I see many businesses struggle with advertising daily in their life. Sometimes, it is the cost, whereas other times, it is a plan. Advertising is an integral part of quality marketing. But, it can also boost your revenue if used properly. Let’s see how I can help you today.
I must admit that when I first came into digital marketing, it was very overwhelming for me. First of all, I couldn’t understand all the jargon. Again, I didn’t know about all these effective sales funnels. Like you, I came up with the self-liquidating funnel through searching.
I found that if used correctly, it can generate massive revenue for you. Today, my topic of discussion will be the self-liquidating funnel and how it can help you grow your business and boost your sales. But before going directly into the funnel part, here is something you need to know first.
What is an SLO or Self-Liquidating Offer?
So, what is a self-liquidating offer or SLO? Well, to understand this, you first have to know what self-liquidating means. Self-liquidating is a term that means generating revenue that would pay your investment. For example, if you have invested $10 in your advertisement, an SLO should be able to repay that investment with the revenue.
Now, for this to succeed, you have to create an entry-level offer to attract leads. This offer should be free or of minimal cost to interest the audiences. While making the offer, your goal should be to generate the return on investment (ROI) as soon as possible. It will help you run your advertisements by reinvesting the money into other ads.
SLOs pop up on your Facebook and Instagram handles and have attractive core offers. For example, you can offer them a free video, pdf, or e-book that may help them. See, this is the crucial part. The self-liquidating offer must carry some value to them. Or they won’t buy or opt for your services.
What is a Self-Liquidating Funnel?
You now probably can guess what a self-liquidating funnel is. It is the funnel that you design to put your SLO. The goal of this funnel is to generate the ROI. It also helps you gain more emails and bring more leads.
The main goal of making the funnel should be generating the revenue that would keep your ads on the run. It not only lowers your advertisement spending but also boosts your sales. The best part is that a self-liquidating funnel is extremely easy to design. You don’t need any expert assistance for the job.
Also, the funnel has a lower chance of failure, if done correctly. With a bit of guidance, anyone can easily design one for their business.
How Does an SLO Funnel Work?
Now you must be curious to know how a self-liquidating funnel works. Well, it is simpler than opening a pouch of potato chips. Let’s understand this through a role-play example. Suppose you are a graphic designer and I am your potential buyer.
I own a website and badly need quality graphic posters that can add to my brand value. Basically, at this point, I am wasting time on Facebook/Instagram scrolling down the feed. It is when your ad pops up and says, “Video Course on How to Design Professional Poster” for only $15. Since I am actually looking for quality posters, I would be keen to try them.
Now, when I click on the ad, it takes me to a landing page where I need to make the payment and provide my email address to get access to the video. When I do so, I get to see the video. If the video is helpful, I would be keen to see more of your content somehow.
This is the point where you have used the Free Video as bait to attract me. Now at the thank you page of your first offer, you can keep something related to the topic as your One-Time Offer (OTO). For example, you can put “Free 100 Graphic Designing Templates for $49.” Provided the OTO has the quality and adds value to my business, I may buy it as well.
Once someone purchases your SLO item, it should generate the revenue and pay for the investment. The OTO item, on the other hand, is your extra revenue or profit. Thus, you get to keep your ads running and generate further leads. As I said earlier, the goal of the self-liquidating funnel is to generate ROI that you can again spend on your ads.
Benefits of Using Self-Liquidating Funnel
So, why should I, or you, use a self-liquidating funnel? It is pretty much evident by now how effective an SLO funnel can be. But, if any of you haven’t got my point, I would love to describe the benefits of a self-liquidating funnel.
- Pays For Your Advertisements
The most significant benefit of using a self-liquidating funnel is that it recovers your investment. Marketing or advertising requires substantial investment. Sometimes, it becomes hard to keep paying that money.
For example, if you have been into affiliate marketing, you would know how it works. First, you sell some product for which you receive a commission, only after the return period is over. The total period for this is around 15-30 days. So, it is quite a long time before you actually get some profit.
But, you have spent on your advertisements, haven’t you? Now, this is where the game begins. You don’t get the supply while you keep paying. Thus, at one point, it becomes hard to keep the ads running.
The thing with a self-liquidating funnel is that it provides you with the initial investment costs to keep your ads on the run. Plus, you can also get some extra income through your upsell or down sells.
- Builds Email List
The next most significant benefit of using an SLO funnel is that it helps you build an email list of the customers. When a potential opts for your service or buys the SLO, you get their email address. Thus, through your offers, you can keep getting leads.
I don’t have to mention separately how much email marketing can be beneficial for any business. You can keep your customers updated about your services and also inform them about the seasonal launches. Moreover, these emails are also helpful to make further connections with your customers.
- Generates Extra Income
Apart from working as a free lead-generating tool, your SLO can also lure customers into buying more. Of course, your part in this will also be judged. But, once you successfully catch a customer’s attention, you can further push him into seeing more. So, apart from getting their email, if they like your OTO or upsell product, you can gain more money through the funnel.
How to Build a Self-Liquidating Funnel
Now that you know almost everything about self-liquidating funnels, it is time to learn how you can make one. Before I start, I would love to remind you again that it is a straightforward task. I have hardly found anyone failing in this. So, don’t be afraid to try but just keep your imagination open.
Follow this step-by-step guide to create an effective SLO funnel.
- Select a Self-Liquidating Offer
Now, this is the first step to creating a self-liquidating funnel. But, again, this is so far the most crucial stage. Remember that the SLO will be the tool to attract your customers. So, you must find something beautiful to allure them.
The primary point is that the offer should have quality and add some value to the potential. For example, Professional Graphic Designer Training Course for a $15 bid can interest people looking for branding.
Remember, the SLO should ignite the craving to know more about your customers.
- Add Order Bump
Now before going directly to the purchase page, you may add an order bump to the list. So, what is an order bump? It is a discounted product having high value in the market. But, you offer it for a lower price. For example, along with your SLO product, you can add 300 Designer Templates for $37.
Now the person interested in branding may consider this generous offer and buy this, provided it has a higher value in the market. You can actually portray this as an OTO or One Time Offer. It encourages FOMO in your customers and prompts them to make a decision.
- Add Upsell
If your customer opts for the OTO, you now may show them one of your high-budget products. If your customer is interested, they may buy it using just their credit card number. It is called an OCU or One-Click Upsell product. You can add multiple OCU offers on the list; however, I would recommend keeping it to just two.
You might also like: What is Tripwire Funnel?
The self-liquidating offer would be the first offer for many of your customers. So, you must keep high-quality products on a self-liquidating funnel to earn trust. The funnel not only helps you recover the ad investment but also brings you a solid email base. It is your responsibility to nurture these connections to spread business further.