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[TEST] Give your product away for FREE and make more $$$?

Discussion in 'Making Money' started by netmoney1, Dec 18, 2012.

  1. netmoney1

    netmoney1 Executive VIP

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    Ok, so I played with something last month and what I found was pretty cool so I figured I would share the information as it may give some people some ideas.

    I have an electronic download product in a niche that isn't that competitive and has a super low CPC. Typically I can make an extra $1,200 - $1,800 a month but it was getting to be a pain in the ass - because of customer support, etc. So that profit number should actually be lower as my time is worth more. This revenue is from the actual product and then money earned on an exit offer (a CPA offer). Anyway, I began to think of other ways to make this work and bring in $$ with NO WORK (support system, etc)

    Before I get into too much detail lets look at the details from October 16th - November 15th:

    [​IMG]

    My product sells for $97 and we did 22 sales.Those 22 sales brought in $2,134 and it cost me $761.67 in clicks (31 cents per) - The conversion rate is VERY low - but I really never tweaked it because it still brought in a profit. What is great about this is that the CPC has been 31 cents from the beginning and never changes. Sometimes it averages out to be as low as 28 cents...but overall 31 cents is where it will be at 99 times out of 100!

    Only 6 backend CPA offers, but still it is a 27% conversion which is AWESOME (I think at least)

    So, about $1,500 after the click expense...then my time and energy to maintain the support, etc.

    Now...

    I decided to try something different last month...GIVE THE PRODUCT AWAY FOR FREE! (and eliminating the support, etc) - and just hope the backend CPA offer converts.

    Here are the results:

    [​IMG]

    I decided to use the profits from the month prior and drive as much traffic with that $1,500 as possible!

    I will let the numbers speak for themselves...but it is basically the same amount of profit but eliminating ANY extra work. No support ticket system, nothing.

    Next I am going to set up many different sites. Test different price points. Imagine if I sold that many at just $9...that would be an extra $5,000! But maybe the backend conversions wouldn't be as high. maybe they are taking that offer because they didn't have to spend money to get the original product.

    Anyway...just goes to show you that there are ENDLESS ways to test!

    This may not interest many...but I like this type of data...
     
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  2. sovereign

    sovereign Jr. VIP Jr. VIP Premium Member

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    Well done definitely interesting

    Not only did you make the same amount of money but collected a lot more emails in the process definitely the better way to do it
     
  3. netmoney1

    netmoney1 Executive VIP

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    Exactly! Forgot to even mention that! Way more emails and a customer base to market other CPA offers to.
     
  4. Joozed

    Joozed Jr. VIP Jr. VIP Premium Member

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    Hi netmoney,

    Very interesting study and do keep us posted on future progress of the testing. I think giving products away for free can bring in huge value in other ways. What I was wondering is if you have ever stumbled across a platform that makes it easy to give away digital products without having to build your own site and pay for CPC. I wish there was a central resource or social platform that executed giving away free stuff well. Its amazing that nothing like that substantial has ever been created.
     
  5. netmoney1

    netmoney1 Executive VIP

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    I think it is important that you host and distribute your own product...that way you control everything and can capture the details (email/name) of the consumer that is downloading the product. It is really the only way to ensure that you retain their info. Why allow someone else to profit off your consumer list. Keep it all in house for sure!
     
  6. pilotedprofits

    pilotedprofits Newbie

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    From my experience in the field I've found that content marketing and 'freebies' or 'leaks' of products tend to generate a much higher amount of interest from an audience who wouldn't have been interested otherwise. Especially being that the backend offer is CPA which typically targets the unsuspecting end-user with 'freebies' with an intent of making backend/impulse sales.

    With that being said, I think you just defragmented the true potential behind your offer. Maybe you should try your hand at advertising via CPA? :)

    Keep it up buddy!
     
  7. tajmahal

    tajmahal Regular Member

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    @ op ... care to explain which platform did you used to sell -give away for free your product?
     
  8. netmoney1

    netmoney1 Executive VIP

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    Appreciate the feedback!

    Not really sure what you are asking...

    Selling it: had the shopping cart enabled and linked to my merchant account..once the transaction is completed they are redirected to the exit offer

    Giving it away free: just made it available for instant download once their name/email was captured...then they are directed to the exit offer
     
  9. KraftyKyle

    KraftyKyle Jr. Executive VIP Jr. VIP Premium Member

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    Really great thread OP. Just goes to show you that some times thinking a little bit outside the box, or just thinking on a different side of the box can really go a long way in boosting revenue. It's slight improvements that will really make your revenues skyrocket. Keep testing and keep up the good work.
     
  10. netmoney1

    netmoney1 Executive VIP

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    Thank you! It is the little tweaks and improvements that can really lead to bigger opportunities. Also you can learn from one and use information gained on future projects. It is a ongoing education...
     
  11. mointernet

    mointernet Regular Member

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    nice... would like to know which PPC network you are using to generate the conversions?

    extra tip: you may like to incorporate co-bundles (Pay Per Install) from big brand advertisers (Babylon, MSN Search etc...) into your free software to monetize even more deeper. PM me if you wanna know more.
     
  12. twohkz

    twohkz Regular Member

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    Really great thread OP, you give me some nice idea to test !

    how you drive traffic ? Adwords ? Organic ?
     
  13. netmoney1

    netmoney1 Executive VIP

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    Sorry, I keep this PPC network to myself lol

    Thanks!

    PPC traffic
     
  14. netmoney1

    netmoney1 Executive VIP

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    UPDATE:

    Woke up to a ton of PM's. Just to make a few things clear:

    This is meant to provide people with ideas. Not to spoon feed. So please do not ask to see the site, the cpa offer, what ppc network and keywords, etc.

    Got a PM that said "Hi. Please send me your page so I can copy it"

    LOL!!!!! Are you kidding me?!?!
     
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  15. futurestunner

    futurestunner BANNED BANNED

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    Sorry for nob question from me, but whats exactly "exit offer" is?
     
  16. netmoney1

    netmoney1 Executive VIP

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    Serious or are you joking?

    An exit offer is something presented to your visitor after a action is performed (form submit or a completed sale, etc) - it can be set up many different ways...it is placing a similar or related offer right in front of their eyes while they are in the "buying" mode...good way to double up and generate extra income (with the right offer of course)
     
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  17. Paper-Boy

    Paper-Boy Elite Member

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    ^^ or similar to OTO's right after you purchase a WSO ;)

    lol.
     
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  18. netmoney1

    netmoney1 Executive VIP

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    LOL...WSO's have a million redirects and pop ups....usually 99.9999% CRAP lol
     
  19. Bestbuyfoam

    Bestbuyfoam Jr. VIP Jr. VIP Premium Member

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    Looks like a solid method and very detailed post. Thanks!