Ep. 101 What To Do If Your Offer Isn’t Performing

Subscribe On:

Full Transcript:

Today I want to talk about what to do when an offer is underperforming. This happens all the time, we have offers that do well, and then they don’t. All of the sudden things crash. Or you may have an offer that you put out there and no matter what, just seems like it’s been a slog.

So what does it mean when we say an offer is underperforming? What we mean is that it’s not meeting your benchmark for units sold per month. And what that sentence reveals is that you have to make sure that you are in fact setting a benchmark. A lot of people don’t. They set expectations based on feelings, they set expectations based on what they see other people doing, without actually understanding what’s going on behind the scenes.

So if you’ve never set a benchmark before, that would the first thing I would recommend. And setting a benchmark can be done in multiple ways, but it’s important to know that until you have one, you can’t really claim that something is underperforming. All you can claim is that you’re having feelings about your offer, but we don’t really know what those feelings mean. You’ve attached meaning to them, but we don’t actually know.

So create a benchmark first, and there’s a couple of way that you can do this. Number one, you can do it based on how much revenue you need for that month, especially if you’re a coach or an agency and you really just have one core offer. You just decide, this is how much I need to make, so this is how many offers I need to sell. And if you have any questions about that, I don’t know if you know this, but there is a course called Future Fund that I co-created with my good friend and client, Aryeh Sheinbein, and he and I dive into understanding your core numbers for wealth building. And one of the things that we help people within their business is really kind of backing into that number. So that stops you right there, I would definitely say go get Future Fund.

Okay, a second way that you create a benchmark is based on the support infrastructure for the offer. You know, if you’re a web designer and you can only handle 10 clients a month, you can’t really set a benchmark past that. So you use sort of the infrastructure of what you business can handle and set a benchmark that way.

A third way to do it based on funnel stats, especially previous ones. So if you don’t have previous ones, you can use standardized benchmarks, in fact our course Funnel RX gives you those standardized benchmarks. But if you know, “Hey normally I convert at whatever, 2% and I seem to be able to drive 500 people a month through my organic marketing efforts”, now that’s your benchmark, and that’s what you’re measuring up against. Set a benchmark even if it’s not perfect, and there’s also room for setting a few benchmarks, right. A minimum benchmark and an ideal benchmark, and a stretch benchmark. Now you have something with which to measure, okay, now I can tell if things are underperforming.

So if you set a benchmark for 30 units sold, and you only have 12, you would take 12 and divide it by 30 and you are only at 40% of your goal. Here’s my advice on underperformance. If you are significantly 50% or less, then I would categorize that as an underperforming offer. If you are hanging around 50-70%, you may want to ask yourself, “Is this really an underperforming offer, or was my benchmark off, or was my marketing plan completely not matching my benchmark?” You know, people who say, “I have a thousand dollars to spend on ads, but I want to sell 40 units.” Well, it sounds like you didn’t create a benchmark that’s accurate for your marketing plan, or you didn’t create a marketing plan that’s accurate for your benchmark.

If you’re consistently 70-90%, you might want to continue tracking to see if, you know, you’re just seeing the bumps in your marketing, or was it a bad month, did something change? And if you are within 90% of your benchmark, I would consider you technically nearing benchmark. And I would not consider that an underperforming offer.

So once you’ve done all that, and you are consistently under 50%, now you can say, “Alright, this offer is not performing well. What do I do?” And this works very similar to a tributary where a log is blocking the water. You have to stop at the top, because if you fix the top the water flows all the way down. And if you’re busy trying to remove a log from the bottom of the river when there’s a log blocked at the top, it’s useless. So don’t start at the bottom of your river, start at the top. Remove that block first, and if that changes everything then you don’t have to go downstream.

So there are four possible logs in the way of your stream. The first and the one that’s highest up is traffic, then audience, then funnel, then offer. So if you are not generating enough traffic and visitors to even get the amount of people on the page that you need, that’s what we would consider the log up at the top of the river. You first have to remove that log and get enough traffic before you can really make a full conclusion as to whether or not the offer is underperforming.
But assuming there’s not log up there at the top of the river, and the water is flowing down, the next log you want to look at is audience. Are you actually targeting the right people? Are your audiences correct? Are you on the right forums? Are you in the right Facebook groups? Because if they’re not the right fit, or you’re targeting an audience who’s not really ready for the offer that you have, that might be why the traffic is not converting, because of the audience, not because of the offer.

Assuming of course, you’ve got the right audience and the right traffic, the next log downstream is the funnel. And that’s looking at the funnel to see what objections, what friction is happening on the page. Is it the sales page? Is it the order form? Is it the copy? Is it the design? Is it the load time? What is happening on the page? Is it the marketing argument? Etc, etc.

And assuming that that funnel has converted before, so if you have good traffic, you have the right audience, and you know that in the past it’s converted at 3%, then the next thing to ask yourself is, ‘If this is not the problem, maybe I should go back and check my traffic source and my audience again.” Because you know it’s converted before. Otherwise you’re just going to go downstream and you’re going to finally go to the offer. And you’re going to say, “Hmm, is the problem solved urgent enough? Is the price right? Is it compelling enough to get the sale? Is the offer truly the problem?”

So you can make the judgment that the offer is the problem, if you enough traffic, the right audience, and you have a decently designed and copy written funnel, and it still doesn’t perform, then you would say, “Okay, this is truly an underperforming offer.”

I hope you guys enjoyed that, thanks so much. Leave a review, share the podcast, and I will talk to you soon. Bye.

Ep. 99 How To Decide On A Business Partner

Subscribe On:

Full Transcript:

Hey everyone, this is Julie and today I want to talk about business partnerships. I have a lot of people that ask about my relationship with Cathy Olsen who is the co-CEO and partner with me in Funnel Gorgeous. So I thought I would do an episode today about some of the things I’ve learned and some of the advice that I would give.

A little bit of background on our story. We started working together in 2017, she had hired me. I was the coach and she was the client and we had developed a friendship and worked really well together, so in early 2018 she and I came up with this idea to launch a course called Funnel Gorgeous, and it was blending my funnel and marketing knowledge with her design. So we did that first. We did not have intentions of building a company together, we just thought this would be cool. So we went in 50/50.

A lot of people ask how that, how we arranged that. We put it in writing and we both agreed to $15,000 of either cash or sweat equity. So that meant for me using my email list, using my copy skills. For Cathy that was designs. So we actually, you know, we didn’t put in a lot of cash, we both pooled our skills. But if you were going to do this with somebody and you guys didn’t have the skills, you’d have to put equal amounts of money in and then equal amounts out.

So we did that and launched it, and we had made $55,000 in that first launch, so it was really successful, and we continued to add to that course with templates. So that went all the way into 2019. It was really clear at that point that we were building something that was bigger than just a course, so we formalized our relationship on paper, but not officially with a lawyer yet. But we were working together, we had this one course and these templates. And then it wasn’t until June 2019 that we launched a second course, and this one was called Webinar Gorgeous. And that one did $175,000 in sales. And this is when it was really obvious that we had something. Something was really working.

So over the next six months, we hired a lawyer and got an operating agreement, and January 1st I believe, of 2020 is when we officially went into that operating agreement as 50/50 partners. We hired a lawyer, we put all of that official stuff in place. And you know, it’s really important when you’re doing this that you consider the costs, like the unseen costs of your partnership.

So for example, if you’re using your FG funnels account for the business, that’s $97 a month, and you’re paying for that, but you know this new venture is using it as well, you have to account for all of that, so sometimes the easier thing is to just get all brand new accounts, brand new business accounts, brand new cards, just to keep it really clean and really simple.

So that’s sort of the origin story of how Cathy and I work together, but I think what people really want to know is how do you know? How do you know if someone is a good partner for you? And I really don’t have a lot of magic to offer here, but I have a couple of things that I know to be true, because Cathy is not my first partnership. I had a partnership with someone back in 2016 for Create Your Laptop Life, and I briefly tried a partnership outside of Funnel Gorgeous in my other business, Digital Insiders, that did not go well.

So what have I learned? Number one, you have to know that you cannot do the business without the other person. A lot of partnerships start because people like each other, and they like working together, and they like the camaraderie. But the truth is that if the partnership ends, one person could probably carry the business better than another person. So it’s not until you really know that the business doesn’t survive if the partnership doesn’t, that you have something really, really good.

So you see this in partnerships that last a long time, and for us, Cathy is so much the foundation of the Funnel Gorgeous brand that without her the brand wouldn’t, and you know, maybe that means that we wouldn’t have a good sellable business, but what it does mean is we have a partnership that’s really solid. And the business, the brand does not work without her, just like the brand does not work without me. We need each other. There’s no one person that can carry this brand.

So when you look at someone when you’re evaluating if that makes a good partner, you have to ask yourself, “Could I do this business without them?” because if the answer is yes, that’s going to be a bug in your ear for a long time.

So that’s the first thing, know that you can’t do the business without the other person. Number two, you need to have a mutual respect for their zone of genius. If there’s any doubt in your head about that person’s zone of genius, or you can’t respect and also kind of give in and not have the final say, you’re going to constantly be butting heads.

So when it comes to design, Cathy is always going to be the winner. What she says goes. In fact, in most cases I’m not even going to question her zone of genius or try to step on it, because there’s no way that I could ever produce something that’s more high quality than what she already does. So I have such a great respect, not only for her design, but for her branding mind, her sales mind, and her marketing mind and how that design pays out in the marketing process. So when she speaks up about that, it’s time for me to take a seat and let her speak.

So she will do the same for me when it comes to copywriting, and curriculum, and content, and things like that. So that’s the second thing. You need to have mutual respect for the zone of genius.

The third thing, and I don’t know if this is actually good business advice, so take it with a grain of salt. But I believe that the partnership has to be more important than the business. And what I mean by that, is that your commitment to being a good partner for the other person, has to be more important than the bottom line of the business. And the reason why I say that is because if that holds true and you work on the partnership, then the business will be fine. It’s similar to the way people talk about marriage, and they say that your marriage is more important than the relationship with your kids. And it’s not that you love your spouse more than your kids, it’s that people understand that if your marriage is number one priority, and you focus on that, that ultimately that will trickle down and help the children.

So the idea is that if your partnership, your relationship with your partner and the lines of communication, and the fact that you guys are in this together, has to be more important than the business, and the business will be okay, because the partnership will be strong.

So those are sort of my three tips as you’re evaluating a partner and deciding this is something you want to do. Number one, you have to know that you cannot do the business without them. Number two, you have to have a mutual respect for their zone of genius. And number three, the partnership has to be more important than the business, because the partnership is what makes the business run.

So hopefully that helps. If you like this, please share it, leave a review, and I’ll talk to you soon.