Enhance Your Sales Strategy with a Sales Letter Funnel for Manufacturing

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all right so in this video i'm going to be explaining the economics behind the vsl funnel or the video sales letter funnel or the book or call funnel the mini webinar funnel whichever way you want to call it i'll be explaining the numbers and the math behind the funnel and why it so it works so well why it's so effective and why it is still the number one sales funnel to start with if you are a even if you're an online coach looking to start or if you're an online coach looking to scale because it's one of the most simple funnels to create but it also produces a huge amount of return on the ad spend as quickly as possible so i'll quickly run through the funnel what it is and then i'll talk about the math behind it so a lot of you if you're watching this video you probably understand what a bsl is or a video sales letter funnel is but it's essentially a way for us to quickly get people to book in a phone call or a sales call with us or our company to inquire about our high ticket coaching program and then you can sell them over the phone so this is the general flow of the funnel so you will have some form of obviously you have ad spend and then you will put that ad spend into an advertising platform for the most people it's going to be either youtube ads or facebook ads those ads are going to send people to a landing page on this landing page is basically going to ask them to opt in with the email address to get more information so they're going to opt in to get more information and they're going to land on another page which we call the video page on the video page is going to be what you where your vsl is or your video sales letter it's basically a fancy way of saying a sales video so there is going to be a video that explains more about you your company what you do who you help how you help them what your offer is and what they need to do in order to get more information that's essentially what the bsl does so it's a video that you pre-record that basically sells your service at the end of this video you're going to say hey if you want more information if you want to apply if you want to buy depending which way you want to frame it you all you need to do is book in a call so then on the next page they're basically going to be able to book a call with yourself and that's when they get on the call like i said with yourself or if you have a sales team they will get on a call with your sales team then your sales team will do their best to convert them and close them as a client and as long as you do this properly and effectively then this should produce a nice little bit of profit so i'll talk about the conversion numbers on the funnel and what you should aim for and then we'll start to run through a few different scenarios of like the profit that you could experience so we'll tackle these numbers in the middle here that are in bold so these are the conversion numbers on the on the funnel itself so the amount of people who click your ad and then opt in on your landing page you should be aiming for around 30 percent if your targeting is correct if your ad speaks to the pains and the frustrations and the desires of your ideal core audience effectively enough you should get around a 30 conversion on this page and again the landing page needs to reiterate those pains frustrations the connection points with your customer industry average is around 20 to 25 but average sucks and you don't want to be average so you at least want to aim for around 30 conversion on this page now once someone opts in the way this one is set up is that once someone gives their name and email address they're going to automatically watch this video because they're going to land on that page it's going to send them directly to the page with the video on it so that's why this is 100 because 100 of people who opt in with their email address will land on this video page so you can't really affect this so it's going to stay 100 now this number is how many people who actually watch the video how many of them actually book a call so out of 100 people how many people actually book in on the calendar of yourself or your sales team now what you really want to do is get this to around ten percent which means you want around one in ten people who watch this video will actually book a call you can still be actually super profitable depending on your niche and who you help this number is going to fluctuate a tiny bit so for example if you're in a a really competitive industry say for example you're teaching people how to grow an e-commerce business or you're teaching people how to grow a coaching business then this number is probably going to be a bit lower it's probably going to be closer to five percent because the audience is more jaded there's more competition and they've got lots of different options right so you're not the only one providing a solution we have one client right now that is running this funnel and they're getting around a 20 opt-in rate from this funnel because they help lawyers grow their law firm and it's actually a done-for-you service as well so it's not even just a coaching offer it's a done-for-you service which is obviously more of a compelling offer because they do all the work for you and it's for a very specific niche at one point they were just targeting personal injury lawyers right so there's not many people in the marketplace who have have that offer so therefore the customers were more targeted they have less options they are less jaded and we could be really specific with the copy on how we speak to the audience so this had a huge conversion rate it was around 20 which is crazy high number but for now let's just keep it at well let's just put it in the middle 7.5 percent or eight percent if it rounds up then this number here is the conversion rate between how many people book a call and how many actually close into a client now there is going to be some no shows so there are going to be some people obviously book a call and then don't show up for the call and this number is taking into account that no-show rate so let's just say you should really be aiming for at least a 10 close rate including no shows so that means out of the 10 people that book a call you close at least one sale and again if you have a strong closer you can get more we have clients who are closing around 33 of the calls booked we have some clients who are closing you know 15 10 depends on the offer your industry and how good you are at sales of course and then obviously when they close that'll be determine the profit so that's kind of the general like this is what like would be hygiene standard for us if we were creating this for a client we want to do more than this and we generally do better numbers than this but this would be like hygiene standard if you wanted to go a bit lower you could you know put that to like 25 conversion rate on the landing page that is what we would want to basically aim for and if you can do this yourself and achieve these numbers you're still going to be super profitable and let me explain why the reason why you can be so profitable with this type of funnel is because of the lifetime value right so this funnel because you're selling over the phone you can actually sell an extremely expensive service so if you're an agency like us and our lifetime value of clients is you know tens of thousands of dollars then it means that we can spend a lot of money on ads because we know our client could be worth twenty thirty forty fifty sixty seventy thousand dollars to us over the course of our contract now not everyone has an agency so let's say for a high ticket coaching program you can sell your high ticket coaching program from anywhere between you know three thousand to twelve thousand dollars you know people do more but you know that's probably average for like high ticket coaching slash masterminds anywhere from three thousand to twelve thousand and because you're charging such a high price and i'll show you an example of as we run through some numbers in a second here you can actually get incredible profitability from this funnel for this example we're going to kind of go in the middle and just say you charge six thousand dollars for your high ticket coaching program right now let's just run through the math let's say you spend two thousand dollars on ads in your first month right and i'll show you how this can be really profitable so you've got two thousand dollars budgeted for your ad spend for the first month which is fairly low it's not crazy high you know it's pretty modest to start with you're going to spend two thousand dollars depending on the platform depending on the offer in the niche again these numbers can fluctuate a tiny bit let's just say the average cost per click on the platform is two dollars so what that means is that you're gonna get a thousand clicks for two thousand dollars in ad spend right two thousand dollars spent a thousand clips means the cost per click was two dollars so you've spent two thousand you've got a thousand clicks if our landing page converts at 25 that's a quarter so that means a quarter 25 of these people are going to put their name and email address on the funnel in the funnel so 25 of a thousand is obviously 250. so we've got 250 email leads and this is a calculated spreadsheet so you can see here that now our cost per lead is eight dollars so we spent two thousand we got 250 leads that means our cost per lead is eight dollars again you can be profitable with leads out of eight dollars we like to get it below five dollars or around five dollars for our clients but you can still be profitable with eight dollar leads now obviously a hundred people hundred percent of people watch the video because as soon as you opt in with your name and email address you land on the video page so the leads and the views stay exactly the same the cost per view stays exactly the same right so 250 people have the opportunity to watch the video now we currently have a 8 conversion rate on the video which means eight percent of the people who watch or have the opportunity to watch the video page book a call right so eight percent of 250 is 18.75 people right which means out of the 250 people we will book 18 calls that means our cost per call scheduled is around well 100 bucks 107 bucks to be exact right and you can just see that by dividing the total so our cost per call is around 100 again if you're getting calls booked for around a hundred dollars you could be extremely profitable with this funnel most of the big internet marketers if they can get they're like jumping up and down for joy if they can get calls booked for a hundred dollars from cold traffic for us for our clients again it does depend on the niche we have a lot of our clients right now actually getting below 100 we like to get it around 50 to 100 that's the sweet spot for us we do have some clients that is actually more expensive than that around two to three hundred dollars but again they're more in like niche specific industries so it's just going to cost more because there's less customers so you want to try and aim for around like 100 cost per call again even if you're up to 200 you can still be super profitable and we'll show you some examples of that so you've got 18 calls and you close 10 of the calls which means you're going to close 1.88 right obviously this isn't exact math because it's just calculations so if you schedule 18 calls you're going to close 1.8 of those calls you know you could round this up to 20 and say that you're going to close two clients from it right which means you're going to get maybe we can do that that make a difference no we'll just leave it so that means our cpa which is cost per acquisition so how much are we spending to acquire a customer well we're spending just over a thousand dollars if we spend two thousand dollars and we get 1.88 people 1.8 if we make 1.88 sales that means we spend 1067 to get a customer again if you were to round this up say this was two clients you spend two thousand dollars you get two clients that means your cpa would be a thousand bucks each which is essentially what this is saying so if your cpa if it costs you a thousand dollars to get a customer that means if you collect for every customer more than a thousand dollars then you are going to be profitable with this funnel now we just said before that our lifetime value is actually six thousand dollars so it's costing us a thousand dollars to get a customer which for some of you might be like i need to spend a thousand dollars to get one customer but if your customer pays you three thousand four thousand five thousand six thousand then you're obviously going to be super profitable and in this scenario we've closed two clients or 1.88 clients lifetime value is six thousand which means the revenue is eleven thousand two hundred and fifty if it was two clients and it would be twelve thousand dollars and our profit is obviously the revenue take away the initial ad spend which means you've profited nine thousand dollars on this funnel which means an roi of 5.63 which is incredible like for again most of the big internet marketers who are supposed to be these like ad gurus if they get two to three times roi again they're jumping for joy at scale where you're spending you know a hundred thousand five hundred thousand dollars a month on advertising if you get like a 2x a 2 roi then you will be very happy again we have some clients that are doing like 10 to 15 it's a bit of a lower scale though but if you're going really high up then you know if you're getting a two to three times return on roi on your cold advertising to call traffic then you're going to be very happy but this is just how obviously like the economics work and this is why it's so profitable because these customers are worth so much money we can spend a lot of money to acquire them and one thousand dollars isn't even that much now let's change this up a tiny bit here so let's say the paid advertising became more expensive let's say for example this change our cost per click was four dollars which meant instead of getting a thousand clicks we now got five hundred right we spent two thousand dollars facebook decided to increase its prices and our average cost per click was four dollars right this is pretty high for a cost per click but you know let's display worst case scenario here that means we only get 500 clicks and then if we run through the funnel 125 leads 125 people view the video 9.3 people schedule it means we're going to essentially close you know one client with these numbers but again even if our cpa is 2 000 as long as our lifetime value is higher than that then it's going to be profitable so even like in a worst case scenario where like the cost per click is really really high we can actually still double our money with the ads because we're spending two thousand dollars we're getting at least one client all right 0.94 but rounded up to one and that client is worth 6 000. so we spend 2 000 we get 6 000 back we've essentially made you know a profit of four thousand dollars right so we're more than doubling what we spend now if we go back to this scenario we'll just make it a bit more realistic from the ad point of view because you should really be getting clicks for around two dollars like you shouldn't be getting clicks for more expensive than this unless again you're in like a really weird niche well let's say for example you're a beginner and you're not very good at building a funnel and these metrics you're actually below the average so let's say this only converts at twenty percent let's say this only converts at five percent and i mean we can let's just say 7.5 i want to try and get one client at least so we'll keep that at 10. there we go so again 1 in 10 is still pretty low but let's just say you're not very good at creating your landing page so it only converts at twenty percent let's just say your video your sales video the vsl isn't that good so it only converts at five percent and you can see your one in ten close rate which you know most people should aim for like a twenty percent close rate but again you see with these numbers two thousand dollars in ten calls booked means you're gonna close one client cpa is two thousand but again you've spent you've got six thousand back and then your profit is 4k but even if you wanted to like start off you know with a lower price point you're still making a 1 000 profit so again these aren't the ideal metrics but would you spend 2 000 to get 3 000 back well yes i mean if you could spend 2 000 today and you could instantly make 3 000 back then of course you would do this right and if this person is joining a coaching program for 3k then maybe in six months time you can sell them uh your even more higher ticket mastermind that might be like ten thousand dollars right and then obviously that ten thousand dollars is free because you don't have to spend any money on ads to get that customer because they're already a customer so you can upsell them later on in the process so even if we run through like a worst case scenario where your funnel wasn't converting very well you were selling a cheaper service you're still making a thousand dollars per customer and again if you had the opportunity to spend two thousand and the same day or the next day you would make three thousand back then of course you would do it but where it gets exciting is where we actually plug in some bigger and better numbers which is essentially what we work with our clients with to get these numbers higher so let's just say overall let's just say 5k dollar coaching program now like i said minimum what we well we want is a thirty percent conversion rate on this landing page for most of our clients we try and get it up to thirty five percent thirty 30 is hygiene standard we want to get up to 35. for some of our clients we've done like 45 50 conversion rate at scale doesn't happen for everyone but if you can dialing the messaging on your ads and on your landing page and the targeting then you can get about 35 opt-in again obviously 100 of people um watch the video now here we want to get this up to at least at least 10 percent we actually prefer it to be 12.5 that's kind of like the metric we like to hold ourselves to again hygiene standard is 10 what we really want to push is to get it above 12.5 or we wanted to get it to 12.5 percent that's ideally what we want then with the close rate we want to get this as close as possible to 20 including no shows we want to try and get this up to around a 20 close rate even including no shows 15 is okay but really we want to get it up to 20 and again with the same amount of ad spend here you can see that if we improve if we do our job correctly for our clients and we get these numbers across the funnel you can see how crazy profitable it will be if they are only selling a 5k coaching program two thousand dollars in 43 calls eight or nine clients that means a total revenue of 43 000 a profit of 41 000 which means a 21 return on ad spend and look let's be realistic these numbers might not hold well at scale but let's just say for the next month we spend 4 000 we double the amount of money we spend and that will essentially double the amount of clicks that we get and again the rows stays the same but obviously the revenue and the profit jumps up you can essentially if we double the ad budget we can essentially double the profit and that's not even that much for you know a month of advertising to spend four thousand dollars it's it's really nothing at all um let's say for example we spend ten thousand and that would get us 5000 clicks you can see that the numbers start getting real stupid real quick and again let's say worst case scenario this drops to 10 this drops to 30 you're still putting 10k in and you're getting nearly 100k back you're still getting a nine return on ad spend and again this is where like the the expertise comes in because an amateur will do this and an amateur will get 20 they'll get a 5 conversion and then maybe this will be like 10 percent or maybe it will be at like 7.5 or maybe it'll even be at 5. and this is where and this is where people lose money because it's basically small incremental gains on each step of the funnel can create a huge difference so your cost per click needs to be dialed in the landing page conversion needs to be dialed in and the video page conversion needs to be dialed in and then the close rate needs to be dialed in as well if you can just make small increases in all of these metrics you can turn a funnel from unprofitable to super profitable so here we're pretty much at break even right 10k in 12k back okay you make two and a half k profit but this could very easily slip too unprofitable but when we come in we do our job properly we in the first month we take that to a 25 we take that to a 7.5 percent we take this to a 7.5 we've taken it from barely profitable to making 25 000 profit in the month and let's say over the next couple of months we continue to increase the funnel and its effectiveness so this goes up to 30 this goes up to 10 and let's say this goes up to 10 percent again same funnel small incremental gains have taken the same budget the same funnel the same offer and we've taken it from making 25k to 65k in a single month and then that's when we come in with our expertise we bump it up a tiny bit further we get this to 12.5 and let's just say we get this to 12.5 as well we take that from doing you know under 100k to over 125 000 profit in a single month same ad budget same offer you know same price point but you can make huge returns and then we can do lots of stuff to you know increase the um increase the cost per click right that would be one of the things we would come in create and manage the ads that means that we get 10 000 clicks now because we're spending one dollar and this can essentially obviously double the amount of people that go through the funnel and it will essentially double the amount of profit so obviously these are big scary numbers but that's essentially what we do and how um how we come in and make these small incremental gains in this funnel process to get the the highest conversions prof um possible so again not a lot of you watching this video will be able to get numbers like this straight out the gate but again even if you start off and start with you know industry average percentages because you're charging so much over the phone you can still be super profitable with with this type of funnel and again you could probably just oh you could probably just charge more money as well that's like a simple thing to do if it's not profitable just charge a couple of thousand dollars more and that should bump it up into profitability