Want to earn a passive income whilst sipping a pina colada pool-side? She takes you through the ins and outs of what you need to consider... from what tech to use... to what price points works... to how to promote your passive income funnel.
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TUNE IN TO HEAR ABOUT
- When is the right time to set up a passive income funnel
- How to set up a passive income funnel
- What you need to do before you create your passive income funnel
- Why passive income is so important for your business from a numbers standpoint
- Ideas on how to market your passive income funnel
Shannon Lutz is a Business & Marketing Strategist and owner of The Social Bungalow - An online marketing co. that helps female entrepreneurs market their expertise & structure their businesses for big-picture profit. As a 10 year marketing expert she has helped build multi-million dollar businesses, landed major PR deals, and managed marketing for A-List celebrities. She now channels this marketing prowess into the digital space helping women uplevel their businesses.
CONNECT WITH SHANNON
Flori Pyke [00:01:27] Hello and welcome to Episode 58 and you've got Flori with you today. And, I'm super excited to be back on the poddie. It's been a little while because I was in Canada visiting my family which was great but better yet I'm here now. And, I'm really stoked because I get to connect today with the founder and owner of Las Vegas based company, is that right Shannon? The Social Bungalow also known as Your Outsource Marketing Director. So Shannon, is it Lutz [Lootz] or Lutz [Luhts]?
Shannon Lutz [00:02:00] It's Lutz [Lootz]. Good job. Nobody ever gets that. [both laugh]
Flori Pyke [00:02:04] Well, there you go. Welcome. How are you?
Shannon Lutz [00:02:07] I’m so good. I'm so stoked to be here.
Flori Pyke [00:02:10] Yeah. It's really exciting to connect with you. I love connecting with people beyond borders, as well. I just feel like it brings our little internet global world even closer. So, it's great to have you with us. And, before we kind of deep dive into what we're here to chat about today, I'd love for you to just share a little bit more around you, your bio, like what you do, your zone of genius, what you do at The Social Bungalow. Tell us everything.
Shannon Lutz [00:02:37] Absolutely. So, I like to say I'm a business and marketing strategist for online entrepreneurs. So, I help service-based businesses and then coaching practices really starting from the foundation, how are you structuring your program suite? How are you selling your services, how are your income projections looking for the rest of the year for the next year and once all of that is set up, we then market. Because if you tried marketing beforehand, you are going to spend time, money and energy for somebody to come back, be confused and then leave. So, from that point, we kind of back into the strategy from there. So, OK I now know exactly what I'm selling. I'm now showing my ideal client how they can work with me easily. They know their tangible next steps. And, I'm going for organic and paid marketing that's going to lead them into these funnels and going to coach a conversion that's seamless and take less time from the experts themselves so they can actually focus on the business and servicing their clients.
Flori Pyke [00:03:32] OK. Love it. And, so is it namely like service-based businesses or product-based businesses that you work with or a bit of both?
Shannon Lutz [00:03:41] Exclusively service-based. It's only service-based, so anything from somebody that's rolling up their sleeves and writing the copy or snapping the photo, all the way to the person who is just sharing their expertise as a mindset or health and wellness coach.
Flori Pyke [00:03:54] OK. Now, before you and I connected today, even before I reached out to you, I obviously did a bit of stalking on your website. It's like you know creeping around. And, one of the things that really caught my eye was that I saw some mention of the fact that you've worked with the likes of no other than Jennifer Lopez and Alex Rodriguez. Is that true? [Shannon says Yes!]What? That's crazy.
Shannon Lutz [00:04:25] Yeah. So, I was in the corporate world prior to being an entrepreneur myself and I worked for a fitness franchise. Through that, A-Rod as we lovingly call him [Flori says "A-Rod.Yes"]. He came on board and became a partner. And so through that, I had exposure to his A-Rod Corp which he actually is a really smart business man. Has his hands on tons of different businesses. But through that, I was able to kind of look at his digital marketing and talk to him about his social media and just have event and corporate partnerships with him. So that was amazing. And, then naturally he asked to start dating the best person on the planet ever. [Flori says "Yeah. She's so hot."] Like how did she? I don't even understand. I'm going to tell you a story in a second.
Flori Pyke [00:05:10] Yeah. I'm like I'm excited for that one. Yep.
Shannon Lutz [00:05:12] So with the fitness franchise there was also yoga. So, that was kind of where she came in and wanted to dabble in that. So, I was able to then work with both of them by having my hands in both companies and then in their company. So really truly phenomenal experience. They're really so hard-working and she is so nice. Sometimes she gets a rap for being rude but she's just being a boss bitch. She's showing what's up and how you get stuff done because she is like they say the hardest working woman in Hollywood. But, anyway, so she one time we were actually working out together in a group fitness class and she did go to the bathroom afterwards to clean up and she didn't want to just go in on her own and all of her security team is male. So, she had me come in the bathroom and guard her while she changed. Like I'm not kidding. I saw J-Lo's naked booty. OK. [both laugh]
Flori Pyke [00:06:09] This is crazy. And is it like real? I mean really that thing is like, isn't it insured?
Shannon Lutz [00:06:13] Yeah. Oh, it's insured actually, which is the best thing ever. And, I'm not trying to turn up my nose at her or out her but it definitely was real. And, nowadays, I think it has some support from some injections of sort. But you know, that's her brand. [Flori agrees] And so, she needs to go on marketing herself.
Flori Pyke [00:06:32] Totally and you know what, age gets the best of us. Exactly. I mean that's it. That's her jam, right? So you got to do what you've got to do. Oh my gosh, that is so funny. I love that story. Thank you for sharing that. [laughs] All right. So, today I wanted to really connect with you to tap in to your genius about all things passive income because we've never had anyone on our podcast come and speak to us about this. And, I think especially our audience that we have a female entrepreneur driven audience and a lot of us are mums. So, you know between Anna and I, we have six kids for instance and a lot of our listeners are mums as well. And, regardless of being a mum or not though, I think time is of the essence today. And, the world is moving faster and faster and I think that wherever you can create some sort of leg up to generate a passive income stream so that either you're covering your ad costs or just generating a bit of residual income like you're winning, right? Like there's no negative to that. So, I just thought let's get you on. I'd love to kind of pick your brains on all this. So, the first question that I wanted to ask you just like for all our listeners just to spell it out in layman's terms like what exactly is passive income? And if you can just share a bit more around it, maybe you can just give some examples. That'd be great.
Shannon Lutz [00:07:58] Yeah. Absolutely. So passive income is something in a transaction that occurs through your web presence be that on an actual website or just something that you set up technically that someone can purchase and then roll into a program or course or even a product that you did not have to put the muscle, the time and the energy into selling in that moment for them to obtain it at that time. [Flori agrees] But previously, you would have already created everything set it up, it does take a lot of muscle but after you add one onslaught of hard work to create, you can then sell passively. So that is the ideal scenario being on a Mexican beach with a margarita. [Flori laughs] And then you get a PayPal notification of 1,000 dollars which is actually more like you're looking at which banana isn’t brown in the grocery store and then your phone chimes with a thousand dollars. Either way, it's you putting in the actual time and effort in that moment to kind of coach that transaction.
Flori Pyke [00:08:51] OK. OK. I love it. And, is this, you know you mentioned obviously, there's a lot of muscle that has to get put into creating something like this. So, fundamentally, it's like a funnel that you create, right? [Shannon agrees] And, would you say that it's feasible for anyone to create like a passive income stream whether you're service or product-based or is there a particular kind of business that would benefit more from this?
Shannon Lutz [00:09:16] No. I mean even taking it away from business, you could be anyone especially to your audience if not yet in your entrepreneurial journey but they are at-home mums and they love listening to this for inspiration. You can teach somebody how to get your toddlers to sleep at night. You can teach somebody how to grow tomatoes in the garden. You can teach somebody how to program a TV. Whatever it is that is your actual expertise, there is somebody out there that's going to Google it and need it. If there's a low buy in for something simple like that and you don't yet have a big business beneath you, say you priced how to get your toddler to sleep and it is four-part video series that takes them through. They can watch at their own pace and it takes them from the step A and step Z of you being an expert at your toddler sleeping for one hundred dollars. They can create the actual module itself in the videos and then put some marketing around it to easily sell that without actually being in the mix of the sale in the moment.
Flori Pyke [00:10:11] Yeah. OK. I love it. And so I guess to that point, I have a question because obviously I think that we work a lot with female entrepreneurs who are starting out. They come to us with an idea or they're very much in the growth phase. And, for those listeners like is it a good idea to kind of start with setting up a passive income stream and what kind of price level are we looking at to have a successful passive income stream? Because I'm sure that plays a role as well. It'll be harder I would imagine to sell like a 5000-ticket you know product versus like a 200 in a passive income stream. Would you agree?
Shannon Lutz [00:10:50] I would. Yeah. And, I'm going to go ahead and answer the first part of the question bluntly and say no, I will not start creating something passive right at this moment. If you are a female entrepreneur who is building an online business, what I would suggest you do is build with passive in mind so that you can kind of snowball back to your services. So, start by creating say you've got a high-level one-on-one that just involves your expertise and you're really with your hands in somebody's business or your service you're providing. Everything underneath that, build in a way that you can roll it into something passive. So, let's take a course for example, creating a 90-day self-paced program that you provide for clients and then selling it before it exists. So, you're kind of taking that scary step that you think you know what your ideal client needs. So, you pitch it to somebody. They say yes I need that and then you create it in real time with the client. You're actually creating course materials by servicing a real time client and you're getting that feedback in the moment to say this didn't make sense or what do you mean by that. You're getting all of their questions. [Flori agrees] And then from that, you're generating a testimonial. And, now you had and gotten paid to snowball effect create your actual passive course.
Flori Pyke [00:12:04] Yeah. Yeah. No I love that. I mean one of the biggest things that we harp on about in this neck of the woods is very much around research and having those conversations with your target audience so that you can exactly like you're saying you know start to mould your offering better, understand the pain points and pleasure points that even leads to the copywriting that you use. So, that's like totally music to my ears. I also think like to build on your point further, when you are starting out, having those conversations like whenever you're selling a product it's always gonna be so much easier to sell that product or service on the phone. And, even though that takes a bit of muscle when you're starting out like unfortunately, that's just like the way the cookie crumbles. You have to really flex the muscle, get on the phone often especially if it's like a higher-priced service and take those learnings on as you go exactly to your point and then start to weave in that idea of the passive income stream. So, I totally agree with that. And, what about like with respect to like price point of the passive income stream like do you see it as being more of more effective like with an entry price point? Or how would you weave it in? So say that you have like... OK let's use the example right of a five thousand dollar course for the toddler OK. That's like your hero course, right? Where does the passive income stream come into building that funnel?
Shannon Lutz [00:13:27] Yeah. So, I didn't answer the last part of your previous question about pricing. I would start and this is just I don't know exactly what it is that your business is and what you're selling but I'm just going to ballpark some numbers and say go between 97 and 297 for your lower point starting course. Just stay within that sweet spot because under three hundred dollars is psychologically easier to whip out your wallet and pay online for somebody that you especially might have just come into contact with. Once you've actually built a good relationship with them and that can just be again passive. They could be reading your Instagram post. They can be on your email list connecting with you, anything on your website. It doesn't have to be you actually on the phone, then you can price higher. But when you're pricing higher for that say mid-level that's not even your hero 5000-dollar course you still want to make sure that you are priming the pump by creating opportunities for beta engagement. So, you might be offering the first three people to watch this video, opt in to this challenge, enter this giveaway are going to get my course for 200 dollars off or are going to get early bird before other people are going to get waitlisted if you're doing an open and close cart on your courses versus them just being constantly open and passive. And I use the word course as kind of like an anchor point but really it can be program, product or anything. And then that high level hero and if you're pricing it at five thousand dollars, you must have an engaged audience. You could, I mean it would be rare if you just had some sort of a passive funnel that maybe started with an evergreen webinar. So, some sort of previous sort of webinar that people are now watching. And then, when you do a follow up pitch sequence and maybe on the sixth email there was a 24-hour fast action bonus and da-da-da-da for them to convert to this course. Like that would be very impressive if somebody converts to a 5000-dollar hero program with personal touch from you. [Flori agrees] Right. So, as far as pricing goes if we're talking strictly passive and you've pre-set up all of these,I would not go over let's say sixteen hundred dollars. Getting up to 2000-dollar mark without having any touch is really hard to do passively. Now, that's not to say you should not be pricing higher than that for your courses and your programs that you're going to actually sell yourself. And, I say if you are kind of stressed about all of that intake as far as phone calls go, hire a temporary head of enrolment. Hire somebody that you coach as an extension of your team that is going to sit on the phone with every single person and listen to them talk about how their babies cry all night long and the result not the solution of course but the result of the lifestyle and the amazing sleep all night that they're going to have when their baby sleeps on that long from this program.
Flori Pyke [00:16:19] That's right. The transformation, right? That's it. The light at the end of the tunnel. I totally agree. So, you're saying fundamentally like I guess in marketing terms like we can look at it almost as a bit of a trip wire like that the passive income stream is really effective for giving the customer a taster around what it is that you do. They spend a bit of money. They get a good experience with you and then with the view that over an engagement sequence ideally there might be some personal touch points in the mix. You then can upsell them to your core kind of hero product, right? [Shannon agrees] Yeah. OK. OK. Love it. So, we've talked a bit about an example so I think that was really great. Do you have any examples you want to run through in particular that you've set up that kind of gleam any additional insights?
Shannon Lutz [00:17:09] Yeah. So, I kind of frame this around courses so let me... Actually, the client who's a great example. She has a membership option. So, that's a little bit different than a monthly... It sold passively and then it's a monthly re-occurrence and that's awesome. It's a double whammy. It's not just that one time passive. It's completely passive. So, she is a personal trainer and structured three different programs, her highest level is a full body rewire and that is completely one-on-one with her. The mid-level program, so that one is priced at a thousand dollars. The mid-level program has 50 percent premade materials and 50 percent time with her. That is two hundred dollars for round numbers. And then, her lowest level is only twenty-seven dollars a month. And, this is a reoccurring membership that does not involve any of her personal time in the moment. It's just upfront. So, what she did was she created five different meal guides with grocery shopping lists and actual recipe ingredients, everything you need for three, four, five meals a day and then an entire massive video library with coordinating workouts per day and then you also get a Facebook group for support and email support as needed. So, with that you pay 27 bucks a month and you are constantly, you have your built-in personal trainer through her and she's already set up twelve months’ worth of these meal plans and these workout guides and video libraries. So, she doesn't have to think about it for a year, technically. So, with that lowest level program... She has tons of high-level programs but that is her money-maker and it's only 27 dollars. She makes 40 to 50 thousand dollars a month just off of the reoccurring sales. It's insane.
Flori Pyke [00:18:48] That's amazing. Sorry, Shannon. Just quickly, with respect to driving that, what tools are you using like as is it namely kind of Facebook ads, Google ads? I'm just interested in exactly from a marketing and digital standpoint. What are the main drivers that you're using to get people into her funnel and then get them into this passive membership?
Shannon Lutz [00:19:09] Yeah. So we use Facebook ads like crazy. That went really well especially for her industry. People are scrolling around and craving that sort of thing that you'll kind of have go across your news feed and be interested in and then you also seek out as well.
Flori Pyke [00:19:22] And, so Facebook ads I totally agree. I'm a huge advocate of Facebook ads. It is also really I mean the main driver of our business and collecting leads and nurturing those leads for that matter in terms of retargeting and what have you. But are there any other tech platforms that you suggest? Because obviously, I mean you alluded to the fact that it takes quite a bit of muscle to set up a passive income stream and I couldn't agree more. So, are there any kind of tech platforms that you recommend to our listeners when considering the setup of a passive income stream?
Shannon Lutz [00:19:58] Yes. So let me double back real quick and say she uses her Facebook ads like crazy. And, then she has a very engaged email list. She's got about thirty thousand on that and has really nurtured them. And so, she constantly gives them out awesome content that has no pitch at the end, no course, no nothing. It is just hey here’s how to pop in some squats in your kitchen and they open her email because they have been trained that they're going to get some value for their day from her and they're not just going to be sold all the time. She also has a very and greatly engaged Instagram following which of course helps a ton. She has 1.2 million followers so that is very helpful.
Flori Pyke [00:20:34] Oh my God. Who is this person? And I'm like this is crazy. [both laugh] It's nuts.
Shannon Lutz [00:20:42] But yeah, she's built it over time providing workout value like just awesome awesome content all of the time and people know, like and trust her. And then from there, we do little reskinning of different ways to promote the 27-dollar program. So, we'll do like the Summer Slim Down Challenge, three days of diet meals and beating the bloat. And, you have to do something every day, tag her on Instagram and then you are, like that's your prize is your summer body. But then at the end of it, it's hey if you want more of this, it's just 27 dollars and we'll do that once a month and one big push per quarter. And that is, she'll see these little bumps in her cash influx just from putting a little bit more effort into it. And so, yes passive income when you create your funnels and your marketing ahead of time. It works on its own but that doesn't mean you shouldn't still just find ways to spike it as well as you go. [Flori agrees]. So, she does all of her marketing for her funnels off of ClickFunnels, which of course is a great service. I use LeadPages more so myself but as far as hosting mod
uled courses, programs, memberships, I highly recommend using Kajabi that is spelled as K-A-J-A-B-I for anybody listening. It's very similar to other services like Teachable. They do the same thing where you can upload video and PDF and audio and all the different media formats for a course for example and they will drip it out as you define. So, maybe when someone finishes Module One, they automatically get Module Two or maybe they don't get it until a certain date. Like you can pre-set up the structure of your course and then sync it on the backend that when somebody buys from a website for example, that purchase is telling Kajabi automatically this person is paid and is enrolled, go ahead and send them that welcome email and drip out the first series of content.
Flori Pyke [00:22:31] Yeah. No, I love it. We don't use Kajabi personally but I have a lot of students who do. And, I have honestly heard nothing but great things about Kajabi. Even yesterday I was listening to a podcast of Amy Porterfield and her courses are built on Kajabi. So, I mean obviously, it's like a very strong platform and will get done what you need in terms of building like an online program. So, yeah I think that's such a such a good tip. So Kajabi. What about? And, I spoke about this in an earlier episode actually with a guest like Zapier in terms of connecting like your different platforms. Is that something that you use quite a bit.?
Shannon Lutz [00:23:10] Yes and no. I mean it does have lots of integrations that you could scroll for days down the page of different sites that they sync with but it's so easy in the marketing space to get lost on all of the options. [Flori agrees] So, I like to keep it a little bit simpler. I will use them for getting myself email notifications when I need to be hands on purchases made. So, I really like if this is through Zapier and also if somebody fills out a high-level form that I really want to immediately get back to them on some sort of a questionnaire that they fell into my funnel and now on email 7 they were told to fill out a questionnaire if they were truly interested. I want to know about that. So, that's for example will go from my email to type form to Zapier back to my email.
Flori Pyke [00:23:52] OK. That's cool. That's a good tip. OK. Now, just looping back to one question that I had when you were talking about this fitness expert that you work with. You mentioned that she has a highly engaged email list and that she does these email outs where like she'll send them tips on how to do squats in the kitchen or what not. How frequently is she doing that?
Shannon Lutz [00:24:18] So, she has, I want to say 20 different lists within her email marketing software. She uses Active Campaign.
Flori Pyke [00:24:25] I love active campaign. We use it too. Yeah. It's so good.
Shannon Lutz [00:24:30] So, with that, she has premade sequences for about 20 different lists that take them through a year's worth of content. So, she is already touching these people in all these different points. A lot of times people are on multiple lists so they will hear from her essentially twice a week and then when she's promoting something three and four times a week. Two, four, six, eight so maybe 10 emails a month that somebody will receive and two of the 10 would have something pitchy in it, which isn't always a blunt buy my program. It's more so, enter this funnel that's going to lead you to a sale eventually but it's still going to provide massive value along the way.
Flori Pyke [00:25:09] Yeah, I mean eight to 10 emails a month. When you think about it is quite a lot. However, exactly like you said she has indoctrinated and created this like learned behaviour in her audience that when they get an email from her, this email is packed with valuable tips and content. It's not like sell, sell, sell exactly to your point. So, when you start to create that behaviour you can effectively, you can pop into people's email boxes that often, right?
Shannon Lutz [00:25:37] Right. You want people to turn into advocates for you like they will want to show their friends and forward the email and share every Instagram post you put on your story and say just check her out, she's amazing and you can't do that without really earning their trust by teaching them.
Flori Pyke [00:25:53] Yeah. No, I completely agree. OK. That's an awesome case study for us all to kind of gleam some great insights from not only when it comes to passive income but also just on an email nurturing front because I think those tips are really valuable. I think it can be tricky to get email marketing right because it's one thing to have a big list but if they are not engaged, it's just not worth anything right?
Shannon Lutz [00:26:19] Yup. Not at all. And, I always tell people that your social media is your rented land and your email list makes you a homeowner and until you have that home ownership it is always you know what if Instagram goes down tomorrow. So, running your business exclusively from a social media platform can be very risky and what if your account just got shut down,like that does happen to people all the time and then their businesses are starting over from square one. So, get the people on your list and then treat them right. Nurture them. Give them great content and give them content that isn't just a duplication of what you're posting on social media. Because if they liked your stuff to trade that virtual currency of their email list which people are sometimes more guarded about than their mailing address nowadays, you want to make sure that you're taking care of it and that you're showing them I am here for you and I'm your go-to person even if we don't exchange money.[Flori agrees] I'm still your expert in this niche.
Flori Pyke [00:27:11] Yeah. No, I think that is, it's such a good point that you raise. OK. Fantastic. Awesome. I think those are kind of all my questions when it comes to passive income. Is there anything else you want to cover off that we've missed or a gold nugget that is like glaringly obvious that we haven't spoken about when it comes to passive income that our listeners just need to learn before we start closing up?
Shannon Lutz [00:27:33] I mean we got a well-rounded overview. I would say I would drill down again on what we covered as far as making sure that you are building this with validation along the way so you are not blindly building and then hoping that when you put it out in the world it's going to get promoted like you need to make sure that the community you're building is hungry for this information. And a funny metaphor that I say is you're not always selling them the green smoothie, the spinach in the smoothie. You're selling them the delicious, refreshing, very sugary smoothie because that's what they're searching for. And then, they end up finding them on the flip side that it's packed with protein and antioxidants and all the leafy greens. So, skinning your messaging appropriately, honing your message with attracting the right people and then even just investing that time on discovery calls for example. You might just say "Hey I just want to hop on the phone for 20 or 30 minutes with three people who would be willing. There's nothing in it for you. I just want to pick your brain." And then, write down word for word, how do they phrase things, that's then your sales page copy. [Flori agrees]. So, really really make sure that you have identified that client avatar, you're messaging appropriately and you're validating with them and then building in a way that you can snowball effect it into the course doing your research and then as far as marketing goes I would say that you are not going, you hear about those 32,000-dollar days on launch day and that can absolutely happen for you if you prime it appropriately by first making sure that you're talking about it well in advance and you're then doing a little marketing promotions, a little blast like the beta give away or an early bird, two rounds of early bird making sure you're talking to your list, getting engaged audience, maybe even with Instagram they have that new chat sticker. Go ahead and put the chat sticker up on a story and offer something that's similar to your course and say "hey I just want to geek out over this helpful thing that I'm going to do for you. Enter the chat if you want to talk." Everybody opt in. You've now got let's say 20 different women. You guys are gonna talk, talk, talk. You're spending two hours worth of value on this similar topic and then tomorrow you say "hey ladies just so you know I'm releasing early bird and it's the lowest price it's ever going to be."
Flori Pyke [00:29:41] Yeah. No, I love it. There's so much in that. We actually do like quite a bit of launches ourselves and we recorded a whole episode for our listeners who want to kind of tap into more genius around launching. Episode 19 is definitely worth checking out. But, I think all those points that you raised are so valid because like and this goes back to I mean the way like our program is built is really, it really does echo and resonate exactly what you're saying. Like there's no point in going and marketing to an audience before you have those foundations in place, before you've done your research, before you know your avatar is, before you know the price point that people are willing to pay, before you know your niche you know your marketplace or competitors like that stuff is just so fundamental before you start tapping into your marketing because otherwise it's just money down the drain, isn't it?
Shannon Lutz [00:30:31] Exactly. So, well said and you don't... And, if that sounds overwhelming or daunting like oh my gosh so much to figure out before I can even get to this awesome passive income land. You can make money just in the process of the research. Just it just takes more hands on. So, be open that and create while you make and then boom! You're on your way to passive.
Flori Pyke [00:30:50] Yeah. Yeah. I love it. I love it. And I think there's definitely something to be said for all of us service providers who are building their funnels that one of the... I remember chatting with a coach recently and she was telling me you know don't look at your passive income stream so much as necessarily like in some cases it can be a huge money maker. So, like you were saying you know your fitness client but in other cases she said and I think this really resonated with me. It was like just look at this being enough to cover your ad costs. So, you know you're liquidating the money that you're spending on ads and like that's huge because like you know there are times that we are spending like upwards of ten thousand dollars a month. And, if that's covered like winning, you know you're not starting in a massive hole, right? So, like as long as you can just get some residual income building up even if it's not that 40 50 thousand dollars a month but just something like you've got to just start somewhere, isn't that right?
Shannon Lutz [00:31:54] So right. And, even just covering your ad costs. They are now exposed to you. They're in your pipeline and they're probably going to buy something else from you down the road. [Flori agrees] So yeah you covered your ads but you most likely doubled the profit from that person. It's just going to take a little bit more time.
Flori Pyke [00:32:08] Yeah that's right. And, I mean that's so true. Like it goes back to that age old like when it's like I think it's something like you're 10 times to 15 times more likely to get an existing customer to come and buy from you again, right? And it costs 10 to 15 times less to have an existing customer come and buy from you again than to go and acquire a new customer every time. So, you're so right. There's a lot of power in this. So, even if the money is not enormous exactly like right from the outset, the potential there for the lifetime customer value is really large, right? And, then you have someone who's more engaged because they've taken a commitment with you. They've made like a macro commitment. Money has changed hands, right?
Shannon Lutz [00:32:52] Yes exactly. And, anything you put out for free is not going to be taken as seriously as something that they pay for. So, it is you're always going to get more of a raving fan customer by having them opt in even if it's just your lowest level program that covers your ad cost. Absolutely. [Flori agrees] Well said.
Flori Pyke [00:33:08] No. I love it. OK. Wow, so much gold. Thank you, Shannon. [laughs] I love talking this stuff because it's like so... As a marketer, I mean we're like yeah we're just talking my language. I could talk with you until the cows come home. So, thank you. It's been really fun. It's been so much fun.
Shannon Lutz [00:33:29] Yeah me, too. And, I just want to say if anybody is feeling overwhelmed by this, just think about one course, one program, one product that you want to go passive and sit down with a big piece of paper and just put it at the bottom and then write a little arrow up and then write a little arrow up and write a little arrow up and make yourself a little stream that could make sense to you. So, maybe they opt in to your email list because you gave them a free PDF. And, then from there you emailed them a few times and they had the option to go to your mini course and from your mini course, then they were upsold to your hero course and just as simple as that and kind of back pedalling to it with your social media promotions. I mean putting an ad around it but you can just create a four-part funnel to get to your hero product that is very doable and simple and then add onto it as you go. It does not need to be this beautiful mind web right off the bat. Don't be overwhelmed.
Flori Pyke [00:34:22]I think that's really, really good advice to kind of break it down visually for our listeners and I think that to kind of just elaborate on that like with the hero course like when you're drilling down on that like start with that right and then kind of break off a piece of that effectively and start mapping out that mini course that someone might pay for. And the mini course, I think this is really important to state, you want to give a lot of the what without the how, right? Because the how is what you're going to upsell them to in your hero course, right? And then, the lead magnet gives them a bit of a taster in what is contained in the mini course without drawing the curtain fully. So, it gives them a taster, get some kind of warm and then you're up selling them to that passive income mini course which might be priced exactly like around the 97 mark and then you can upsell them to the hero course.
Shannon Lutz [00:35:14] Exactly. And, it's also on another side of that coin, it is educating them with the foundation that they need in order to take your hero course because if someone takes your high level and they spend five thousand dollars with you and they don't actually see results, they're going to want a refund and they're going to be a bad review. They're going to spread the word, word-of-mouth wise to their friends they say don't buy that, it doesn't do anything. And, you know just from the heart side of it want people to have this amazing result. You want to transform lives. [Flori agrees] So, making sure that they are educated properly to step one two three, now they're on four and they can actually be an applicable person to take this course. That's what you want. So, what are the steps? What's the education that they need in order to be there?
Flori Pyke [00:35:52] Yeah. No. Oh so good. Yessss. [laughs]
Shannon Lutz [00:35:58] [Inaudible] throughout the episode. [laughs]
Flori Pyke [00:36:01] I love it. OK Shannon. So, tell us for our listeners, because they're going to want to find more about you, all this genius. Tell us a little bit more around where we can find more about you, where we can go find you on socials. Share all the links, please. That would be awesome.
Shannon Lutz [00:36:16] Yes, I will put myself out there. So, as far as hanging out with me I'm on Instagram. That is my main platform. So, come there. DM me. I go down in the DMs all day. My handle is thesocialbungalow. And, I always have some sort of a freebie in my bio right now if you're listening to this when it launched. It is your daily marketing plan. So, I put together five different tactics to help you put on horse blinders in a very advice-driven saturated online space and just focus on five doable things. How many times to do them and the structure by which to do them every single day for 30 days to see a massive difference in your online business.
Flori Pyke [00:36:51] Love it. That sounds really great. I might have to go check that out. All right. Now, for our listeners, to get your hands on the show notes and learn more about Shannon, you can go to theelevatory.com/podcast. And, Shannon, we normally end with a bit of a parting thought. So, I'm going to hand that over to you whether it's a quote or something to kind of summarise the lessons that we've gone through today. Any insights on what your parting thought is based on what we've discussed?
Shannon Lutz [00:37:18] Love it. I would say that, it's not a quote but, "clarity follows action." So, if you are sitting here spinning your wheels, not sure what you want to do. Just get messy. Make some imperfect action today. Get out there. Do it. Ask the question. Create a freebie. Get people on that email list whatever that looks like to you. Make some action and you will find out so much more through that than you will through mulling it over or asking your significant other what he thinks about it.
Flori Pyke [00:37:45] Yeah. No. It's so true. Like action creates reaction. And, you've got to start somewhere. So, that is so insightful and I think really valid for all of our listeners. So, thank you so much, Shannon. That's been so much fun. And, I'm sure we'll be connecting again soon. To our listeners, that's a wrap. And, remember to always elevate your business game.
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