Stop Leaving Money On The Table! | #058
Sometimes on the Sold with Webinars podcast, especially for solo episodes, I just need to get a few things off my chest.
On one such episode, very recently, I tackled what I like to call the “$997 Curse”. In the past few years, those of us in the internet marketing world have heard that we really need a $997 product to sell. It’s heralded as the golden ticket to freedom.
Spoiler alert: it isn’t. Or, it might be the ticket you’re looking for, but it won’t be everlasting. Truthfully, if you’re selling a $997 course, you’re potentially leaving millions of dollars on the table.
I can teach you how to multiply your business’s profitability by 5-10x, with no extra work on your part.
Curious? Read on.
The $997 Curse
I had a recent conversation with a private client of mine. He’s a brilliant guy who is doing comparatively well in the webinar space. He has a $997 product that he’s been selling through live webinars and partner webinars.
This client came to me saying “I need your help with a funnel- we’ve got this conversion rate, I need your secret sauce to make the conversion rate even better”. I agreed and immediately dove deep into his webinar, only to find out that he was leaving so much money on the table.
Now, I have 2 clients who have fallen victim to what I call the “$997 Curse”. Here’s what to avoid at all costs: we have all been sold a bill of goods which says that the $997 product is the Holy Grail. We need a $997 course; all the big-name internet marketers and course providers have one.
I really don’t know why it’s been hammered into our heads so hard, but here are the facts.
Any successful seller of a $997 course is overbuilding it. What does that mean? It means that entrepreneurs who sell this way are over-delivering and cannibalizing any additional money that they could make.
Here’s an example: a client of mine was doing $100-$150k a month selling a $997 course. This person had a staff of 15, including 8 coaches. Inside that $997 offer, they were including lifetime coaching, 5 calls a week with support, and lots of other perks. While that’s awesome, and I was glad they were delivering amazing value, they found that they were really just scraping by. My client had very little profit margin because of all the overhead, and they were overdelivering by far.
So, the same thing was happening at a different scale to the client I mentioned earlier. I looked at his webinar and told him “We don’t need to focus on your funnel right now, we need to change your model”.
We needed to change his model to make him 6-10x more profitable with just a few small tweaks. These changes increase not only the profitability of a business, but its potential as well. That’s a big shift.
One Simple Rule
Everyone wants to maximize their conversion rate on the front end of that $997 product offer. Everyone wants to sell the course with coaching and lifetime access because they just want to sell, period. When you first put together your offer and sales pitch, you want to get people in the door, you want to overdeliver with all these trinkets. It seems like every perk you offer will push potential clients over the edge and get them to buy. Honestly, it will. But if you don’t open your mind and understand the true value of what people really want to pay for, you’ll be left holding the bag. You’ll go through what I call the endless cycle of an internet marketer, or course creator.
Ultimately, you’re going to get burned out running your webinars and marketing funnels and give up. Here’s a tip to make sure that doesn’t happen:
Rule 1: Please don’t offer lifetime access ever again. Let me explain why.
It comes with some serious legal obligations and implications. Just because you said your clients were buying lifetime access, they can get a refund any time you shut the program down. Lifetime access to support is just brutal. You’re leaving so much money on the table if you’re throwing in everything but the kitchen sink like this.
Here’s the big takeaway: the real money is made on the back end.
Don’t Settle for Picture-Perfect
I just heard some statistics from someone who is running a very successful automated webinar (I actually critiqued his webinar through the webinar vault), and I heard through the grapevine that they’re doing about $3-5 million per year with it – selling just the $997 course.
That is the dream for everybody, the picture-perfect scenario, to simply kick back with that product and make several million every year.
However, I guarantee I could 4x that number with no additional work, because these entrepreneurs are missing out on the number-one most important piece of value that people are willing to pay a lot of money for. Hint: it’s not training. People don’t want to buy courses, they want to buy mentorship and ongoing support. They want to pay for access.
The truth is, there’s very little value in your actual program. I’m being 100% transparent here. There’s very little value in just giving them the information you have. Why do you think books sell for only $5-$15? It’s because a book comes with no implementation, guided access or support to make the goals in the book happen.
I bought Tony Robbins’ book MONEY Master the Game, and it’s probably the single greatest return on investment I’ve ever had from a book. That’s because I took action. You see, 99% of the people who read the same book aren’t going to act on what they just finished learning.
When you understand how to build your webinar as a business model, you are going to completely revolutionize the way you make money and build a business, just by leveraging your webinar.
Supportive Means Scalable
Yes, you can make a $997 product or a $1497 or a $1997 product, but how do you 6-10x the lifetime value of everyone who buys a course?
When someone pays you $997, you know the lifetime value of that person is $10,000. How do you make that happen? The average lifetime value of that client is going to be 10x what they paid you.
I’ll tell you this: it’s not by adding masterminds or new products. In fact, you don’t have to add anything else at all. You have to realize that people want implementation and support. Throwing everything but the kitchen sink on the front end is going to cannibalize your back end, because we have a very unique way of setting up to make a seamless transition into an infinitely scalable course business. That’s why we call our people “perfect experts”.
The point of our Perfect Expert model is to build to an infinitely scalable expert-based business. If you’re launching a $997 course, I hope you’re selling a lot. But I also hope you’re not cannibalizing any opportunity on the back end.
Don’t over-value your information, because it’s the least-valuable piece of what you offer. Write this part down. People do not want to pay for information, they want to pay for implementation. They will pay for information, but they would rather pay for implementation.
Chew on that. How can you apply it to your business? Are you over-building your course, and are you cannibalizing your back end by not separating the two clearly?
If you liked what you saw, or want to learn more, hit me up. Send me an email at firstname.lastname@example.org and let me know what you thought!