they naturally enjoyed.
So the meta lesson from this
particular experiment is this.
Whatever you are fulfilling on now, it's
really like the pre-launch to whatever
you wanna offer next.
So do a great job, get people results.
And if you do that well, people will
naturally want to
continue to work with you.
So this backend offer,
it worked really well.
Now here's something I
want you to really understand.
The reason that this offer converted so
well at the end of the workshop was
because they had already
experienced what it is that we do.
And so they sat through workshops one,
two, or three, and they liked it.
So when we said, hey,
do you want more of this?
They're not making a brand new decision.
They're just continuing the one that
they've already made.
And here's the data on this.
When you sell to existing customers, the
probability of
conversion jumps to 60 to 70%.
Now compare that to just
five to 20% for new customers.
I mean, that is three
to four times higher.
Why?
Because there's no guessing and they know
what they're getting.
So the third workshop is your backend.
If you're not making an offer there,
you're leaving the biggest piece of the
funnel on the table.
Now experiment number four.
We kept the offer stupid simple.
And this is the one
that most people miss.
The actual words that we used at the end
of workshop three was,
did you like this workshop?
And we asked them, yeah, did you?
And they said, yes, we said why.
So they told us why.
They said that they loved it because they
actually got something accomplished,
because it was super easy to follow,
because it felt good to make progress.
Like all the things
that I've shared with you.
So then we said, cool.
Do you wanna keep this
progress train rolling?
Great.
Then we're gonna do one of these
workshops every month.
Now each workshop will be $97.
But if you buy them
upfront, it's $397 for the year.
So you're gonna save a
bunch of money by joining today.
But we said, however, if you join within
the next 24 hours, it's
only going to be $297.
So you could lock in over $860 of
savings, and you continue to keep getting
more done, making more progress, and
keeping your finger on the pulse of
what's happening in AI.
Now I wanna share my favorite study on
this, because this was the study that
made me realize, keeping our offer simple
will increase conversions.
Now there was a study on this, it was
called the JAM study.
So back in 2000, two researchers at
Columbia set up a tasting booth at an
upscale grocery store.
On one day, they put
out 24 different JAMs.
On the other day, they put out just six.
Now here's what's wild.
The 24 JAM display
attracted more attention.
So 60% of people stopped
to look at all those JAMs.
But with only six JAMs,
only 40% of people stopped.
So more JAMs meant more people stopped.
However, here's the kicker.
Of the people who stopped at the 24 JAM
table, only 3% of them bought.
Now of the people who stopped at the six
JAM table, 30% bought, that's 10 times
more, 10 times more. 10 times the sales
just by simplifying the choice.
It was the same product, same store, same
price, just fewer options.
Now the researcher on
this put it this way.
She said people were at least six times
more likely to buy when they only had six
options instead of 24.
Now what does that mean for you and I?
Well when your offer is complicated, when
there's too much to think
about, people don't think harder.
They just leave.
They walk away.
actually a term for it.
It's called analysis paralysis.
Your brain hits a wall
and it just shuts down.
So when I'm at the end of a workshop
three saying, hey did you like it?
Do you want more of it?
Here's the price.
Here's the deadline.
Lock it in.
There's nothing to figure out.
Like the decision is
right there in front of them.
There's no spreadsheets, no comparing
five tiers, no
bonuses stacked on bonuses.
It's just a very simple offer.
People get it and understand it and
therefore they want it.
So simple offers convert better.
We don't need a 90 slide pitch deck.
We just need clarity.
And the whole thing that we did here, it
also for us serves as a retention tool
for our TME plus members because they get
it included in their membership.
So it gives them even
more reason to stay.
We take care of our best customers.
Point of the matter is this.
None of these four things were huge
swings, but they were small, but yet when
they are stacked together,
they can make a big difference.
This is how we took our funnel from
covering 70 to 80% of our ad costs to
becoming a profitable one where we are
getting paid to
generate high quality leads.
So here's what I
wanted you to do this week.
I want you to take a
look at your funnels.
I want you to pick one of these four
experiments and I want you to run it and
then just watch what happens.
And if you've never tested a price, then
that's the easiest place to start.
You don't have to have a
bump on your checkout page.
Just start with the price.
That is free money right there.
Now, if you liked this episode and you
wanna hear about some other experiments
that we've done, go
check out episode 231.
It's titled Four Small Changes That
Nearly Doubled Our Opt-In Rate.
See, we're always experimenting over here
and we're always trying different things.
Just like this episode where we tried
these four different experiments, we were
able to take a funnel that wasn't
profitable and immediately
turn it into one that is.
And in episode 231, we talk about four
different tests that we did with our
opt-in page that dramatically increased
our conversion rate on the opt-in page.
All right, to recap, number one, raise
your prices because the conversions may
not drop like you think and it'll help
you make a lot more money.
Number two, add a bump.
The data says 30 to 40% of people will
say yes if the bump is related to what it
is that they're buying.
Number three, make a real back-end offer
to people who already love what you do.
And number four, keep the offer really
simple because six
jams beat 24 every time.
And as we wrap up here, I want you to
realize this, the more you tweak, the
more you are going to learn and the more
you learn, the better you will get.
And that is what's gonna be able to help
you reach more people
and have more impact.
And the simpler your offer, the more
people will say yes.
Big launches make headlines for sure, but
it's these small experiments that make
profitable businesses.
Thanks for listening, my friend.
Go experiment, go try some things, keep
me posted, send me a message on