On native advertising: this keynote will be unlike any other. Come hear the crazy story of how a mega million dollar affiliate niche was started! Then stay for the details of how it was all done. Trey reveals everything that he did, to go from $0 to multi-millions of dollars in his first year selling. The story starts from selling t-shirts online, to sourcing products and scaling his eCommerce company into a multi-million dollar per year company selling nothing but physical products through simple funnels.
Speech by Trey Lewellen | Founder, Lumitact
Trey Lewellen Speech Transcript
Yeah, so I was an insurance agent. Started there, that was my career.
I was kind of between this tug of war of, is this something that I really want to keep going? Because this isn’t my passion and so I made that leap, I quit.
And I’m now saying I’m forever grateful.
I started online marketing. I reached out to my brother. And the one thing that motivated me the most was him. I went to him and I said, “Hey, let’s start a business together”
And so he said, “Okay” And that’s kind of where it all started.
We got onto a website that sold t-shirts. And we started making them t-shirts. We started our first ones in January. And we brought in, you know maybe like, 400 bucks, 500 bucks but yet that was a small win like we did something.
We were growing a fan page. We were growing an audience. March, April, April came, May came, and we had her best month ever. In May, we hit over $100,000 in shirt sales.
The system that we were selling the shirts on, they didn’t give us buyer information. So we were always unemployed every time we ended a shirt campaign.
And I’m just there like in despair. I’m just, what do I do? You know, like I quit my job, I’m not getting buyer information, were unemployed, every time we end a t-shirt campaign, this sucks.
I’m looking at my brother. I’m like, you know, not only do I have to feed a family for me but I got to help him feed his family. And it was a lot of pressure.
I called a good old friend, Kim Doyle. She’s like, “Well have you ever heard of this guy named Russell Brunson?”
Starting with Clickfunnels
And I was like, no I’ve never heard of Russell Brunson. What does he do?
She’s like, “Well, he just built this really cool thing called Clickfunnels.”
So I logged in, I grab my free trial at Clickfunnels. And within 2 days, I built the same type of feel website that we were used to having. Put a t-shirt on it, and we did over $1,000 in profit in like 2 days.
And that’s kind of where another pivotal point came for me because I saw how delegation really worked in a company.
We started to expand. I went and hired some more people to take phone calls. I could see the direction the company was taking.
And so we found this space, it was 800 square foot. I remember the first day we unlocked the doors, and me, Bryclen and Dillon are there.
And Dillon leans over and he’s like, “What are we gonna do with all this space?”
We’ve gone from an 800 or actually like a 400 loft, to about 8,000. So 10 times space. And in just under 2 and a half years, just by using Facebook and Clickfunnels and some computers and some knowledge.
But here’s the thing, there’s a lot of people that make it work, you know. If I had to take all the credit, I can’t. It’s one team, one goal, one mission.
And when your team actually buys in, that’s what makes it all worth it.
Dillon Hausner, VP of Sales and Marketing
Watching the company grow from the ground up is like no other experience that most employees ever have.
The knowledge that you gain from that is unbelievable.
Bob Albertson, Quality Assurance Manager
So the one goal, our goal is to succeed and scale and build this business. And when you find the right people, you can do that.
Thomas William, Salesperson
I am very fortunate and thankful that I found this company. And we work hard and have fun like I said. So I love it here.
Trey Lewellen, CEO
Hello. Pretty good video.
So what that is, is that’s a company. That’s a brand.
And it took a long time, 2 and a half years to build it. But it took a lot of sacrifices.
There were days that I was like, “We are crushing it! We are amazing! We’re having so much fun!”
And the adrenaline is going, you’re having a ton of fun. And the other side is the stress.
There are nights that I didn’t even want to go to work. There are days that I wanted to.
And you just have that, you have those ups and downs with a fast-paced growing company that makes it what it is.
There were days that I had sacrificed. There would be sacrifices of not getting time to spend with my son, time with the love of my life, you never know.
And that’s what we put in, that’s what built us. So today, I want to show you what that looks like.
So real quick, just a raise of hands. I know you guys are really tired.
The G700 Offer
Raise of hands who knows what the G700 offer is? Got some hands.
Who made some money from the G700 offer? Who pushed the G700 offer?
So here’s the crazy thing, it was coined, the G700 Offer was coined the best, the biggest online campaign since 2002.
I don’t know what happened in 2002 but I just know we were bigger than. And I think that was pretty cool.
So real quick, I want to kind of walk you down that path of like, well, how does a new vertical start? Why me? How can you do the same?
And you’re gonna be probably a little surprised at how simple it was.
So what happened was I had a closet, as you saw, I was living in a house. There was my brother Bryclen. And then I also had a colleague as well.
And so, we’re all in this little loft, we’re hanging out. We’re having a lot of fun and we had a Facebook page.
I was like, you know what, these guys are survivalists and they’re having a lot of fun.
One guy, I think, purchased a flashlight one time. And I was like, “Oh, that’d be kind of cool to sell these guys.”
So I bought them. And I tried to sell it. It didn’t sell. Actually, it didn’t do anything. Just sat there.
And over the next 6 months, those hundred flashlights sat in my closet. It was the same closet that had remote control airplanes that I fly on a timely basis.
And I would go in there during the summer to get the airplanes and helicopters and I trip over. They were on a shelf and they’re just like right there.
I was like, “Oh, I hate these things. Like, I hated these flashlights.”
So much so that I was like, I need to get rid of them. I need to move them, sell them or something.
I was like, that’s what I’m gonna do. I’m just gonna sell them real quick. Sell them for cheap and get them out of here.
What I did, was I created probably the most beautiful-looking sales page to date that you guys will ever see. It took me probably 3 days to create.
It’s absolutely amazing. And it looked like this.
Pretty, huh. It’s beautiful. Looks like, I used green colour, which is probably the same colour as like baby poo.
And then, I grabbed the image of the flashlight from good old AliExpress.
Typed in some crazy things. What others were saying, it should say, what Trey thinks others should say. And that’s what I created.
So I did it.
So we create this 1895 flashlight and I started pushing Facebook ads to it. And it started to sell.
And within about 3 days, we sold all of them. Sold all 100 of them.
I was like, “Huh, alright!”
And I looked at Bryson, who is my brother. I was like, “Bryclen, we just sold 100. Should we buy some more?”
He’s like, “No, those things have been sitting in the closet for 6 months.” I was like, “I know but they sold. Maybe we should sell some more.” He’s like, “If you want we can, I guess.”
I was like, well maybe we’re onto something.
So we bought 200 more. And we started selling on Facebook.
We were doing Facebook Ads. Facebook Ads, we were pushing like $100 a day. We thought we were doing something, $100 a day, $200 a day.
I know that’s nothing to you guys but it was something to me. And we’re pushing a 100 bucks, and I was like, “Okay, we’re running this Facebook traffic, what else is there out there?”
And I was attending a traffic and conversion summit one year and there was a guy that I ran into at a bar. And his name was Brian Litman.
And I was telling about how we’re running this really cool flashlight thing on Facebook. He’s like, “Well I think that would work with email.”
I was like, “Well, what’s that look like? What’s email?”
He’s like, “What you do is, you pay me and I’ll send it out to 100,000 people or something. And then, you make some sales.”
I was like, okay, let’s talk about it.
So, I called him a week later. I was like, “Hey, I think we want to do that flashlight thing on the email.”
I was like, “Okay, what’s that gonna cost?” He goes, “Well, to start, $10,000.”
Holy smokes. Ten grand, $10,000 to send an email?
“I know it’s gotta be way cheaper than that.”
“Yeah, but we make the list, we have all these things. We send it to a lot of people.”
I didn’t have ten grand. I didn’t have $10,000.
And so, I was like, okay, do I keep spending $100 a day on Facebook? Or do I do this email thing?
So I slept on it like 3 nights. I talked to Bryclen. I was like, “Bryclen, this thing is like $10,000.”
And so I call Brian up. I’m like, “Brian, ten grand? Really? 10 grand?” He said, “Yeah.”
I go, “Brian, what if it doesn’t work?” And he goes, “Yeah, but what if it does?”
And I was like, “Oh, that’s good, that’s good.”
Brian got me.
Alright, I go, “Bryclen, we’re doing it! We are doing this!”
Slides the credit card, 10k out.
And I was like, “What happens?” He’s like, “We just send an email.”
I was like, “If we don’t make the sales, do we get our money back?”
Okay, this sounds good. Won’t tell the girlfriend. We will not tell the wife.
We will not tell anybody that we did this. Not even our parents.
Here we go.
The email goes out. And we made our money back.
I was like, Bryclen, we made, I don’t know what it was, but maybe like 12 grand or 13 grand we made.
So we spent 10k. We made 3 grand, that’s pretty cool. So I called Brian up, I was like, “That worked.”
He’s like, “Yeah it worked, the test was good.” I was like, “What do you mean a test?”
And he goes, “Well, that was just like a small list.” I was like, “Well what’s a big list?”
He goes, “$80,000.“ I was like, “80,000 bucks”. I was like, jokester!
So really, “how much is it?” He goes, “$80,000.”
And I was like, “Okay, first off, I didn’t have the 10k. So how do you think I’m gonna have 80,000? Are you playing with me right now? Like is this a joke? Is this some like the little scam you’re running? Little pyramid scheme?”
No, he wanted 80 grand.
Okay, and I was like, “What if it doesn’t work, Brian? Like 80 grand?”
I call it Maserati because I drive a Maserati and that’s what a Maserati costs.
We’ve always called it a Maserati bomb because you drop a bomb on the Maserati because that’s how much it costs.
So anyways I was like, “Brian, what if, I spend 80 grand with you? What if it doesn’t work?”
Do you know what he said? He goes, “Ah! What if it does?” I was like, “Ugh, here he goes again!”
Alright, Bryclen, 80k. How do we make that happen?
What If It Works
He’s like, the only way I know how to make it happen as we get an AMX that has a spending limit of $80,000, we slice that credit card. And hope to the Lord that something pans out.
So we did it.
We paid the 80 grand, credit card shows $80,000, you owe it. I was like, “Yeah but I don’t have it yet”
And so, I’m sitting there and this is what we sent.
This was the first email that ever went out. It says the military has recently released technology that is now available to the public.
Hmm, here’s why. Okay, I was wondering.
So widespread attacks inside the United States have become a reality that’s currently being brushed off by mass media sources.
Sounds true so far.
To not cause panic. I get that.
In good faith though, thankfully someone’s looking out for us.
The military has released archived LED technology, which has been placed inside tactical flashlights, happen to be known as the G700.
Almost like I wrote this.
The technology kicks in when strobe mode is activated, producing a pulsating frequency that disorients a threat within milliseconds.
Here’s a really cool screenshot I took of the flashlight in action.
Massive orders are coming in from police departments, fire departments, and armed forces.
Don’t you think you should be doing the same thing? Yes, I do.
That was the email that went out.
At the same time, Bryclen and I have to go to Hawaii. We’re going to Maui for a mastermind.
We’re sitting in Maui and we know that the drop is about to happen. And, we’re sitting at dinner with 40 people. And this is the crazy thing.
What Happened Next
So what we did was we connected our phone to an app. Right now, it’s called Pushover, back then, it’s called Boxcar. And what happens, is when a sale happens, your phone goes “ka-ching”.
And so, we want the “ka-ching’s” to come in right. So we’re looking at the time.
We know that the Maui drop goes now. And then we wait, and then we wait some more.
There were no “ka-chings”.
And so, we’re sitting there at dinner. That’s the only thing I could think of. My legs shaking. I have $80,000 in debt right now, to this email, to an email, of all things.
So we’re sitting there and all of a sudden, the first one came in. I looked at Bryclen and I was like, that’s the first one.
And then, it started going like this, and started going, “ka-ching, ka-ching, ka-ching, ka-ka-ka-ka-ka ching ching chin, ka-ka-ka-ka,”
I was like, the thing is stuttering, right now. It’s so exciting.
I got to tell you guys when you have this, I totally think you should all get this app.
But when that happens, we had a party of 40 people, we’re all sitting there, massive conversations, very loud, just like outside, the “ka-ching’s” started going off and something amazing happened.
The entire room went silent. And everybody was looking at the phone, going ka-ching.
And just like, “What is going on?”
And since then, we’ve coined that, the Maui drop or the Maserati drop, depending on what you want to call it.
So I called Brian up. I was like, “Brian! That worked! You were right! It worked!” He’s like, “Yeah.”
Out Of Emails
I was like, “What’s next? There’s gotta be something big.” He goes, “I don’t know.” I was like, “What do you mean you don’t know?” He’s like, “I’m out of emails.”
I was like, “What do you mean you’re out of emails?” He’s like, “I don’t have anymore.”
“Okay. Well, I need more emails. That’s what we did, I paid you 80 grand, there are more emails. I give you more grand.” He’s like, “No, I’m out of emails.”
So was like, Okay. So I called Russell up. I was like, “Russell, he’s out of emails. I’m out of Facebook. We got a good offer, what should we do?”
He’s like, “Call Uncle B.” I was like, “Uncle B? That sounds like one of those things.” He’s like, “No Uncle B will take care of you.”
So I call Uncle B up, who works for an affiliate, broker (house).
So I call Uncle B up, I was like, “Uncle B, this is Trey Lewellen, how are you? Russell sent me over.”
“That’s good. What do you have to sell? Supplements? Do you have pills? Do you have creams? Do you have something that’s gonna fix somebody or cure cancer or something like that?”
I was like, “No, I got a flashlight.”
“A flashlight. It’s gonna be amazing!” He’s like, “What? A flashlight?”
“Yeah, a flashlight!”
“What’s it do?”
“What do you mean what’s it do? It’s a flashlight. It like, turns on and off.”
“I mean, it has a strobe mode. It’s kind of cool.”
“Yeah but dude I am not…”
It’s a No
Like he literally told me on the phone, he goes, “I will not send it to you guys, the affiliates.”
He’s like, “I will not. They would they laugh at me.” I go, “Uncle B, here’s the deal, cause I’ve done emails, I’ve done Facebook. We sent out this thing, it went really good. I got ka-chings, it was amazing.”
He goes, “Well, I’ll tell you what, I got one affiliate that will do it.”
I was like, okay. But it’s gonna be $10,000.
I was like, what is it with $10,000? It seems everybody wants ten grand. I was like, what if it doesn’t work? He goes, “Ha, but what if it does?”
I was like, “Ugh, you guys are all talking to each other. You little scam artist in there, just trying to get me at this. I don’t know what you’re doing but it’s working. It’s amazing.”
So, I pay him 10 grand. Uncle B calls me the next morning. This is what he said. He goes, “This is going to be huge.”
And that’s how it started. That’s how the G700 came in existence to you guys today. You see it now. Its spread all over the world. It’s beyond what we’ve done. It’s absolutely amazing.
Find Light In A Dark World
It is really cool, but it shows you what’s possible out there, just something sitting in your closet, of all things, can be the next vertical. So I want your help real quick. I need you guys for this. Because what we did, was we found light in a dark world.
No pun intended, but we did.
So does everybody have their phones on them? Everybody got their phones? I need you to take out your phones real quick. I want to show you something.
Something that’s absolutely amazing. So take it out.
What you’ll find on your phone, it’s a really cool technology. When you press the on the button, maybe you have an iPhone, you scroll up, you’ll have a little thing that looks like this. Looks like a flashlight.
Got those? Okay so turn them off. I know everybody’s like, “Oh my gosh! I have a flashlight this whole time?!” Yes, you did.
Now, you found it. Now turn it back off.
Okay. So here’s the thing. We’re gonna shut this whole place down. We’re gonna do lights off. And I want to show you what it looks like to find light in a dark world.
Turn Your Light On
So, what we’re going to do is, if you’ve spent a certain amount of money, I’ll call that number out, I want you to stand up and turn your light on, that’s it.
That’s all. So we’ll start now.
If you’re an agency if you’ve done an ad spend. If you’ve spent over $50 million in the last 2 years, stand up and turn your light on.
And, if you’ve done $25 million, stand up and turn your light on.
If you’ve raised or spent $10 million, turn your light on. Stand up.
$5 million? Turn your light on and stand up.
$1 million? Turn your light on, stand up.
$500,000 in the last year or 2 years in agency spend revenue? Facebook ad spend? Stand up.
$100,000 in ad spend in the last 2 years? Turn your light on.
$50,000? $25,000? $10,000? Turn your light on.
If you spent $10,000 in the last 2 years on Facebook, any type of media, turn your light on, stand up.
If you spent $1,000 on any media in the last year or 2 years, turn your light on stand up?
If you’ve made a dollar online or spent a dollar on any type of Facebook avenue, stand up with your flashlight.
If you have a flashlight on your phone, turn it on right now and stand up.
Let’s get all together real quick. Let’s put them all on. So turn on with your iPhones. There we go, get everybody up now.
Pretty crazy, right? So what was dark is now a lit room.
Just always know that. Always remember this thing.
So what if, let me ask you a quick question. We can turn the lights back on and the slideshows. Oh, I’ve got to turn my light back off.
So let me ask you a quick question.
What if I gave you the funnel? What if I gave you the G700 funnel that made it all happen? If you are able to take it home with you, for free, download it, and have it to be yours?
Would you guys like that? I want to give you that G700. I want to show you inside that G700 funnel.
So what you need to do with your phones out, go to MrOnIt.com, that’s what my nickname is, /world, right now.
Put that in your phone. You’re gonna automatically download our G700 funnel. Which means you have it, you can use it, you can make transactions through it. You can switch out the photos with your own.
You’ve seen Facebook now of how much is happening with physical products. This is the funnel that started at all. You want to have that in your hands.
So right now, go to MrOnIt.com/world and it’s yours. That’s as easy as that.
How’d it all happened? How did we make it happen?
Because not only do you need a funnel or traffic but you need to know the backend. And I want to talk to you guys real quick about what I like to call “Funnel-etics”.
That word does not exist in the English language. Maybe in German but not in the English language. I made it up.
So this is the “Funnel-etics” with myself. What I want to talk to you about is how we pushed a single product funnel.
This is how most funnels are pushed. It’s by saying, this is like getting a book, like getting a pin or so and you would sell one of those products.
Okay, so with that, you were gonna have an Opt-in, an Order page, a One-time upsell, a Second One-time offer.
What you’re gonna see is, our opt-in usually gets 50% opt-ins. The order page is usually around 10%, is what we like to see. One time offer is 5%, the other one time offer is 2%.
We’re gonna send, in this case, 4 scenarios. We’re gonna send 10,000 clicks.
And this is what we look at. We look at 10,000 clicks each time we do this mathematics.
So 5,000 of those 10,000 are gonna opt-in because we have 50%. 10% of those 5,000, didn’t know you’re coming to class today, did you? 500 are becoming buyers.
And the one-time offer you’re gonna get 5% and 5%, for example.
So let’s say, we’re selling a book for $35, maybe that’s including shipping, I don’t know, for 35 bucks. And we sell the one-time offer 55 and then maybe another one for 95, we’ve seen this before.
So you would take obviously, 500 x 35 = $17,500.
25 x 55. 25 x 95.
So 500 buyers on a single product, brought in $21,250. Okay, that’s not too shabby.
Cost Per Click
So what’s that per click? Well if we take 21 grand over 10,000 clicks, that’s $2.12 per click.
Pretty easy math $21,000 over 500 buyers, what does it cost me to obtain a buyer?
This is what I’m looking at on the offer side, okay. Because I need to know what I need to pay you or what I can pay you.
So what this says, is I can pay an affiliate $42.50 to obtain a buyer. That’s what I can afford how to break even.
Now, for you guys who are like the critics of the world. Yes, this does not include COGs, cost of goods. So that’s what you would factor in. Overhead, refunds, all that stuff.
But for easy math, I can pay up to $42.50 for conversion to break-even.
But here’s what’s crazy, a lot of people don’t do this, and this is where we started to win, it’s when you go into what’s called a Multi-Product Funnel.
What do I do differently?
All I did is I sell the same thing but I give them the option to buy more than one. That’s crazy, I know. but people buy.
I don’t care if it’s a hat, if it’s a book, if it’s something you think they only need one of these, like a beer, you’ll sell more. It’s crazy.
So in this instance, one for $35, we knew that, right? We just sold in a single product funnel, $35 that’s all they could buy. They can only buy one for $35.
But in this case, I’ll say, tell you what, you can buy 2 for $70. 3 for $105. 4 for $140. 5 for $ 175. 10 for $350. Okay, that’s easy enough.
Here’s what’s crazier, now, out of all the buyers, of the 500 buyers that came in., in the first example, 500 purchased the first product, right?
But now, we need to break that 500 across these samples.
38% of the 500 bought one. Holy smokes. You guys didn’t fall out of your chairs. So that’s good.
But here’s the thing. 38%, that means I have a crap ton of more percentages for everybody else to buy 2 and more.
Which means, wow. 28% bought 2. 14% bought 3. 6% bought 4. 8% bought 5. 4% bought 10 of them.
Guys, people buy 10 of these, of anything. Books, hats, beers, cups, shot glasses, whatever it is.
So what’s that look like? So 190 of the 500 units, $6,000. 150 units, $9,000. 70 units $7,000. 30 units, that all adds up to 42 grand in revenue.
Well if we look at the same thing, our OTOs are gonna stick to the same, right?
We have 500 orders equals 42 grand, plus our 2 upsells, brings us in $45,525.
You guys following along? Good, I saw some nods.
So, let me ask you a question. You got this guy over here, who has a single product funnel and then you have me over here, who has a multi-product funnel.
The single product funnel brought in $21,000. The multi-product funnel of the same product, just offering the client the option to have more, brought in $45,000.
Same funnel just the option to buy more. You guys are gonna go home and you’re gonna go build single product funnels like it’s amazing,
I don’t know why you do it. Every time I’m online, I’m like, they’re selling one, why do they only sell one? They need to sell more. They’ll make so much more money.
There it is right there. 21 grand in a single product funnel of selling the same thing, and a multi-product funnel, gives you $45,000.
Meaning, the guys selling single can only afford $42 per buyer, while a multi-product person can buy or can choose $91 per buyer.
Single Product Continuity
So then we get the question a lot, is what about continuity? I love continuity.
Why? Because it makes my phone go “ka-ching” at 4 in the morning. Because of all the re-bills.
How’s that look on something like this? We call it a single product continuity funnel. If that’s not a tongue-twister.
So we have the same thing right. 10,000 clicks, our opt-in is 5,000. Our order form is 500. OTO 100. But see the OTO1 is a little different.
This is a trial offer. So what we say is, “Hey you know what? Why don’t you join us today for $1 to try us out? If you love it, great. If you hate us, which no one does, exit. We’ll give you a refund.”
So what you’ll see here is 500 x $5 = $2,500, 100 x $1 = $100, which brings the value of $2,600.
Keep in mind, how many continuity people we got. In this case, we got 100 people in and we charge $40 at the month end in 30 days.
But we don’t have that money yet, so we can’t take that. You can only take in the money that’s in the bank, right?
So $2,600 over 10,000 clicks gives us our cost per click is what we can afford. 26% or $0.26 per click.
Buyers, that’s $5.20 per buyer.
Now you guys are gonna have to pay close attention here because it gets a little tricky. What I’m looking at is I want to know how many buyers do I need in order to get what makes me money, which is the continuity piece.
In this case, I’m converting at 20% so that means 1 in 5. So I need 5 buyers to obtain 1 continuity piece, one continuity member.
So we do a little bit of math. 100/20=5x. We know that our buyers cost us $5.20 and I need 5 of them.
That means I have to spin $26 to obtain a member in my membership, in my continuity program.
Continuity Over Time
Okay, that’s not too bad. So now let’s look at it over time. What does that look like over time? What it looks like is this.
So month 1, let’s say we bring in 1,000 members. Okay, that first month we get $1, right? They all opted in. 1,000 of them opted in for $1. That class, is $1,000.
Month 2 comes around, this is when it gets really interesting is we have those 1,000 people. Our retention rate is about 82% on this one. That 82% is refunds, charge-backs, people cancelling, stuff like that.
So, we show about an 82% churn on that. So 1,000 x 82 = 820 members who we actually collect money from at $40 is $32,000.
Over to the next 3 months, you’re gonna see month 3 bring in $26,000.
Month 4 bring in $22,000.
And month 5 bring in $18,000, which is a total gross of a $100,000. All profit right.
This is a digital membership. So this is all theory. Yeah, that looks good Trey, those numbers look pretty fancy-dancy.
But let’s do a real-world example. Let’s actually see what it looks like. So here’s what we did.
P51 Can Openers
This is crazy fancy, I know. We took, what I call, the art of survival. We took what is called P51 can openers. That’s what they are.
On Amazon, on the right side, look at this fancy thing. On this right side, you can see that we paid $2.44 to Amazon plus free shipping.
And over here is our order form that says, would you like one can opener for a $1.93? Well, that’s weird I thought it would cost you $2.44? It does, it does.
So, 2 survival can openers for $3.86, 3 for $5.79 and 4, 5 and 10.
But Trey, hold on. It says you bought 2, but when someone buys 1, what do you do? We send them, 2. They get 2. When they buy 3, they get 4.
If anybody of you has funnel hacks and you’re like “I’m gonna buy 3”, you might get 4.
So here’s the thing, how does that make sense? You’re shipping it from Amazon, right?0 Yes, we do.
Well, doesn’t the customer get really mad when you do that? No.
What happens when they see the receipt? They don’t see the receipt. There’s a little checkbox on Amazon that says, “This is a gift, don’t send the receipt, please.”
And it does just that.
Do An Upsell
Then we do an upsell. We say, you know what, 20% conversion on the upsell, “Hey, would you like another free can opener for $1 today plus a trial into our NGOA membership?” Yes, I would.
It’s just 40 bucks a month. That’s all.
We get a 20% conversion on that.
If you guys can squint, what you’re seeing is, I want you to read this from left to right on a row basis like this.
So what we did is we sold this to 50 people in 3 days of testing. In one unit, 19 people bought one. Well that’s weird. That’s 38%. Doesn’t that number look familiar?
We charged the customer $1.93 but it costs us $2.44. So my cost is $46 charged $36, on negative there. That sucks, kind of.
But I got a lot of buyers. I got 19 buyers off that.
Two, 14 is 28% that number also looks familiar. $19 profit. Hey, there we go. now, we’re making some money.
So, then 3, 4, and 5 and 10, it goes on. So what’s that look like as we start pushing forward?
Well, what we did was we brought in a profit of $48.60. We look at that over 50 buyers. Which means I’m bringing in a profit, this is after cost of goods and shipping and all that stuff, of a good whopping at $0.97 per conversion.
Holy smokes, that’s amazing. It’s a lot of money, isn’t it?
Where The Money Is Made
So here’s what we did. We spent $500 over 50 buyers. Well, we spent 500 bucks on Facebook, we obtained 50 buyers.
That means, it cost me $10.02 per conversion. That’s a head-scratcher, isn’t it?
Because Trey, you said you only made $0.97 cents. I did.
But you said it cost you $10. I did.
So doesn’t that mean every time you sold can opener, you make negative $9.05? I do. Good job for your mathematics.
Here’s where the money is made. It’s in the continuity.
100 over 20% it takes 5 buyers to create one member. So what’s that mean?
Well, it’s gonna cost me not just $9 but $45 every time I want a member. That does not seem like a winning game, Trey.
Well, you know what? We’re gonna go crazy because I want a goal of a 1,000 clients this month.
When I was asking this earlier, I’m gonna lose all of you, right now. You’re gonna look at this really big number that says $45,000 on the screen and be like, that’s not for me.
You heard the story. I didn’t have 10k, I didn’t have 80k, but when I learned how to do, what I’m showing you, it adds up to a lot of money and you become somebody.
You become something. You build a company, build a brand off of it. This is the foundation that built us and holds us to this day.
So I want 1,000 members at $45 to get a member that means I have to pay 45 grand to get 1,000 members. It does.
That’s gonna put you at about a $1,500 ad spend per day.
The Break-even Point
Let’s look at that. So over month one, remember those guys? We get 1,000 people at $1, that’s a thousand bucks.
Okay, Trey, you’re making me a little nervous. I spent $45, I got $1,000 bucks back, I’m still 44 in the hole.
Yeah, you are and so are we.
So month 2, we bring in $32,000. Month 3, we’re bringing in 26 grand.
Do you know what that adds up to? A breakeven point. So in between month 2 and 3, we breakeven at 60 grand.
So now that 45 grand is paid off within 2 months, 2 and a half months. That’s a good investment.
Because over the next 3, 4, 5, and 6 months, we bring in a total gross of $115,000 off of what cost us $45,000. That’s pretty good.
So guys, let me show you something. When you do this, when you do this just like this, maybe you don’t have to watch the recording because we hit a lot of math real quick.
But when you do this, and you bring in 1,000 clients at 40 bucks, that’s $480,000 year in your pocket. Would your life change with 480 grand in your pocket?
2,000 members, 960. Just a small stretch from a million bucks.
Do you want to be a millionaire today? This is the way to do it.
2,000 members. That’s it. 2,000 members. Take 2,000 divided by 365.
It’s not very much. Not very many members. 3,000 members will land you $1.4 million a year at $40 a month.
4,000 is $1.9 million. 5,000 is $2.4 million. 10,000 clients will net you $4.8 million dollars a year.
Change Your View
It’s all about changing your view. When you look at a flashlight campaign or a vertical or a campaign at all or finding the light in the darkness that you didn’t even know existed moments before.
There’s a video of a child who’s autistic. He’s also blind. He’s 8 years old. And there’s something magical that happens with him.
It’s the same thing that can happen to you.
It’s all about going with your gut, following the motion, and seeing what transpires when you do.