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ZERO To $xxx.xxx Months With ECOM Hybrid Model (🐔Chicken Nuggets Inside) (32)

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Hey STMers

As i promised in my other thread HERE i wanted to create a FA
where i document the journey.

First some pre-info

I recommend to read the thread i linked above.
It's how i try to take a brand to the GREEN SIDE. A brand thats been raping me in terms of time and cost
over the last 2 years. In that thread i did a LAST ATTEMPT to get it going PROFITABLE.

Unfortuneately i didn't make it. And that was when i decided to shut down the store and delete everything...
Until i came up with a "genius" (should be obvious...) idea to try and sell it.

Long story short i listed that store and sold it for $35.000...
A store that has made ZERO profit with over 150k in REV.
(And no it was not sold on the typical empire flipper, flippa type of site)

- - - -

After that brand was off from my shoulders i got a feeling of freedom.
I can't describe it but it felt like that Shopify brand was hindering me from going forward
with all my other stuff( AM, my other brand etc).

All of a sudden i started be more positive, motivated and energized.
It was a very weird feeling and experience...

That led me to...

Doing The ECOM Hybrid Model

I decided to take parts of that $35k and build my own ecom offers...
with a hybrid touch if you will.

What the hell are you talking about "Ecom Hybrid model"?

It's very simple.. on the surface.

First off, i'm not a fan of the Shopify craze "build a brand bro".
Don't get me wrong there are people doing INSANE amounts of coin with
that model. But i want to squeeze out as much as possible on the FIRST transaction
so i can profit from day ONE.
BUT Shopify has its place in this model either way.

What we are going to do instead is this...
Find ONE product build a funnel around it.
Get fast to market to just proove that the damn offer converts.
Once it is converting you build a brand around it.

Now we can get fancy and build a Shopify base with a storefront and additional offers.

Goal of the ONE product funnel is:
To be able to profit immediately and not need to wait for backend profits etc.
Now once you are aquiring customers at PROFIT you introduce new offers in the BACK-END FUNNELS
to create even more coin.

Scale it to 6-fig for a couple months with decent profit margin and then SELL IT.
Rinse and repeat.

Pro's with this model:
- Don't need to risk a lot of capital
- Can get fast to market
- Much better margins than regular shopify style model.
- Not having to worry about to many SKUs.
- Can sell it for a good chunk. (even if it's not making much profit, peeps are lazy and don't want to build the base themselves)

Con's with this model:
- The brand loyalty may not be super high as with regular stores.
- Harder to get that "premium" feeling as the funnels usually look very "spammy" if you will.
- Need to source products from Ali
- Need to Deal with customer service etc.

Thats it, Next post will about the 2 offers i launched yesterday!

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Here we go .

Day 1 May 16th - Launched 2 new offers.


The flow for these funnels are very very simple.

FB VIDEO ad -> Presll --> Order from + BUMP --> OTO --> TY page.
Remember we just want to prove the damn product and then we can get fancy in the funnel etc.

Priced the product att $40

Here are the stats from day 1 - OFFER 1

LP CTR = 53%
AD CPC = .29 per click
Spent on ads: $100
Conversions: 12
Revenue: $382
COG: $152
ROI:131%
Profit: $130




IMPORTANT NOTES
When i started the campaign i saw that the AD part dig a great job.
The LP ctr had around 20-23% CTR - So after 6 hours of running i decided to go in and mess with the presell.
(Not recommended to this so early in) BUT what i did was to chunk up the sentences. I saw that everyone was
reading the copy i had written my self which was the 1/3 of the page, then they just scrolled through (ripped the rest).

So i chunked up every sentence, made it super easy to read and BAM. Within a few minutes i saw the CTR go up.

Then the next issue came: People are visitng the order form ready to buy.
But no one bought?...

So i went into HotJar and watched the recordings. I saw a VERY CLEAR pattern. ALL people stopped at the price section and then leaved.
Starting price point was $40...
So i lowered it to $30. Then i updated my FB dash one hour later and hade already made 4 sales. So price was an issue.

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The product is at this point dropshipped from aliexpress.
(I hate this model, but you MUST prove the stuff before even messing around with suppliers)

At this point i can say that this offer is proven to work.
Now i need to source the product my self and brand it.

So far so good, will let this run over this weekend and then stop the campaign until products are sourced.



OFFER 2..

Same flow as offer 1.

METRICS:
LP CTR 55%
CPC: .55
Ad spend: $68
Conversions: 1
Revenue $65
ROI: -4%
Profit: Lambo





IMPORTANT NOTES
Ad does a phenomenal job here. Sure it can be optimized a lot more to get better cost per click.

Presell is good -> 50% ctr = same stuff here. Chunky sentences for easier readabilty

Problem: Pricing.
After watching hotjar the same issue was occuring here too. People exit after the see the price section.

So today i lowered the price with $5 to see if makes any difference.



Thats it for this time. I may have missed a lot of stuff to mention so ask away.

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Love your threads man, keep up the good work!

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That's indeed an interesting approach. Nice to see you updating the thread, I'm curious to see how you scale this!

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Thanks for posting this thread, man. Good luck with this!

You've got a great LP CTR. Do you mind sharing a bit more details on how you created/optimized your LP?

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Day 1-4 May 19th - UPDATE




OFFER 1


Spent on ads: $230
Conversions: 27
Revenue: $900
COG: $459
ROI:95%
Profit: $449

Offer is converting with next to no optimization. Theres A LOOOOOT to optimize in terms of testing new angles, different offer structure. Quantity breaks.
I don't even have an upsell in this funnel set up. So there is a lot to be made here.

Now...
I spent 2 hours this morning sitting through Oberlo and placing orders for this product...
(this is why i hate the dropshipping model... even if you hire a VA it's tedious work to do)

What's next?
Contacted tons of suppliers on Alibaba today. Already found 3 that seems to have what we look for.
So next is to order samples asap to test quality, once it's approved we will place an order for 1000pcs.
And then waiiit... for 30-45 days to get the shipment over sea. That's the life of running ecom.

OFFER 2

I have a confession...
Before i even validated this product by my own testing i placed a sample order of 100pcs.
I was so damn sure this would sell.
(NEVER do this, it's better you go playing lottery :P)

Spent on ads: $360
Conversions: 11
Revenue: $1150
COG: $720
ROI:19%
Profit: $70

Coming back to my dumb order of 100pcs..
I got the package delivered today from DHL and i've fulfilled 50 pcs already.
So only 50 more left and thats it. So it was not that dumb move.
(i did my research before)

Whats next?
Offer is converting but A LOT of people are leaving the order page once they see the price.
AND we lowered it from 39.99 to 29.99. Problem is we can't go lower than that.

Introduced new angle and presell today but not much difference. We are getting the same LP CTR = 40-50%.
Ad metrics are solid.
But the conversion rate is not solid.
Good part is that the upsell converts at 70% for this funnel.

So plan is to add in a sales page in between presell and order page.
Another plan is to shoot at video explaining the benefits of the product etc and use that as a VSL type of page.

If i can't get it to profitable after these stages i will not pursue this offer. Plenty of other products waiting to be sold.

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Could you share with us what platform (page builder) you are using to create the current funnel?

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Hey

ClickFunnels is used for funnels.
Shopify as the base backend.

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Any chance to see any of your funnels for a pre-sells layout? It can be any random page, not necessarily the one you are running.
I am just trying understand how the converting page is structured.

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Sorry not possible...

But the best description i can give you is to look at the typical fb pre sell page.

HEADLINE
Image
SUBHEADLINE
COPY CHOPS

CTA

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Got it, appreciate your replies!

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Ok, so now that's the funnel?

FB 》 Pre Sell 》 Order?

1.By Pre-Sell you mean kind of Interstitial that explains the product OR product long form page?

2.By Order-Page you mean a simple order page or anything fancy with video and images?

Im trying to understand when they learn about your product...

Have you tried the following?

FB 》 Product Review 》 Product page 》 Order form? (The order form here, as the funnel is long, would be super short and only details and payment forms)

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Good questions.

1.By Pre-Sell you mean kind of Interstitial that explains the product OR product long form page?
i simply mean a landing page talking about a problem and offer my product as the solution.

2.By Order-Page you mean a simple order page or anything fancy with video and images?

nothing fancy. Think an order page. with quantity breaks and bump offer.

Im trying to understand when they learn about your product...
They learn about the product on the presell.
ALTHOUGH it's worth splittesting to add a product specific lander between presell and order form.

FB 》 Product Review 》 Product page 》 Order form? (The order form here, as the funnel is long, would be super short and only details and payment forms)
Product review is a good way to do it too as long as it's compelling and interesting enough.
Have your tried this flow yourself? If so what was your results?

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When you say Shopify as the base backend, do you mean you just drive them to a pure shopify store checkout page or you somehow built a custom checkout flow integrated with Shopify via API?

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Custom checkout in ClickFunnels.

There is an app called Apptrends that you connect to your Shopify and then you connect it to your funnels.
All orders are then pushed into the Shopify order section.

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That's pretty cool. Thanks for sharing!

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We are running now this ones:

FB 》 Interstitial (problem/solution) 》 product page 》 order page

.VS.

FB 》 product page 》 order page

So far the long one wins

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Interesting...

Are you doing it through clickfunnels or custom pages?

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Tried CF but too many bugs and scary to rely on them when you scale. Using custom

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UPDATE


OFFER 1
Samples have been ordered and is arriving on Monday.
Once quality is approved we will place bulk order.

Nothing more here...


OFFER 2
This offer play games with me.

BUT... as of RIGHT NOW i've sold out all of the 100pcs that i ordered as "samples".

The good news:
- I sold out quiet easy and fast. (under 1 week)
- 60% take the upsell which yields a $30 pure profit.

The bad news:
We haven't been able to fully optimize it to consistent ROI.

We are -40% ROI right now.

The main problem has been and is still remaining is that
people exit once they see the price.

We have 40-50% LP CTR every day.
People are interested, but the question is ARE THEY REALLY ENOUGH PRE-SOLD THOUGH?
(Would love your guys opinion on if you've seen LP have good CTRs but still perform bad in terms of sales).

We tried a sales page between Presell and Order page -> This decreased the conversions.

Tried 2 different angles. The angle that we started with is still the best one.

What to do?
I think it would be a dumb decision to quit on this offer
Resons for that:
1. Found one competitor that is killing it in US GEO. Comments on his ads and similar web doesn't lie...
2. We get sales which intends that people are ready to whip out their CC.
3. 60% of those that buy want even more of the same.

So the next thing is if i should Dropship this product until i crack it or order 1000pcs?


What can we test even more
VIDEO ADS. I've only tested 2 different ones.
Should actually be testing like a MOFO with video ads.
More angles.
What more?

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Have you tried decreasing the price? Looks like people are interested based on the LP CTR, so just reduce the price and see if it improves performance.

As long as the price reduction doesnt impact your bottom line, that would be the quickest tweak or change you can make, to determine if it improves performance.

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someone say chicken nuggets?

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Already tested that. No difference at all besides lower ROI...

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The price appear on the landers CTA? There is enough buildup for the price?

For example 》

"Retails for X and you can find it here for 0.5X but during the next 24 hours (you must thank Y organization who made it happen) we managed to get you guys the deal of your life, only 1/4 X and check this out - Only Z for shipping! But hurry up..."

of course its a very bad copy, but you got the point so I wonder if it appears on the presell page

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Actually nothing about price is mentioner in the presell.
Only is that "stock is limited due to high demand!.

Might need to test that.

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Update from mobile

Sooo
All stock for offer 2 were sold out in a couple of days. Breakeven-ish slight loss.

With better video ads and a better angle and this offer will blow up.
Order placed for 1000pcs

In the mean time while we are waiting for for offer 1 + offer 2 stock to arrive we launched a 3rd offer on Wedneseday.

The ads were getting cheap clicks, highy ctr and everything was good.
Lp ctr was over 50% but same issue occured as on offer 2.
They see the price on order form and leave.

So i thought : the only logical thing is that they arent enough pre sold on the product = they dont see the value in the product for the price.

The angle for this presell was general and more about how the product works.

Launched another angle focusing on a pain.
3 hours later and 5 sales flow through.

Angle 1 had a cpa of 15 bucks, which is breakeven

Angle 2 has a cpa of 2-5 bucks..

Sooo a 3rd mini brand is being built now.


3 products tested 3 products cracked= 100% hit rate so far.

Btw all products have been to market for a few years, it is ALL ABOUT MARKETING AND ANGLES
And that point was proved to me yesterday when i tried angle 2 and it just blow up.

So when you see an ad in your feed with XYZ product for 50% off aka standard dropshipper. See if you can take the same product and match it to a demo with a pain to solve.

Sorry for any typos, my fingers are like goliaths so thats why

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"So when you see an ad in your feed with XYZ product for 50% off aka standard dropshipper. See if you can take the same product and match it to a demo with a pain to solve."

^^ Gold.

Divide and conquer. I've both heard about and personally used this with approach with success.

I find that in many cases, even just customizing the angle to different age groups and genders can already yield great results, without targeting by interest etc.

Thanks so much for sharing - congrats on your success, and looking forward to seeing how you'll scale this brand to the moon!



Amy


Sent from my SM-G930W8 using STM Forums mobile app

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Thx for the share. Curious when you switch angles, do you just switch the ads and videos or switch out the landing pages as well?


Sent from my iPhone using STM Forums mobile app

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Angles too.

Needs to be congruent from start to finish.

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good job,tks for sharing

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Hi @kinged , great results and amazing follow along post!
Do you have any news about new and previous offers launched?

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Hey @kinged, thanks for posting this thread, really interesting and great job!
Where do you look for suppliers once you find a product that is worth scaling? Do you still contact the right one on Alibaba or Aliexpress like you do while testing products or you contact them somewhere else? Thanks!

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