On today’s show, we’re talking all about setting launch metrics! If you have a big launch coming up, you’ll want to know how to figure out how much you can make (and what it’s going to cost you). Successful launches start with understanding your data and then operating in harmony with it so that you really maximize your results!
By starting with the data, this takes away the emotion and gives you solid numbers that will be needed to create the desired result. The big thing about launches is that everyone wants a big one, but most people don’t want to plan for it!
The important numbers to think about for your next launch are:
1. Conversion Rate
If you run a webinar to 100 people, what percentage of them actually become buyers? Knowing your conversion rate will help you to determine how many people you need in a promotion to hit your goal for revenue (2-3% is a good, conservative estimate to use if you aren’t sure).
2. Earnings Per Lead
This figure is calculated by dividing your total revenue by the number of people who signed up for the launch, and it tells you how much each lead is worth in your promotion. Before you ever worry about what you’re paying per lead, figure out what it’s worth.
3. Cost Per Lead
This number will tell you how much you’re spending to get a lead. We spend anywhere from $2 to $4 in a very competitive online space, and $2.50 is a pretty standard figure to use if you’re launching a promotion for the first time.
Set your goals
You can start by setting a revenue goal (I like using a good-better-best system that a lot of people teach). Once you have these scenarios for revenue, determine how many leads it will take to make each happen (using the metrics above).
Once you have your lead goal, estimate how many people you can organically bring into the promotion. You can then work backward to determine how many of the leads will have to come from advertising. You’ll also be able to calculate how much you need to spend on ads to hit your revenue goal!
Once you have your estimated profit, you’re going to have to factor in additional expenses such as costs for contractors needed on the launch, special software and team expenses (such as for manning a live chat).
Now that you have your adjusted profit, what does it actually feel like to look at this number? Is it worth your time to do the launch, and will it have the desired impact? I refer to this as the qualitative analysis.
If the spend seems too high, it’s ok. You can lower your goals and duplicate the process. Start where you are, and realize that you can always scale up. I hope by listening to this episode, you start to realize these key performance indicators aren’t just numbers that we pick arbitrarily. They are very specifically calculated to help us create the best results possible in our launches!