Making money is a numbers game. And as a business owner, you have to be comfortable around numbers. Numbers play a crucial part of your business. It's a common mistake of beginner entrepreneurs to not pay attention to their businesses' numbers. And as entrepreneurs - no matter at what stage - we want to think big, don’t we? Do you think there are any Fortune 500 CEOs out there not knowing the financial drivers of their business? Me neither!
And today we aren’t talking about revenue numbers per se … we are breaking down launches, looking into statistics and challenging how you come up with your revenue goals.
What kind of traffic do you need when running a webinar funnel? How are your sales conversions doing? Your email opening rates?
We did a whole podcast episode about this (check it out HERE) but thought it would be great to summarize the key learnings in this post as well … especially because we’ll be dropping some numbers at you!
Let’s dive deep into an example.
Assuming you want to sell your course that costs $479 and you want to make $5k a month simply by selling this course. Easy calculation reveals that you need 10.4 sales, let's round it down to 10.
So how do you get these 10 sales? An even more important question - how can you get 10 sales every month - because at some point, you will exhaust your current audience, that's why you need to turn to a new audience.
Let’s say you decide to run Facebook ads and in order to sell your course you are giving a free workshop once a month and at the end you pitch your course. This is what we’d call a classic webinar funnel.
This funnel is set up the following: New person sees your facebook ad, likes what you are saying, clicks on your webinar registration (aka landing) page, registers, sees your thank you page, gets an email confirmation, gets some more highly targeted, extremely valuable emails from you before the webinar starts, joins the webinar live, buys your course.
Looking into some example statistics behind this:
- assuming 40% of your webinar registrants are going to make it to your webinar live.
- assuming 40% more registrants watch the replay while you are still promoting your course meaning that in total 80% of the registrants watched the webinar.
- 3% of people seeing the webinar will purchase your product.
Let's say 100 people registered. What if you set yourself up to get 10 sales? You might be disappointed with this as you are blinded by your own goal and think that this is a failure.
100 x 80% = 80 watched the webinar out of which 3 people bought.
In reality, this would have been a successful webinar. Because 3 people bought and with the above mentioned calculation it would have been 2.4.
80 x 3% = 2.4 sales
Of course with this webinar funnel, the more you put in at the top the more can come down at the bottom - and with that we are obviously talking fresh leads, new people.
Backing up one step further because it isn’t only about people registering, it’s about people even seeing your ad in the first place. Note that:
A) not everyone who sees the ad will click on the link, and
B) not everyone who clicks on the link will give you their email address and sign up.
For example, your registration page (the landing page) converts at 30%. Now putting all of this together, let’s calculate backwards that in order to get 10 people to buy your course every month what needs to happen based on the numbers we just mentioned:
334 people need to watch the webinar (either live or the replay) assuming a buyer’s conversion of 3%. Furthermore assuming that given the time frame in which you run your offer 80% of the registrants watch the webinar you’ll need 417 people to sign up.
GOAL = 10 people to sign up
10 = 3% x 334 people who should watch
334 = 80% x 417 people who register
That means with a landing page conversion of 30%, you want 1390 people to view your landing page.
417 = 30% conversion x 1390 people to view your landing page
Track your numbers when you check your calculations. You can adjust the calculations depending on whether you for example master a topic or get really good at something. A very effective landing page which converts 60% instead of 30%, with 1390 people seeing the page and assuming the other inputs stay the same, will get 20 sales. Or if your goal is still the 10 sales, you'll only need 695 people to see your registration page.
There are 2 important lessons from the above example:
1. Don’t go in with completely wrong expectations and completely being blind to any kind of industry averages.
2. When you look at the whole funnel, there are so many forks in the road where you can optimize, turn averages around when you master different steps.
Let's move into an even bigger picture view, taking the webinar example as our foundation.
For this, let's say your goal is to hit $10K a month.
You are already selling 10 courses at $479, making roughly $5k a month with these webinars.
Let’s get some more assumptions down to create your 6 figure business here. In addition to the course, you sell a VIP 1on1 coaching package where you charge $1000 a month. Simple math reveals that in order to hit your remaining $5k you need to sign 5 clients in any given month.
You let interested people fill out a survey to make sure they are a good fit. You hop on the phone with them to discuss your program. Maybe you aren’t extremely experienced yet with sales calls and out of the pre-qualified people you are talking to, you close 40%, meaning 40% buy your $1k a month program. This means that in order to sign 5 clients, you need to speak to 12.5 people every month.
And I know everyone loves a ‘behind the scenes’ view, so here is mine. I recently hosted the first "How to find and hire a VA for $4/ hour" (you can still sign up for this training right HERE) .
We did a trial run without running ads, so people who signed up saw it through my social media accounts.
The numbers looked like this:
284 - people who viewed the landing page
142 - registered for the webinar (39% conversion rate)
30 - watched the webinar live (20%)
40 - watched the replay (30%)
70 total people who watched (50%)
Expected sales - 3% of 70 people - 2 sales
Actual - 14 sales (Conversion rate of 20%)
This is a great success considering all the factors and averages.
You got to understand the following: Don't beat yourself up if you only know half the picture. Always make sure that your goal is at least not completely off any known industry averages, otherwise you’ll get a completely distorted picture. It takes practice to effectively use these numbers to build a successful business.
Allow yourself to be a little playful here. Even though you might normally be scared of numbers, I’ve given you some solid examples here of what your conversions you might be looking like. You’ll get better the more you master a topic. There more you try so never give up because it apparently didn’t work the way you wanted the first few tries!
Sick of constantly creating content in your business? Ready to scale in a new way? Well how does creating a passive income funnel that brings in $5k every month sound? Ideal, doesn’t it! Let me teach you how in our free workshop.