Why copying Disney's paid ads model is a fools path

A few years ago The Aussie Hermit visited Disney Land in Hong Kong.

And, to say I was impressed would be an understatement.

Not so much because of the rides.

They were pretty average.

But because how the park was such a well-oiled sales machine.

Take one step inside and you can tell it was designed for one thing and one thing only:

Suck as much money out of the guests as possible while they're in the park.

Seriously.

I couldn't walk 20 feet without bumping into a merchandise stand, a food stand or some other stand trying to sell me stuff.

(I think I had about 16 churros that day)

But what I particularly loved was how they “funneled” you through the gift stores as you exit the rides.

I’ll say that again…

The exit of each ride is literally a gift store.

It's brilliant.

And I bet they must make an absolutely fortune.

Here’s why I tell this story, though…

People think Disney Land makes their money with ticket sales because they’re so expensive. But that's not true.

The truth is, ticket sales are used to pay for the advertising to simply get people to the park. The real profit is made once you're there and they've got a whole day to sell you all their crap.

And it's the exact same model McDonald's use, your local Cinema uses, and even many gurus teach to run your ads.

Basically it goes like this…

Sell a low ticket product (via a webinar, VSL or sales page) to “get customers in the door,” and use the customer revenue to pay for your ads.

Then once they’re on your list, you can turn them into a client.

Sounds great in theory, but here’s where it breaks down…

Because ad costs have risen so much over the last few years, in order to just make your money back from your ad spend your campaigns have to be amazing.

I know, I’ve run (and continue to run) campaigns like this for clients every day.

You would be surprised how many big names in the industry don’t actually make their money back from the low ticket funnels.

Often, they’re in the red for 30 days (and sometimes longer) before they break even.
They can do this because when you’re earning 7 and 8-figures you have better cash flow

Coaches with low cash flow don’t have this luxury.

They need to make money from their ads from day one.

And that’s why I say this model of using a low ticket funnel to pay for your ads/get clients is a fools path.

Let me give you an example of some numbers…

Let’s say you have a $10 book product you want to sell with a few up sells.

Well, I can tell you if your marketing is good (that’s if) - your sales page will typically convert between 5% to 10% (for this argument, let’s pretend it’s 10%. I’ll be generous).

Further, your “Average Order Value” (the amount a customer pays on average after going through your funnel/up sells) will be between $15 to $25. But again, let’s pretend your funnel is amazing and it’s actually $40.

Finally, in terms of the advertising cost, to get one person to “click” over to that sales page will be about $5 (often more). And so if we know these numbers, we can do some simple math…

Spend $100 ads = 20 clicks.

If 10% of those clicks buy, it means you’ll have 2 customers.

And if each customer is worth $40, it means you’ve made $80.

A $20 loss.

Keep in mind - the numbers I gave for that low ticket funnel are very good.

99.9% of Coaches I have seen try to use these funnels don’t get anywhere near those numbers because they’re not a marketing expert.

And so they’re making a much bigger loss.

Moreover…

A budget of $100/day will get you a paltry 2 customers (or 2 new people on your list).

So that means you need to spend $1,000/day to just get 20 new people on your list.

And again - that’s if you have a good funnel with great copy.

So you can see, low ticket funnels aren’t all they’re cracked up to be.

Sure, they’re great when they work.

But for the unseasoned Coach?

They rarely work.

Here’s the funny thing though…

After the guru teaches us the low ticket funnel (which takes months and months to set up), we ask…

“When do we get some clients?”

And that’s when they respond…

“You turn your low ticket customers into clients!”

“You mean the 2 people I’m getting on my list per day? How?”

“By using email follow up!”

And that’s when The Aussie Hermit gets up from his desk, sprints down the hallway and dives head first off my balcony into the concrete below.

Here’s why…

If we Coaches want high paying clients, and we’re being told to use email after the complex funnel to get those high paying clients…

Why not just skip the complex funnel and simply…

1. Build your list with a simple lead magnet, and…
2. Sell that list a high ticket offer?

News flash: We can!

You don’t need anything more sophisticated than that to create a very profitable campaign.

Of course, if you’re into the complex stuff, fair enough.

I say good luck to you.

For me though, I’m keeping things simple.

And if you’re of similar mind, then maybe it’s time to give The Aussie Hermit’s client-gettin’ program a try?

Here’s the deal:

I have program called The 15 Minute Client.

And inside I show you…

—> How to get clear on your market…
—> How to craft your offer…
—> How to launch your automatic list building campaign using a simple lead magnet…
—> How to email that list each day with a valuable email and an offer to work with you, and…
—> How to close your “pre-sold” prospects into your program using a simple “Q&A” sales script.

Along with that, I coach you through every step.

Meaning…

I review every single one of your major marketing assets along each of those steps so you know you’re on track throughout the program.

And so you have the best chance of making your campaigns convert right out of the gate.

To know when spots open next, put your name on the waitlist here:

https://The15MinuteClientWaitlist.com

-Luke Charlton
The Man Cave, Canberra