If you want to build a successful online business, then this is going to be one of the most important blog posts you will ever read.
It’s short, so stop what you are doing and go through this now.
At the end you will also be given an incredible opportunity to 1000X your current profits no matter where you are on your online journey, so keep reading.
Lets begin.
Now, how much is a lead/potential customer worth to your business?
And, how much are you paying to acquire a new lead / customer in to your business?
These 2 metrics are crucial to your success in any online business.
Want to know a secret?
In today’s climate, especially in the Internet Marketing niche, the people who can afford to spend the most amount of money to acquire a lead, get the biggest share of the market.
The people who can comfortably do this are the ones who have a high ACV and LCV, otherwise known as average customer value and life time customer value.
If you are serious about creating a solid 6 or even 7 figure business online, then it is absolutely crucial that you understand these metrics.
I will break it down for you in simple terms.
In all honesty it’s not rocket science, more common sense.
Although a wise man once told me, these days common sense is not so common.
I guess this is why 97%+ marketers fail online.
You don’t have to be one of them. Just follow these guidelines and you will be certain to achieve success.
If your numbers work, then the system works.
If you have a system that works, then you can scale it.
If you can scale it, then you can make big money quickly.
Ok, so lets break this down.
I will be using affiliate marketing as an example to demonstrate how this works.
Now, most people when they are selling something online as an affiliate, would head over to a platform like Clickbank to start promoting different products.
Clickbank products on average pay out around $50 – $100 commission per sale. Sometimes a bit more, and sometimes less.
Lets stick to the $100 commission per sale for this example. Your average customer value in this case would be $100.
Now, at a $100 commission, you can afford to pay up to $99 in ads to acquire the customer, and will still make $1 in profit.
Although that would suck if as an affiliate you are paying $99 to make $1 in profit back.
In most cases you would be building a list and then promoting more products down the line. That’s the smart thing to do.
Lets say you do 1 affiliate promotion a week at an average of $100 commission per sale.
Now lets say the average customer sticks around with you for about a year, and buys from your around 4 times in that space of time. That would mean your LCV or lifetime customer value is $400 ($100 X 4).
So each customer is worth on average $400 to you over the span of a year.
Now you know what a customer is worth to you across their lifetime, so you know how much money you can spend in order for you to acquire that customer from your advertising.
If you spent $20 to acquire this type of customer, over the span of a year you would make a nice $380 in profit from them.
Once you have a system like this that you can rely on, you go out and acquire as many customers as you can afford to.
Here is the formula for working out your LCV.
The simplest way to estimate lifetime value:
You can plug your actual numbers into the formula below or use estimates if you are yet to start your business.
(Average Value of Sale) X (Number of Repeat Transactions) X (Average Retention Time in Months or Years for a Typical Customer).
A very simple example that you can use to understand this formula better would be the lifetime value of an average gym member who spends lets say $25 a month for 2 years.
The value of that customer would be:
$25 X 12 months X 2 years = $600 in total revenue (or $300 per year)
$25 X 12 months X 2 years = $600 in total revenue (or $300 per year)
This is why you see many gyms offer new customers a free membership for 1 month or more to help drive clients into the system.
They know their system works, and they know that as long as they according to this example spend less than $300 to acquire the customer, they will be profitable in the long term.
Work out your LCV and you will be ahead of the curve when it comes to your marketing
Most of your competition are guessing these metrics, you may have been guessing too up until this point.
After reading this short blog post you no longer need to guess and can literally eat up your competition.
LCV is a very important metric, and will determine how much you can spend in advertising to acquire your leads and customers.
The higher your LCV, the more you can spend on ads, and the faster you can grow.
Now, you ready for the rocket fuel?
Imagine rather than having an average customer value of $100 like most affiliates in the game, you could have an average customer value of $10,000+?
And, rather than having to wait a year for your customer to spend that money with you, you could earn that money from your customer within weeks.
How much do you think that will totally revolutionize the way you do your marketing?
How would that allow you to dominate the market with your advertising?
You would be able to drive more traffic, generate more leads, and make more money faster with much less effort, and more confidence.
The way you exponentially increase your average customer value is by selling high ticket products, and creating a high converting sales funnel that will continuously and systematically turn your leads from your ads into high paying clients.
To demonstrate this I will show you one of my funnels and my current conversion rates. This will blow your mind.
If you have read my ebook “the $10K a day formula”, then you know what my funnel looks like on the outside.
If you have not read my book yet, you can download it for free here.
This is what the funnel looks like internally:
Currently I am driving traffic into my funnel from a few different sources. One of my main sources is Facebook ads.
Here is a screen shot from a recent ad I just started:
As you can see, using this ad I am able to generate leads at a cost of $1.25 per lead which is amazing.
My Relevancy score is also 9/10 which is phenomenal. I am driving super targeted and high converting leads from Facebook into my funnel.
I am planning to do another post on this soon, and create a mini Facebook marketing course, so if you are on my list look out for that in your inbox soon. Facebook traffic is hot when you know how to do it properly.
At the top of my funnel I have various different squeeze pages all of which convert at over 50%.
Here is a snap shot of a recent squeeze page that I just created with a conversion rate of 66%.
By the way, if you are wondering how I am getting these amazing conversion rates on my squeeze pages, it’s by using:
A) high converting copy (I will do a post on this soon), and B) high converting templates from Click Funnels.
You can get a 2 week free trial to click funnels and I highly recommend you do that now. This is the best software available on the market to create high impact sales funnels.
Now, lets look into my funnel and let me break it down for you:
Ok, so you can see from the diagram above all the different products I am selling within this funnel, as well as how much I earn per sale, and the current conversion rates.
So 7% of people who optin to my squeeze end up taking up the front end offer which sells for less than $100.
13% of those buyers purchase the $1,250 upsell.
23% of those buyers then purchase the $3,300 upsell,
and, 50% of those buyers purchase the $5,500 upsell.
Actually the products sell for a lot more than those prices above. The prices above just show you how much I make personally on each of those sales.
So here you can see that a lead that comes into my system, if they upgrade all the way is potentially worth over $10,000!
These upgrades happen most of the time within weeks.
You can see from my Facebook ad that I am getting leads in at the moment at a cost of $1.25.
So a $1.25 lead could potentially be worth over $10,000 to me within a few weeks using this system. You work out the ROI!
I have been in this industry for a long time, never has there been a system that prints money like this.
This system is making me a lot of money. In fact, I am doing over $10,375.76 a day with this business.
So the real trick is to sell high ticket products using a high converting sales funnel if you want to maximise your average customer value, and blow up your earnings fast.
For most people creating and selling high ticket products is very difficult.. Even the ones that end up creating a high ticket product, they then need to create a high converting sales funnel that sells the products which is near enough impossible for the average person.
Today you have a unique opportunity.
You can get access to these very same high ticket products I am promoting that will pay you $1,250, $3,300 and $5,500 per sale!
On top of this you have to do no selling yourself. All the selling will be ‘done for you’.
All you have to do is follow our step by step traffic training and drive leads into the system.
You will get access to done for you sales funnels, and high converting done for you emails all ready and integrated.
You will also have a full time telesales team that will sell the high ticket products on your behalf to your leads. Every time they make a sale you will be wired a 50% – 90% automated commission.
We have people with very little technical skills following the step by step training and getting to a 6 figure income fast with this business. As crazy and as hypey as that sounds, it’s the truth!
As an added bonus, I will be holding a free training session that will show you exactly how I am getting cheap leads from Facebook and turning them into paying customers worth thousands of dollars.
How much would you pay for knowledge that shows you how to turn a $1.25 lead into a $10,000 automated commission over and over again?
Trust me this information is invaluable, and you will get it for free when you sign up for the high ticket wealth system and complete the 21 step training program.
We will also give you free access to your own 6 figure coach who will be holding your hand and helping you to understand the business, and setup your own campaigns.
Go to the link below and click the button under the video to sign up for the High Ticket Wealth System right now, and take advantage of this special offer while its still available.
Start selling high ticket products. Create a high converting sales funnel, and exponentially increase the value of your leads and customers.
Now go and dominate the market!
I hope you enjoyed this short blog post. Look out for more free information soon.
All the best,
Barry Hurst
