3 builders who never spoke to each other

Do the funnel arithmetic before you buy a click

Three builders run the same chain end to end: cost per click, clicks per email address, addresses per customer, and what a customer is worth. One holds himself to a target at every step, at least a fifth of clicks registering, half of registrants attending, fifteen percent of those applying and a fifth of offers signing, and watches cost per application rather than cost per click because that is the step that decides everything. Carried to revenue, six hundred dollars a day becomes eighteen thousand a month, fifty applications, ten customers and seventy five thousand dollars. Most channels only work at high volume, which means the arithmetic decides the channel.

The method

1. 01

   Work out the chain of numbers before scaling spend: cost per click, clicks needed per email address, email addresses needed per client, and the average value of a project.

2. 02

   Set targets for each step of the funnel and hold yourself to them: registrations per click, attendance, applications from attendees, and signed contracts from offers.

3. 03

   Work the funnel arithmetic all the way to revenue so a large ad bill can be judged against what it returns.

4. 04

   Watch cost per application rather than cost per click, and pick the one step in the funnel that decides everything else.

5. 05

   Do the funnel arithmetic before picking a channel: most channels only work at high top-of-funnel volume, and that means publishing or running a lot of content, ads and impressions.

What it returned

• 20

  Greg aims for at least 20 percent of clicks to register and averages nearer 40 percent, about half of registrants attend, 15 percent of those apply, almost all applicants who qualify receive an offer, and a fifth of those offers turn into contracts.

• $600

  At $600 a day the monthly ad spend is $18,000, which yields about 50 applications, 10 new customers at 20 percent, and $75,000 a month at $7,500 per customer.

• 30,000

  Roughly 30,000 visitors to produce 100 leads; at a trial-to-paid rate near 70% that becomes 70 customers.

Sources

• S02 Episode 3: How to Value Your Funnel with Greg Hickman - Double Your FreelancingGreg Hickman · doubleyourfreelancing.com · S02 Episode 3: How to Value Your Funnel with Greg Hickman · 2018-05-01
• The Ultimate Guide to Building Client Relationships - Double Your FreelancingAustin Church · doubleyourfreelancing.com · Run Facebook ads to your flagship posts. · 2016-09-12
• Ten SaaS marketing principles for 2024Justin Jackson · justinjackson.ca · 9. Prioritize high-volume channels. · undated