Why Back End Upsells Matter More Than Front End Sales (Wealth Plan 3, Part 3)
Audio only · watch on YouTube
David Wood opens with a question for the room: how many people have ever run paid advertising, whether Facebook, PPC, solo ads, or magazine ads? Then he asks whether anyone can get a lead for $2.30. Most say no. That number, he says, is the whole point of the talk, because if you can get a $2.30 lead and convert just 10% of those leads on a front-end offer, your advertising is entirely paid for. Everything after that is profit.
The front end only has to cover the ad cost
David says his own ads typically run cheaper than that, $0.20 to $0.40 a lead, converting at 15% to 20%, which he says puts the math heavily in his favor. But the target he gives the room is simpler: get 1 in 10 leads to buy the front-end offer. Get 1 in 15 and it can still work, though the cost per lead needs to come down. He tells them they can afford to spend more than $2.30 a lead because of what happens after the sale, but the smart approach is always to ask how the front-end offer alone can pay for the leads.
Here’s where it starts, though, because then the magic begins because everything you do over here is profit.
He is direct about why most marketers miss this. They focus so hard on selling the front end that they forget a basic rule: a customer buys ten times more than a lead does. He checks the room, asking which marketers already know that, and gets confirmation from people who have been around a while.
Ninety-five percent of the commission happens after the sale
David lays out what happens once someone becomes a customer instead of a lead. He walks through a scenario: bring in 100 people at $25, and if 45% of them upgrade to a $100-a-month product, that is $4,500 in profit. He says these are Empower Network’s actual numbers, 1 in 10 converting on the front end and 45% converting to the $100 recurring product. Scaled down to 10 people brought in at $25, just covering ad costs, that comes out to $450 in profit from the back end alone.
He adds two more layers to the funnel. About 10% of people who come in also buy a $500 product, which he identifies as the Costa Rica Intensive. And anywhere from 5% to 10% buy a $1,000 product. The $25 and $100 are recurring; the $500 and $1,000 are one-time. He is careful to say these percentages will vary by person and that coaching is what improves them over time, but he states plainly that these are the numbers at Empower Network and that his own conversions run higher because, in his words, “I know what I’m doing.”
Running the numbers on 10 customers
David works through a concrete version of the math for the room. Ten customers at $25 brings in $250. The $100-a-month upgrade, at roughly 45%, adds about $450. He rounds his own $500 product conversion up to 20%, since that is closer to what he personally sees, and the $1,000 product conversion at 5% to 10%. Put together, he says bringing in 10 people and working the funnel properly nets $2,450 in profit, once you subtract the ad spend that the front end already covered.
He addresses the objection about credit card processing fees head-on, since every transaction carries them:
Well, so does Dagen Smith and Mike Dillard and people who own their own companies and sell their own info products. Everybody has fees. Don’t be a wussy.
His point is that paying your own processing fees as a business owner is not the same as having 70% of a commission deducted by someone else, and he insists it is still effectively 100% commission.
Reinvesting profit to grow faster
David tells the room that if they want to grow faster than this baseline model, they should take part of the profit and reinvest it into more advertising rather than keeping all of it. He frames this as standard business thinking: you have to be willing to spend money, learn new skills, and put some of the profit back into ads to scale. He says the method he is teaching can take someone from zero, even someone who barely has enough to get in or has to borrow it, up to whatever daily income they want.
He acknowledges that some in the room may not follow the math yet and says that is fine, since he plans to repeat it throughout the session until it clicks. He closes this portion by directing anyone not already in Empower Network to the add-to-cart button below the video, describing the $25 product as the entry point he will explain in more detail as the session continues.
Written up from the original recording. The full transcript is below.
Read the full transcript (10 min talk, 1,660 words)
Now, how many of you here have ever done paid advertising before? Right? You guys ever done it? Just type yes if you've done any kind of paid ads. Right? If Facebook, PPC, could be solo ads, could be magazine ads.
Right? Now, how many of you can get a lead for $2.30? Just from paid ads? If you could do it, type yes. You haven't done? Okay, that's okay.
We'll teach you how to do it. You can get a lead for $2.30. Now, if you learn what we're going to do, we're going to teach you how to do this. That means if you can get $2.30 leads, and if you could learn to convert 10% of those to this, that means that by itself you could spend $2.30, and your advertising is entirely paid for by this front-end offer. What that means is the rest of what I'm about to show you is all profit. Okay?
And if you can make this work, folks, I'm going to teach you how to get rich. Filthy, stinking, dirty. I say dirty because everybody thinks of being rich as being dirty, and their minds go like this. I'm going to teach you how to get rich from this, if you listen. So if you guys can do this, we can teach you how to get rich on the Internet. Folks, here's the beauty.
I get leads for, like, usually my ads because I know what I'm doing. I usually get leads for $0.30, $0.40, usually, right? Cheaper is not always better, but I just know what I'm doing. So when I'm doing ads, folks, I'm getting leads for, like, $0.20 and $0.30 and converting it, like, 15%, 20%. So that means this math is totally in my favor. Do you guys see that?
And we can teach you how to improve it. But if you can get this done, everything else here is infinitely growable. You ready? So what's the next part of the formula? This sales funnel doesn't stop when somebody buys. When 1 out of 10 buy, that's just the start.
It starts with 1 in 10. Now, this is your goal, to get 1 in 10. Now, if you get 1 in 15, you could still make it work, but your cost per lead is going to go down a little bit on what's going to be best. Now, you can spend more in this. There's a lot more math involved in this, folks. You can spend more than $2.30 a lead because we have high converting upsells.
But it's smart to always think, how can I pay for my leads with the front end offer? That make sense? Okay. Here's where it starts, though, because then the magic begins because everything you do over here is profit. Now, here's the beauty, and this is what I'm going to teach you how to do tonight. 95% of your commissions are going to be after this.
See, most people, they focus so hard on selling whatever's on their front end that they forget that a customer will buy 10 times more than a lead. How many of you are marketers, marketers on the live stream? And you know if you get a customer that a customer will buy 10 times more than a lead. If you know that type, yes. If you've been in for a little while, right? You know that cat.
You know that, okay, a customer buys 10 times more than a lead. You like the back end. I ain't no wussy. Hey, Pastor David Duncan, I know you're not wussy, Pastor. You're hilarious, man. All right.
So you guys know a customer buys more than a lead. So this is where the process begins. So what if all of a sudden this paid for your ads and then 45% of your customers, that means if you brought 100 people in at the 25, 45 people started paying you 100 a month. That means that you just profited $4,500. That's exactly what our numbers are here at Empower Network. So that means that we get 1 in 10 front end conversions and 45% conversions paying 100 a month.
That means that if you bring in 10 people at the 25 and you just cover your costs, it means that you just made $450 in profit just from this. How many of you just understood what I just said? Now this is going to take a little bit, but remember we're going to spend some time on this tonight. Now you're going to have to take action on some things in order to make this happen for you. You're going to have to take some action. Nothing in life happens without action.
You have to decide that you're going to do it. You've got to take me up on my promise here. How many here understands what I just said? Now here's what also is going to happen. What's going to happen is 10% of the people that come in are also going to give you 500. What's that for?
It's for the Costa Rica Intensive Product. These are our numbers here at Empower. And depending on what you do, anywhere from 5 to 10% are also going to give you $1,000. Now these are going to be one time, these are going to be recurring, the 25 and the 100. So that means folks, that if you bring in 10 people at the 25, here's what you're going to earn. Now keep in mind guys, processing fees.
So every business person knows that when somebody swipes a credit card, there's percentage fees in every transaction. Is that fair? So some people are like, well, it's not 100% commission because everybody has processing fees. Well, so does Dagen Smith and Mike Dillard and people who own their own companies and sell their own info products. Everybody has fees. Don't be a wussy.
So don't be ridiculous. It's still 100% commissions. Because you're paying your own fees like a business owner rather than getting 70% deducted from your commissions. So let's take a look at this formula here. So let's say these are your numbers. That means what do you got to play with?
10 customers is $250 from the blogging system, which is the button below this video, is $450 approximately from the inner circle. Now I know that's not an even number. It's not $100 because it's about 45% that upgrade. For me, it's a little higher. It's anywhere from 10% to 20% that buy the $500 package. I'm actually going to say it's 20% because that's what I get.
And then about 5% to 10% are going to give you $1,000 for the 15K per month formula. Now this is going to happen if you do what I teach you for the rest of the evening. And you'll get similar numbers. Your numbers might be lower, it might be higher. That's where the coaching can come in to make this work better and faster. Not everybody, folks, are going to get these numbers when they start.
But you're going to get certain percentages that are true across everywhere that will be slightly lower. And as you get skilled, your percentages will actually – I get higher than this actually. Because I know what I'm doing. Now here's what I just taught you how to do. I taught you how to bring in 10 people and make $2,450, $500, $700, $2,700. Now let's assume that you do what I teach for the rest of the night and that you get leads for about $2.30 each, meaning this all goes into advertising.
How much should you make? The duck $250 from this, that's $2,450. Means you keep $2,450 for bringing in 10 customers and learning how to work it properly. When you're in business, you've got to think like a business person. And business people cannot be weenies. And sometimes you've got to focus, you've got to learn some new skills.
And you're going to need to spend some money and reinvest part of your money back into profits in order to make more. And if you want to grow this faster, you'll take more than what I say and you'll reinvest more back into ads. And you'll grow it as fast as you possibly can. And I'm going to show you guys how to use this formula here to go from zero even if you just got enough money to get in, barely. Or you have to borrow it to get in. I'm going to teach you how to go from zero all the way up to whatever daily income you desire using this formula.
So let me repeat it again. And those of you who don't get it, it's okay even if you're scared to say you don't get it. I understand because I would have looked at this when I started out and would have been like, what? How does it work? That's what I would have done. So it's okay if you don't get it.
You don't even have to say anything. Because I'm going to keep repeating it and repeating it and repeating it and repeating it. And tonight you're going to have an aha moment. You're going to say, I'm going to be rich. If you're not in Empower Network, scroll down to the bottom. There's an add to cart button.
Just get in. Hit the button now. You can get in Empower for $25. And you need to buy that $25 product. And I'm going to explain why tonight. I'm going to explain how it fits into this process.
And I'm going to explain how it can help you build whatever other business that you're in. So hit the add to cart button below this video. Hit the add to cart button. And get in if you ain't in.