Jeff: You did something similar like that with your Butterfly Marketing script where you would raise the price up about $1,500. Then you did the ClickBank. Was it a $97 offer?
Mike: Ninety-seven dollar product for ClickBank and we gave the affiliates a 70% commission just because we wanted affiliates pushing the front end product. We actually paid more on the front end and didn’t pay on the back end. We could have paid 50/50 on each.
What we did, being that we had hard costs, we were drastically reducing the price of the home study course, we gave the affiliates the majority of the money on the front end.
And what we did is again, what was Butterfly Marketing? It was a back end type of product. It was a home study course. But what we did is we said, “Well, Butterfly Marketing is software and an e-book and five bonus interviews and three bonus reports.”
Let’s just take the principles themselves and take what we sent people in a spiral-bound binder in the mail with the software and convert the Butterfly Marketing manuscript hardcover into an e-book and just sell the principles and show case studies of people that read the manuscript but didn’t use the software and had great results in their business and use those case studies as, “Hey, you don’t necessarily have to have the software for Butterfly Marketing. Here are some great principles.”
But then after they bought it we said, “Hey, as you know if you get so excited about this after you read this, I believe that you’re going to want to go out and buy Butterfly Marketing for $1,497 when you realize how powerful this is. But instead of that, what we’re going to do is I’m going to give it to you for the price that it originally went out on the market for, for only $997.
But since you just paid for the manuscript, I’m going to also take that hundred dollars off and I’m going to give it to you for the lowest price it has ever been offered on the Internet for $897. But this is a one-time-offer.”
Then if they actually said no to that, we actually had a downsell that said, “Okay, how about we don’t ship the course to you, but I give you the entire course right now in a digital version where I’ll give you instant access to the software instead of shipping it. And I’ll give you the download of the two DVDs, 5 mp3 recordings and the bonus reports instantly. Since I don’t have to ship anything to you, I can give you the digital version for $497.
So that was our downsell and one out of every five people that purchased the manuscript purchased one of those offers. So for every $97 sale that was made, we averaged almost $700 total profit minus the $50 it costs to ship. So we averaged about $675 on every sale that was made for $97.
We made $675 divided by five, because it was one in five, $135 net profit for every sale that we made on the manuscript, we made an additional $135 on the back end.
Tom: Which is important to go into the math, like Mike said, because we gave away 70% of the initial $97. So we gave away most of that up front $97 initial investment, but $130 on average was the per profit of each of those $97 sales. So it worked out very advantageously.
Jeff: Plus you guys had the full affiliate contest for the book if I remember right. It was a seven day contest and I think you sold something like 6,000 of those things on ClickBank. Are those numbers correct?
Mike: I don’t remember. I don’t know if it was 6,000. It could have been 4,500. It may have gone over 5,000. It’s on my blog way back there in the month of August at www.MikeFilsaime.com.
But I do know this. I know that we grossed, our own business kept the profits, for about $325,000 after 24 hours. Selling a $97 e-book where you’re giving away 70% commission, we made ourselves a total of $325,000 all profit, all in the bank, and that’s after affiliates got paid.