Traffic is the lifeblood of any business, right? Without visitors, and enough of them, you simply won't make sales. What if there was a way to get unlimited free traffic to your website?
That would be a beautiful thing!
Here's the good news. There is a way to get free traffic to your website. And I mean a LOT of traffic. Highly targeted traffic.
You can start using this method today. And it works.
Before we dig in, let me share three very important things.
- This is NOT about posting free ads, filling in surveys, or any of the other time wasters we all hear about.
- This IS what successful online marketers do every day. In fact, for many of them, this is their secret obsession.
- This IS something you can do even if you have a very small advertising budget.
So let's get right to it.
What I am describing is called a "self liquidating offer" and it works like a drink of cool lemonade on a hot summer day.
In this article I will share ...
- What is a Self Liquidating Offer?
- Why do SLOs work so well?
- How do SLOs work?
- What types of offers work best for an SLO?
If you have questions please leave them in the comments below. I will be happy to help.
What is a Self Liquidating Offer?
An SLO can be described this way ...
Any offer that covers the cost of the advertising you use to drive traffic.
This offer can be one of many things. A little later we will discuss the most common types of offers to use when creating an SLO.
For now, focus on this - the key to making an SLO work for you is to have a high-converting offer that aims to do one thing ...
Completely cover the cost of your advertising.
That goal is the key. You want to cover the cost of advertising, period.
Why does a Self Liquidating Offer work so well?
An SLO works well for three reasons.
- It builds your list, leaving you with a true asset.
- It allows you to scale because your costs are covered.
- It takes the pressure off your main offer.
Think of it this way. Your core offer sells for $197. You make a very happy $100 per sale as an affiliate. And the offer converts well.
So you want to send traffic to that offer. As much traffic as you can, right?
But you have have a budget of $300, and $300 will only go so far.
If you spend the $300 and the site does not convert to three sales you are losing money.
But what if you set up an SLO before sending prospects to the offer?
Three things would happen.
- You would build your list and make more sales with follow up email.
- You would be able to drive as much traffic as you want, knowing that any money you spend will come right back to you.
- You would become a more powerful, more scientific, marketer who would be a highly-desired JV partner.
These are all very good things indeed.
An SLO works because there is a very low barrier to entry. It's is easy to say "yes" to a $7 offer. It is harder to say "yes" to a $200 offer.
But what about free offers? Don't they provide the lowest possible barrier to entry? Would not a free offer make more sense?
Yes ... and no.
A free offer will convert more people into subscribers. But it won't do three things that an SLO will do.
- Cover your advertising costs.
- Change the relationship from prospect to buyer.
- Help you avoid freebie-seekers who will never buy.
While it is fine to have a big list, having a smaller list of buyers will trump a big non-buyer list any day.
How does a Self Liquidating Offer work?
The key to designing your SLO is to know your costs.
Once you know the cost to acquire a visitor, you are in good shape.
Here is a quick example.
Let's say you are doing some sort of pay per click advertising, like Facebook or Google advertising.
And let's say you are spending 30 cents per click to get targeted traffic to your site. That means you are paying $30 to get 100 visitors to your site.
Based on your $30 cost, what type offer will cover your advertising costs?
If your SLO sells for $7, your SLO will need to convert at about 5% to break even.
Here's the math.
A 5% conversion to sales means 5 out of 100 people buy your SLO offer.
If that offer sells for $7, and you make 5 sales per 100 visitors, you earn $35.
You paid $30 and earned $35.
See how that works?
But no one can make a living on that tiny of a profit, right?
Right. But remember the goal ... to cover advertising costs.
That it because the real money is in the back end, not the initial sale.
Look at it this way, with an SLO you have ...
- Covered your advertising cost quickly.
- Learned what works, and what does not, when running ads.
- Build your list.
- Created new buyers.
- Made sales of your core offer using follow up email.
These are very good things.
What types of offers are best for creating a Self Liquidating Offer?
This topic alone requires more space that a blog post can provide.
Which is why I have an entire course about the subject of driving traffic, including creating powerful SLOs! 🙂
Let's look at some situations that work well when creating a Self Liquidating Offer.
A free "silver" level membership.
If you market memberships this works wonderfully well. The key is to separate the content inside the membership into levels, and then give SLO buyers full access to the lower level.
Let me emphasize "full membership".
What you do NOT want to do is sell access (for any price) to a site that is basically a big pitch for upgrading. That will only create resentment and bad will.
What you DO want to do is over-deliver on all levels, including the silver level you use as your SLO.
The reason for this is obvious - you want to establish that you are person who delivers value and support, regardless of the money spent with you.
This creates massive Lifetime Value, which is worth more than words can say.
A small version of the full product.
This can work but needs to be used very sparingly. This worked well some years ago in the software business. But it soon lost favor.
I don't recommend this nearly as much as providing a "silver" level and then granting access to everything on that level.
A $1 (or $7) short-term trial membership.
This is full access to your full product for a limited time. Note I said "full access", and I mean that.
Many people say to me "I can't do that. People will pay $7, download everything and quit".
Here is my answer ... yes, they will.
But why does that matter really?
Think about it this way. If they do that to you, and they should not, then at least they have material that might help them. And helping others is a good thing.
Plus, it did not cost you anything. You can't lose what you never had and you did not have their business anyway.
Lastly, they have shown your their true colors. They would not make a great customer anyway, so let them go.
If you use this methods, you have some choices about what happens after the trial ends.
- Automatically bill them for the product.
- Remind them their trial is ending and make them an offer.
- Gather feedback about the product for future development.
Which you choose will depend on your own situation and goals.
One interesting variable here is the length of time of the trial. Most people opt for 7 days, and that works well.
For maximum stick rate (how many people stay members) try a 30 day period. It's hard on the cash flow up front but creates massive goodwill and loyal customers.
Whether you own your own product or service, or you market as an affiliate, setting up a Self Liquidating Offer is smart.
When you use an SLO, you will ...
- Cover your advertising costs almost immediately.
- Build your list of prospects.
- Build a list of buyers as well.
- Be able to scale for increased profits.
- Experience more stability in your online business.
- Be able to enter new niches for almost no cost.
And those are all beautiful things indeed!