I was talking with Jeremy Reeves recently about the power of subscriptions.

During our conversation, I wrote out a pretty cool breakdown…

And I figured I’d share it with my blog readers too.

What you’re about to read is in reference to a health supplement funnel…

But the same concept can be applied to pretty much anything you’re selling.

Check it out and enjoy 🙂

When it comes to subscription revenue, here’s what I did in the past:

1. The checkout is your standard one, where they have the option to get 1, 3, or 6 bottles.
2. On that checkout page, you give them the option to subscribe and get a 10% discount.
3. When giving them that option, you explain clearly that they are enrolling in an auto-ship, and that they can cancel anytime.

When my health company did this in the past, we’d get about a 20% take rate for the subscription.

For those who subscribed…

We would not show them a 6 bottle “stock up” up-sell or a 3 bottle “last chance” down-sell…

Instead, we’d take them straight to cross-sell pages, where we sell them different products.

Now when it comes to the details of subscription billing and how it was executed, here’s what we did:

When the customer’s is rebilled is dependent upon how many bottles they took.

So if they took 6 bottles, then they get rebilled towards the end of month 6.

And here’s the SUPER IMPORTANT part:

Before the customer gets rebilled for the first time…

I would have my team send them an email AND call them…

To confirm they were good with getting rebilled.

We found that about 50% of people were good with the rebill…

But of those 50%, they tended to stick with us for a very long time after (aka, multiple rebill cycles).

And now let’s get to the fun part, where we do the math on this:

Say you’re doing 100 sales a day, total.

That means 20 people are subscribing per day (20% of people check the box).

Out of that, let’s say:

• 50% of those people take your 6-month option
• 30% take your 3-month option
• 20% take your 1-month option.

We know that half (10) of those people who subscribe will actually rebill.

So, this means that each day you’re getting:

• 5 people who are going to rebill at a 6 bottle package (let’s call it $240 in rev per person, per rebill)
• 3 people who are going to rebill at your 3 bottle package (let’s call it $120 in rev per person, per rebill)
• 2 people who are going to rebill at your 1 bottle package (let’s call it $59 in rev per person, per rebill).

That’s an extra $1,678 in expected revenue you’ll get from those customers on their FIRST billing cycle.

Realistically though, most of them will rebill more than once.

And, here’s the crazy part…

Even if they only rebill two times – we double the future expected revenue to $3,356.  

As in you’re generating an extra $3,356 in expected revenue PER DAY.

Every day that you do 100 sales, and add 20 new subscribers…

That’s another $3,356 you can expect to collect in the next year (realistically it will be a lot more).

The math on this is pretty simple:

No matter if they are rebilled every 1-month, 3-months, or 6-months…

If we assume two re-billing cycles…

That means they’ll be rebilled twice in the next year.

Additional Expected Revenue Per day = $3,356….

365 Days in a Year…

That’s $1,224,940 in extra revenue you are generating…

And it’s coming from just TEN customers per day!!!

Talk about the 80/20 Rule in Action (or in this case 90/10).

Plus, don’t forget…

You’re not having to pay a CPA when these customers rebill in the future.

So your costs are very modest.

At most maybe $200,000 – but probably it’s a lot lower than that.

All of which is to say that subscriptions are one of the fastest ways to become a millionaire.

A couple more notes on this:

1. I’m sure other people are better with subscription than me, but this is what I’ve done.
2. We were super transparent about our rebills when we used this model in the past, and our chargebacks did not increase AT ALL. They stayed below 1% on average.
3. No joke, I still have customers from 2017 who are on rebill today 🙂
4. Extrapolate this out to 1,000 front ends a day. Suddenly it’s $12,249,400 in additional revenue you’re getting. Realistically, your profit margin on this is probably 80% too. So you’re looking at close to $10MM in additional profit PER YEAR. That’s how you become a centimillionaire within a decade.

Pretty dope, right?

And if you’ve ever noticed that Justin and I spend a lot of time talking about the importance of getting your offer to scale on cold traffic…

That’s why.

100 sales a day can be life-changing…

1,000 sales a day can make you rich beyond your wildest dreams…

It’s that simple.

– SPG

P.S. If you know someone who would find value in blog posts like this one, feel free to share. Also, they can apply to join my list using this link here.

The post How 10 Customers a Day Can Make You a Millionaire In a Year first appeared on Stefan Georgi.

A/B Test Win #1

For that new offer I have, the one that that paid for the PJ…

We had a large mailer who asked us to alter the headline and lead, so it better matched their list demo. ✅

Specifically:

Their list loves quizzes…

The sales letter for our offer includes a “5 Second At-Home Test”… 🕙

So, the mailer suggested that we move the at-home-test up higher in the lead…

And feature it more prominently in the headline.

Well, that’s what we did…

I revised the headline to make the At Home Test the first bullet following the headline… 👨‍💻

Then, I moved the test up to around the third page of the sales letter (prior it was on the 12^th page or so).

The result: A 57% increase in conversions.

Not too shabby for about 5 minutes of work.

A/B Test Win #2

A while back I wrote a sales letter for a very large brand in the health/fitness space (9 figures). I also delivered it to them with two variants of the lead (I’ve written about giving your clients multiple variants and going above and beyond before btw, and as you can see I practice what I preach).

Their target metric was a 1% conversion rate on cold traffic on Facebook – that was the magic number where they could scale to the moon.

Might not sound that hard, but it’s a difficult and saturated category…

And, despite having tested countless internal variants of their “control” for a year plus, and hiring other writers to also try and hit that metric…

Nobody had been able to do it.

Well, guess what?

At first it looked like maybe I wouldn’t be able to do it either.

The first variant that I gave them sucked. It didn’t even beat their underwhelming control.

So, thank goodness I gave them a second variant too.

Here’s what was different in the second variant I provided them with…

It had an alternative headline + a modified lead.

Total, 700 words were changed in V2 when compared to V1.

The VSL is about 8,800 words long in total…

So, this means in V2 I changed 7.9% of the sales copy…

But left 92.1% of it the same.

Not a huge amount of work there honestly, but guess what…

Over 4,000+ sales now…

V2 not only converts ~97% better than V1 did…

This second variant has also hit and stayed at the 1% threshold my client needed to scale.

Which is the first time it’s happened for this product – previously this metric was like his “white whale”…

And obviously my client and his team are thrilled.

In fact, they’re now asking to hire me to do another sales letter for them…

And it’s been really fun for me to see this offer popping up all Facebook (cause yep, it can run on FB) and other traffic sources.

Split Test Specifics:

I went over the first split-test win in some detail during our weekly training call with our Copy Accelerator Mastermind Members…

And I shared with you guys in this post what we did in general (altered the headline and moved the at-home test up).

I’ll be going over the details of this second split-test win with our Copy Accelerator Members next week…

But, it’s not fair to my client if I share too many of the details of this second A/B win here.

With that being said though, I’m also not going to leave you guys hanging…

So I’ll let you know that apart from testing a different headline…

Two of the biggest changes I made between V1 and V2 are as follows:

1. I added credibility and proof elements to the very beginning, the first line of the lead (along with the headline) and then kept hammering them multiple times (Harvard, John’s Hopkins, etc).

2. I renamed the mechanism. I didn’t give away the whole mechanism in the lead (I never do that), but I did tease it in the lead. And in V2 I gave this mechanism an ultra-sexy name that it was lacking in V1.

Final Thoughts + The Main Takeaway From This Post:

Split-test headlines and leads. Again, and again, and again. It sounds obvious, but so often I see people put out an offer, it does okay, and they just leave it at that.

If you wrote something that’s not where it needs to be, stay calm. You don’t need to rewrite everything. It doesn’t mean you suck and your copywriting career is over. It can be fixed. The first step is always testing new headlines and new leads. These tests will almost ALWAYS move the needle way more than any other tests you can do.

And for those of you who do client work – this advice is even more valuable. I’ve said it before and I’ll say it again: give your clients some options. Give them a few variants to play with/test/etc.

The hands-down easiest way to get repeat, high-paying clients is to provide them with winners. And the fastest way to get them winners is by giving them variants they can test.

Hope this post is valuable to you guys ☺

– SPG

P.S. This post originally came from an email I sent to my private list. If you want to see more stuff like this from me, you can apply to join my list using this link.

The post Two A/B Test Wins + The Easiest Way To Get Repeat Clients first appeared on Stefan Georgi.