{"id":52409,"date":"2014-11-14T10:42:18","date_gmt":"2014-11-14T15:42:18","guid":{"rendered":"https:\/\/dmwsprod.wpengine.com\/?p=52409"},"modified":"2014-11-14T10:42:18","modified_gmt":"2014-11-14T15:42:18","slug":"funnel-product-splintering","status":"publish","type":"post","link":"https:\/\/www.digitalmarketer.com\/blog\/funnel-product-splintering\/","title":{"rendered":"Product Splintering: How we Generated $188,674 from a Dead Email List and a Tired Offer"},"content":{"rendered":"<p>In 2011, I stumbled across a business that was struggling.<br \/>\nThey had a great product and were targeting a passionate, growing market.\u00a0 Their sales copy was well-written.\u00a0 They were using opt-in forms and squeeze pages and they even had an email list of 113,636 people.<br \/>\nBut, despite all those things, this business was headed for disaster.<br \/>\nThey were doing around $30,000 a month in sales but they were on a downward trend headed to zero when I caught them and drove sales to over $1,000,000 a month in sales.<br \/>\nAlright, back to our struggling business&#8230;<\/p>\n<h2>Here\u2019s what they were doing wrong&#8230;<\/h2>\n<p>They would get a new lead and send them a little <a href=\"https:\/\/www.digitalmarketer.com\/email-marketing-machine\/\" target=\"_blank\" rel=\"noopener noreferrer\">autoresponder sequence<\/a> about their product.\u00a0 If the lead didn\u2019t buy after a few days, they would continue to send them a random broadcast email a few times a week about the SAME PRODUCT.<br \/>\nThe email list was burned out.<br \/>\nThey were tired of hearing about the same thing over and over again.\u00a0 Sales were grinding to a halt and traffic costs were going up as new competitors entered the market.<br \/>\nThe business was in danger of going under.<br \/>\nSo here\u2019s how we turned things around and, specifically, how we doubled sales in this business almost immediately after the acquisition.<br \/>\nAlthough they had an email list of 113,636 subscribers, they only had one product priced at $47 and no one was buying it anymore.<br \/>\nWe knew we needed a new offer, but there wasn\u2019t time to create a new product.\u00a0 This business needed a cash infusion and fast.<\/p>\n<h2>So, here&#8217;s what we did&#8230;<\/h2>\n<p>Instead, we took a bonus report that was bundled with the main product and offered it for sale for only $7.<br \/>\nHere\u2019s the really important part\u2026<br \/>\nI didn\u2019t care about the $7 sales.\u00a0 I wasn\u2019t going to get rich selling a $7 report and I knew that.\u00a0 <strong>I just wanted buyers.<\/strong><br \/>\nWhy?<br \/>\nBecause according to my research, if someone takes that $7 &#8220;front end&#8221; offer they are 10X more likely to buy the main product.<br \/>\nThe results were staggering.\u00a0 Let me break it down for you:<\/p>\n<ul>\n<li>List Size:\u00a0 113,636<\/li>\n<li>$7 Sales:\u00a0 9,926 in 30 days (8% Conversion Rate)<\/li>\n<li>2,536 upgraded to the $47 main course<\/li>\n<\/ul>\n<p>That\u2019s $69,482 in sales from the $7 report and $119,192 in sales from the main course.<br \/>\n$188,674 in sales from a tired offer to a \u201cdead\u201d list!<\/p>\n<h2>Was it magic? Not at all.<\/h2>\n<p><strong>It\u2019s a simple tactic we employ in all of our funnels called Product Splintering.<\/strong><br \/>\nHere\u2019s how it works.\u00a0 Your core product or service is made up of many different components.<\/p>\n<ul>\n<li>If you sell a guitar training course, it\u2019s made up of smaller lessons and modules.<\/li>\n<li>If you sell website design, it\u2019s made up smaller services like logo design and wireframing.<\/li>\n<li>If you sell golf clubs, they\u00a0can be broken down into drivers, irons, putters and wedges.<\/li>\n<\/ul>\n<p>Product Splintering is the process of breaking off bits and pieces of your core product and selling them a la carte.<br \/>\nLet me show you what I mean&#8230;<br \/>\nThe company I acquired was selling a big, multi-module training course called <em>40 Days and 40 Nights<\/em> showing you how to survive off the grid for at least 40 days and 40 nights.\u00a0 As I said before, this product sold for $47.<br \/>\nFrom this one core offering we were able to splinter off over a dozen smaller products.<br \/>\nThe one we got the best feedback on, called 170 Gallons a Day, was the one that we plucked out and sold as our $7 offer.<br \/>\n<img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-52428\" src=\"https:\/\/www.digitalmarketer.com\/wp-content\/uploads\/2022\/01\/splintering-image1.jpg\" alt=\"Product Splintering\" width=\"580\" height=\"300\" \/><br \/>\nIt was a splinter of the main product and it was how we were able to generate $188,674 in sales from that tired email list.<br \/>\nThe next month we splintered off another report and repeated the process.\u00a0 And we did it again and again.<br \/>\nUltimately, this \u201cProduct Splintering\u201d process is what allowed us to grow this business from $30,000 a month to well over $1,000,000 a month in just over 12 months.<br \/>\n<strong>By changing up our \u201cfront-end\u201d product, we could keep our marketing fresh and go back to the same list selling the exact same \u201cbackend\u201d product month after month without burning out our list.<\/strong><br \/>\nThose prospects that weren\u2019t interested in one \u201csplinter\u201d of the core product would never see the offer for the core product.\u00a0 This means that we weren\u2019t exposing our list to the same old tired offer over and over again.<br \/>\nThe only time they would see the core offer is if they were a BUYER.<\/p>\n<h2>Splintering works for products and services too&#8230;<\/h2>\n<p>This isn&#8217;t just for information products.<br \/>\nThere\u2019s a guy on ebay right now that sells vintage guitars.\u00a0 Every time he sells a guitar he bundles in some guitar picks.\u00a0 But here\u2019s the genius in his business.\u00a0 He offers 100 guitar picks for just $8 as a separate \u201csplintered\u201d offer.<br \/>\nBrilliant.<br \/>\nWho\u2019s going to buy a guitar pick unless they are interested in guitars?<br \/>\nHe has over 91,000 reviews on eBay meaning he likely has a list of 100\u2019s of thousands of buyers that are interested in guitars.\u00a0 By splintering his product and lowering the barrier to entry he is able to acquire buyers.<br \/>\n<img decoding=\"async\" class=\"aligncenter size-full wp-image-52430\" src=\"https:\/\/www.digitalmarketer.com\/wp-content\/uploads\/2022\/01\/splintering-image2.jpg\" alt=\"splintering-image2\" width=\"580\" height=\"319\" \/><br \/>\nMy business partner was, at one time, the world\u2019s 3rd largest candle manufacturer.<br \/>\nHe also sold the wax, fragrance oils and votives to people that made their own candles.\u00a0 What\u2019s the number one thing you need to make your own candles?<br \/>\nA\u00a0wick.<br \/>\nSo, he dropped the price of wicks (he sold them at dead cost) and moved them to the front end of his funnel.<br \/>\nThe result? \u00a0He obliterated the competition as everyone started buying wicks from him.<br \/>\nAnd when he acquired a wick buyer &#8212; he had acquired a buyer that would naturally be interested in higher ticket items like waxes, frangrance oils and fancy votives.<br \/>\n<img decoding=\"async\" class=\"aligncenter size-full wp-image-52431\" src=\"https:\/\/www.digitalmarketer.com\/wp-content\/uploads\/2022\/01\/splintering-image3.jpg\" alt=\"splintering-image3\" width=\"580\" height=\"320\" \/><br \/>\nShopify is one of the most dominant players in the ecommerce shopping cart space.\u00a0 Their software is used to run over 100,000 ecommerce storefronts across the web.<br \/>\nOne of the features of their core offer is the ability to sell products directly through Facebook.\u00a0 But they also \u201csplinter\u201d that feature and make it available as a stand alone offer.<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-52434\" src=\"https:\/\/www.digitalmarketer.com\/wp-content\/uploads\/2022\/01\/splintering-image4.jpg\" alt=\"splintering-image4\" width=\"580\" height=\"431\" \/><br \/>\nBy \u201csplintering\u201d their core offer they are able to promote to the same list of leads without making the same old offer.\u00a0 And they can do this for each and every feature in the software package.<br \/>\nPretty dang smart.<br \/>\nHere&#8217;s an example from a service business&#8230;<br \/>\nOne of our clients provides search engine optimization and pay per click services to local businesses.\u00a0 Their marketing consisted mainly of setting up a booth at a trade show and offering $500 to $2,000 a month SEO and PPC services.<br \/>\nHere\u2019s a picture of them at a locksmith conference\u2026<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-52435\" src=\"https:\/\/www.digitalmarketer.com\/wp-content\/uploads\/2022\/01\/splintering-image5.jpg\" alt=\"splintering-image5\" width=\"580\" height=\"384\" \/><br \/>\nBut they were stuck.\u00a0 Most local businesses aren\u2019t willing to pony up 100\u2019s of dollars a month on an unproven agency they just met at a trade show.\u00a0 Too risky.<br \/>\nSales were terrible.\u00a0 They\u2019d be lucky to pull 2 or 3 new clients out of a 5,000 attendee trade show. \u00a0(Let me save you the trouble of doing the math &#8212; that\u2019s a bad conversion rate)<br \/>\nAsking a small business owner to hand over $2,000 a month is a bit like proposing on the first date.<br \/>\nSo here\u2019s what we did\u2026 instead of trying to sell the \u201cbe all, end all\u201d SEO\/PPC service we offered to get these business owners set up with a Google+ listing and Google AdWords for just $20.<br \/>\nThere was no profit in this work\u2026 we just wanted to acquire buyers.\u00a0 And this was a service that was already bundled with the main offer so it made sense to \u201csplinter\u201d it off and offer it at dead cost.<br \/>\nHere were the results\u2026<\/p>\n<ul>\n<li>2,000 trade show attendees<\/li>\n<li>87 purchased \u201csplintered\u201d service for $20<\/li>\n<li>19 converted to $500\/mo main offer<\/li>\n<li>23 more converted after follow up<\/li>\n<\/ul>\n<p>Before they were converting an average of 3 new clients at $500 per month.\u00a0 After they \u201csplintered\u201d the $20 offer they acquired 42 new clients at $500 a month or $21,300 a month from a single trade show.<br \/>\nThat\u2019s the power of lowering the barrier of entry with Product Splintering.<br \/>\nHere are a few more examples of Product Splintering<\/p>\n<ul>\n<li>A web designer that sells logos<\/li>\n<li>A dentist that sells teeth whitening at dead cost<\/li>\n<li>A roofer that offers gutter cleaning<\/li>\n<li>A website hosting service that sells website templates<\/li>\n<li>A lawn care service that offers to fertilize off-season at dead cost<\/li>\n<\/ul>\n<p>When you splinter your existing product or service, your promotional opportunities become endless, and that is how you make more sales from the leads and prospects you already have.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2011, I stumbled across a business that was struggling. They had a great product and were targeting a passionate, growing market.\u00a0 Their sales copy was well-written.\u00a0 They were using opt-in forms and squeeze pages and they even had an email list of 113,636 people. But, despite all those things, this business was headed for [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":52624,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[34],"tags":[],"class_list":["post-52409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Product Splintering: How we Generated $188,674 from a Dead Email List and a Tired Offer - DigitalMarketer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.digitalmarketer.com\/uncategorized\/funnel-product-splintering\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Product Splintering: How we Generated $188,674 from a Dead Email List and a Tired Offer - DigitalMarketer\" \/>\n<meta property=\"og:description\" content=\"In 2011, I stumbled across a business that was struggling. They had a great product and were targeting a passionate, growing market.\u00a0 Their sales copy was well-written.\u00a0 They were using opt-in forms and squeeze pages and they even had an email list of 113,636 people. 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