#51 - Is a $27 offer right for you?

The other thing I want you to remember is that the people who go in and who are the Chanel diehards, the people who go in and buy Chanel handbags and who buy a full Chanel suit or full Chanel wardrobe, they still buy Chanel lipstick.

This is the Doing It Online podcast with your host serial entrepreneur, 6 and 7 figure funnel strategist and super nerd Kate McKibben. Where every week we're here talking nerdy and sharing the things that actually work to help you do what you do online. But better, easier and with a ton more profit too. Are you ready? Let's do it.

Hey, hey there guys. It is Kate here from hellofunnels Co and Welcome to episode 51 of the Doing It Online podcast. Now today we are going to dive in a little bit deeper, carrying on for what we talked about in episode 50, which is the previous one. So if you haven't listen to that, go and have a listen now. But basically in the last episode I kind of dived into the, the numbers and nitty gritty, the behind the scenes stuff of the impact that adding a simple $27 offer, also known as a self liquidating offer, you know, it's one of the OG strategies of digital marketing. But what that, you know the amazing impact that that had on our business last year and help how it really helped us propel from like you know, that sort of mid mid six figures to you know, into the into and you know this year's it's going even further. So it is, I'm like not lying when I say it is one of my favorite digital marketing strategies. And like I said, it is an OG strategy. It's an original strategy, it's one that has been around forever. However, I think it's one that a lot of people hold off on trying. Perhaps they don't trust or they don't quite understand the bigger picture of how it actually works and how it plugs into your business in a way that's not just about making these $27 sales. It's one of those things. It's a one plus one equals, you know, much more than two. But you have to do it in the right way. So today, like I said, I want to dive in this more deeper. Last week was about what the impact has had for our business. This week I want to help to answer the questions like is this going to be something that is right for you? Because you know, I there's a lot of great different marketing strategies out there and you know, they all have their own pros and cons, but there's no point spending time spending resources on any of them if they're not going to be compatible for where you are in your business, for the kind of where you want to go in your business. And so that's what I really want to help you guys to figure out. Like is the $27 offer. We call them a mini but mighty offer. Other people called them, like I said, self liquidating offer is probably like their, their original title. Other people call them tiny offers. They're having a little bit of a moment right now with a thousand different names. But you would have seen them. For anyone who's kind of like, I'm not sure what you mean by $27 offer, I'll just quickly recap what this is. So basically the $27 offer, you've seen them and they're not always $27, but they're usually under 30 and they are. People have got like our one is a year's worth of content prompts and we've got a couple of other ones that we sort of rotate between every now and then. You'll see other ones out there. There's lots of ones for prompts, ones for meditation or journaling. There's lots of little toolkits, templates, things like that, like just little bite sized pieces, little sort of little, just tastes like little snackable tastes that are related to your topic and to your niche. And the purpose of them isn't actually to generate revenue necessarily. Some do. Like if you have a niche where ads are really inexpensive, you can often generate a good amount of revenue right up front just from that initial $27 offer. But that's not, but that's a bonus. The real purpose of that offer is that the. They're going to pay for their own ads, pay for their own, which basically means they're paying for your list building. So for example, if it's, you know, if Your offer is $27, as long as it costs you $27 or less through, you know, using Facebook ads or whatever other paid traffic you want to do to get someone to purchase that offer, that's. There's the definition of self liquidating. That's where you know, the offer is, is paying for itself, paying for its own marketing. And what that then allows you to do is to be able to scale up your ad spend a lot faster. Because it's not like traditional list building where you're like, okay, maybe it's costing you five to ten dollars to get someone on your email list and then maybe they'll purchase your next launch in a couple months time, or maybe they'll go into a funnel and they'll purchase in seven days or 14 or 30 days. This is literally day by day. And obviously, you know, there's always gonna be good days and bad days. But if your average over a week should be that whatever you've spent on ads, you've gotten back, if not more so. So that is what the $27 offer is. That's why they were sort of all out there. They really, really went gangbusters last year because, you know, for a whole host of reasons, but it's that kind of whole lipstick effect. I don't know if you guys have heard about that. It's a really common, well, much talked about marketing phenomenon that in times of uncertainty, lots and lots of the sales and lots of areas drop, particularly in luxuries and things like that that people kind of put in the nice to have piles. But one thing that always stays strong and actually generally improves during those periods of uncertainty is lipstick and certain other sort of little things that still make you feel good, but they're at a really affordable price. So this is kind of the business equivalent of that. Anyway, I'm getting off track. So that is what the $27 is. That's what I'm talking about when I say self liquidating offer. Like I said, we call them a mini but mighty offer because that's what they are. They're small, but they're really super powerful. And when I started implementing this in my business, seeing the impact it had, and then started sharing it with my clients and then seeing the impact it had for them, it was like this light bulb went off for me. I was like, my gosh, this is the missing piece. Because we had been helping people for years by this point to create their funnels. And you know, people had these amazing funnels, super high converting funnels. But we would find that quite often people would get to a certain point with their ad spend and everyone would sort of find it was a different place. It was almost like this ceiling where they kind of went, all right, I can't. If I spend more, it doesn't necessarily make me any more money. And how can I kind of get over that? Because, you know, even people who are getting to like 30,000, $50,000 a month with their funnels, you know, they always want to go, all right, I want next, let's go to the next level. So we're like, what can we do? We need A new strategy here, something to add in, an extra piece to add in that helps to sort of combat that because yeah, people kind of hitting these points that as they spent more, the cost of making the sales actually got more expensive. So it wasn't that same cost carrying through and that meant that was eating into their profit margins. And you know, we always, we're all about trying to help people create funnels that sustainable and scalable and profitable as you grow as well. So I was like, there has to be something we can do differently here. And plugging this piece in for so many of my clients made just a crazy huge difference. I shared some of the examples in last week's episode. So I won't repeat them, go check them out. But anyway, so today, like I said, it's all, Sorry, I am rambling. Today is all about you guys. It's about answering your questions. I've had a bunch of questions come through, particularly as we've opened the doors to our final fuel program. So for those of you who have seen that, seen our emails, the doors are currently open which we are going to be running it live. So our Funnel Fuel program, it is a five day, step by step, take action, get it done style program. We break it all down for you, exactly how to create your offer, set it up, the tech you need and we keep it super simple. We have exactly what needs to go into your sales pages as well as templates for those sales pages. What this happens in the follow up emails, the whole bit, we walk you through getting it up and done, what your ads need to be, how to set up those ads, how to start running all of it in five days. And it is our aim and we do it with you together. So we have live Q and A sessions every day that you'll be able to get, you know, get stuff reviewed, all that kind of thing. And last time we ran it live, we had over 60% of people actually got their program up running and selling by the end of the five days. So it's really powerful to come through and do it together. The program is called Funnel Fuel. If you want to come and join us, just head over to hellofunnels Co. Grab your seat, doors close June 23, Aussie time, which is June 22 for most everybody else. So make sure you jump in, you save your seat. I said we're going through it together at the end of June so you don't want to miss out. It's going to be super fun. And if you're kind of like, sounds good not sure, got some questions. Like I said, that's what this episode is all about. So let's dive on in to those questions. Question number one, and this is one that I do, you know, I know it's more of a concern. I've had a few people ask it. So I just wanted to cover this right up front. I know that there's some people out there, particularly if you have a more premium brand or more luxury brand or you offer a more premium experience and you're like, this isn't going to be for me because you're worried that having, you know, a lower priced offer or a $27 offer or whatever it's going to be is actually going to cheapen your main offers or is going to reduce the value of those main offers or maybe it's going to confuse your ideal target market and have them go, well, I can get this for $27. Why is that? $10,000. And you don't, can't see or don't believe that the people who come in on a $27 offer can then become clients at that higher price point. First of all, I just want to let you know that that's it is 100% not true. We've seen it ourself. I've seen people come in and get our $27 offer and then come and join our $5,000 mentorship program over and over. We have seen it with clients and it's the best example I can give to how this, to kind of show you how in the real world and how actual, actual luxury brands out there using this exact same strategy is the example of the Chanel lipstick back in the day. Chanel, the, you know, the fashion brand, they used to just be, you know, they were handbags, luxury, luxury clothing. They didn't have a cosmetics range. They introduced a cosmetics range for a few reasons. One, because they have super crazy high profit margins, way more than clothing. But also because they understood, and this is why so many other ones have done it, they understood the power of, of that taste test. So it, it kind of has, I suppose works in two ways. Firstly, you're going to have the people out there who, they're the aspirational, right? They look at that brand and you know, if Chanel doesn't ring, you ring your bells for you think about any of them like whether it's ysl, whatever, like whatever your sort of, you know, they pretty much all have these entry level little taste test kind of offers. So there's people out there and they will, may Never be able to afford a Chanel anything other than the Chanel lip gloss. But they're going to buy that lipstick or maybe they save up for it or they get it as a present, they're going to feel so super special. They're going to get this little bit of the brand experience. It's going to be amazing for them. And you know, and that is great. Even if they never go on to buy the other products, you know, you've created a really lovely little experience for somebody. What's, there's, there's no harm in that. So that's, that's however many people. And just to put it in perspective, if you think of the people coming in like, okay, yes, a certain percentage of people who buy a $27 offer will never buy your main product, but it's a much lower percentage than people who opt in for a freebie. For anyone out there who's going, oh, I don't want to do a $27 offer. It's going to cheapen my product. But you're out there giving away stuff for free. That kind of, that's the same logic, guys. You have to be, if you like, if you really truly believe that you wouldn't have any free opt in bribes, you wouldn't have do any free challenges or free masterclasses or give any free content away for free, that hopefully that's kind of nixed that one for you. But the other thing I want you to remember is that the people who go in and who are the Chanel diehards, the people who go in and buy Chanel handbags and who, you know, buy a full Chanel suit or full Chanel wardrobe, they still buy Chanel lipstick. The fact that someone has bought the Chanel lipstick does not stop them from buying the Chanel handbag, whatever. In fact, it just increases their likelihood. If they were in the market for that and they got a good experience and they were then, you know, already in the store, AKA on your email list, that that is where they would choose if they were looking for a new hat or looking for a new item of clothing, to get that, to get it. Because they've already had this great experience, they've already got this extra level of trust. They're already there. So that's how it works as well in an online perspective. So don't worry, don't think that this $27 offer is going to detract from your premium programs. My only caveat I'll put in here, and this is one of the things we Talk about inside the final fuel program is making sure you get that right. Offer upfron is you don't want to go out there and have like a watered down version of your online program as the $27 offer. That's. That does create conflict. And you know that I would never recommend anyone ever does that. What that offer is needs to be like the lipstick to the handbag kind of thing. It's not as a watered down version of the same. It's not like Chanel are out there selling plastic shopping bags as their entry level and hoping people will go from that plastic bag to a proper leather bag. It's. It's a lipstick to a handbag. They're not the same thing. So just a little bonus tip from me to you. All right, so question number two is, which funnel should I do first? So we've had a few people who have written in and they're like, oh, I'm trying to decide between 5K funnel formula, or should I jump in and do funnel fuel first? Like, you know, chicken egg, which one makes sense? And I do get people going, oh, I'm not sure which one I should do first because they are actually, they serve two different purposes. So I mean, my, my main advice would be, if you're thinking about doing both, hey, why not come and join us in equals empire? Because you get to go through both in there, plus you get all the extra support and events and all of that other jazz. But that's not the point. But if you are truly trying to decide between 5K funnel formula and, you know, funnel fuel, let me break down the differences in those programs for you. So the 5K funnel formula program, that is what. Where we help you to create one version of what I would call a core funnel. So the core funnel's purpose is to automate and systemize the sales of one of your signature offers. And we do that through using a webinar funnel. In this particular instance, we have other types of core funnels that you get access to and we teach inside equals empire. But for 5k funnel, it's a webinar funnel and it's best suited for offers between. So that 200 to $2,000 mark. Cause they're the ones that convert best on a webinar. If your purpose is like, if you're. What you're looking for, a solution to right now is, hey, I want to be able to automate the sales of my signature offer more, as in just get that process in place and then be able to just from your existing list building that you're doing, start making handful of sales or more regular sales that way, then that is what 5k funnel formula does. Funnel fuel on the other hand is has a different purpose. Its purpose is creating a system and automating and being able to scale your list building. And the thing is they work together like two puzzle pieces. In our evergreen ecosystem we actually have a three part evergreen ecosystem. That's what we go through in equals empire. So many alliterations. I apologize for that guys. But they serve two different purposes. So like I said, 5K final formula is much is a more depth program. It takes only people four to eight weeks to complete to get it all set up depending on how your existing offer is converting. And like I said, it gets that system set up rolling in the background. And then if you wanted to then plug in funnel fuel then that's going to just help to drive more and more people into this funnel and convert it. Even better. If your goal is just to get more leads right now you're like I just need to get more people in. I don't have time to set up a main funnel yet. But I'm going to be doing, I still do regular launches. I'd like those launches to do even better. Then that is where funnel fuel. So funnel fuel comes in and it's going to fuel whatever it is you're already doing. It's going to help to amplify it for you by driving in a higher quality of leads at a higher rate. And it's like I said, it's how it's making your marketing pay for itself, which is super impactful. If that's, that's the kind of interesting two I said they serve really different purpose. The only other thing is I would say is that we are doing funnel fuel live right now. So that is something we only do once tops twice a year. I don't think we're going to do it again this year. So if you are wanting that experience of coming through it live and I would say that there's nothing quite like doing it live because it's literally it's a five day program. We do it together hand in hand. And the it's kind of amazing to see everyone on day five launching their offers together and cheering each other on. If that is something that you know you're going to get a better experience out of and be able to is going to help to motivate you to get it done, then come and join us for the, for the live version 100% because you do not want to miss out on that. Question from Sarah is, is this going to be super tricky to set up with lots of crazy tech? So my answer to that is no, never. And look, I know that my benchmark for what simple tech is is probably higher than most people's because I am a nerd. But we have, you know, we've had people come through this who are self proclaimed total technophobes and really the only thing that is probably something you may not have done before is. And the only extra piece of tech you may need, like some of you may already have it is it's just the shopping cart. So if you already use something like Kajabi or Samcart or thrivecart or Kartra or you know, a few other ones that we sort of recommend that have the functionality that you need to be for this to be able to work, I just say clickfunnels, it's another one. Even though you guys all know how I feel about clickfunnels, then that's the only extra bit of tech you need and they are most of them. Besides clickfunnels are usually really user friendly and the, the extra bit that you need to do to make it work for this funnel is super easy. Like, like I said, we've got screenshots, we got step by steps, we got everything for you guys. So no, it is not tricky to set up. Like I said, we will step you through it. We've broken it down into five days. You can do it quicker than that. You're not held to the five days. I set up my first one in a weekend and that was a weekend in between newborn naps guys. So this and that and that was with the brain capacity of someone who is doing, was doing two to three overnight feeds as well at the time. So a hundred percent not easy, easy to get set up tech wise. Do not stress about that at all. Question number five, how long does it take to get up and running? So like I said, our aim is for you to get up and running in the five days we do have. So the way that the live version works is we go through it day by day, day from Monday to Friday to get the five days done and then you have an extra week or where we're going to do some extra bonus masterclasses with you guys. Also like those next steps like what happens next, how to scale even further, how to troubleshoot stuff and you know, and the group stays open for that following week as well just to for any follow up questions so you can Catch up. We understand that some people are going to be on holidays this time of year. So it's. You've got the time and you keep the access to the program as well. Guys. You don't get booted out. Don't worry about that. But it's just the. That live container of us coming in and giving you daily support is for two weeks, so. And you should. And that will give you more than enough time to get it up and running, particularly with all the templates and stuff that we give you. Question from Lisa. She says, I'm no good at Facebook ads. They never seem to work for me. Will this work for me? So I feel like, you know, with Facebook ads, and I kind of used to have this thing that, like, oh, I'm no good at Facebook ads, when I was, you know, trying to pay lots of other people to do them for me. And then I just started really breaking it down and realizing actually being good at Facebook ads kind of comes down to just a handful of things. Like, one, it's. It's copy and it's learning, like, what you need to say and why and when. And that's why we have, like, swipe files and stuff for you guys and why we do Facebook ad reviews as well as part of the program. And the other thing is you need to sort of understand the strategy and you need to understand the benchmarks of what actually success looks like, because it's so hard to know, like, if you're just kind of guessing and knowing and every industry is different and stuff as well. We've got a lot of that in there, benchmarks in there for you guys to be able to dive in. And. And I think the training that we have for the Facebook ads, people have said it's made it so super simple for them to understand exactly what needs to happen and when and why. And we've had people who. So one of our clients, Diana, for example, she had never really, you know, she had a bit of a tinker with Facebook ads before, but she managed to scale up to $30,000 a month in sales from using this system, doing her ads all herself. And previously, she sort of only spent really small amounts on Facebook ads. So it is definitely, I think the belief that you are no good at Facebook ads might be stopping you more than your actual skill in Facebook ads. You just need someone to break it down for you, and you just need to sort of take the magic away from it. Like, Facebook isn't a mythical being. It is a system. And if you sort of understand how it works and you follow the steps. And another thing to remember with Facebook ads is I always like to think of it. It's kind of like it's like a toddler, right? It wants to please you, but if it can't, like, if you set it up to fail, it's going to have a tantrum and make your life miserable. So you have to understand the parameters that Facebook needs to be successful and to be able to please you. And you set it up for success from the start. And we show you exactly how to do that. Next question is from Jen. Jen says, what actually happens in the program. So this is how we break it down. So day number one, you come in and we focus on the offer because that is so important. It doesn't matter how good your ads are, how amazing your sales page is, if your offer isn't the right one, if it's not going to work with the biggest strategy of getting, attracting your ideal clients, attracting enough of the right people, if it's not going to attract easy enough like it needs to be. It's very different creating this offer. It's not the same as creating a freebie. It's not the same as creating a, you know, a proper course or anything like that. It's a different strategy. So we're going to help you to figure that out. We spend lots of time going back and forth on that. The next day we set up your sales page, or, sorry, you set up your sales page. We help you. We, like I said, we've got templates for that. Again, the sales page for these little offers, it's different. It has a different structure. It's different stuff you've got to cover off. I think people are always really surprised about how much detail you need to go into because it's. It's a weird thing with these offers is that people, when they click through on them, they're very skeptical. Like there's a lot of, like, oh, that's, that's too good to be true. They're waiting to be ripped off almost. You kind of have to remember that when you're creating your sales page for them. So you have to kind of go above and beyond to reassure them that this 20, this little investment that they're going to make is not going to blow up in their face. Like you, you really do have to put in the high yards. There's walk you through, like I said, we've got one click install page templates for that. We walk you through everything that needs to happen in there. We give you feedback on your templates as well. Sorry, not on your templates, on your sales pages. Then it's the tech side of things. So that's day number three. It's like, let's get it all set up. So we've got recommendations, we help you find the right tech that's going to work with what you've already got. And you know, it can walk you through what you need to do there. And then day four, we're writing some Facebook ads together. So again, walk you through the ads there. We've got Canva templates that you can use. We've got swipe files for, for your copy. We do copy reviews for you guys. And then day five and sorry, and we show you how to actually get your ads up and running. And then day five, we talk about scaling so setting up custom dashboards, how to actually track your sales and not just the sales of this $27 offer, because again, this is kind of key, but how to track your longer running set like the sales from your, what I call your up funnel sales. So say. So how to know how much this $27 offer is contributing to your sales down the line and whether they come in in a week or a month or whatever it is, because that's going to help you to see like the, the bigger roi. And I get people to track what I call immediate roi. So making sure that you're upfront, your initial, you know, your $27 offer and everything, that, that is more than covering its own cost and hopefully plus a bit. So you can start either reinvesting that back into ads or just adding that back to your bottom line. And then the, the up funnel, that's where you, you're starting to increase profit. That's where you start to see the biggest impact. But you have to sort of have your tracking set up to be able to see how well that is really working. Next question from Louise. Louise says, is this going to work from. For my niche? What niche does it work best? Well, I don't actually know what your niche is, Louise, but thank you for the question. So the thing is, I have yet to see a niche that this can't work for. I mean, it really comes down to how well do you know your customer and how well you know and coming up with something that they're going to find really valuable and that's going to attract the right kind of person. So we've had people who like business coaches, meditation coaches, life coaches, Tantra home organization. We had an author coach, we've had like, so many, like, you know, artistic people through to business, you know, B2B and B2C. Like, it's not one niche that works best, it's just how. I think the success really comes down to how well you know your audience and how much attention you've been paying to them through what you've done so far. And we've got a few tricks for people who are just sort of new and getting started out as well, how you can sort of fast track that process and help to get you really into the minds of your customers faster. But yeah, really, just as. As long as your business helps people and provides value online and you can do that in a scalable way. Cause obviously, guys, I don't want you selling your own time for 27. That's not scalable. Then there is absolutely no reason why this wouldn't work really, really well for you. All right, Lucky, last question. What are the benefits of doing it live? Can't I just sign up later? Well, I think I've already covered this one off pretty well. As I said, we only do it live, like, once, sometimes twice a year, depending on how it sort of shakes out with our other promotions and things. But I think it's just fun to do it live, guys, to do it with other people, to cheer each other on, to have that extra access to daily support and feedback. And yeah, like, the way that we structure live is we've got extra accountability built in. You're going to have homework each day, and if you submit your homework, then you get rewards with things like reviews and stuff like that as well. So it's extra accountability. We're there to hold your feet to the fire, answer all your questions. And the most fun part is day five when people are launching their programs and we get to just, you know, all virtually pop champagne and celebrate everyone as their sales start to come in. And it's kind of. It's a real party atmosphere. Being there for day five, I think you definitely don't want to miss out on that. So there's all the questions, guys. If you have any other ones, feel free to hit us up at helpellofunnels co or shoot us a DM at hellofunnels. I'd be happy to answer because I said the doors are closing on. I think it's midnight June 23rd, Aussie time, which will be possibly earlier in the day, 23rd, or late evening June 22nd, depending on where you are in the world. So you don't want to miss out on that, guys. It's Like I said, it's going to be super fun. It's like one of the most impactful things you can do in five days for your business. I can't wait to see you guys inside links below in the show notes. If you have other like business BFFs that you want to kind of drag along and do it together as well, that can also be extra fun. Yeah, I'm super excited. I've got it all highlighted and you know, love hearted all over on my calendar. I hope you guys do too. So that's it for this week guys. I hope you loved it. As I said, any questions, let us know. Make sure you shoot us a review. Share the episode with anyone you think would get a kick out of it. And yeah, I'll see you guys next time for more Doing It Online. See you then.

Thanks so much for listening to the Doing It Online podcast. If you love this episode, don't forget to subscribe and leave us a review. And if you're ready to take your online course sales to the next level with your own six or seven figure funnel, let Kate show you exactly how today@Stealmyfunnel.com.