Today we’re diving deep into the numbers of our last launch, which did just over $130,000 in sales. We’re going to talk ad spend, profit, expenses and so much more, so if you’re looking for information on what a launch really involves, this episode is for you!
For this launch, we did a 24-hour flash sale about 30 days before the actual launch to test our new sales page and give people a sneak peak into what we were offering.
For the complete launch, we used 5-day challenges followed by three live webinars, with a product price of $997 (or 6 payments of $197).
We sold 115 units, including 12 during pre-sale, as well as a $97 upsell that 10 people took us up on (offered after the webinars had ended).
We generated about $30,500 from people paying in full, coming from 29 sales, and our total projected sales were $131,612, assuming everyone pays in full. Our cash-in-hand sales totaled about $43,000 and our total expense (ad costs, affiliates, etc.) was approximately $31,500.
Our immediate profit was around $12,000, with the remaining 80,000 being realized over 5 months as customers make their payments. We also are taking into account things like refund rate (typically 4-7%) and instances of credit card fraud.
The 3 key steps to this launch were:
1) Set a goal and crunch numbers first
We determined how much we wanted to make, and based our numbers partly on past launches. We knew that we wanted to make each lead worth $35, or a 3.5% conversion rate, so we’d need 7,200 people in the promotion.
2) Choose the launch mechanism to use
For us, based on what our audience had said, it was a hybrid experience of the challenge and webinars, which we already knew converted well.
3) Sketch our what the launch would look like on paper before writing emails or doing anything
I used a launch notebook/journal to keep everything launch-related in one place, and the team used a system of Google Docs effectively, including one central Google Doc that linked everything together.
My team, consisting of our VA and Facebook ads person, was crucial in executing the launch. Copywriters, an automation specialist and more were used to assist as well.
We built a calculator specifically for this launch that tracked everything we did, and we let a handful of past students promote the product, which worked very well.
Our total profit was $91,306.09, including the pre-sales.
“Earnings Per Lead” (EPL) told us how much each person who signed up added to the bottom line. Our EPL was $32.25 (with an original goal of $35.00 or less) and our Facebook ad cost was $6.89 per lead.
We spent $23,424.91 on ads, which resulted in 3,398 leads coming from Facebook. It’s important to note that we were competing against political ads, due to the timing of our launch, which meant the cost was driving up by groups with deep pockets!
Some things that worked really well with this launch were:
1) Having webinars on the backend of challenge
This led to amazing conversion rates because they are two very complimentary launch mechanisms, and both were already tested with our audience.
2) Bringing on a copywriter
People were so engaged during this launch, starting with the appealing subject lines that were written for the emails. When launching, think about the high-impact parts of your launch (for us it was emails and the sales page)!
3) Upselling a live class
Selling at $97, as a “fast acting bonus” generated additional revenue with over 20% of people taking advantage of the offer.
With the right plan and people in place, launching doesn’t have to feel like a total meltdown! Next week we’ll look at the launch missteps, how and why they happened and what we did to fix them. You won’t want to miss this!