Why most people don’t break even with solo ads

Break Even

There’s two schools of thought when it comes to buying solo ads.

#1 – Get a good sales funnel and expect to make some of your money back quickly using a low ticket front end offer, while banking on getting the rest over the long haul through your email follow up sequence.

#2 -If you’re not making all of your advertising dollars back immediately, don’t waste your time tweaking, because you’ve been sold bad traffic.

I agree with neither.

Both schools of thought are dead wrong.

Truth is…

Most marketers have the wrong idea about what it takes to breakeven with solo ads.

The secret to breaking even and pocketing a huge profit on your solo ads lies in one of the single most overlooked and forgotten elements of your entire business.

The Holy Grail of online marketing – getting traffic and having it pay for itself – is easier than you think. But it’s hard for most marketers to believe because it goes against what they’ve been taught.

It all comes down to executing several key strategies.

Push The Money To The Top Of The Pyramid

One of my whale-clients, an amazing person and a well-known and well-respected leader in our community approached me and he said that his advertising budget got cut by like 60%. That’s a lot. This guy used to buy anywhere from 8,000 to 18,000 clicks per month from me. And suddenly he’s cutting that down to just a couple of thousand each month.

He was forced to cut his advertising budget because of reasons not in his control.

He asked me about other ways of driving traffic which weren’t paid traffic. I told him that that’s the wrong question to ask, because all he needed to do was to change his backend approach. Close more backend sales and create more cash flow.

Imagine your business is a pyramid. It’s wide at the bottom and narrow at the top.

Most people try to collect the money at the bottom. They do so because it’s the lowest hanging fruit.

There’s some money at the bottom. Most of the money is at the top. You have to push money to the top of the pyramid by offering a high ticket backend.

That’s the only way you can ever afford to buy your leads in the marketplace with an ever increasing lead generation costs.

The way you break even and make money with solo ads is not through expecting tons and tons and tons of sales on the frontend.

I often get these clients who reach out to me promoting a $7 information product or something like a WSO or maybe JVZoo product.

They get a quote and they’re like..

Dude, to break even with solo ads I need to make 15 frontend sales. This is never going to work. You need to drop your price!

My response:

No, dude, you’ve just got it all backwards, because you’re the one who needs to build a decent back end.

In the restaurant industry, if the restaurant owner runs an ad in the newspaper, he never breaks even on the very first visit. He doesn’t make money when you respond to the ad by coming in to check out the lunch specials.

The restaurant owner can recoups and makes money on the ad campaign weeks or months later, when you come back the second time, maybe with a friend.

There’s also a great chance of you recommending the place to a friend and him getting a free customer in the next 6 months.

So he’s actually forced to wait at least 90-180 days to break even or make money on the ad.

Most marketers these days, with the internet false-changing the time and results paradigm, can’t wait 90 seconds to breakeven.

So they’re basically playing a losing game.

Build (Or Borrow) A Back End

The only way to break even is by building (or borrowing) a backend.

If you’re promoting your business opportunity choose to partner with the opportunity that has a deep backend.

You’re looking for a product line ranging from low entry item of $27-$97 and a back end graduation model with $497, $997, $1997, $4997 and $9997 products.

Refer just one sale and you’ve quadrupled your margins!

All my successful clients at Igor Solo Ads run such offers. The backend is where they create cash flow which they reinvest back in traffic which is now paid out of their profits, not their pockets.

Because remember, there’s no magic bullets. The formula to creating cash flow is good traffic and high converting offer with a scalable backend. You won’t breakeven selling $7 widgets. High backend margins not only allow you to buy more ads but also gives you much larger error margins. It also puts you ahead of your competitors who can’t buy leads because their funnels don’t produce enough cash flow no matter the traffic source they’re using.

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