First up the good news.
I succeeded in getting real life cold traffic (in person at the show) to opt in and go through the funnel.
The squeeze page was converting at 40% and the order form page at 30% so it seemed like ski wax was a great front end bait.
I was covering the cost of the product (at trade price) by the £2.99 shipping cost being taken, however I was losing £3.40 each time in packaging & posting with Royal Mail. The intention was obviously to make this up with the continuity.
After the order form, 20% of people were taking the scraper into the £9/m continuity programme and 20% were buying the full service kit (didn’t expect that, these funnels sure do upsell well!) and I was making £5 profit on each one.
Ok so let’s do the math(s for us Brits) to work out how many months people would have to stay in the continuity (or “stick”) to make this funnel breakeven…
For every 100 people who were saying yes to the free wax we received £3 but the cost of the wax and to post was £6.40 total. So for 100 customers we receive £300 in revenue but our expenditure is £640 for a front end loss of £340.
20% of people enter the continuity which is 20 and then 20% of them are buying the service kit which is 4 for £20 profit.
£340-£20 = £320 / the 20 people in the continuity means each person had to get billed an additional £16 or 2 months for this funnel to breakeven.
Sounds good right? Now the bad news…
Everyone who signed up cancelled their free trial (by sending an email) within 2-3 days!
In Trey’s video he mentioned that he had a five month average stick rate.
If this happened with this ski membership then for 100 people who hit the squeeze page, 40 would hit the order form, 30% which is 12 would take the wax, 20% take the continuity (so let’s say 3) and then 20% (so let’s say 1) would purchase the service kit.
This works out so that for every 100 visitors, 12 (30% of the 40) spend £3 (but we lose £3.40) , 3 spend £135 (3x5x£9) and 1 spends another £5 for £176 income – £40 cost = £136 total profit.
This means that we could spend up to £1.36 a click to profitably acquire a customer.
Assuming the 5 month stick, if we could buy ski traffic for less than 68p CPC then for every £1 invested in advertising we’re making more than £2.
However we couldn’t even make a 1 month stick as skiers were cancelling within days…