They Banned My $35K/Month Page So I Started a Business
Business Idea Born from Adversity
Introduction to the Business Concept
- The speaker shares a spontaneous business idea conceived during a cold run with their dog, emphasizing the urgency and excitement of launching it in real-time.
- They mention a recent viral video about earning $35,000 monthly on Facebook, which led to an unexpected ban from the platform.
Challenges Faced
- The speaker describes the stress of dealing with Meta's customer service after being banned for alleged intellectual property infringement, which they claim is false.
- They express frustration over losing significant income overnight due to this ban, highlighting the impact on their content team and overall business operations.
Turning Adversity into Opportunity
- In response to their situation, the speaker decides to leverage their experience and knowledge to create a new business model based on this adversity.
- They plan to document every step of launching this new venture live in front of an audience without prior preparation or resources like an LLC or domain name.
Leveraging Unfair Advantages
Identifying Unique Strengths
- The speaker emphasizes that everyone has an "unfair advantage" that can be utilized when starting a business, such as personal experiences or professional backgrounds.
- They highlight their newsletter as one such advantage and encourage viewers who lack similar resources not to feel discouraged.
Utilizing Existing Resources
- The speaker discusses using Beehive for managing their newsletter and plans to create targeted segments for outreach based on subscriber activity.
Steps Towards Revenue Generation
Creating Subscriber Segments
- The process begins by exporting active subscribers from their newsletter platform into Google Sheets for further analysis.
Randomizing Subscriber Lists
- To ensure fairness in outreach efforts, they explain how they will randomize subscriber lists using specific formulas in Google Sheets before sending emails.
AB Testing for Pricing Strategy
Introduction to AB Testing
- The speaker introduces the concept of an AB test or split test, aimed at determining the optimal price point for a product by testing two different prices on samples from their email list.
- Emphasizes the importance of simplicity in testing, suggesting that rather than overcomplicating with multiple price points, focusing on just two can yield effective results.
Sample Size Considerations
- Discusses the need to balance sample size; a smaller sample is preferred to avoid wasting lower price points while still ensuring enough data for reliable conclusions.
- Mentions deleting 92% of the email list to create two distinct groups for testing, highlighting efficiency in data management.
Payment Processing Setup
- Describes the process of creating a payment link through Stripe, which is identified as a major payment processor necessary for facilitating transactions.
- Reflects on needing a name for the business and shares personal anecdotes about past experiences that led to this moment.
Personal Story and Branding Insights
- Shares a personal story from college where they were misdiagnosed with ADHD but instead received feedback about having "delusions of grandeur," which fueled their ambition.
- Expresses frustration over being judged prematurely and emphasizes that plans of grandeur should be embraced rather than dismissed.
Launching Without Friction
- Advocates for launching quickly without getting bogged down by branding details or excessive planning, stressing that momentum is crucial in business.
- Reinforces the idea that time kills deals and highlights urgency in acquiring customers as soon as possible.
Domain Name Acquisition
- Discusses purchasing domain names as part of establishing an online presence, humorously admitting to owning many domains already.
- Successfully acquires the domain "plansofgranger.com" and reflects on its significance related to personal aspirations rather than seeking fame.
Creating a Payment Link and Product for Pre-Sale
Domain Ownership and Initial Setup
- The speaker emphasizes the importance of owning the domain name before launching a video to prevent others from claiming it.
- They return to the Stripe payment link page, indicating that creating a product is necessary before generating a payment link.
Pricing Strategy for Pre-Sale
- Aiming for a steep discount of over 50% for the pre-sale, as this strategy has proven effective in attracting customers.
- The speaker plans to test two price points: $47 and $97, using an A/B testing approach with identical emails except for the price.
Conversion Rate Considerations
- Discussion on conversion rates reveals that selling more expensive products can be beneficial if their conversion rate compensates adequately.
- The speaker notes that selling at different prices could yield similar revenue depending on conversion rates, emphasizing strategic pricing decisions.
Creating Payment Links
- The process involves creating payment links without requiring customer names to reduce friction during checkout, which can negatively impact conversion rates.
- Emphasizes avoiding unnecessary friction in the checkout process unless additional data is crucial; in this case, it's deemed unnecessary.
Finalizing Email List and Tags
- After setting up payment links, the speaker prepares to write and send out test emails while planning future communications post-run.
- They create tags for A/B testing within their email list management system (Beehive), ensuring proper segmentation of subscribers based on pricing offers.
Creating Dynamic Email Segments and Crafting Engaging Content
Setting Up Email Segments
- The speaker discusses the process of creating a dynamic email segment named "POG 47," which will auto-update as new emails with that tag are added.
- Conditions for the segment include filtering by subscriber tags and ensuring only active subscribers are included, preventing emails to those who have unsubscribed.
- The speaker mentions duplicating an old email to streamline the creation of a new email for their audience, emphasizing efficiency in content production.
- They highlight the importance of personalizing emails by including dynamic tags for first names while avoiding formatting issues when names are missing.
- The speaker expresses a desire to create authentic content without AI assistance, aiming for genuine connection with their audience.
Crafting Compelling Email Content
- A narrative hook is introduced where the speaker shares a personal experience of having a challenging week, using it as an engaging opener to draw readers in.
- They recount how their viral YouTube video led to unexpected consequences, such as being banned from Facebook due to alleged copyright infringement, illustrating the volatility of entrepreneurship.
- The emotional impact of losing significant income overnight is discussed, highlighting the challenges faced by content creators reliant on social media platforms for visibility and revenue.
- An idea emerges during a run: turning adversity into opportunity by leveraging previously unpublished resources (videos and documents), offering them at a discounted price to generate income.
- The pre-sale announcement includes details about pricing and value proposition, emphasizing that buyers will receive ongoing updates and access to additional content over time.
Community Engagement and Philanthropy
- The offer includes participation in live AMAs (Ask Me Anything sessions), fostering community interaction while providing valuable insights into brand building and going viral.
- Intentional typos are mentioned as a strategy to convey authenticity in communication, reinforcing that the content is not generated by AI but rather crafted personally by the speaker.
- A commitment is made to donate 10% of all revenue (not profits), specifically mentioning support for the National Kidney Foundation, adding a philanthropic angle to their business model.
- Finally, they discuss updating product descriptions with personal anecdotes that resonate with potential customers' aspirations and struggles.
Updating Business Details and Email Campaign Strategy
Changing Business Information
- The speaker updates the Stripe account to reflect a different business name instead of "playmakers" and confirms the change.
- A $97 payment link is created, which is then integrated into the email content.
Subscriber Management
- The speaker checks that subscribers are successfully imported, noting a total of 9961 valid emails after recalculating segments due to some invalid addresses.
- Discussion on email placement: the speaker prefers placing links higher in the email for visibility but considers potential competition with video content.
Email Content and Targeting
- Emphasizes fairness in pricing; if the price drops from $97 to $47, partial refunds will be issued to maintain customer trust.
- Highlights the importance of concise subject lines for better engagement.
Scheduling and Sending Emails
- The newsletter is sent only to specific segments, ensuring it reaches paying customers while maintaining brand trust.
- After sending out an initial email campaign, plans are made to duplicate it for a lower-priced offer ($47), ensuring all details remain consistent except for pricing.
Performance Tracking and Revenue Generation
- The speaker ensures that emails are sent two minutes apart to avoid confusion among recipients regarding offers.
- Initial performance metrics show an 11% open rate and a click-through rate of 1.5%, indicating effective engagement shortly after sending.
First Sale Confirmation
- Celebrates receiving the first sale at $97 within just over an hour after launching the campaign, marking a successful revenue generation milestone.
- Reflecting on profitability achieved quickly post-launch, with plans to check further revenue results after completing personal activities.
Revenue Insights from Email Marketing Strategies
Initial Revenue Generation
- The speaker checks revenue generated after an hour and 20 minutes, reporting $1,334, equating to approximately $1,000 per hour from a single email campaign.
- Breakdown of sales shows six payments at $97 and 16 payments at $47. This indicates that the lower-priced product is selling almost three times more than the higher-priced one.
Conversion Rates Analysis
- The conversion rates reveal a significant difference: 10% for the $97 product versus 21% for the $47 product. This suggests that lower prices lead to higher immediate conversions.
- When comparing unique email opens, the conversion rate for the $47 email was 8%, while it jumped to 29% for the $97 email. This indicates potential buyer hesitation with higher-priced items.
A/B Testing Strategy
- The speaker plans to conduct further A/B tests by sending shorter emails with clearer pricing information to determine if this affects conversion rates positively.
- Emphasizes the importance of understanding customer preferences through testing different messaging strategies before finalizing pricing decisions.
Customer Purchase Behavior Over Time
- After several hours, there were 35 new customers: eight purchased at $97 and 27 at $47. This highlights a substantial revenue difference per subscriber based on price point.
- Plans for future tests include sending emails without disclosing prices upfront but emphasizing discounts to see if this influences click-through rates.
Long-Term Sales Trends
- A week later, analysis shows that there were 43 successful transactions at $47 and only 22 at $97, indicating slightly better overall revenue from higher-priced items over time.
- Observations suggest that buyers of the lower-priced item tend to make impulsive purchases compared to those considering higher-value options who may take longer to decide.
Strategic Decisions Moving Forward
- The speaker concludes that while cheaper products yield more sales volume, they also provide opportunities for upselling. However, more expensive products attract serious buyers willing to invest in quality content.
- Future plans involve additional A/B testing with variations in messaging and pricing strategies aimed at optimizing both customer engagement and revenue generation.
How to Optimize Payment Links and Email Marketing Strategies
Analyzing Payment Link Usage
- Users are redirected to a Google Drive link hosting content, with analytics available for tracking payment link usage.
- The speaker discusses A/B testing two identical $97 payment options by analyzing their performance through the payment link's analytics.
Implementing A/B Testing Strategies
- The concept of the sunk cost fallacy is introduced, explaining how it influences consumer behavior in purchasing decisions.
- The speaker plans to test shorter email versions while keeping one version's price hidden until users reach the Stripe page.
Results from Previous Tests
- After conducting tests, revenue reached $8,300 primarily from selling a Google Drive folder.
- The speaker shares transaction details showing 111 transactions averaging $80 each and mentions donating 10% of revenue to charity.
Transitioning Content to a New Platform
- Content was migrated from Google Drive to a cleaner interface on a platform called "school," enhancing user experience and justifying the purchase price.
- An invitation was sent to previous buyers, resulting in about 25% joining the new community shortly after.
Finalizing Email Marketing Strategy
- Two email versions will be tested: one linking directly to Stripe and another linking to the school community, assessing trust levels between platforms.
- Insights from past A/B tests revealed that including prices in emails significantly improved conversion rates; thus, this strategy will be applied moving forward.
Email Marketing Strategy and A/B Testing Results
Updating Email Links and Segmentation
- The speaker discusses the process of updating email links, replacing old links with a new school link while maintaining the original content due to its high conversion rate.
- Four segments of email subscribers who have previously engaged with "plans of manager pog" are excluded from receiving the same email again to avoid redundancy.
A/B Testing Insights
- The speaker shares results from an A/B test comparing two different payment links: one for a school platform and another for Stripe.
- The email containing the Stripe link outperformed the school link, generating 13 sales compared to 10, despite initial assumptions about the legitimacy of the school platform.
Analyzing Friction in Sales Process
- The speaker identifies friction points in the purchasing process on the school landing page, noting that creating an account adds complexity which may deter potential buyers.
- After consulting Claude (likely an AI or assistant), it is confirmed that less friction leads to higher sales conversions; thus, opting for Stripe is deemed a better choice.
Revenue Tracking and Projections
- Total revenue before sending out emails was $970 from school payments and $10,022 from Stripe payments, leading to nearly $11,000 in total profit so far.
- With approximately 25% of the list having received A/B test emails, there’s an expectation to earn significantly more based on previous performance metrics.
Immediate Sales Response Post Email Launch
- Within just over an hour after sending out a launch email at 9:18 AM, there were 125 sales totaling $12,125 in revenue.
- Combining this with earlier earnings brings total profits close to $23,000 from this business launch initiative.
Forecasting Future Sales
- Based on sales velocity data shared with Claude regarding timestamps of purchases post-email launch, projections suggest around 200 total sales by day's end and potentially up to 300 over five days.
- Plans include follow-up emails to capture additional stragglers while integrating this campaign into ongoing marketing efforts.
How to Generate Significant Profit with a Small Email List
The Power of Small Email Lists
- The speaker generated between $30,000 and $40,000 in net profit throughout the video, emphasizing that success is achievable even without a large email list.
- A smaller email list allows for closer connections with the audience, which can lead to higher engagement compared to larger lists where relevance diminishes.
- An example is provided of the founder of Beehive, who earns $500,000 annually from a much smaller list than the speaker's and only sends one email per week.
- Even with just 2,000 subscribers, it’s possible to generate tens of thousands of dollars each year through strategic offerings like events and high-ticket courses.
High-Ticket Courses: Value vs. Reputation
- High-ticket courses often have a negative reputation due to many failing to deliver on promised value; however, this should not deter those confident in their offerings.
- The speaker encourages course creators to embrace their product if they believe it genuinely helps people succeed by providing valuable content.
- When customers invest in a course, they are more likely to engage with the material and take action towards achieving their goals.