How to Predictably Grow your Monthly Membership EFT* Using Simple Money Math
Sep 04, 2023I love Money Math!
I didn't like Math in school but I love Money Math!
Are you running Facebook ads right now?
Are you just basically putting money out there and not knowing whats going on exactly?
This is where I need you to focus on your return of investment from your ad dollars!
So, let's say your goal is to get 10 full price members each month.
And let's say you lose 5 each month, this means you need to get 15 new members to net 10.
You wont be signing up every leads you get but set your goals and work backwards from these numbers.
I want to make sure you are aware of how predictable this can be to acquire new members each month down to the dollar.
The best part is, it really is just simple money math!
Let's say your average member pays you $150/month...
And you spend an average of $1000 on Facebook ads
(I know a lot of people wont want to spend that much.. But honestly, its not that much when you factor in your budget, your gross and net sales!)
Example:
September 2019- $1000 budget on Facebook ads
and let's say your averaging $15/lead because your page isn't that engaged - you are going to get 67 leads.
Unfortunately, we know that 30% of those leads are garbage. They wont take action no matter how you do follow ups on them.
Don't worry about that 30%!
Focus on the 70% that will actually engage with you.
So from 67 leads, less 30% 'trash' leads, you're down with 47 appointments.
Now after the initial contact with these 47 leads, we know that another 30% fallout could possibly happen.
You can drive to their house to follow up, but they wont take the next step!
This time you are down to 33 people to present your programs with.
Now, given your sales presentation may not convert all of them, just the 50%
You end up converting 16 leads to paying customers.
After the whole process, you have 16 new members, each paying $150/month = $2400
Facebook ad spent is $1000
Returns = $2400
You are actually profitable on the first month!
(please note that these numbers could vary depending on a lot of reasons. But these are pretty consistent numbers if you are willing to spend the money AND DO the work)
Keep in mind that you should ALSO always look at the lifetime value of the member.
If your average member stays on for an average of 6 months, that $2400 EFT is $14,400 in value.
Let that sink in when you think that Facebook or Google ads budget of $1000 is too expensive!
Now let's take a look at what you need to specifically do to get these proven results!
1. You need to have PROVEN Facebook ads that convert. You need to have good organic content, great paid content and then go in for conversions, average of $15/lead.
2. Set up good systems for appointment setting. Hire and train an appointment setter who knows how to text,call, email, voicemail, name it!
Remember, 30% of leads are not going to do anything so make sure that you focus on the remaining 70%.
Again, statistics say that out of those 70%, another fallout of 30% is expected.
Make sure that your appointment setter does every effort to convert your leads by doing consistent follow-ups.
One thing that Alan is doing a lot right now, is video text reminders and it's a killer!
3. If you are not doing at least 50% sales, that's an issue. Train your staff to do a better job and convert at least 50% or above of the leads
So it really just boils down to Money Math!
Focus on these things.
-attract your leads
-get your leads to show up
-close the sale
Get out there, crush it and have a great week!
If you’re needing help with your marketing, I’m here to help out.
Cheers!
Paul Halme | Combat Business
*EFT - Electronic Fund Transfers
