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Hello everyone and welcome to the gym secrets podcast. Today I want to talk about a really cool topic. It's one of my favorite topics, but it's how you can afford any type of traffic.

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So whether that be TV, radio, Facebook, YouTube, whatever, right, how you can afford any type of traffic.

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Obviously places where traffic is the most cheaply priced is where most people will go because they don't have a conversion process that is extremely profitable.

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And so what I want to kind of break down here is like kind of the numbers behind how this works, right?

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So where to begin in the affiliate world in the online marketing world.

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There's something called EPCs which is earnings per click. All right. And so if you have an offer that converts really well to cold traffic.

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So something that most people could want, for example, a flashlight, good buddy of mine, Traylor Wellen.

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They did $20 million in sales in two months because they had cracked this code that I'm about to talk about.

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And what it comes down to is that for every click that you get to the page, he was able to pay out something like $2, $3 to the affiliates.

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So then the question became to the affiliates, people who were sending them traffic.

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How could I, like, is it possible for me to send clicks to this page slash offer for less than $3.

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And the obvious answer for most of them was yes, they could. A lot of them could send clicks for $0.10 or $0.50.

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So for them, they were able to get 6 to 1, 8 to 1, 10 to 1 back on their traffic, right?

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And so the same concept applies to how you're building your sales pipeline, right?

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And that's why having, so there's two main things that'll feed into this, right?

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One is the conversion percentage, right? The percentage of, in this case, clicks converted into sales and then obviously the price, okay?

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And so I've talked about this in an earlier podcast, but I was explaining the difference between like an LBO, like a $21.20 per motion versus a mid-ticket promotion.

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But when you kind of unlock this equation and really start applying in your business, it opens a whole new level of security for your business.

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Because once you have a promotion and an offer and a process that allow you to make the most money per applicant lead whatever you want to call them, then you strengthen your position in your marketplace.

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And like if you're a local gym and you have other gyms that you're competing against, the person who can spend the most to acquire their customers, to acquire leads will win, okay?

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So I can break it down like this. Let's say I'll use Trays example and then I'll make it relevant to fitness.

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So Trays example, his average cart value for his, you know, flashlight, I'm just going to make it this number.

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Let's just say it was a hundred bucks, okay?

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So he was able to engineer a beautiful sales pipeline with upsells and downsells and great copy and all this kind of stuff.

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To get the average person who was going to buy to pay $100, right?

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And so we can back out that number that for however many people would click to that page, one out of 30, right?

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So there was $3 EPCs, right? earnings per click, one out of 30 or so, 3.33, whatever, would buy $100 with commercial dice, right?

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And so with that same concept, let's say we're using, let's say we're selling $1,000 program fitness program, okay?

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You sell $1,000 fitness program and I might do most people can afford $1,000 for this program.

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A lot of people were like, a lot of people were listening to this but like, not in my marketplace, that's not true, I guarantee it.

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Because I used to literally just send people out to other people's markets.

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They along with eight man sales team and we just send them out to other people's gym.

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One of my first clients, Monica, a tar, she was selling her boot camp at the time for $99 a month.

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And she had a program, like an eight week challenge, so we should sell $200, right?

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And I sent my sales guy there who was, this was his first month, but I had just told him that this is the price he was selling it for.

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So he really didn't have any options to, he didn't have to fight against limiting beliefs or whatever because I just told him that's what we're talking about.

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He was like, okay, and so she saw a guy who didn't really know her gym or her program or clients come in and sell, you know, a bunch of people.

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I think this was his first money, so like 80 people in the first 20 days, right, at her gym at $600 a pop for six weeks.

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So she was charging $100 a month and we were charging $100 a week, same marketplace and we were able to get it, right?

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So that's just a little fore-end pricing, but let's just say you're selling a $1,000 product, okay, or a service.

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Hey guys, real quick, if you're new to the podcast, I have a book on Amazon called $100 million offers that over 8,000 five star reviews and has almost a perfect score.

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You can get it for 99 cents on Kindle.

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The reason I bring it up is that I put over a thousand hours into writing that book and it's my biggest gift to our community.

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So it's my very shameless way of trying to get you to like me more and ultimately make more dollars to that later on in your business career.

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I can push the bar towards you. So that's my gift. Go check it out. Amazon and back to the show.

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Now let's say that you can get a thousand clicks to your page, okay, from whatever traffic source you want.

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I'm trying to be traffic agnostic right now, but from whatever traffic source you want, you get a thousand clicks to the page.

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Now here's where the conversion starts to matter, right? So from those thousand clicks, let's say your page converts at 20%.

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Okay, so that means you get 200 leads for your campaign. Okay, so 200 name 100 emails.

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Here's where the second part of the conversion process is important.

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Let's say you have someone doing sales for you or you're doing the sales for you and of those 200 leads, you convert 20%.

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Okay, so you get 40 people to buy your thousand dollar program, right? So you make $40,000, you make $40,000 from those 1000 clicks, right?

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Which means that you're making $40 per click.

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And this is where I always believe that brick and mortar selling services will always be very protected because the amount of margin that you can make per click, especially in the online marketing space, out does anything that anything in the online world is ever seen, which means we'll always be able to out bid people who are online retailers, which are usually the ones you know the most about online marketing.

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And you have an offline conversion process. It allows you to leverage far, far, far higher price points, because you're seeing them in person, right?

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So if someone's willing to buy something online for $200, without even talking to a human being, this is where my argument for like, yes, you should probably all raise your prices.

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But if someone's going to take the time to decide to opt for a program, they get on the phone, talk to someone, and then they take the time and they'll take time out of the day to get their driver to your jam, then we invested this point.

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And so as long as you have a sales process that really makes sense, and you can provide service, you should be charging a lot more for it. And believe it or not, they'll actually get a better experience. They will perceive it as better because they paid more for it.

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Like if three bottles of wine, they've already tested this, right? Three bottles of wine. All exactly the same. One, they charge $10 for $150 and one, $200. The people who drank it and thought it was $200, enjoyed it more than everyone else.

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Crazy, right? Mind blown. They literally enjoyed it more because they thought it had more perceived value. So if you want your people to enjoy your service more, charge more for it. And they'll get better results. It's crazy.

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So back to the point of the EPCs though, is that he had what was considered the number one affiliate affiliate offer of the last, I mean, they say of all time, but minimum the last decade.

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Okay. And he was able to get EPCs that were like $3. Okay. The funnel that I just explained to you is something that we do in our business all the time and we're getting $40.

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10 times the greatest affiliate offer of all time, right? And so when you think about it like that, you understand that you can really buy traffic from anywhere as long as you're earning for click.

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All right. And so let's say your traffic source increases your lead cost from, I don't know, $10 to $30, right?

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So if you're paying $30 a lead, we just ran a promotion with one of one of our guys who did he was getting on average $40.

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And then any of the marketing agencies are going to listen to this and try to tell, say how we're bad at what we do. Go for it. Attack away.

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But you're going to have to disprove my next point, which is that he paid $40 lead and he converted 52% of his leads. That's why the conversion process is important.

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52% of those leads into a $2500 sale. Okay. So he paid $80 two times, right? 50%. So one out of two leads would turn into a $2500 sale.

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So he paid $80 and got $2500 back. So he made $130,000 in 22 days. Just using that in new sales. He made 61 sales, like $2500, a couple of people pitiful, whatever.

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But that was the total gross. 130. So he paid four grand in advertising. Most people don't have that kind of return.

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And now do I think that Ryan is going to be very protected in his marketplace and not really have to worry about any competitors trying to update him? Probably not because I would guarantee that most of you are listening to this.

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Would ever have been paid close to $40 lead, right? Because you have a conversion process where your earnings per click earnings per lead are sufficient.

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They'd be even playing them all game, but he can do it all day. He doesn't even look at his market. Just like, I don't look at my unit because I know how profitable it is. So whether or not I pay $200 or $1,000 per application for gym owners, we know the conversion process we have in place and the level of value that we can provide them is sufficient that it really becomes a relevant.

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I don't need to worry about it. And so if you, if you're constantly monitoring, trying to get your lead cost down, a lot of times the focus doesn't really need to be there and the focus really needs to be on your conversion process and the pricing, right?

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And so he was able to convert a very high percentage of his leads at a very high price, which really, really, really protects you in a long run. So that's the little nugget for today is look at the conversion process, look at what you're, how much money you're making per customer on the front end.

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I don't like doing back end numbers because then people get really exaggerated and all that kind of stuff. Like what are you making on the actual program you're selling upfront, right? Because that will allow you to see how much you can really spend to acquire a customer and do so profitably.

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All right, so hope that was useful for you. Look at the, look at the pricing models, look at how much you're converting, what percentage of release you're converting, and then you can back out how much can pay for acquisition of a customer, all right?

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So really, really, really important numbers. If you know that, then you can start spending more confidently, you can buy, you can acquire more customers, you can do it faster, do it with more confidence.

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And then ultimately in your marketplace, you can be far more strongly positioned to outbid all of your competition and they won't know what hit.

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Hope you have an awesome day and I'll talk to you guys soon.