One of our clients, Teresa, had her first profitable day on Monday.
What did she do?
Here’s the short answer:
She listened, applied, and adjusted.
If you can do those three things, you can have your first profitable day with eCommerce (and MANY more profitable days after that).
I’ll tell you exactly what Theresa did to hit her first profitable day in a second, but for now let me just break those three things down…
I want you to ask yourself these three questions:
Can you listen?
It’s a proven fact that people who grow 6-figure eCommerce business don’t just set up their shop and grow it overnight by themselves.
They must first LISTEN to the people who have walked down that path before, and stop listening to people who don’t know what they’re talking about! 🙂
There’s a proven formula you can follow to make $10K or more per month. (I covered that formula in more depth in part 1 of this series).
All you have to do is LISTEN to the formula and take it in, and then do step two…
Can you apply?
Do you have the ability to listen to information and then go and apply it, execute on it?
All you have to do is put in enough initial effort up front to apply this formula. It’s not rocket science, but it does require some effort up front to set up.
Earning ten thousand dollars a month or more doesn’t just happen from visualizing, or wishful thinking. There’s some work involved, but it totally pays off!
Can you adjust?
This question is SO important… because nobody gets it right the first time around! Nobody!
All of our most successful eCommerce students started out with humble beginnings. In some cases, what they tried flat out failed the first time around.
But, like Theresa, they didn’t get too down about it. They learned from that “failure”, made some adjustments, and before they knew it started having one profitable day after the other…
And the beautiful thing about building an eCommerce business is that the NUMBERS don’t lie. They’ll tell you what to do if your first try isn’t successful, as long as you know how to LISTEN and APPLY.
See how it all works together? 🙂
Okay, now onto what Theresa actually did to get to her first profitable day…
Step 1: Prove your product with a “Yes” test
The first thing Theresa did was follow the program and “Yes test” her product.
A ‘Yes test’ is a really simple way of proving that the products you’ve picked out will be popular and will sell.
You just take one product and create a simple Facebook ad for it. In the ad, you ask people to comment “yes” if they’d be interested in buying it.
Do this same test with a bunch of products and you’ll quickly see which ones are the “winners” – the most popular products.
Once Theresa found the winning product, she took the winners live with a free plus shipping offer [F+S].
She got some sales (great!) but they weren’t profitable sales. She lost a tiny bit of money in that test.
OK, no problem, let's test this at retail in her store.
So she tested the product at retail and still wasn't able to get profitable sales…
Step 2: Listen and adjust to the data
OK, time to stop and think. That first try out of the gate didn’t go the way she planned.
So we asked her this question: What does this specific data tell us?
She was getting sales, which means that her product and her targeting match.. That’s great!
BUT the offer wasn't compelling enough to get a bunch of people in her audience to pull out their cards and BUY.
Therefore, the conclusion we make is to enhance the offer so the sales will be profitable.
See how we came to that conclusion?
Let me say it again another way:
She proved that her targeting was a match because they bought the Free + Shipping offer.
So the problem wasn’t how she was targeting her Facebook ads. At least SOME people in her audience were willing to buy the product.
This data led us to ONE simple conclusion: The offer needed to be adjusted!
This is the ONE variable that she needs to focus on and influence.
And once she adjusts the offer, it should yield her profit.
Easy peasey, right?
Remember: In business the data tells us what to do.
THIS IS A KEY TAKEAWAY. PLEASE READ THE ABOVE STATEMENTS AGAIN AND MAKE A NOTE OF THESE.
Step 3: Adjust the offer
Last Thursday I suggested the she tweak her offer and test “bundles.” A bundle is just when you combine two products together to make it more attractive.
The cool thing about bundles is you can charge more for them, too!
For example, if you’re selling a necklace, maybe you can add a bracelet to make it a bundle.
Or you could do a Buy One Get One free [BOGO] offer.
So that’s what Theresa did…She tested ONE bundle and boom!
That one bundle is selling to 3 of her audiences at around an $11 cost per purchase.
This means that her audience LOVES this offer!
She now is selling the bundle at around $23 with shipping included [$20 for the bundle and $3 for shipping] and her cost of goods sold [COGS] – her expenses to fulfill the product – is around $6.
$23 Money In
$6 COGS (Products cost + Shipping)
$17 Left Over
– $11 Cost Per Purchase (what she’s spending on Facebook ads)
$6 profit per sale
She’s selling 10 units a day, so she should make around $1,800 per month in profit.
10 units a day = $60/d and $1800 per month profit
Now imagine if she just sold 20 units a day…
20 units a day = $120/d and $3600 per month profit.
Theresa’s Next Steps:
What do you think her next steps should be based on this data?
I want you to take a minute and think about this…
Based on this data our next steps should be this:
First: Take the other product that did well with “Yes Tests” and her Free + Shipping offer but did NOT do well with retail… and add a bracelet to that to create a bundle.
This will probably result in 2 bundles that she can scale across 3 audiences… Putting her around $6k per month in profit in short order!
Second: Scale the sh*t out of the first bundle.
That first bundle is doing really well, so she should simply “Scale that baby” up! Show the ads to more people and make more sales, so she can make more money.
Takeaway’s from Theresa’s story
Here are some final takeaway. I know this stuff can sometimes seem confusing. It is and it isn't.
Once you have the basics down then it just becomes a matter of finding a few products you can scale.
Great job Theresa!
Once you apply our eCommerce System, it will happen for you too, it's inevitable.
You are totally capable of building an eCommerce Store that creates $10K/month of income for you and your family… if you can:
Also, remember: you are only ONE ad set away from a breakthrough!
We work with eStore Incubator clients 1 on 1 twice a week.
[BTW: eStore Incubator is our flagship 8 week eCommerce incubator program.]
As you can imagine, with that level of support we keep a sharp eye on what our clients need for their breakthrough AND absolutely love celebrating with them when they have it.
And ALL of them have it!
So if you’d like her help finding your eCommerce Breakthrough, let’s talk.