Making money in direct marketing (online or offline) follows a clear sequence of actions:
- Traffic Generation: You need to get visitors to your website, and lots of them.
- Initial Sale: To receive money, you need to gain trust of your audience. The willingness to give you money for a promised product is certainly an expression of trust. The price of the initial sale may or may not cover the cost of acquiring this new customer.
- Backend Sales: If you have earned the trust of your audience, and strive to earn their trust every day again, they will buy again and again. This is where the real money is.
This is a numbered list, because it is essential to go step by step. Why? It is much easier to sell to somebody, who has already bought from you, and was more than satisfied with your performance. You just need to tell him: “I have this, do you need it?” And he will at least consider your offer. But to come into this position, you must have made already a first sale (or at least built a relationship of trust with the customer).
To get a first sale, which means a sale to a person who never bought from you before, and who probably does not know you, you must have an excellent offer. And you need to present this offer in a very convincing way. You know this long sales letters and these product launches.
If you are not completely new to direct marketing, you know probably also, that the only way to get a real good converting sales letter or sequence of sales messages only by testing. There is no way to know for sure, which headline is performing better, which picture, background color, layout outperforms all others. But the difference between a conversion rate of 1 percent and 2 percent can be the difference between a big loss and a small profit, especially if you realize that you pay for your traffic. And you do pay, either with money, or with your effort.
To get valid test results, you need lots of traffic. If you run a split test only between two headlines or two pictures or two videos, you need at least 30 conversions on the weaker one, to have a reliable result. This means to test only two variants, you need at an average conversion rate 3000 visitors. If you do not have a strong stream of traffic to your website, you may just need a year or two to test every aspect of your sales process. In this case your product will be probably obsolete before you can roll it out.