All posts by Tom

When It Comes to Split Testing, Don’t Discount ANYTHING Until You Try It

split testing landing pages

Being completely open minded when testing new campaigns can be difficult. Whenever I start creating a campaign and begin to jot down headlines and copy to test I frequently disqualify a lot of possibilities on the spot. After you run different campaigns for a while you get an idea of what’s going to work and what isn’t, this can both hurt or help you as I’ve come to realize. I ran a lead generation campaign recently for a free initial consultation and tested two different headline:

“Sign Up For a Free Initial Consultation with Your First Visit”

and

“Sign Up For a Consultation”

Normally I wouldn’t have even bothered with the second headline because it isn’t anywhere near as appealing in my mind.  I decided to just throw a bunch of wild card headlines into the mix like “Sign Up For a Consultation” just to see the CTR and opt-in rate difference but I was pretty shocked by the results. The second headline has an opt-in rate TWICE as high as the top headline. Even with experience you never know if something will work until you try it – especially in an unfamiliar niche/demographic. What I’m getting at here is this: try LOTS of different variations in your campaigns – don’t pigeon hole yourself to what you think will work. Make sure you’re covering a wide spectrum of ideas and not just testing your assumptions for what will work.

The Difference Between Being Money Driven and Greedy

Why People Are Greedy

I don’t know why so many people confuse money driven with greedy people. There is a huge difference between having money driven goals, dreams, and aspirations and being a greedy person. Money is the great equalizer in life and can improve anyone’s life almost guaranteed.

There is an old saying that I laugh at every time I hear it that goes “Money can’t buy you happiness.” The reason I find this amusing is because the people that I hear say it generally don’t have any. Some people ask me why I care so much about money and there is one simple reason: money = freedom and freedom = happiness, therefore money = happiness (transitive property!). If you can’t be happy with total freedom I don’t see how you can be happy period and I’m very sorry to hear that. It’s not that I want to conquer the Earth and be the wealthiest man alive, I just want to have freedom.

Just think about it for a few minutes, it’ll really start to sink in once you understand. I don’t think that a family living paycheck to paycheck would be upset if they became millionaires, cleared their debt and lived the life they’ve always dreamed of.

The Future of Advertising and Social Media/Networking

yp

The amount of opportunity for businesses (big and small) and marketers alike has never been greater. Social media and social networking are ushering in a new era of advertising that is allowing for a business of any size to pay only for performance with highly trackable analytical data. Not only is the “pay for performance” model an amazing one but new tools and technology are being introduced rapidly to keep increasing profits while minimizing overhead such as geotargetting.

To put this into perspective lets use an example of a dentist office that is hurting in the current economy and wants to start advertising. A Yellow Pages advertisement is one of the “traditional” sources I hear a lot of businesses turning to when they’re looking to extend their reach. This is a huge mistake in general for a few reasons.

1.) Yellow Page advertisements are insanely expensive from a price per viewer perspective.

2.) It is very difficult (if not impossible) to track the efficiency and ROI of the advertisement.

3.) When a prospective client/patient looks up your business in the yellow pages it shows ALL of your competition around you, potentially eliminating you on the spot.

Now, lets talk about advertising on Facebook. With this type of advertising you can pay based on two different aspects: views or clicks. Either route you choose to go will almost ALWAYS be much more cost effective than a Yellow Pages advertisement. I highly recommend starting off with CPC (Cost Per Click) until your ad has a good CTR (Click Through Rate) because you’ll need to do some testing and tweaking to get it as low as possible.

Still not convinced? Let me give you an example scenario to really show you the huge gap in price and effectiveness.

An advertisement in Yellow Pages can vary quite a bit depending on size and city – some costing upwards of $90,000 for a full page. I’m going to use an average approximation of $4,000 for a 1/4 page size advertisement in a city of 20,000 people and 12,000 Yellow Pages subscribers . For $4,000, you get one advertisement on the same page as 3 of your direct competitors.

In a perfect world, every single subscriber will see your advertisement and respond to it. In the real world, you’ll be lucky if half even acknowledges your advertisement. Lets assume you get lucky and half of the subscribers see your advertisement, the cost is then $0.66 per view. Here is the first problem, your advertisement being viewed is the very tip of the sales funnel. In my experience, a 10% viewer -> action rate is excellent so we’ll go with that. That means that out of the 6,000 people that see your advertisement, 600 will call or take  interest. The rate of action -> new patient is even lower.  We’ll say that out of the 600 people that took action, 40 became new patients. That makes the overall cost per lead $100.

The scenario above is what you would most likely experience AT BEST.

Now let’s talk about advertising on Facebook. When you advertise on Facebook you have the option of ONLY paying when someone takes that action step. Even if your advertisement displays to 20,000 people and nobody clicks it you won’t be charged a penny. This already creates a more ideal scenario and will put them deeper into your sales funnel from first contact. There are many other great reasons why Facebook is a better solution for advertising including:

1.) Cost efficiency and extremely low overhead. You only pay for that action step instead of viewers and you don’t have to commit $4,000 up front, you can set a budget as low as $20/day.

2.) The odds of other competition displaying along your advertisement is low.

3.) You can control your demographic. Facebook’s advertising platform allows you to choose a wide variety of factors to show your advertisement to including (but not limited to): Age, Sex, Location, Marital Status, and Interests.

4.) You can track which advertisements are working and which are not decreasing the cost/lead dramatically.

For this type of campaign, my CPC generally hovers around $0.30. Let’s use the same conversion rate for action (clicks) -> new patient of 6%. This means for every 100 people that take interest and click your advertisement it will cost you $30 and you will have an average cost/lead of $5.

Sorry to be long winded, but this is extremely crucial to the future of cost effective advertising. I’ll release some case studies and concrete data/numbers eventually on here instead of using hypothetical ones so keep on the look out!