Product Splintering: How we Generated more from a Dead Email List and a Tired Offer
I have found a struggling company.
They had an excellent product and targeted a passionate and growing market. Your sales copy was well written. They used opt-in forms and printed pages and even had an email list of 113,636 people.
But despite everything, this company was doomed to disaster.
They make about $30,000 a month in sales, but they had a direct downward trend to zero when I realized they ramped up their sales to over $1,000,000 a month.
Well, let’s get back to our hard work…
This is what they did wrong…
They get a new perk and send a short series of autoresponders about their product. If the lead hadn’t bought after a few days, he would have sent a random email about the same product several times a week.
The email list has been burned.
They were tired of hearing the same thing over and over. Sales stopped and traffic costs rose as new competitors entered the market.
The company was in danger of going bankrupt.
For example, we made some changes and our sales in this particular business doubled almost immediately after the acquisition.
Although they had a mailing list of 113,636 subscribers, they only had one product that cost $47 and nobody bought it.
We knew we needed a new offering, but there was no time to create a new product. This company needed a quick injection and cash.
So this is what we did…
Instead, we took a bonus report with the main product and put it up for sale for just $7.
Here is the very important part…
The $7 sale didn’t interest me. I’m not going to get rich selling a $7 report, and I know it. I just wanted buyers.
Because according to my research, someone who accepts the initial offer of $7 will likely buy the flagship product ten times as much.
The results were incredible. Let me explain:
• List size: 113.636
Earn $7: 9,926 in 30 days (8% conversion rate)
• 2,536 upgrade to the main course from $47.
According to the $7 report, it’s $69,482 in the recipe and $119,192 in the main course.
$188,674 in sales from a tired supply to a ‘dead’ list!
Was it magical? There is no way.
This is a simple tactic we use in our funnels called Product Splinters.
This is how it works. Your core product or service consists of several components.
• If you sell guitar courses, these are smaller lessons and modules.
• When you sell a website design, it consists of smaller services such as logo design and electronic structure.
• If you sell golf clubs, they can be divided into drivers, irons, putters, and wedges.
Product fragmentation is the process of breaking down the fragments of your main product and selling them à la carte.
Let me show you what I mean…
The company I acquired sold a great multi-module training course called 40 Days 40 Nights that shows you how to survive offline for a minimum of 40 days and 40 nights. As I mentioned before, this product sells for $47.
This basic offering allowed us to distribute more than a dozen smaller products.
The one we got the best feedback on, listing 170 gallons per day, was the one we chose and sold as our $7 offer.
It was part of the main product and that’s how we managed to generate $188,674 in sales from the boring mailing list.
Next month we will destroy a new relationship and repeat the process. And we did that again and again.
Ultimately, this “product fragmentation process” allowed us to grow this business from $30,000 per month in just over 12 months to over $1,000,000 per month.
By changing our “first” product, we can keep our marketing up to date and return to the same list that sells the exact same “top” product month after month, without burning our list.
Those who are not interested in a core product “chip” will never see the core product range. This means we don’t always subject our list to the same old offers.
The only time they would see the main offer would be if they were BUYERS.
Splinting also works with products and services…
It’s not just for information products.
Now there’s a guy on eBay who sells vintage guitars. When he sells a guitar, he collects some pickups. But here’s the genius in your business. It offers 100 options for just $8 as a separate “fragmented” offering.
Who would buy a pick unless they are interested in guitars?
He has over 91,000 reviews on eBay, which means he probably has a list of hundreds of thousands of buyers interested in guitars. Breaking your product and lowering your signup limit will help you find buyers.
My business partner was once the third-largest Christmas producer in the world.
He also sold wax, fragrance oil, and voices to people who made their own candles. What is the most important thing you need to make your own candles?
Therefore, he lowers the price of the knife (he sells it at cost) and moves it to the front of the funnel.
The result? He destroyed the competition when everyone started buying blades from him.
And when he buys a fuse, he buys a buyer who is naturally interested in more expensive items such as wax, fragrance oil, and beautiful items.
Shopify is one of the most dominant players in the e-commerce shopping cart. The software is used to run more than 100,000 e-commerce stores on the Internet.
One of the features of the flagship offering is the ability to sell products directly through Facebook. But they “crush” the functionality and make it available as a standalone offering.