This Strategy Skyrockets Sales Funnel Profits & Return On Ad Spend

Better yet, when done correctly, this strategy allows you to spend more to acquire a customer so you can scale your business to new heights, especially if you sell information products, health supplements, e-commerce products, SaaS or coaching/consulting packages.

Add a forced continuity (recurring monthly payment) offer with a free trial to your front end sale. Now, using forced continuity comes with challenges. If you’re not careful you’ll get flooded with complaints and chargebacks. (More on how to prevent these in a moment.)

But first, here’s an example of this strategy in action:

Listen, even if you do a half-ass job, this often doubles the sales and profits of a funnel. Here’s how the math works out:

Let’s say you get 100 initial sales a day and 50% of the forced continuity customers cancel before the first billing cycle. The other 50% transact. And, let’s say your re-bills drop by 50% each month.

From the initial 100 sales, you get…

• 50 re-bills on month 1
• 25 re-bills on month 2
• 13 re-bills on month 3

• 7 re-bills on month 4
• 3 re-bills on month 5
• 2 re-bills on month 6

With this conservative estimate, the 100 initial sales generates an extra 100 sales for you over 6 months. Plus, because there’s practically no cost associated with these extra sales, a huge portion of those sales are profit.

This skyrockets your return on ad spend, personal income and creates financial stability for your business.

Eventually, what happens is that if your funnel is doing 100 sales per day, over time, your recurring billing offer ends up doing several hundred more sales per day — on autopilot. Which earns your business (and you!) hundreds of thousands of dollars in extra profit per month — if not, millions or more depending on your volume.

Not only does this turn a losing funnel into a winner (and a winner into a smash-hit) but it allows you to spend more to acquire a customer, which drives further scale.

Be careful. If you execute this strategy wrong, you’ll get burned. You don’t want a bunch of complaints on Google that ruin your reputation or chargebacks that get your merchant account shut down. Plus, as marketers we have a moral obligation to treat people properly and a legal obligation to bill people’s cards appropriately. 

Therefore, to stay on your customer’s good side, take these 3 steps to avoid getting complaints and chargebacks:

Each time you get a new customer using this strategy, give them a welcome call. I call this the “Profit Multiplier” because it drastically lowers refunds and increases the stick rate on your continuity offer. Plus, it makes you more money. There are 3 things you want to do during your welcome calls:

First, you want to congratulate the customer on their purchase and reaffirm their decision to buy. Why? Because this overcomes buyer’s remorse and shows the customer that you’re a company that truly cares. This magnetically bonds buyers to you, which results in more sales and profits on the backend.

Second, you want to implement the “Pain + Pleasure + Promote” Strategy. Essentially, you ask about their problems, desires, and bridge the gap to sell your continuity offer.

Going back to the golf example, we might say, “Hey Bob, what problem are you trying to solve in your golf game that made you buy our ABC Solution today?”

Bob might say, “I always hit the ball into the woods and feel like an idiot in front of my golf buddies.”

Next, we’d ask, “Okay. In a perfect world, how would your next golf game look?” 

Bob might say, “I’d love to be able to hit the ball straight as an arrow, slash strokes off my game, and beat the pants off my buddies.”

Now we know what Bob’s pain and pleasure is. So next, we say something like, “I’m so happy to hear that Bob because our XYZ Membership Program helps you solve that exact problem and achieve those exact results.” (Obviously make sure the offer can deliver this promise.)

Next, we explain that the XYZ Membership Program offer has a 14-day trial period and that the customer can cancel anytime.

Next, we do one final thing before the call ends: We soft pitch another product. We might say something like, “Before I let you go Bob, we have special offer today on our [XYZ Product]. It normally costs X but we’re giving it away today to all new customers for just Y. Interested?”

This welcome call is powerful. Not only does it lower refunds on the front end product, but it lowers cancellations and boosts the stick rate on your forced continuity offer. Plus, it generates extra sales and profits for your company.

Send your customers an email 24 hours before you re-bill their card every single month. This is critical to your success. 

It means customers are aware of the recurring cost and gives them the opportunity to end their subscription if needed. Don’t be sneaky and don’t re-bill people without telling them. Treat people well and they will want to stick around and pay you.

Again, just like the welcome call, you’ll want to sell them on the benefits of staying onboard. For example, if it’s a membership site, you could list out bullets that tease all the cool tactics and strategies they’ll discover next month.

And finally…

Don’t just sell customers on the forced continuity before you bill them, create an email indoctrination sequence during the trial period. 

The purpose of the sequence is simple: To give customers as many different compelling reasons to NOT cancel as possible. In fact, a great email sequence becomes a machine that generates sales for you 24/7.

Each email should do one of the following…

• Share a surprising benefit
• Provide proof of results
• Paint a picture of the customer’s ideal future
• Share a successful case study
• Overcome a common objection

This strategy is a dream-come-true for most marketers…

• Information marketers can offer membership sites, newsletters or group coaching programs.

• Health supplement marketers can offer automatic shipments for future supply of the product.

• E-Commerce store owners can offer discount clubs, newsletters, or complementary products (e.g. Ink cartridges or razor blades).

• SaaS founders can offer better hands-on support, membership sites, communities, or more.

• And so on!

You’ve just got to get creative.

Cheers,
Caleb.