Hack Your Sales Funnel and Turn $10 Into $100 With Dropshipping

Empire builders, not only is it possible to turn $10 to $100 with your ecommerce business, but you can do it again and again. Ecommerce and dropshipping are great opportunities to predictably expand your profits, week by week. Learn how to hack your sales funnel for more streamlined — and repeatable — profits.

How It’s Commonly Done 

When it comes to ecommerce and dropshipping, there’s a pattern that most entrepreneurs use in order to sell their product. This usually involves increasing traffic to their website and to a single product through advertising, social media, influencer promotion, and whatever other means suit their product. This is a service that is paid for and therefore cuts into profit margins. 

Take a company that sells their merchandise for $20. Increasing traffic to their website, and therefore getting a consumer to look at their product, will generally cost around $10. Now, this initially seems like a great deal. They just made $10. 

However, this isn’t looking at the bigger picture. The initial potential for revenue is $20. This is immediately halved due to the cost of advertisements and increasing traffic. Then, you also have to take into account the cost of the product, as this is an example involved with dropshipping a physical product. 

Even if the product and shipping costs only come to $5, the company is left with a net of $5. That’s not exactly a number that inspires, and this is what scares people always from starting their empire. There’s an easier way to make a profit right away and create a successful dropshipping business. 

A Better Way: Hack Your Sales Funnel

Screen grab of Peter Pru explaining how upselling can change net profits

The key is controlling the narrative and how much you’re able to make. Let’s look at this another way, but with the exact same initial setup. You start with a product that has a potential revenue of $20, and the cost of advertising is still $10. This is where I want to mix things up and introduce something new. 

We don’t want to just leave things as they currently stand, with the potential to make $5. We want to grow this potential. 

To do that, I’m going to add a simple one-click upsell — nothing too complicated or technical. If you want to dive into the meat of why this works, I’ve extensively covered the topic before. If you want to learn how I took a brand-new business and turned $0 to $1000 a day in only three days, click here

 How to Add an Upsell to Your Sales Funnel

For our purposes now, just view the upsell as an opportunity for your business to make more money without spending more on additional advertising. It basically allows a customer to buy more of your product and to do so easily. This is important for any business, no matter what you’re selling or in what format. 

Your first sale is likely not going to amount to much of a profit. In fact, even the previous example is optimistic. Breaking even is a pretty good goal when you’re first starting out. So, if you offer a $40 upsell, then your revenue just jumped up to $60. After subtracting $10 for advertising and maybe $20 for the cost of goods, your net is now $30. That’s a lot better than $5. 

While not every customer is going to purchase your upsell, you’re allowing yourself the opportunity to make more money per sale, and some consumers will decide to go for it. The best part is, the potential doesn’t stop there. You can customize this funnel and how things sell to fit your company’s needs. 

You don’t have to just have one upsell. The first sale you make, once a consumer decides to use their money on your product, dictates the rest of your profits. Once you learn this, it’s almost like magic. 

Subscription-Based Sales Funnels

Screen grab of Peter Pru discussing the value of subscription offers

That first sale you make — our $20 example — is going to be the hardest. It’s also going to be the most important, as all the pieces start from that sale and are put together to maximize your profits. The amount you’re going to make all stems from what you do behind the scenes. 

In this subscription-based sales funnel method, things start in the same way. You have your traffic coming into your store for your front-end product. However, this time visualize an order form, which is where someone buys something from your store. Your $20 product will be on this order form. Then, you’re going to want to implement the following hacks to increase the amount of product a single customer will buy from you, or your average cart value:

Step One to Hack Your Sales Funnel: Encourage Bigger Buys

My first suggestion is to add quantity discounts. If a consumer buys 4, or 6 of your products, they should get a discount. You might be questioning if anyone would actually buy multiples, but studies show they do. People love a good deal. Take advantage of this and offer a better discount as the quantity goes up. It’s going to make you more money by increasing the likelihood that more of your product will sell to a single customer. 

Step Two to Hack Your Sales Funnel: Create Order Bumps

Next, consider adding something called an order bump right under your front-end product. This is basically a no-brainer you offer a customer to buy alongside your product. Your local grocery store already does this by enticing you with little treats as they’re ringing up your groceries. Think about how often you take advantage of those. 

If you’re a company selling toothbrushes, your order bump would be toothpaste. Why wouldn’t a consumer take advantage? When they do, that’s more money for you. This can help you break even or make a profit from the very start. Then, you can move to other tactics.

To summarize steps one and two: I recommend offering more of what they just bought at a discounted price and then a complementary product. This is any product customers frequently buy alongside your type of primary product, and you can easily figure out what this product might be through Amazon. Make sure you’re giving them a good deal on the product as well. Offering these two upsells should be simple, allowing the customer to either choose yes or no and then move on.

They won’t have to navigate throughout the website or click through multiple pages. They can buy lots of your products with two clicks, as there are no cart pages. That’s the beauty of this funnel. 

Step Three to Hack Your Sales Funnel: Create Subscription Upsell Sequences

Happy customer opening a subscription box package

The third upsell is key. I refer to this upsell as the continuity upsell, and it’s the subscription aspect of your funnel. Offer your customers a monthly incentive, such as a subscription box or digital access. This will give you recurring revenue and a loyal customer base. Here’s more information about subscriptions, because they really are gold for your company. The subscription upsell should be another one-click option, and customers automatically get billed. Aim for a 50% margin here, as this is where you’ll want to pay yourself and invest in other assets for your company. Always, always, always offer a subscription option!

Here’s something else to keep in mind. When you pay for advertisements on Facebook, you’re not paying for customers. You’re paying for data that will help you understand more about what consumers want. A simple upsell sequence will help you get more of that data and make more money. It’s easy, fast, and beneficial for someone’s first business. 

Hack Your Sales Funnel and Grow Your Business Faster

When you put all of these pieces together, you can really start to see a potential for great profit. The original example of $5 in net profit can easily be turned into hundreds if not thousands of dollars when you implement these funnels and sequences. You can also check out my YouTube channel for more tips and insights.

If you enjoyed this information and are looking forward to starting your own dropshipping business and maximize your product, check out my free ecommerce masterclass. You’ll learn how to make a 5-step ecommerce funnel without building a website and turn it into your full-time income. Reserve your seat today, and remember: your empire starts now! Tagged : / / / /

How to Improve Your Dropshipping Store: Our Animated Lure Analysis

You may have seen the company Animated Lure featured on the “Shark Tank” television show. There, they advertised a robotic fishing lure that features lifelike movement to attract fish. The product itself is impressive, but it’s important to remember that marketing is what will ultimately sell it. Improve your dropshipping store by seeing how Animated Lure runs their marketing efforts.

As Kevin from “Shark Tank” himself has said, many of the products on that show wouldn’t have been successful if it weren’t for the publicity that the show provides. Animated Lure experienced a particularly notable amount of success following their “Shark Tank” appearance, and we wanted to find out whether that success came down to their publicity through “Shark Tank” or their own marketing efforts.

Here, we’ll review what Animated Lure is doing to sell their products and determine what they’re doing right and wrong. In turn, you can apply some of what’s working in these strategies to your dropshipping business.

What Animated Lure Is Doing in Their Ads

Looking at the Facebook Ad Library, we were able to gain some insight into what Animated Lure was doing to sell their products using social media ads. We were able to focus on one ad that launched on November 6. This ad featured brief, concise copy and a demonstration video. It’s worth noting that demo videos are great for warm traffic. People likely came across this product on “Shark Tank,” which led them to find out how the product actually works. 

The video ad features someone fishing with the lure, throwing the lure into a pond and catching a large fish with it. While it doesn’t show the actual act of catching the fish, only the result, it’s effective enough to show that the product works. The ad also shows the lure while used in a pool. This allows you to see its movements, which are as realistic and lifelike as advertised. Overall, it’s a reasonably effective ad that shows the lure in use and highlights the “animated” element that makes this product stand out.

At the time of this review, that ad is the only ad that Animated Lure is running on Facebook. Ultimately, it takes people to their website with a CTA directly below the video.

Navigating the Animated Lure Store

Screen grab of Animated Lure's long purchase process through product clicks

The store that their Facebook ad takes you to is a very basic store. At this point, people can choose from several variations of the Animated Lure product. Now, there’s one problem that we noticed with this strategy so far. Generally, after showing an ad with a demonstration of a specific product, you would simply link to the specific product shown in the ad. Instead, Animated Lure links to their main store page. This forces the customer to choose between different options, potentially leading to indecisiveness and uncertainty that turn people away.

Audiences want to be told what’s best when shopping for products. While options can be great, they may not know which to choose. They might not even be open to experimentation because they lack familiarity with the product. In a product demonstration that shows a product in action and resulting in success, people want to know which specific product is used and buy it. An easy way to always improve your dropshipping store is by clearly directing your customers to the product shown in your ads.

Improve Your Dropshipping Store With the 80/20 Rule

It’s always advisable to go by the 80/20 rule. This rule dictates that 80 percent of your sales will come from 20 percent of your products. Once you’ve pinpointed which of your products are the money-makers, improve your dropshipping store and direct new customers to them. If you give people too many places to click, each click leads to another touchpoint. The customer can drop off.  You want to simplify the process and keep your sales funnels efficient instead. So keep the number of possible clicks to a minimum for visitors from your ads. The shorter the distance you can create between your ads and the checkout page, the higher your conversion rates will be.

We believe the Animated Lure ad’s destination may have given people too many choices for initial sales. But their store, in general, is admirably simple. It’s not overly complicated to navigate, and the products have clear thumbnail images that show what people can expect.

How Animated Lure’s Strategy Could Benefit From an Upsell

Business owner testing out how to improve their dropshipping store

Rather than sending people to a wide selection of product variations the way their ad currently does, we recommend linking to the specific product that appears in the ad. However, with so many variations, we think the sales funnel could try to upsell the other products

An upsell would be a great way to advertise variations that may be ideal for certain fishing conditions. For instance, a customer may buy the Gizzard Shad variation. Then, the site might upsell their Bluegill lure, claiming that it’s best when used in certain weather or when the water is murkier.

By pushing that popular item based on the 80/20 rule and upselling others, you can significantly boost sales, improve your dropshipping store performance, and maximize your average cart value. Even better, you can use a subscription to keep people paying while sending them different variations. This will be perfect if your customers like their initial purchase.

Inadequate Product Pages Could Further Hinder Sales

When looking at individual products on the Animated Lure website, we discovered a disappointing lack of listed benefits. There are some brief product descriptions. But if someone comes across the store who hasn’t seen the company’s “Shark Tank” episode, that absence of information could keep them from buying. 

Another issue we noticed was the quality of the images that the website uses. Some of the images are not appealing and don’t do their products justice. They have plain white-gray backgrounds and nothing to make the product stand out. In addition, we also wondered where any testimonials and reviews were that could convince people to make a purchase.

Ultimately, it seems to us that Animated Lure relies mainly on their “Shark Tank” publicity to sell these products. As a result, the company is offering nothing really concrete and persuasive for people who might be entirely unfamiliar with their brand and products.

In your product pages, you should improve your dropshipping store by:

  • Highlighting benefits
  • Using high-quality images
  • Showcasing reviews
  • Providing enough details about features that can collectively convince people that your products are worth buying

Looking at Animated Lure’s Social Proof at Improve Your Dropshipping Store

Online shopper leaving reviews and ratings as social proof

Another big contributor to a business’s success is good social proof. We found plenty of videos on YouTube showing Animated Lure’s products in action. But we were a bit disappointed to find that they had a mere 3,000 or so followers on Instagram. Their YouTube profile was also underwhelming. It has only around 800 subscribers and a handful of videos, the most recent of which was uploaded a year ago. 

In a niche like fishing, it should be easy to get hundreds or even thousands of likes for photos on a platform like Instagram. People are always showing what they caught and sharing their experiences with different fishing gear. So it’s important to harness the power of social media if you’re in this niche. Show people using your products to catch big fish, or show the different features of your products. If you stay active on social media, you can hook (no pun intended) a lot more people through these channels.

Animated Lure is doing certain things right. They have a simple store that’s easy to navigate and ads that show their product at work. However, we believe there is a lot of room for improvement in their sales funnel and social media strategies. Although Animated Lure might be seeing around seven figures on a weekly basis from sales, much of that success is likely due to their “Shark Tank” appearance — not their overall online presence. We hope you can learn from some of the issues we found and use these lessons to build a winning dropshipping sales funnel.

Improve Your Dropshipping Store — Consult With the Pros

If you would like to learn more about how to create the perfect dropshipping store that makes it easy to generate a full-time income online, reserve your free spot at the Ecommerce Empire Builders masterclass today! Also, visit our YouTube channel for more insights into building your ads and stores. Tagged : / / / /

The 17 Dropshipping Secrets You Need to Know

Empire builders, you already know that building a successful ecommerce business takes serious work and continued effort. While hard work is a necessity, I have found some helpful dropshipping hacks throughout my years in the industry. If you want to find success faster, you need to start implementing the seventeen dropshipping secrets that I’m about to lay out in your dropshipping business today.

These secrets will help you achieve more, convert at higher rates, and earn more sales nearly the minute you start implementing them. Read on to learn more about these seventeen dropshipping secrets and how you can start using them for your benefit today. 

The Ultimate List of Dropshipping Secrets 

Over the last few months, my team and I have been doing a ton of research. We’ve been split-testing funnels, trying to find what works and what doesn’t. We’ve been through the learning curves already and can help you cut yours in half by providing you with our findings. If you don’t start utilizing the seventeen key dropshipping secrets we discovered through our research and testing phases, you are simply leaving money on the table. The following are the top seventeen dropshipping secrets that have proven useful in all of our ecommerce endeavors at Ecommerce Empire Builders. 

1. Use Better Background Images 

To bring legitimacy to your business and funnel, you need to be using high-quality background images. A few years ago, I would have told you that your funnel’s background doesn’t matter. However, the industry is changing, and you have to adapt your strategies to thrive. Through extensive testing, we have found that high-quality images increase conversions, especially with cold traffic. Implementing high-quality images in your funnels is a simple way to build an emotional connection with your potential customers. You can even use stock photos — just make sure they are copyright-free.

2. Don’t Sell Boring or Mundane Products 

If you want to be successful in the dropshipping industry, then you can’t sell boring or mundane products. Your product has to stand out. 

You also have to create a reason for a customer to buy from you instead of somebody else.

Remember, you can sell spatulas, but your spatulas have to have an element that separates them from the competition. Whether that’s a cool handle or a cool two-in-one kitchen gadget, you need something that separates your product and makes the customer feel like they just have to have it. 

3. Implement an Order Bump 

screengrab of a tip for position effective order bumps

Order bumps are a must in the world of funnels. Every one of your funnels should have a pre-purchase upsell available to the customer. Have the offer listed right above the checkout or ‘complete order’ button. 

An order bump is simply an easy toss-in item that increases the order value. Think of persuasive offers like expedited shipping or information products when creating your order bumps. 

4. Offer Deals and Discounts 

Every high-performing funnel has a deal or discount available to the customer. You need to grab the customer’s attention and give them a reason to buy from you. Think about creating offers like “Free Plus Shipping” deals or 50% off discounts. 

5. Invest in Testing 

If you want to gain traction in the ecommerce industry, then you have to be willing to put a little skin in the game. You need to invest in testing. This means you need to allocate around $250 (or more) to ads on whatever new offer you come up with. 

You will use this budget to create split tests and run multiple ads on the same offer for at least a five-day period. This will allow you to test out different audiences and discover where the sweet spot is with the new offer.

6. Have Upsells in Your Funnel 

Having upsells in your funnel is a must, no matter what type of software you’re using. Don’t overcomplicate the upsell strategy. If you’re selling fishing lures in your front-end offer, don’t try to sell the customer a fishing rod as the upsell. Offer more fishing lures as the upsell because you already know this is an item that the customer is interested in purchasing. 

7. Automate Your Orders 

I always see too many people wasting time on fulfilling orders. A simple way to give yourself more time to create better offers and higher converting funnels is to automate your order fulfillment. Always look to outsource parts of your business to give yourself more time to work on the things that really matter. Investing in Dropton or some other way of automating your orders would be a wise investment. 

8. Integrate Paypal into Your Funnel 

You need to have PayPal or some easy and reputable payment system integrated into your funnel. Having the PayPal logo on your funnel automatically increases your credibility to the customer. Funnelish is a great resource when it comes to integrating PayPal into your funnel. 

9. Utilize Funnel Cloning Software 

Funnel cloning software is another must-have for every ecommerce business. Super Cloner, a software tool that allows for funnel cloning, helps you find proven funnel templates that work. This is an easy and efficient way to build your own funnel — just start borrowing elements from funnels that have already proven to be successful. You can find a template you like and then put in your own copy, images, and offers. 

10. Use the Facebook Ad Library to Your Advantage 

screengrab of a tip for how to use Facebook Ad Library

Before you run ads to any of your funnels, make sure to use the Facebook Ad Library to your advantage. Go to the ad library and see what kinds of ads your competition is already running. This will give you a good indication of the types of ads that are already working with your ideal customer. You can also take inspiration from these ads and create your own. 

Remember, don’t plagiarize these ads. I recommend reading the book Steal Like an Artist to understand how to properly take inspiration and create your own winning ads. 

11. Show Multiple Products in Your Ads 

Another great strategy to implement in your ads is showing multiple products in one ad. By this, I mean showing the same product being used by multiple people in the same ad. Creating ads that show friends or family all using the same product creates a reason for your customer to buy multiple units of the same product once they enter your funnel. 

12. Show Multiple Products in Your Landing Pages 

It will also be to your benefit to show multiple units of the same product on your landing pages. Keep your landing pages congruent with your ads, and give the customer a reason to purchase multiple units. 

13. Use the Word “Free”

The word “free” is very powerful in marketing. This word needs to be in your funnel. It doesn’t matter whether you create “Free Plus Shipping” offers or free information products — you just need to have something in your funnel that is FREE to the customer. This will automatically result in higher conversions within your funnels. Check out the book Words That Sell by Richard Bayan to understand all the proven marketing words that lead to higher conversions time and time again. 

14. Put Testimonials on Your Order From 

Placing customer testimonials on your order forms is a simple way to add legitimacy and quality assurance to your business and products. Highlight other people finding success with your products, and use that as a selling point for other potential customers. 

15. Provide Deep Discount Offers 

Remember that if you have a high ticket item, you need to offer free shipping or deep discount offers with that product. You need to give customers an incentive to go ahead and purchase that higher ticket item today. 

16. Enable HTTPS/SSL on Your Funnel Pages 

Dropshipper ensuring that their sales funnel is secure

The best way to make your funnel and ecommerce business be seen as more legitimate is to enable HTTPS/SSL on your funnel pages. If a customer gets a notice that your website is not secure, then there is no way they are going to buy from you. This is a simple switch that will yield big results for your business. 

17. Use a Simplified Design Within Your Funnels 

The last of our dropshipping secrets that you need to utilize is to have a simplified design within your funnel. Never overwhelm the customer. Tell the customer what they want by providing a simple offer with a simple design. Simplicity will bring high conversions to your ecommerce business. 

Consult With the Pros 

Implement any one of these seventeen dropshipping secrets in your ecommerce business today to yield some serious results. If you feel like you need more guidance on implementing these secrets into your business or if you’re looking for more help on setting up your own profitable ecommerce business, then feel free to reach out to us today.

At Ecommerce Empire Builders, we can help you build, launch, and scale your own profitable dropshipping business. To get the ball rolling, sign up for access to our exclusive free webinar today. Be sure to check our YouTube channel for even more free resources and insights into the dropshipping and ecommerce industries. Remember, your empire starts now! Tagged : / / / /

How My Ecommerce Empire Academy Student Made $90,000 With Facebook Ads

We’re always happy to see our students succeed with dropshipping. This is exactly what we saw with Evan Hennessy, an Ecommerce Empire Academy student, as he grew his business from zero to nearly six figures with the help of sales funnels. Evan began with a simple struggling Shopify store and Facebook ad campaign. But after making the switch to sales funnels, he reached that $90,000-per-month mark.

Beginning with Simpler Facebook Ads

Evan got into ecommerce back in 2016 when things were a lot simpler, including Facebook Ads. All those campaigns entailed was placing an image on the right side of people’s feeds to start making money. With some early success, Evan sold his ecommerce business a few months later. Then, he got involved in digital advertising. 

Working for a digital ad agency, Evan started with a Shopify store and relearned Facebook Ads. Around March 2018, he found himself struggling more, as he lost a considerable amount of money through Facebook ads. A year later, he began incorporating some of the practices he learned as an Ecommerce Empire Academy student. He was soon able to increase profitability and work in dropshipping full-time.

Experiencing Gradual Success with Sales Funnels

Evan’s first sales funnel wasn’t a huge success, so he began to tweak it by adding more upsells. What would really help boost his success would be the addition of a continuity piece. This strategy enabled him to reach that $90,000 point as he also tested new products. 

Evan’s revenue comes from two primary sales funnels: one offering “free plush shipping” and another with a discount offer. Both sales funnels are in the same niche and under the same brand. While he’s found it harder to make money with the “free plus shipping” offer and intends to find ways to improve upon this funnel, he has found that continuity has gone a long way in helping him grow. 

With the help of his continuity piece, Evan has been able to bring in about 240 customers who provide regular recurring revenue.

How Continuity Has Worked for Evan

screen grab of Peter Pru and Evan Hennessy talking about continuity and scaling a business

When hooking those subscribers, Evan offers a two-week trial along with a bonus product upfront. This is followed by a $34.95/month subscription, with a conversion rate of around 10 percent. (A 10-percent conversion rate isn’t terrible. But some tweaks could be made here, including upselling the full-price subscription first. This is crucial because some people want to jump right into that subscription from the start. If they say no to that, then we’d recommend a downsell followed by a free trial offer. We rarely use downsells and try to avoid them as much as possible. But in cases like this, they may be appropriate.)

The key element here is the continuity piece, which will help Evan in the long term. He might lose some of those 240 subscribers at some point. But some will still stay with the subscription and provide that regular revenue stream. As he goes on to attract thousands of subscribers, that revenue will only increase as more people commit to the subscription.

How His Deep Discount vs. Free + Shipping Offers Work

Customer excited about shipping options and packages

In his “free plus shipping” offer, Evan typically charges around $10 for one unit with quantity breaks. This translates from around $10 per customer acquisition to $12-15 with upsells, with the understanding that the continuity will help compensate for it. As he scales, his cost-per-acquisition increases. This is what we’d expect to see as dropshipping businesses expand to broader markets or exhaust the ones they’ve been targeting.

At the same time, Evan offers a discount for a product that typically goes for around $40 to $50. He’s also been testing a product that costs around $130. He started his campaigns with cold traffic as he also tests retargeting, but he had yet to scale when we’d talked with him. 

In an effort to grow his business even further, Evan has outsourced some work to an email marketing team and a virtual assistant who works for him 20 hours per week. His email marketing consultancy agency has managed to help bring in almost $5,000. His email list consisted of around 30,000 people when we spoke. He hoped to continue to increase his email marketing campaigns’ profitability.

When it comes to email campaigns, we recommend that every Ecommerce Empire Academy student try to build those email lists through affiliate campaigns. Alternatively, you can rent out the email list or work with joint venture (JV) brokers in the same niche. You can easily build your email lists in these ways without the need to spend a lot more money. Just send more weekly emails in a cross-promotion. However, it’s best to avoid working with a JV broker unless you have an email list of at least 20,000. JV brokers want a massive list that makes it worthwhile for them to promote their products.

Which Funnel Attracts Better Continuity?

What was kind of surprising to us was that Evan saw a 10-percent rate consistently across his sales funnels when it came to continuity. Regardless of what he was doing with his sales funnels, 10 percent was the static number he seemed to be seeing.

Historically, we’ve seen a higher rate with “free plus shipping” offers, with the caveat of a higher turn rate. This is because while you draw in more people with these offers, more people are likely to turn away as a result. These offers are especially popular because they evoke some excitement. Many people who come across that “free plus shipping” deal make more impulse purchases.

One final piece of advice that Evan shared based on his success was that it’s best to look at your business in the long term and focus on building your brand gradually, which is precisely what we encourage. It’s best to avoid trying to make quick, easy wins. Instead, try to build on opportunities that will garner long-lasting success.

Learn From the Pros as an Ecommerce Empire Academy Student

Ecommerce Empire Academy student working on his dropshipping business

We’re excited to see Evan make it past the $100,000 threshold. We’re also happy to see others like him experience that kind of success through the use of sales funnels. Do you want to learn more about how to use sales funnels to build a successful 6- or even 7-figure dropshipping business? Then reserve your seat at our free Ecommerce Empire Builders master class today or become an Ecommerce Empire Academy student. Tagged : / / / / /

How My Ecommerce Empire Builders Student Earned $100,000 and Sold His Business

Do you want to see just how successful you can be as a dropshipper with well-utilized sales funnels? Here is another success story from an Ecommerce Empire Builders student to help showcase the effectiveness of these strategies. Meet Mike Filev, who began with a simple Shopify store and a viral ad video. He learned how to use sales funnels to his advantage, leading him to make $100,000 on a single product before successfully selling his dropshipping business.

Beginning With a Single Product and a Simple Store

Mike didn’t have a long, storied background in ecommerce. In fact, he planned on going into electrical engineering after college. However, his plans would soon change as he sought to earn more money and find his true passion. He didn’t care much for engineering, and the cost of living in downtown Toronto with his family was placing even more pressure on him to earn a better living.

Looking for a new outlet to channel his creativity, Mike eventually turned to ecommerce and quickly found some success selling one product early on: a seat belt for dogs. At the time, Mike merely had a Shopify store to help him sell his products, but he was able to bring a lot of attention to this one via an effective video ad. That ad was effective because it showed (using fake dogs, of course) what would happen if a pet owner neglected to use the seat belt in the event of an accident, and it helped increase sales. It also made Mike realize the potential that he could achieve with a more profitable strategy.

The Problem With Relying on Shopify Alone

screen grab of conversation about Shopify between Peter Pru and Mike Filev

Despite the popularity of his dog seat belt product and his ad, Mike found that he simply wasn’t able to make any one-click upsells on his product. It didn’t help that Shopify was compatible with a solitary app that took forever to install and setup. Upon discovering the power of sales funnels through a brief course in Shopify, Mike began to research their effectiveness. This led him to me, Peter Pru, and becoming an Ecommerce Empire Builders student.

Learning About the Value of Upsells and Sales Funnels as an Ecommerce Empire Builders Student

As he began to learn more about providing value to customers and inspiring more upsells, he decided to offer a harness that offered more neck support for dogs using his seat belts. Focusing on these harnesses, he started seeing an increase in sales and went from around zero percent net profit to around 20-30 percent consistently. Around that time, Mike saw his first thousand-dollar day of net profits. 

Mike saw the possibilities of using sales funnels and upsells to help boost sales significantly. But he was still somewhat disappointed with the overall performance of that single store. By the time he had made around $20,000 with the store, the cost of living was catching up to him, and he needed to find a more lucrative opportunity. Luckily, his first store had become a considerable success, and he had a valuable Instagram page for it that performed impressively — both of which could serve as assets for others.

From Selling Products to Selling Dropshipping Businesses

Mike wasn’t happy enough with how his first store was performing to keep it going. But he found that others were interested in acquiring these types of businesses. Understanding that the Shopify store he had been running had potential for someone else, he was able to sell it for $10,000, which got the ball rolling for him. From there, he sold his dog seat belt business as he looked for his next dropshipping opportunity.

What the Process Entailed

In the event someone came along who was interested in purchasing Mike’s dog seat belt store and sales funnels, Mike had recognized several assets going for him that would appeal to the investor.

First, Mike had set up an efficient landing page modeled after our own. It consisted of a header, image, and button that offered a free seat belt. This landing page had managed to achieve an opt-in rate of around 50-70 percent, depending on the traffic source. This translated to a total of around 47,000 email leads. All of the leads fell into the target market for that product. Also, some of the top brands out there like Petco are willing to buy a single lead for $1.60 or more. So Mike realized he was sitting on an ecommerce goldmine.

To help sell his business, Mike approached the effort in much the same way he would with selling products. He offered a bundle in an appealing package that would entice the buyer. He listed all the assets that his business had accumulated, including:

  • $100,000 in sales within a period of five or six months
  • 20 percent net profits plus expenses
  • A massive email list worth approximately $70,000 on its own

With this offer, Mike put the store up for sale on Flippa for $50,000. The sales price was based on a calculation of twice the net profits his business earned annually. Based on what he learned, he could have actually sold this business for much more. But that’s just part of the learning process when it comes to ecommerce experience.

Focusing on a Different Niche for Better Opportunities

business owner replicating her store to scale profits

While Mike experienced some success with the dog seat belt store, he recognized that this opportunity was too limited. He was selling to a highly specific niche of people, and the product would attract mostly impulse buys. After selling this business, he turned to a much more promising opportunity of selling weight loss products.

The demographic he was selling to at this point included women who were interested in losing weight. This was a much wider demographic than his previous niche. Another advantage of selling to this audience was the number of offers that you can utilize when selling weight loss products, especially through affiliate marketing.

To attract more leads, Mike also created a landing page in his sales funnels that asked for opt-ins via Facebook Messenger. He found that people were much more likely to choose this method over email because they didn’t worry about spam. 

(As a side note here, we definitely recommend that you try multiple lead generation outlets; test with channels like Facebook Messenger, and request an email in your offer. Then see which campaign performs better while doubling your assets in the process. Also, an email list is uniquely yours. Channels like Facebook Messenger still fall under the property of other companies, which can complicate the process of selling.)

Mike hasn’t decided to sell this store quite yet. But he is keeping the idea in mind as the business continues to grow. At the same time, Mike is experiencing more success and happiness as a result of his efforts. He’s living it up in Miami as he keeps his eye out for the next big opportunity.

Become an Ecommerce Empire Builders Student to Streamline Your Own Success

man selling his ecommerce business

We love success stories like Mike’s that remind us precisely of why we’re doing what we’re doing. Do you want to experience the kind of success that Mike has? Then sign up for the free Ecommerce Empire Builders Master Class. You can become an Ecommerce Empire Builders student and learn all about how to begin your dropshipping business. You can also pick up key tips and insights on my YouTube channel. Tagged : / / / /

What One Billion-Dollar Business Did to Maximize LTV

If you’re looking for a winning strategy to implement in your dropshipping business, there are certain lessons to be learned from some of the giants in the ecommerce industry. Here we’re going to look at what a billion-dollar business did to excel and how you can some of these strategies to maximize LTV. Specifically, the business we’ll be examining is GoDaddy.

Some might question how a prominent brand in an unrelated business can help their dropshipping store excel. But the fact is that the principles behind these businesses are essentially the same as any company that sells online, whether a small single-product Shopify store or a corporate giant.

What GoDaddy Does Right

One of the reasons GoDaddy is a favorite example of an online business is the fact that they hit on every single note perfectly. Their process is exceptional when covering everything that they need to maximize LTV, including:

  • Reoccurring purchases
  • Order bumps
  • Upsells

There isn’t a clearly identifiable weakness in GoDaddy’s strategy, and automatically upselling customers is how they stay profitable.

The biggest takeaway that we want for you to gain from GoDaddy is that they are willing to lose money to sell domains. The fact is that GoDaddy actually loses money with every domain sale they make. However, they make all of that money back in many ways, which we’ll cover here.

GoDaddy’s Winning Approach to Product Pages

Let’s use an example to illustrate what all GoDaddy does well. Searching for a domain like “empirestartsnow.com,” which is available, leads us to a product page telling us that this domain will cost us $11.99 for the first year. 

From here, we can see their understanding of the sales process at work.

The Inclusion of a Smart Order Bump

Screen grab of GoDaddy upsell analysis

Below the price on the page, GoDaddy includes an order bump. It offers a discount on the domain “empirestartsnow.us” for one dollar. GoDaddy knows that not a lot of people will be likely to follow through on that order bump. But they still have a chance of making a profit on at least one in every ten orders. The order bump further clarifies that the customer gets the domain for $1 for the first year if they sign on for a two-year subscription, and for the second year, they’ll pay $20.

This illustrates how GoDaddy has probably learned that the average customer stays with them for at least two years after buying a domain. If they can encourage the customer to stay with them, GoDaddy will profit in the long run and maximize the lifetime value (LTV) of that customer.

Pushing Additional Offers

In addition to the subtle order bump, GoDaddy’s page features another offer just below it. This second point encourages customers to purchase three additional domains (e.g., .NET, .ORG) for $19.99, saving them 69%. 

Again, this may look like they’re basically throwing money away, and a majority of customers may not make these purchases. But GoDaddy is more likely to profit over a longer stretch than they would without these offers.

Giving Customers Even More Choices to Look Through

Below those offers, GoDaddy further encourages more purchases, and this is a great strategy for increasing the value of every sale. They do so by listing a bunch of other domains for sale. Some are as cheap as a few dollars, and others are as expensive as $21,000. These may not attract many additional sales, but all of these offers maximize LTV.

A Shopping Cart That Adds More Offers

Once we hit that “add to cart” button for “empirestartsnow.com,” we’re taken to a cart page that’s another example of top-notch design.

Utilizing Post-Purchase Upsells

Screen grab of GoDaddy automatic upsell analysis with pre-checked options

The page is rich with post-purchase upsells that perfectly complement those pre-purchase upsells on the product page. Those post-purchase upsells reward customers after they make a purchase, which further inspires them to buy the product.

These post-purchase upsells include privacy protection for $9.99 and a package that includes both privacy and security for $14.99. The first offer is automatically checked to highlight it. Below these offers, they have “Start your website for FREE” automatically checked, too. It offers the chance for customers to host their website for free right from GoDaddy. This latter offer can help keep customers loyal to GoDaddy and subsequently increase their chances of making repeat purchases.

Customers can also choose to create a support email that’s connected to the domain.

A Highly Profitable Checkout Page

After selecting the various offers on that shopping cart page, customers are then taken to the shopping cart page to finalize their purchase.

Here, customers may be thrown off by the final price at the top. Instead of the $11.99 price advertised for “empirestartsnow.com,” the price now says $21.99. But the page is quick to clarify that this is the price for two years. Customers must choose “1 year” from the dropdown below if they want that initial price. 

They also offer a quantity break with a small discount if customers choose to buy the domain for three years or longer. This illustrates how important it is to offer quantity break discounts at the point of sale (POS) to maximize LTV and profits. This is a practice we always encourage if you want to boost sales significantly. 

At the same time, the rest of the page is very simple and neat. It encourages the customer to follow through on their purchase without simply abandoning the cart. 

We’d like to take note of how GoDaddy makes use of that auto-select of the two-year option. This is something we practice at Ecommerce Empire Builders. We also encourage the use of best-seller highlights and quantity break discounts on our order forms. Implementing this strategy here alone can make a customer worth more than a day’s worth of ad spend.

Below these quantity break discounts, GoDaddy also includes an order bump to easily add domain privacy for $5.99 per year with one click. 

Use GoDaddy’s Strategies to Your Advantage to Maximize LTV

happy customer purchasing add-ons and upsells

As you can see, GoDaddy certainly seems to know what it’s doing to attract customers and maximize profits. While GoDaddy might lose money with domain sales, all of these pre- and post-purchase upsells, along with other order bumps and quantity break discounts, go a long way in helping GoDaddy remain on top of its game. Applying these strategies to your dropshipping business can be invaluable in helping you grow and maximize LTV.

To find out more about how to build a leading dropshipping business, check out our free Ecommerce Empire Builders Master Class. This webinar will show you how to create a dropshipping business with ease and maximize profits like GoDaddy and other billion-dollar companies. Tagged : / / / /

How to Assess and Build Great Subscription Box Offers

Empire builders, are you looking for ways to increase your ecommerce business revenue?  Adding subscription boxes to your dropshipping business can earn you extra revenue. Read on to learn more about how you can build great subscription box offers that you can easily add to your dropshipping business.

How to Grow Your Dropshipping Business With Subscription Boxes

I have realized that many people who are starting out on ecommerce and dropshipping miss out on the opportunity to make extra money. However, having some kind of monthly program like a subscription box can help you get some free money. 

Here is my advice on how to find and add these subscription boxes:

1. See How Other Businesses Build Great Subscription Box Offers

screen grab of the process to start researching niche subscription offers

The first step is to do some research to see what kind of subscriptions are out there. Make sure you do not go too niche-specific — you want to get a lot of search results. 

Research will give you great ideas and help you know what the actual offer is. The information you gather will come in handy when deciding what you need to offer to charge the kind of prices that others charge. In my view, you should not provide customers with too many options in terms of subscription. In fact, I would recommend a maximum of two options.

2. Focus on Value

Generally, people find value in the things that they enjoy doing. To get people to sign up for your subscription program, you have to make sure that you provide value. Tell your customers exactly what they will be getting for their money. Because people will always want more value in a box, you want to make sure that the value you offer outweighs what they spend. 

We all have so many subscriptions to a variety of things and will remain on the subscription plan as long as we keep getting value. For instance, I am subscribed to a toothbrush company that sends me a new toothbrush with a battery every two to three months for about five to ten dollars. This saves me a lot of time and the trouble of having to think about it. When it comes to value, be sure to offer at least the average of what others in your niche are delivering to customers.

3. Focus on Simplicity and Functionality

As you work on adding subscription boxes, keep your offer easy and simple. A simple subscription plan will be less confusing to your customers and save you a lot of headaches down the line. Remember: confused customers never buy. 

In the end, a clear message will also help you attract higher numbers. When looking at the different subscriptions that are available, you should compare them to find out who is giving the most value. When you’re working with an online retail service like AliExpress, make sure you find a supplier who will pack and ship it for you.

Pro Tip: Always Use High-Quality Images and Video

screen grab of an example subscription box page with good images

I always like it when businesses make proper use of images in their subscriptions. Images will play a big part in helping you show your customers what they will get when they sign up for your subscription plan. Try to use high-quality images to show them what is inside the box to raise your perceived value and come across as a valid business.

Another way to make the most of subscription boxes is to show people the experience of how it feels like to buy from you and open the box. You can do this by using images creatively and including an unboxing video that reviews the different products people will get. To create a high perceived value, I would suggest you get an influencer to create the videos for you rather than doing it yourself. Simply send the box to your influencer and describe the kind of unboxing video you would like for your advertisement.

When it comes to the subscription box game, you do not want to simply own a subscription box. These tips are actually designed for those who want to upsell subscriptions for growth. As an ecommerce empire builder, you should avoid selling subscriptions on the front end OR competing on price. Instead, focus on providing the value that your customers desire.

What to Know If You Are New to Ecommerce Empire Builders

man starting to research and build great subscription box offers

If you are new to Ecommerce Empire Builders, I would like to repeat that selling your subscription on the front end can make it difficult for you to be profitable. Because you will be competing with many people, you may want to focus on getting that first “yes.” My advice would be to build out a funnel and have a great front-end product to get your first purchase before upselling the subscription. This way, you will make money from the first sale and also get monthly subscribers in a cost-effective way.

In summary, the first thing you need to understand is that people are looking for more value in a box. My advice to you would be to take time and look at different subscription boxes in your specific niche to get an idea of the value they are offering in the boxes. This information will help you determine how much value you need to build great subscription box offers. 

A useful rule of thumb is to double the value or make it between $10 and $15 more than what they are paying to ensure that subscription boxes work for your business. Consider having your supplier send the packed products in a box so you can see the finished product for yourself. 

Consult With the Pros

When you are ready to add extra revenue to your business through subscription boxes, you should consider joining the Ecommerce Empire Academy. Our platform is designed to equip you with the tools and skills you need to become a successful ecommerce entrepreneur. Sign up to access our exclusive free webinar. You can also check out our YouTube channel to learn more about subscription boxes in the dropshipping industry. Tagged : / / / /

How to Start a Subscription Box Business and Triple Your Profits in 2020

One of the easiest ways to increase your profits via ecommerce is to create recurring revenue. You can do that through the sales of subscription boxes. Many people who get into dropshipping miss out on the chance to maximize income because they don’t take advantage of opportunities to generate recurring revenue. Get started by reading (and watching) the Ecommerce Empire Builders guide on how to start a subscription box business.

How to Find Subscription Boxes That Help Dramatically Boost Profits

Subscription plans can essentially help you earn free money by encouraging people to make repeat purchases on a regular basis. The key is knowing where to look for those lucrative subscription boxes that are likely to be worth the investment.

Start With a General Search

One of the best places to start your search for the ideal subscription box is Google. Simply conduct a Google search around “subscription boxes” and your specific niche. For instance, you might search “hiking subscription boxes,” which may yield many results to review. If you don’t see a lot of results in your search, this could indicate that you’re narrowing down your search too much. It’s best to keep things relevant but relatively broad.

Remember: just like with products, it’s important to choose competitive subscription box niches. Don’t complicate the process of how to start a subscription box business by trying to break new ground.

Look Through Affiliate Posts

screen grab of looking through affiliate marketing lists for high-quality example boxes as part of how to start a subscription box business

You may come across a result that features an affiliate blog listing the “top subscription boxes” in your specific niche. You can look through the list for ideas for which subscription boxes are the best models of what to sell to your customers. While you might believe that people aren’t likely to spend upwards of hundreds of dollars on a monthly basis for a subscription box, you’d be mistaken. In fact, particularly in hobby niches, people love to spend money on what they love doing, be it hiking or another activity that they’ll always enjoy. This holds true regardless of the state of the economy. 

Examine the Actual Boxes

Take a look at an individual subscription box and determine what they offer in each box, along with the pricing structure. A good subscription box will offer around two to three plans at most. This keeps things simple, and that’s more likely to encourage prospective customers to make a commitment. 

One big selling point is the retail value included in the subscription box. This should be clearly displayed on the merchant’s page. The value should always outweigh what the customer pays, which truly shows that the box is worth the investment. However, this is very different from competing on price. Watch this breakdown of the secret to subscription box profitability.

Why It’s Often Best to Sell Physical Products

Many people prefer to subscribe to subscription boxes that make it easier to get what they want or need without putting much thought into it. For instance, you might be subscribed to a shaving kit subscription box, which keeps you stocked with high-quality shaving supplies. Now, you don’t have to think about going to the store or manually choosing your shaving products. At the same time, the retail value in each box outweighs what you actually end up paying per month.

This is why it’s often easiest to sell physical products over services through subscription plans. The key to how to start a subscription box business and be successful is to always think about what the customer needs.

Regardless of which plan you consider, look at multiple options and determine which subscription offers the best value and can attract the most customers. 

Take a Look at Examples to Better Gauge the Value

When looking at the various subscription boxes out there, examine your potential competitors in depth. Do what you can to find examples of boxes that show precisely how much each box contains and display what customers can expect. Many subscription boxes websites allow you to view boxes that reveal what was included in previous shipments.

 If you can’t determine if the value is higher than the price of the subscription box, or if a poor-quality website may reflect the quality of the products, move on. It’s best to look elsewhere for a more trustworthy subscription model.

Also, Take a Look at Your Suppliers

Once you’ve found the right subscription box for inspiration, keep in mind that you won’t necessarily need to be the one fulfilling the orders for each subscription. Before you get too deep in your journey of how to start a subscription box business, you need the right suppliers. Your supplier should have fulfillment centers that help simplify this process. You can also work with manufacturers who will customize designs, put each subscription box together, and ship them to your customers.

Create a Landing Page That Fully Illustrates the Value of the Subscription Box

influencer creating an unboxing video

When you’ve created the right box, it’s time to begin selling it. One of the first steps to take is to develop a strong landing page. Make sure it highlights the features and value of the box. In most cases, you should try to find a box with a retail value of at least $50 per box.

One small tip to help you sell your subscription box to customers is to use an unboxing video that clearly shows what’s included in each box. You don’t have to make one yourself. You can work with an influencer. They’ll produce an unboxing video for you. Then you can use it on a landing page that customers will be able to see. A brief unboxing video can go a long way in helping sell those boxes.

Avoid Selling the Subscription on the Front End

screen grab of Peter Pru discussing how to sell specific products and use subscription boxes as an upsell

Before you try to sell your subscription, it’s important to entice customers with a specific product. Don’t try to sell a subscription right from the start of the sales funnel. Instead, create a funnel that begins with selling a single product that will encourage people to buy more from you. 

From there, they may be more likely to subscribe to your box. Upsell with a simple offer such as, “Do you like our product? Give our subscription box a try.” If the customer liked that first product, they’ll probably consider your subscription plan. Subsequently, you’ll save more money as you essentially earn those customers for free.

By looking at the many subscription boxes out there in your niche and pinpointing the value they offer vs. the price they charge, you can craft the right subscription box for your ecommerce business. Remember, you need to show the value of what your customers are getting. Then, you’ll be a lot more likely to increase sales and maximize profitability with recurring revenue.

Consult With the Pros

Would you like to learn more about how to grow your ecommerce business and find out how to make money easily? Reserve your seat at the Ecommerce Empire Builders free sales funnel masterclass. You’ll find out how you can generate a full-time income online without any need for a full business website, touching the products you sell, or expensive ads. Tagged : / / / /