05/22/2024
Why opt-ins models are costing you money & what to do instead (plus the secret to scaling VSLs on paid media)
Morning,
So earlier Thomas Vee asked the question of if I still disagree with the idea of gating a VSL behind an opt-in.
I thought it was a very valuable question and didn't want to let it get buried in the shuffle.
I gave him a response, and then I had a few people in FF / NHB+ ask me follow questions in the NHB platform as to how to you optmize "for leads" if you can't have an optin.
So sharing this here in the group because I think it'll be of higest value to all.
And I know, I know... A LOT of "gurus" are using opt-in models, but that doesn't mean they know what they're doing, because if you look at their economics, you'll find flaws, as outlined below.
First off, my response to opt-in or not:
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Personally, not a fan of opt-in, because as I said before, if your opt-in rate is 30%, your cost per view / click is now 3.3x higher. So if you're paying $2 per click, now you're paying $6.60 per click.
At $6.60 per click and 1% conversion rate, you'd need $660 AOV to make it work.
Equation: $6.60 / .01 = $660
At 2% conversion you're at $330 AOV and at 3% you're at $220 AOV to break even.
The math doesn't support it.
The math however in some cases DOES support a webinar or something that sells a $497-$997, but for that you need attention and ENGAGEMENT.
Engagement is defined as them being able to interact with YOU. Not passive watching as most VSLs are.
Even the whole book-a-call model. The optin f***s it up due to the numbers above, there is absolutely no reason to hide the sales message after the optin if your sales message is good.
If your sales message is good, put it out right up front and let it do it's job.
Typically follow up will only yield about 10-20% ADDITIONAL conversion rate in a 2 week window at best, so the math still doesn't work.
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Andrew Purdum asked me this question in the NHB platform a few minutes ago:
Hey I see your perspective on that ads to VSL issue, I just have one question I’m struggling to resolve when it comes to account and pixel optimization with that method.
When someone opts in for a VSL on a front end option page, we can tell FB to optimize for “leads” - and as a result get better data and stronger customers over time. But with this method, you can’t quite do that.
How do you optimize the ads and season the pixel? What do you optimize for?
And here's my response to that that I made in the NHB platform (that's where all the goodies are) :
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Right, so the key is to use Google Tag manager or custom code it (we custom code it), and I believe you can do a delayed pixel in time using timer triggers.
So if someone comes to your VSL, you want to delay the pixel to fire say for 2-5 mins, the longer you wait, the better / higher the intent is.
Because, before you can have an intent to buy, you must have an intent to watch, and optimizing for intent to watch, will lead to the intent to buy.
So VSL -> pixel fires say within 2-3 minutes, and now you're optimizing for people who are actually interested in watching instead of opting in "to watch" but have no real interest of watching.
Remember...the highest truth is BEHAVIOR, and the question is, how can we test for behavior? This is the way.
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So if you're running VSLs on FB, YouTube or what not...optimize for BEHAVIOR of intent.
Focus on people who are willing to watch, and your offers will do so much better.
- Alen