As social media marketers we all know that one of the most important factors to the longevity of a business is, it’s cliental. After all what is a product worth if there is no customer to buy it? Now all this may seem straight forward, start a business and gain clients, that’s how every business succeeds. However, as marketers we know that if you talk the talk, you have to be able to walk the walk. Today we are going to be going over one of the Best Lead Generation Tactics in the book! Just below we will be covering the Free Plus Shipping Lead Magnet!
Free Plus Shipping to Generate Leads?
Many of you reading this right now have probably stumbled across products with a similar slogan. If you pay for the shipping, they will send you a free product. Masters of Marketing like Russel Brunson uses the same method to get users to acquire DotCom Secrets.
The Free Plus Shipping Model for Lead Generation is one of the highest converting magnets. Why is this? Well let’s dive into the psychology of it, after all thats what marketing really is. When looking at the Free Plus Shipping Model there are some major factors that play into the success of this magnet.
1. Free Products Are Valuable
There is nothing like the word “free” to incentive people to take action. As any marketer knows in order to get viewers to take action, you must provide value. For many of us that are online marketers, we utilize Free Ebooks or Video Tutorials in order to get people to take action. In return, we attain their contact information and a basic understanding of their interest. It is this information that we acquire from them that is of high value to us as marketers. Using email marketing campaigns one can accumulate a detailed customer profile that will find the best products for them.
This same understanding applies to the Free Plus Shipping Model. However, one key benefit that this model has is a possible ROI. That’s right, you read that correctly. You could possibly generate an income to cover all of your expenses for the product and marketing. This is accomplished through the Shipping and Handling Fees, Order Bumps, and Up Sells.
Choosing a Product
When it comes to choosing a product you want to find something that is inexpensive, holds value to the niche, and can be purchased at a store. Using this as a basis for choosing a product will ensure three things:
One, If the product can be purchased at a local store then this will ensure the customer is getting a better deal by going to you. Not only will you take one more thing off their shopping list. They will also be able to have it delivered directly to their door. Making it as easy and cost effective for the customer as possible
Second, the product needs to hold value in the niche. If you are trying to give away free hamburgers at a vegetarian gathering your probably not going to get a lot of takers. The same holds true here, you should find a product that matches your niche. This will ensure that people are more than willing to opt-in to your lead magnet.
Three, if the product is inexpensive, then you can ensure that the upfront capital cost are minimal. This would include the cost for producing, branding and shipping the product.
The over all goal of this funnel is to acquire the lead for zero cost. That means the cost of traffic, product and shipping are all covered by the leads as they go through the funnel. This is where having an inexpensive product really comes into play. The cost that the leads are paying for product shipping will cover all your back of house cost.
2. Easy Up Sells
Once the lead has shown interest in the product and is making their way through the funnel. There will be a variety of up sells in place to increase the average dollar per lead. This is where continuity to the initial product and not over selling come in handy. The goal is to increase their order value without driving them away with tons of offers. Just below are some methods for up selling effectively.
One of the easiest up sells that marketers don’t always think about is shipping methods. While many customers would be willing to wait the 5-7 business days for their products to arrive. A large number would be more than willing to pay a couple extra dollars for the product to be delivered in 2 days. An effective way to order bump is to offer a variety of shipping methods. In my personal experience, I have seen higher conversions when offering 3 methods, Standard, Fast and Two Day Shipping.
Don’t over think the up sell! The lead is here because of the free product you offered them. Instead of trying to find another product to give them with the same tactics in place, simply up sell on quantity. For example, if you are giving away skin lotion and the lead is already willing to pay for the shipping and handling of one. Why not try to “give” them more lotion at the same price? If it cost $4 to ship 2 bottles, then have an option for 4 bottles, 10 bottles, 20 bottles, as high as you can go until you see a decrease in conversions.
3. The Order Bump
The order bump is a valuable tool that can be implemented into your funnel. The purpose of the order bump is to increase the average order price of a lead. When utilizing the order bump tactic it is imperative that keep continuity between the current offer and the initial offer.
Up Sell Page
When choosing a product for an up sell the same methodology applies as stated earlier. Although the upfront capital needed to produce the product may be a little higher, the increase in order value of leads will pay for the cost. The product you choose should exemplify the initial product. There are 3 major types of up sell products subscription, trial subscription and flat rate. In order to find out which one would work best may need to be tested with your specific audience. When setting the price you should look to range your order bump price between $20-40.
Down Sell Page
If you are not implementing a down sell page in your funnel then you are leaving paid potential leads on the table. When creating your down sell page it should mimic the exact same layout as your up sell page. The only thing that should change is the offer price. This is dependent on what you are selling. But the goal of this is to offer the same deal at a break down rate. For example, if your selling a physical product and the up sell discount was priced at $99. Then you could have your down sell page be three easy payments of $33. This is a psychological trick marketers have been using forever. It’s the same deal but broken down to make the lead feel like they are paying less.
In this funnel the up sells and order bumps are going to be the bread and butter for diminishing cost on acquiring new leads. But do not let these methods distract you from the overall task. The goal of the Free Plus Shipping Lead Magnet is to acquire new leads for zero to no cost. The up sells and order bumps should be the icing on top, not the whole cake.
The Free Plus Shipping Lead Magnet is by far one of the best way to acquire new leads for zero cost. In some cases you might be able to generate an ROI from your funnel. To ensure that this funnel has the most success for your business it is imperative for you to understand your community. This model is dependent on the community wanting the free product. Without interested viewers no one would take action and thus you have lost money on marketing and production side. Without a deep understanding of your target audience you can’t possibly choose the appropriate products to give them or up sell them on. This is why it is so essential to collect and analyze as much data as possible for your niche. To ensure that you have a full view and understanding of your community. Only then will you be able to market to them effectively.