– Today we are gonna go behind the scenes to a million dollar sales process where literally over a million dollars was generated by giving away free stuff. Yes, you’ll be able to utilize this for any type of product, whether it’s a physical product, whether it’s a digital product, whether you wanna sell membership sites whether you wanna sell coaching, whether you are on an agency, whether you wanna sell service. Even if you are a total new beginner, you’re gonna understand the fundamentals of what makes a profitable business by showing you my understanding how you can literally give stuff away for free and yet be extremely profitable, are you ready? Let’s begin.
In order to understand how we did over a million dollars by giving stuff away for free, I first need to take you on a quick journey of this model and how this model came about.
When the internet kind of first started, it’s very common for somebody who say wanted to sell a $7 product to create and sell this product at say $4 plus $3 shipping. And then Amazon happened and Amazon kind of disrupted the entire thing by introducing free shipping. And because of this free shipping, everybody was really used to paying for stuff and getting free shipping. Because of this, it disrupted the entire industry and free shipping was a term that wasn’t really special anymore. And then marketers spoil everything, they are extremely innovative.
And one of the models that I adopted was free product, just cover shipping. I’ve actually tested all three models and hands down by some weird psychological factor, this was the winner.
When you understand the numbers, when you understand the strategy, when you understand the thought process as well as the execution. And by understanding these principles, you’re gonna avoid years and years and years of frustration. And I so wish when I started out, somebody would have created this video to explain these principles that you’re about to discover.
So let’s go back to the screen right now, and I’m gonna show you first of all, what actually happened here. There are a lot of funnel steps in here, but let me just kind of zoom in a little bit and show you exactly how these steps look like. The first three main steps. There’s a lot of people on social media saying, there’s no way this thing’s real when they see these big numbers, they can’t comprehend it.
So, you know what?
I’m just gonna refresh this once so that you can see that this thing is happening in real time. This isn’t some photoshop magic and it looks like it’s taking a while because I don’t know, perhaps the numbers and the data is pretty big. Okay, so there we go. So now I’d like you to take a look at the numbers. I’m gonna take you behind the scenes to the exact pages, to the exact assets, the materials that we use and you’re gonna see that over here, I started off with Free Book and OTO1 stands for One Time Offer one, OTO2 stands for One Time Offer two, which is an upsell.
So think of it as like going to McDonald’s and the staff being trained to ask you, would you like fries with that? Would you like to supersize it? And then after that they get your order. So what you’re gonna see in a second is reflected over here. Free Book, upsell one, upsell two, order confirmation, and it all begins through this sales process.
So this is a book, I’ve got a lot of different free plus shipping funnels. Many of them are a million dollar funnels, this is one of them. And if you take a look at the psychology and the offer.
Let’s go through the offer first because in order to understand how you can model this and execute this, you need to understand principles. So notice what this book says.
I start off with the idea or the concept. I’m saying, so what do all these marketers have in common? So whether it’s Gary V, whether it’s Tony Robbins, whether it’s Brendon Burchard, Russell Bronson, Grant Cardone, I say that they all have the ability to put content out there, deliver it in a systematic way and monetize. And then I say, look, this book right here, in fact, I have it over here, and all I do is I publish a video, just like what I’m doing right now, I put in a process to automate it so that it goes onto blog posts, Facebook, Instagram stories. And then I have a strategy on monetizing and this strategy has worked really well for me and I would like to be able to share with you how to do it.
So notice what I did? The concept, the idea, gave them a solution. And then I talked about how, when I first shared this, it was an event called Funnel Hacking Live.
I said that the book is free and I charged 7.95 if a person lives in the US ’cause I do print this in the US and 1495 anywhere else in the world.
So if the person stays in Nigeria, South Africa, Malaysia, Singapore, it’s 14.95 worldwide. Notice what’s happening right now. When I start to promoting this, here’s what most people who don’t understand would say, they would say, well, clearly this guy is making money off shipping because it doesn’t cost $7 and 95 cents to ship a book.
But here’s the thing.
This book is 200 plus pages, it’s pretty big and it’s all fully colored. And the cost of printing this book is actually pretty significant, it’s about $8. So all in all, here’s what I’m trying to get you to see. That on the front end, I actually don’t make money even though people think that I do. If I were to ship this to somebody that lives in South Africa, it does cost me about $10.
So give or take, I barely break even when I give this book away for free because shipping, printing, fulfillment, all of that handling, it is a real cost. But I’d like you to notice what happens. After people claim this book for free, so this is data from the first 1.1 million or so, right? And you can see that out of 348,000 people that visited 50,000 people gave me the name and email of which 13,000 people bought this, which is about 3.
82 conversion. Now I mentioned one thing again, if I were to kind of do a drop down menu over here, you can see that there’s domestic and international shipping.
You can see that the breakdown over here is that some people are living in the US, the rest is from the rest of the world. But notice that on this step here, the $321,000, I don’t actually make money here, but I like you to notice what happens. Because I have a sales process with an upsell, I offer them this thing that says, wait, would you like to be able to get my full masterclass where I give you the assets and the scripts and the templates and all of these other stuff that will help you accelerate and get results faster?
If so, it’s a $297 upgrade. Now, here’s what happens, again, full transparency. Out of the 13,000 people, let me just collapse this for a second, about 9% of people would get this $297 offer. Now, this is a glimpse of where I start to make significant profits. But even then, what if I told you that that’s really not where the bulk of the sale is?
The sales that is truly profitable is on the third step, the upsell number two. Now, what is upsell number two? Now, basically on this page that you’re about to see, what if I told you that this is the majority of where true recurring passive income is? So on this page, you’ll see that what it says is congratulations for ordering this book.
You’re gonna absolutely love it.
Now that you understand the process, you have three different options. You can go down and do it yourself, you can hand it off to the assistant or you can let us do the heavy lifting for you. And what if every single month I will send you an ad of the month that you can utilize and monetize straightaway? What if I gave you the different assets, the borders, the viral images, the swipe up templates? And notice that I say I have got two price points.
The price points is you can start for free now and then it’s $97 a month or you can skip the trial and now it’s $897 a year. Here’s one you start seeing. What have I told you that the thing that I really wanna sell is actually this $97 recurring a month and that I have actually zero interests to sell this thing right here? So what am I doing? I am utilizing the thing, which is this to sell the thing that I really wanna sell.
Now, let me ask you this. Do you think that is an easy or tough sale? If I led a conversation with a Facebook ad saying, hey, everybody, my name’s Peng Joon. Let me teach you social media for $97 a month, what do you think a person’s initial reaction would be if they don’t know who I am and what it is they do if they’ve never consumed my content in the past? They’ll be like, who’s this guy?
This guy’s crazy. But what am I doing right now? Taking the thing, which is low risk for someone where I barely break even because of all of my costs incurred, but I make the profit on the upsell number one but the real long term recurring passive income on my upsell number two and that’s it.
Sure, there could be a deeper sales process after. It doesn’t take into account where now we have built a huge list as well, of about 50,000 people, where if I continue to nurture that list, that relationship, there could be a point where they will eventually buy when the time is right.
You see whether you wanna sell a high ticket recurring, a service, consulting, what if you could utilize the thing to sell the thing that you really wanna sell? So let’s say you are selling insurance. If your end game is selling insurance, what if you could start off by leading the conversation with a very simple product that says the five step process to securing your financial future. And one of the steps, maybe in step three, one of those steps is in buying insurance, right? And what if they could claim this book and again, you barely break even just to cover your cost, but you make money on your upsell or on the thing that you really wanna sell.
So what if they audit the book and in the members area, you’re coming from the angle of, hey there its Peng Joon here.
I wanna thank you for placing your order on “Five Steps to Secure Your Financial Future.” And I know that you’re absolutely gonna love this book, but depending on where you live this might take one or two weeks to arrive, so let’s start your training right now. Now in this book, you’re gonna discover, I gave you five steps and one most important steps, which is step number three, is really in securing and protecting yourself. And one of the things I always talk about is that most people, when they look at something that happens in life, something like death, most people think about death or an accident or something horrible as what if?
Most people look at death as what if.
But what if I told you that death is not about what if but it’s a matter of when. Have you ever thought about that? And that one day will come and I don’t mean to sound dark, but have you ever thought about protecting yourself when that actually happens and protecting your loved ones and your family? And if you are looking for somebody with a done for you solution, click on this link to apply, we’ll get on a strategy call to come up with a customized plan for you.
So notice what I’m showing you here, because this is the most common thing you will tell me, how do I utilize free plus shipping if I am in industry? This is not about books. You might think this doesn’t apply to me because I’m not an author. This is not about books. You could be in beauty and what is your free thing that you gave away was a free makeup brush that you sourced from Alibaba or AliExpress for 73 cents, where you gave it away for free, and people just need to cover shipping and then after that you sell them the makeup course, and then you sell them the full makeup thing, where you use the brush as the thing to sell the thing that you really wanna sell, does that make sense?
So as we head back over to these numbers over here and start showing you the applications, here’s where it really becomes powerful.
By the way, guys, before I show you this, if you like what it is that I’m showing you right now, let me know in the comments, what your biggest takeaway is, be sure to smash the like button. It does help the algorithm out a little bit and make sure you subscribe for future videos like this one. Let me know if you enjoy seeing behind the scenes, the numbers. But let’s talk about some of the numbers over here.
Remember this OTO2, remember there’s the Done For You Monthly plan. So here’s where the real power is. In 1,300 people on a $97 per month plan or rather 1200 people on a $97 per month plan and 71 people on $897 per year plan. This number that you see on top over here does not include the recurring subscription, $97 per month.
So that means on the second month, third month, fifth month, 15th month when they renew, the software doesn’t take into account the recurring.
It only takes into account the front end. So these are just front end sales. So to my point over here, can you imagine this amount? And of course there are dropouts, there is this thing called churn rate where there’s a small percentage of people drop out. But here’s the power that I’d like you to start noticing right now and it’s basically this.
Most businesses, why do they require investors or funding or VC money or seed money? It is because for most businesses, it actually costs money to acquire user and it costs money to acquire a buyer, it costs money to acquire a trial and that why we Silicon Valley companies constantly trying to raise capital.
But what about people like you and me who need to pay our credit card bills at the end of the month? We need to do things differently. So the way to do things differently is to swap things around.
So notice what’s happening right now. I am actually getting paid to acquire a user into my $97 recurring a month. Can you see how powerful that is? So rather than paying to acquire a user, I’m now getting paid to acquire user. And if you also, if you like this process, you know what?
In this YouTube description link below, I’m gonna add in a share funnel of this exact three plus shipping funnel so that you’ll be able to model, fill in the blanks and utilize it for your market, your industry, your niche. But understand something, this is not a funnel that I think works well, it is literally a million dollar funnel.
So if you wanna have that funnel, go check it out. But that’s pretty much it. This is behind the scenes to a million dollar funnel.
One last thing, average cart value, what does this mean? This means that on average, this is how much a customer is worth to me every time they go through this process. Every time I give something away for free, which happens to this book here, I actually make $86. Wouldn’t you agree that’s probably a pretty solid business model? How would you like to be able to make $50 every time you give away something for free?
Guys let me know your biggest takeaway. I hope you enjoyed this video, but most importantly, I actually hope you implement.
This is a funnel that’s worked very well for me. Go ahead and download this same exact funnel that I’ve left for you, implement, and I’ll see you in the next video..