Gazillions of people online, but where are the buyers?
We know that Frank Kern and Andy Jenkins are awesome content providers. As someone who’s bought their stuff (Frank’s Mass Control and Andy’s Video Boss program) I know that first hand.
Everyone in the online marketing world is envious when either one of these boys hauls in $1-3 million dollars in a single week, selling their programs.
Here are however, two sobering facts:
1. Take Frank’s list. He had about 70,000 subscribers for his last big promo. Yes, that’s big and enviable. Took him ten years to build it.
2. But. Only 1.5% of the people on his list bought. I know because Frank told us he’d sold ‘nearly’ 1,000 of his MC programs. So 900-some out of 70,000 subscribers.
69,000 of Frank’s 70,000 subscribers did NOT buy.
That’s almost nobody. 98.5% said no. His regular subscribers. So much for ‘everyone will want this.’[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][Those numbers don’t count the tens of thousands more people who were emailed by affiliates for Frank’s program. Add them, and it was probably 300,000 people who got Frank’s promo, not just the 70,000 peeps on Frank’s list. Then, only .3% (one third of one percent) bought. (!)]
Welcome to the Internet, where an “online consumer continues to be worth significantly less than an offline one,” (Wired mag). There’s more bad news for online marketers:
“The Web might generate some clicks here and there, but you [have] to aggregate millions and millions of them to make any money (which is what Google, and basically nobody else, was able to do).” See here.
(Offline direct marketing isn’t much better. “Entire direct marketing campaigns are built around the two percent who say ‘yes.’” notes Mr. Kern.)
What is the problem here? Aren’t there gazillions of people online? Don’t they all want more money? Don’t they all want better health? Lose weight? Look younger again?
It’s the online market. Yes, gazillions of people sounds good, but they don’t know us. And if they’ve heard of mlm some run away. We don’t know how to reach out to them effectively. Yes, we can put up a blog cheap and fast, but how do we get the right people to visit? And buy? The online marketing world is still trying to figure it out. Meanwhile…
Just this past month, a small group of my friends decided that for our next product introduction, we’d leave the online world. We decided to test something smaller and more intimate. And much older. Here’s what else it was:
- It was live.
- Each person was called personally by the two event organizers.
- Each person invited knows one of us, and our values.
- Everyone invited knew they’d coming to see and experience a new alternative health product (a demo).
- Everyone invited already shared certain core values about health products and alternative health practices.
- It was in the home of a known-to-be-weird nutrition gal and massage therapist (many of whose own clients came).
- It was planned and prepared for 7 weeks. All the invitees were chosen, called and spoken to in a special way.
- They made it a pot luck.
- 107 were invited. 96 came.
- 51 came in for the morning session; 45 for the afternoon (all local folks).
- Cars were parked bumper to bumper for 6 blocks.
Everyone became enchanted with the idea and beliefs behind the product before they came. Then they saw some on-the-spot results. Magic.
Anyway, bottom line: Guess what percent of the folks bought some product that day (two options: a $69 month supply or a bargain box for $495)? And how about the next week?
P.S. The guests were working family types. Everyone was feeling the weird economy. Most were women, over 45, some in their 70’s and 80’s. Many showed up with the usual aches and pains folks begin to notice at middle age. A few were old-time networkers.
P.P.S. Another secret to the success of the experience is what the organizers did not say, and did not show or do. Hehehe. Maybe next time. Maybe I’ll work up a class on how to run an in-home like this. Let me know if you’d come if I did that…email me here. Put in subject: Teach Me In-Home.
Well? How many bought?
I am going to guess 60% bought then or within the week. I am guessing the half the buyers went for the bigger package.
This post is more thought provoking than usual, at least to me.
Wishing You Plenty To Live,
OK, the suspense is killing me!
How many people bought the two packages?
Funny how you used your internet Blog to tell us the internet and blogging don't get results ??!!
Anon: You wrote "Funny how you used your internet Blog to tell us the internet and blogging don't get results ??!!"
Did I say the internet gets no results? The guys made millions, didn't they? The Internet "success" percents are just much, much smaller than most folks realize, that's the point. You need huge numbers if your sales are one half of one percent of your readers. Quite different from the hype of 'everyone will want this.' Think?
Steve and Tom, so far, they told me, between 15% and 20% people bought. And they're still buying. Mostly the big packages. Some went in together on them. The buzz in that community is just non-stop.
Let's just say it's 15% that bought. Compared to email/Internet marketing, where one hopes to get ONE percent sales, this is 15 times better.
However, the total numbers of people are way smaller. You're comparing 95 people, where say 15% buy, to 10,000 on a list, where one percent buys. It takes years to build such a list.
But it also takes time to build the relationships and get the right people to come to your In-Home.
Bottom line: Know your options when marketing. Do things you personally enjoy. Unrealistic expectations is what knocks most people out of the business.
That first In-Home group now has several others who want to do in-homes. Growing by doing one in-home at a time using folks who attended and loved what they experienced, is what these folks want to do…and they'll use online blogs and sites as places where folks can go to order or read more details on the product or program, etc. Rather than as the first place to introduce the product.
It's a choice one makes about how to market.
Everything works for someone. You choose what you enjoy first, and give yourself the time it takes to get really good at it.
Something very hard to do in our need-for-instant-gratification society.
"Unrealistic expectations is what knocks most people out of the business."
That comment, in itself, is worth a blog post.
Blogger lost my comment… trying to switch from one account to another.
I came here first, cuz I JUST watched a Frank Kern webinar minutes ago. Requested a free strategy session.
I wonder about in home for those of us (me) living too far away from a city (I live in a forest – Tahuya) ?
… and who have spent years building a following online (Skype, Aweber lists, blogging)?
Look forward to your resposne Kim.
Hi Julie —
In Home is an option for belly-to-belly types of people-people. So if you don't live near others, that won't work physically. Or if you're not a people type of person, it might not be for you, either.
You have choices in how to market your product. Warm market and their warm market, and cold.
Warm market and related warm markets approaches (like the Heal-In) are great for folks who share interests like alternative health remedies, etc.
But if that's not your thing, then you can do cold market.
Which can be online, direct mail, etc.
I've always love Frank Kern's work. I am pointing out that the percents of buyers are TINY – usually ONE percent or less buy in cold market, even from someone as good as Frank, because it's the cold market.
But, the cold market is way bigger than someone's warm market. And also, that much harder to reach and turn into loyal customers.
Warm market approaches get a much higher percent of buys – like 20-40%. But the total numbers are much smaller. So it depends on your personal preference and what sort of thing you enjoy doing most.
Does that help?
Interesting: When 1,000 our of 70,000 bought the product at $497 a revenue of $497,000 was made which has not direct costs. Doing one of those campaigns a week, pays a lot of bills and tells u something about online marketing.