Frustrated by the low sales from your marketing, even though your ads ‘seem’ to be doing well?
Truth is, most people make the mistake of believing that low cost per lead (CPL) is everything . But this is a mistake that could cost you a LOT of money.
In this episode, we’ll talk about the things you ACTUALLY want to look at so that your ad gets you greater returns:
- Why cheaper cost per lead isn’t necessarily better (and can actually burn your time and money)
- How to zero in on people who actually want to buy your stuff
- How to write “winning messages” for your target audience
- Simple ad setting tweaks to get more Return on Ad Spend (ROAS)
Terence: [00:00:00] If you’re measuring your webinar’s success, totally just based on cost per lead, it could be costing you a lot of money. And in this episode, we’ll dive into why that is the case and how to fix it. So if you’re new to this channel, hi, welcome to the Founders Go Naked podcast, where we help six-figure high ticket coaches who hate marketing to scale the businesses to seven figures and beyond using webinars.
My name is Terence and I’m joined by my AI cohost today.
Debbie. So Debbie, let’s start it off.
Debbie: So Terence, why do you say that? Because CPL is very important, isn’t it?
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Webinar Success: Beyond Cost Per Lead & The Right Audience Targeting
Terence: Yes. I agree. CPL is super important, but the first thing you need to first look at before the CPL is what message is actually bringing you in the right type of custom avatar that is actually going to buy your product. Let me give you two examples. In one instance for client in the UK, what happened is that we were running [00:01:00] two different messages with two different funnels.
So the first message was catering towards like mass audience. And it used a lot of terms like. Get into this property investing without using a lot of your own cash, that kind of messaging, which appeal to a mass audience.
Whereas in the second instance, we actually use a more targeted messaging where we were talking to people who were willing to put in the energy and the effort to become a full-time property entrepreneur.
So the first one is more like less effort. Part-time. Don’t need your own money. Very low effort. That was the messaging.
Second one was for serious people who really are wanting to build their wealth, not afraid to invest the time, effort, and money to make it happen. So that was the difference.
Case Study: Cost Per Lead vs. Sales Conversion
Debbie: So what was the result? I can’t wait to find out. Tell me!
Terence: So if wondering what happened, Debbie.
We actually got way cheaper leads for the first messaging and the first audience. In fact it was at least 30 or 40% cheaper [00:02:00] for the first audience compared to the cost per lead for the second audience. However, when we analyze everything after the events, We realize that the second audience actually broadened double the number of sales compared to the first audience, despite the fact that the cost per lead was a bit higher.
In fact, we had better attendance rates. We had better upsell rates on the one-time offer. And we had better eventual sales as well on the second messaging. So for me, the lesson is that, it is so important to know who will actually buy your stuff and not just respond initially. Like people will respond because it’s a free seminar, free webinar.
So they may respond initially, but will they actually show up? Will they invest the effort and time to actually show up? And the other thing is once you know that avatar, that will actually respond to your offer, then you start writing specific to that avatar itself. So in future events, we’re not going to target the so-called [00:03:00] cheaper leads because in this instance, we know that the cheaper leads are not going to attend, less of them are going to convert on attend.
So why spend money there? Because ultimately what we want is a higher return on ad spend, which we can get the second audience. So I think that is a more important measure for you if you’re running webinars to see what message is bringing in ultimate return on ad spend and which avatar, if you’re clear about which customer avatar you’re targeting. Which avatar is actually bringing in the sales.
That is the more important thing than looking at costs per lead.
Exploring Different Messaging for the Same Audience
Debbie: So what happens if you have a similar cost per lead with different messages and funnels?
Terence: So Debbie, we do have a second situation where the cPLs was similar. So in this situation, we had several messages running simultaneously. And this time, the difference between the previous example and this example is that in this example, we were actually [00:04:00] running the ads to the same audience. How ever, we had different messages that were targeting the same audience. So out out of the four big ideas or messages that we had on our ads, we discovered one particular message was bringing in all the sales.
Well, majority of it, right? So one particular message was bringing in seven or eight times return on ad spend. Compared to the rest, which would bring in one, two times or three times return on that spend. this one , one message was bringing in seven times to eight times the ROAS that that compared to the rest, which was way more profitable.
Debbie: How come that happened? I don’t understand.
Terence: In this situation, it’s not so much the avatar, but the messaging that is drawing in the people. So it could be the same audience, but if they have a different motivation, because of your messaging. You could get better return on your ads if you have the right messaging. So even if you think, okay, I know I [00:05:00] want to target this audience like this age group, this, Demographic, but different messaging will actually attract different types of people within that audience. So you need to test different messages to see which message will actually get the right people within that audience that will actually buy.
Debbie: That’s a bit confusing. Can you give me an example?
Terence: Let me give you an example, right? If I was targeted by two messages, one is more like, Hey, come to this webinar where I will teach you energy manipulation so that you can have better luck in your business. And it’s like my business is very important to me. Right. So I’ll probably sign up. At the same time, I might have a different message coming at me, saying that, how do you use energy manipulation to actually improve your health. And health is important to me too. But ultimately, I might come to the webinar because of the business messaging. And I end up buying because my [00:06:00] intent of coming to that webinar is to improve my business. And I think to myself, if I invest a thousand dollars in this program, And I drove my business by 10%.
It is like, wow, fantastic return on investment, right? Whereas if I’m thinking, if I’m attracted by the health messaging and I come to the webinar because of the health messaging. And I think I invest a thousand dollars. I’m not sure about my return on investment. I might think well, maybe it’s like for that $1,000.
I could hire a personal trainer and sign up for gym membership and get better returns. Right. So I think that’s just an example to illustrate that you need to test different forms of messaging, even though you have the same customer avatar. I know this gets a little bit deep, but I think it’s so important to know that different messages can attract the same people for different intents to your webinar.
So the takeaway from this is that when the cost per lead roughly the same. That’s where you’d really need to look at the return on your ad spend and which messaging is actually [00:07:00] getting you the best return on ad spend. And then for the next round, you double down on the messaging that gives you the best return on ad spend.
Early Indicators of Successful Messaging
Debbie: Is there anything else we can look at? Because by the time the event is done, it might be too late to discover what messages actually worked.
Terence: The other thing is you might also want to look at early indicators. Because sales is probably a lagging indicator if you have a big webinar or big events, Like three weeks down the track or five weeks down track. And you’re not sure which one of the ads you or which one of the messages you should invest most of your money into? That’s where you can use some early indicators.
Like, for example, if you have a time offer to upgrade the access in the webinar, like a $7 low ticket offer, whatever it is. If you find that one message is getting more people to upgrade. Then that message is likely to ultimately give you a better ROAS in the long-term.
The other indicator is if you have like [00:08:00] a survey form, like what we do for a lot of our clients is that you will find that the people, the message that brings in the most people who fill in the survey form. It’s likely to become the high ROAS message as well, because they’re more engaged, right?
It’s not always the case, but it’s a good early indicator. So look at those early indicators and also maybe even look at some of the stats and your ads as well. Not just CPLs, but talking about click rates and all that stuff and engagement with the videos. Look at those stats because those are good early indications on which message is likely to bring in the high ROAS.
Actionable Steps and Conclusion
Debbie: So what is your actions based on the findings?
Terence: So, yeah.
Good question, Debbie. Because what we’re going to do is to double down on the winning message here. So we spending most of our ad budget on the winning message for the next round. And based on the sales results, we have identify even more clearly two separate avatars within that group. So we are going to [00:09:00] craft messages specifically to each avatar.
So one avatar is like people who want to change jobs. The second avatar, people who are in business, but business hasn’t gone really well for them. And they want this particular solution. So we are specifically tailoring our messaging towards these two avatars and advertising to them specifically for the next round as well.
So those are the two things that we’re doing.
So that’s it for this episode, guys. I hope it all make sense. And you be able to apply a lot of the ideas that I’ve shared today into your marketing.
And if it sounds all too complicated for you, why not get someone to do it for you? Maybe if that’s the case. Then you might want to check us out that radical-marketing.com. We do take on a limited number of clients. So check us out. And see if we have a good fit to work together. And finally, please do check out our other episodes on our podcasts or on our YouTube channel. And if you enjoyed it, give us a like, and subscribe [00:10:00] or a five star review. Thanks so much for watching or listening in.
This podcast is hosted by Terence Tam, author of Lead Surge: 8 Radically Effective Marketing Funnels for Coaches and Experts. He is also the Founder of Radical Marketing, a digital marketing agency that partners with high-ticket coaches to scale their businesses with Webinars – by using a proprietary blend of story ads and battled-tested sales funnels to achieve better returns on ad dollars.
