Have you been bombarded with LaunchTree promotions and bonuses over the last few days?
I'm sure out of this launch a whole range of emotions are being stirred.
At one end of the spectrum you'll have a whole bunch of excited people thinking how they can apply the information to their own business.
At the other end I'm sure there are folks getting hot under the collar muttering “enough already!”
I wonder if the people who are getting annoyed at all the promotion would be feeling differently if it was their product getting pushed?
Maybe it's the behavioral scientist in me, but I personally find it fascinating. Mostly because this is a product launch, for a product, about launching products.
What a tongue twister! :)
Regardless, given the “unified front” of affiliates promoting this product, I would say that Anik and Mike from LaunchTree are well equipped to be teaching about how to launch a product.
Obviously what they are teaching works. :)
If you're a student of marketing (and you should be if you're running an online business), watch a launch like this carefully. Even if you don't have a product now, there are lots of powerful marketing lessons here.
What they are teaching in LaunchTree is based on the same blueprint they applied when they launched PPC Classroom late last year.
We participated in the PPC Classroom launch and were one of their top affiliates. As a result, we saw intimately the mechanics of how their launch impacted sales.
Until recently, most new products that came to the market were offered in a fairly one dimensional way. Meaning, the main product they were selling was where the majority of the income for both the seller and the affiliate was generated.
The way that LaunchTree style launches work is quite different.
One of the driving forces and the primary difference behind this style of launching, is to over deliver on the front end product.
So a product that most folks would normally sell for at least several hundred dollars (if not more), they sold for just $77. It's almost a loss leader in the same way that supermarkets and department stores sell some products at below cost price to get you in the door.
Then, in a similar way to department stores, they rely on you making other complementary purchases as you're checking out through one time offers. More often than not through free 30 day trials with a monthly recurring cost.
There is a persuasion principle written by the social psychologist Robert Caldini called “Commitment and Consistency”.
Caldini speaks about how once people commit to an initial idea, they are more likely to make decisions that are consistent with that idea compared to when making those decisions in isolation.
In this case, it's easier to ask someone to take a free trial for another product when it's consistent with their decision to buy the first product.
In this case, to buy the leading $77 product.
When you look at this process, it's important to put it into the context of a bigger picture. It really demonstrates strongly a concept I always harp on about as being the fundamental key to successful online business.
That is, if you wish to have a very successful business online, you must be able to string together the ultimate exponential combination. That combination is Traffic > Conversions > Lifetime Value. When you can get these elements working together in harmony, they multiply on themselves.
Think about this carefully. If you can double your traffic then that's great. However, if you can then double your conversion rate as well, you're actually multiplying your business size by 4 instead of just 2. The reason is that you have just doubled your conversion rate on twice as many users.
If you can then go on to double the lifetime value of each of your customers, so in effect make them spend twice as much with you, then you've now got a multiple of 8 on your hands.
So it's 2 x 2 x 2 = 8.
This is such an important concept to really drill into your brain. When you apply this information, a business that used to bring in $125,000 a year is now a million dollar a year business.
The LaunchTree model is the rubber meets the road application of this principle. Both in what they teach in the course, as well as how they actually launched the product itself.
Here's how they did it in practice.
They firstly found a way to get massive amounts of targeted traffic. They did this through the use of affiliates, and giving away free valuable content beforehand.
Secondly, they create an amazing conversion rate by creating a “loss leader” product with massive value for the price point, building trust throughout the pre-launch, having powerful testimonials, and leveraging the trust of affiliates with their readership to pre-sell the product. So far they've achieved a conversion rate of 11.61% which speaks for itself.
Thirdly, and most importantly they've managed to increase the lifetime value of the customer. So while the initial purchase price is low (just $77), the upsell into the monthly recurring fees will mean that the lifetime value of the customer is more likely to be triple that at least.
See how they are working the 3 key elements for exponential profits?
Here's how I know that this stuff works.
As an affiliate of their PPC Classroom launch last October, we generated around $20,000 in commissions upon the launch. However, we've now seen another $13,000 in recurring commissions come in since then. Based on the affiliate commission structure, I estimate that they would in fact have seen triple that in revenue.
They've managed to keep the lifetime value of the customer high by supporting their customers well, and ensuring that the customers are getting maximum value. They've hired faculty staff dedicated to ensuring that the customers are happy and being delivered value.
Remember, it's way easier (and cheaper) to sell to existing customers, than it is to find new ones.
If you've got a product that you are trying to launch, whether it be an Internet Marketing product, or a mainstream product, this stuff is fundamentally important. If you don't have a product yet, I recommend that you step out of your comfort zone and create one. It gives you so much more potential for generating online wealth.
Here's another way of thinking about this exponential growth curve.
Let's say your little website is doing $1500 a month in sales. It's a nice part time income, however is probably not going to be enough to quit your day job.
Now, let's say you can double your traffic. That takes your monthly income to $3000. Not bad, but probably not enough to flip the bird to your boss.
How about then doubling your conversion rate? Well that would then take it to $6000. Now we're talking!
Now here is where it gets exciting. Let's double the lifetime value of your customer. That brings it to $12,000 a month!
So you go from making $18,000 a year to $144,000 a year. Powerful stuff.
I can't stress it enough. This simply principle really is the keys to the kingdom as far as I'm concerned.
If this information has your heart beating a little faster, you're not alone. Even as I write this, I get excited about the amazing opportunity that this online world of ours offers us.
If you want to learn the mechanics of being able to leverage this stuff, then check out the LaunchTree product.
But when you buy it, don't just day dream your way through the process. Pay attention to how the masters do it.
When we bought it, we screen captured the whole process as a marketing lesson for our “best practice” files.
Here's a sneak preview and a little commentary from us about how it works.
Here's the sign-up button. Notice the the massive value that pumps the conversion rates up.
$1992.97 of value for $77. Notice already, they are discussing the recurring aspect that pumps up the lifetime value. They aren't being sneaky here. It's clear and transparent and shows that you really can cancel whenever you wish right from the student homepage.
They get away with forcing you to take the free trial by providing such massive value up front.
Once you then click on the add to cart, you are taken to a very simple order form. Notice here they are only capturing your name and email address. They do this so they can recover the sale if you bail later in the process. Smart stuff.
In this second step, they present a one time offer to “the money tree club”. This is their second life time value extender.
Here's what is essentially the check out page. Notice that they have completely disclosed the fact that there is a recurring component here. This is important for maintaining trust.
Also notice that when you place your order they give you an extra offer for another product if you want it.
Notice how they do it in such a way that the don't jeopardize the initial order by presenting yet another offer and annoying people who don't want it. Yet, they still have another opportunity to upsell more products to people who are in fact interested.
Very clever stuff. Something to watch and learn from.
Oh… and not only is the process fantastic to learn from, once I actually got into the product itself, that's where things really get interesting!
I'm just digging into it now, but I will say, I'm only a little way through and can say it's worth every cent. If you sell products online, or want to sell products online in the future, it could possibly be the best $77 you'll spend this year.
If you need an extra incentive to buy, I'm reluctantly giving away the details for how we've generated around $33,000 from the PPC Classroom launch as an affiliate. We used an interesting multi-prong approach for that launch that obviously had great outcomes. All without the hype and nonsense that is normally pushed out by most affiliates.
To get this information, just be sure to clear your cookies and then use this link. Once purchased, simply claim your bonus with your receipt details included here.