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Launch TreeStefan Rooyackers

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This report is © Copyrighted by SEO Heaven Europe. No part of this may be copied, or changed in any format, or used in any way other than what is outlined within this course under any circumstances.

Copyrights, Stefan Rooyackers, SEO Heaven Europe

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The Launch Tree Summary

The Launch Tree is a workshop designed by Mike Filsaime en Anik Singal. It is a marketing strategy that operates from the central idea of giving customers control of their buying process. It is important to customize the buying process in order to make the customer feel good about buying the product. It is also the best way to sell more than just one product alone.

The document before you is a short summary of the Launch Tree work-shop. It should be enough to give you insight into this marketing meth-od. Of course, we can’t give you the whole course. If you are interested, check out the workshop itself.

Information about the author

Stefan RooyackersStefan Rooyackers (1959) has worked in the financial sector since 1995. He is an expert in selling loans and all kinds of insurances. For this he has many websites with subjects like funeral insurances, life insur-ances and single-premium assurance polices. He has also written books about these subjects, as well as about mortgages and pension issues. He is always looking for ways to expand his knowledge.

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Inhoudsopgave

Module 1: The Psychology of the Launch Tree 8Module 2 - Launch Tree Case Studies 10Module 3 - Easily Creating Valuable Upsells & Downsells 11Module 4 – How to build your own Launch Tree 20Module 5 – Drawing your Tree 30Module 6 – The words that sell Upsells 37Module 7 – Growing the branches of your Tree 44Module 8 – Increase conversions by 29% for each branch through 1-click technology! 52Module 9 – Always think recurrences! 59Module 10 – Post-Launch affiliate income – Monetize Your List! 67Module 11 – Let's review 77

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Module 1: The Psychology of the Launch Tree

The Launch Tree is needed when:• Your business is all about offering real and lasting value to

your customers…• You want mass distribution of your product (which requires

a far lower upfront cost — meaning you need the Launch Tree!)…Then you need to implement the Launch Tree strategic exactly.

Upsells allow for customization. By providing your customer with the ability to customize their order, they have the final power over their purchase decision and will therefore feel better about their purchase experience.

By upselling and downselling right you’re actually building a strong lifelong relationship with them. An upsell is a product with a higher price than the previous offer. A downsell is a product with a lower price than the previous offer. Don’t look at upsells as upselling. Look at them as customizations. Upsell and downsell add value.

Don’t use a heavy-handed upsell process and pressure customers into buying even your best products, you haven’t presented them with real value. They'll be resentful or confused, and either way you lose that customer.

If they bought product A, product B obviously needs to complement it. So, product B should make product A either more “complete” or easier to use. Give your customer more of what they really want.

Launch tree principle: Give your customers a choice and let them make the final decision. Eg, when you search a book on Amazon, Amazon even tells you what other customers who buy your book are buying. That makes you feel comfortable adding more products; you know they are relevant and you'll probably like them.

Launch tree principle: First take care of what your custo-mer originally wanted, THEN offer them additional options. Eventhe specific upsell you offer needs to be properly timed.

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What if the customer buying the suit does not have an extra $60 for the shirt and tie? You can use downsell principles.

What exactly is a downsell?A downsell is the offer you make after someone says no to an upsell. It’s typically a lower price (or a payment plan). It’s meant to “save the sale” and to get your customer saying “yes” again.

So if the customer said “no,” you need to figure out why. From experi-ence, we can assure you that 95 percent of the time, it’s the money.

Respect your customers. Coercing your customers into saying “yes”, without properly explaining what they are saying yes to is not only unethical, but illegal.

The next logical step:• Customize your upsells based on the customer’s responsed.• Take into account your customer’s previous selection when

designing your upsells.

Give your costumer control of the order process. Mike thought he was adding things to his cart — so he should have final control of the cart! Customize the upsells based on the customer's responses. Give con-trol of the order process to the customer.

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Module 2 - Launch Tree Case Studies

From those cases, we learned the right procedures as follows:

Procedures1. Review your current sales process.2. Write down changes you can make to your marketing

vocabulary right now.3. Write down all of the small things that might be causing

friction in your sales process.4. Look for ways to add a "free" component to your offers.5. Do a quick analysis of your pricing -- main offer, bump (if

you have one), and upsells/downsells. Note down any jumps that might be too big or too small.

6. IMPORTANT! If you have no upsells or downsells right now, write down three ideas for products. They should all be products you can create using our quick methods, resale rights, PLR, etc.

7. Write down at least ten things you know about your customers. Go beyond basic things like "they are interested in Internet marketing." Get into their problems, concerns, wishes, and emotional hot buttons.

8. Start a list of concerns and issues your customers might have after placing an order.

9. Do your products make sense? Take a look at your products, especially any upsells or downsells, and how "relevant" they are. Do any stick out as being a little off base?

10. Come up with at least three ideas for recurrence revenue products.

11. Compare your best and worst "offers". Look at your product with the highest conversions and the one with the lowest conversions. Compare them on the initial concept of each part of their respective "offers" (what your customer gets, how they get it, how much it costs, and how they will pay). Why do you think the best one is such a high converting offer? What do you think is wrong with the lowest converting offer?

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Module 3 - Easily Creating Valuable Upsells & Downsells

Key point: Your upsells and downsells MUST be closely related to your primary offer – (And that means they are probably interested in more — but only if it fits) and each MUST make sense to your customer if you want them to say "yes".

Most people don’t realize they already have what they need to build their tree. Start by asking yourself how what you’ve done in the past can add value to your main product.

Key point: Downsell or upsell need to be directly related to the initial offer and be adding value to your customers. Give your upsells and downsells a logical flow, both in value and price.

The good news is that it's actually quite easy to create upsells and downsells. Once you know what all the basic building stones are and how they work, you can put them together in so many different ways.

There are two basic ways to do so:1. Use what you have. This is called recycling or repurposing

content. Frankly, if your basic content is still valuable, you can and should re-use it.

2. Start from a scratch. This is not as hard as you think, as you'll soon find out !

So some people will ask, what is an offer? An “offer” is not just the product – it involves everything about the product, including how customers will perceive and receive it.

An offer actually consists of all of these components: • What are your customers going to get?• How are they going to get it?• What are they willing to spend, and… • How are they going to pay for it? (Will it be a split payment, or

a one-time lump sum?)

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Designing an offer

Step1: Your content inventoryGather your contents assess. The goal of this exercise is to figure out what you already have that can be turned into an upsell or downsell.

When performing this inventory, what items should you "count?"1. You should count any content, meaning any intellectual

property you have ever developed on the targeted topic.2. Any products you own rights to.3. Any good quality private label rights4. Names of close contacts of colleagues within your reach who

could help you develop products, or have their own products.5. Also review your main offer — sometimes there are things in

your main offer that can be pulled out (only if it makes sense though).

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Your goal is to take every opportunity to turn what you’ve already cre-ated into upsells and downsells!

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Step 2: Your Content Development Plan

Another way to create upsells and downsells easily is to recycle content. In order to recycle content, you will take a previously created product and extend its life by re-using it in various ways.

1. Turn website and blog content into educational products. With just a little rewriting, you can create ebooks, newsletters, and even e-courses.

2. Turn website and blog content into an audio book. Hire some voiceover talent, and you can turn your blog into an audio book.

3. Turn your email into a product. Your email is probably FULL of answers to questions and solutions to problems. So convert your email exchanges into a “source of information on my private email coaching" product (you'll have to remove some names to protect your correspondents' privacy of course). This one would also make a great audio book.

4. Turn articles into an ebook, audio book or "video book". If you do article marketing, you've probably published lots of articles within your reach. Compile them all into an ebook or an audio book. You can even do a "video book" (see the next section on Creating New Media).

5. Re-record old audio interviews. This can actually be a lot of fun and makes a great upsell. Contact the people you originally interviewed, and ask them the same questions as you did before. Then package the new interviews with the old ones for a "back to the future" product. The “old content” now becomes a new product, and with very little effort on your part.

6. Get transcriptions made. Use a service like Casting-Words.com (the best in our opinion) to turn any audio into an ebook. The transcript can also be bundled into a deluxe version with the a udios for an upsell. This one's just a little more work: Get a video transcribed, and then add screenshots from the video to the transcript to make an ebook, or physical book, to accompany the video.

7. Record a workshop or a conference. You can turn these into physical DVDs for an upsell, then offer the downloadable recordings as a downsell.

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8. Turn workshop content into a book. Record a workshop and then hire a good editor/writer to transform the workshop into a book and/or a workbook.

9. Turn your autoresponders and newsletters into books or audios. You can now offer your "talking newsletters" or "talking e-courses" as an upsell.

10. Turn planning sessions into products. If you recorded or videotaped any of the meetings or planning sessions when you created a big product, offer them as a “making of” audio book or film. This is a great way to recycle any "work" you do. In fact, we did this with Launch Tree. We recorded the “making of” and offered it as a bonus. We also recorded the planning of our own launch tree and offered it as part of one of our valuable upsells.

Important recycling tip: When recycling older content, for example an audio tape, it might contain some date-specific references that will be out of place — thing like mentions of current events or pop culture.

Create New Media from what you haveYou can change the medium by simply changing the way the product is delivered. For example, if it’s physical, make it digital. If it’s written, make it into an audio or video and so on.

Our Top Five media-switch ideas

- Digital to physical. If a product you previously offered was in a digital format, you can usually create an upsell by making it a physical product. For example, if you've got a series of recorded webinars for download, for an upsell create a package of physical DVDs.

- Physical to digital. If a product was physical, make a downsell by going digital. For example, if you've been publishing a physical newsletter, create a digital "collection" of back issues as a downsell.

- LIVE to recorded. Record any LIVE event, and then offer it as a physical product (upsell) or online video (downsell). For example, hold a seminar or workshop, record all the sessions, and then turn the recordings into a product.

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Conversions can be VERY high on this type of upsell/downsell. You can even sell them PRE-event, since people who can't travel to the actual seminar will usually jump at the chance to get recordings of the sessions.

- Print to audio. Audio books are hot, especially if people can download them to their iPod or other digital player. For example, if you have an ebook on a topic, go to Guru.com or Elance.com and hire someone to make an audio book for you. You immediately have a great upsell that adds a lot of value.

- Print or PDF to "video book". Here's how you create a "video book." You take your ebook or other written content, and make some Powerpoint slides for each chapter. Then record yourself reading the text of the book while you step through the Powerpoint slides. Adding artwork to the Powerpoints makes it much nicer too.

Now take that recording and turn it into a physical upsell by putting the recordings on DVD or cd-rom. The downsell becomes a downloadable video in Flash.

Adding value is easy. Don’t be fooled into thinking that adding value is a complex task. It is often just as easy as repackaging how you offer your upsells or downsells.

Tip: Do interviews LIVE and let your customers be a “fly on the wall”. You can then charge more while adding absolutely no extra work on your part. And the perfect downsell to that offer can be to remove the LIVE element and simply send them the recorded version. Using other people's products- Buy resale rights, reprint rights, or master resale rights to an existing product. The product doesn't have to be just an ebook. You can purchase resale rights to audios, videos, software, and even conti-nuity products like membership sites.- Customize some high quality PLR (Private Label Rights) content. PLR has gotten a bad reputation, mainly because a lot of it is pretty low quality and people use it without changing it.

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Actually this type of "white label" content has been around for a long time. For example, if you get a print newsletter from your doctor, dentist, veterinarian, realtor, or other professional, chances are it's a canned newsletter — they just add their name and picture.

We recommend that if you use PLR, hire a good writer and designer to customize it and adjust it for you. Then add quality extras, like check-lists, and then create an audio or video version. In other words, use the PLR to save research time, but do everything you would do to your OWN product to professionalize it.

- Clinch a JV or other type of partnership with an expert in your reach. Using someone else’s product is one of the fastest ways to complete your tree — and with almost no work on your end. If you are just starting, this may be your preferred route.

If you have an ebook about improving your golf game, perhaps you can partner with someone who offers a monthly newsletter to golfers. You can now generate recurrence revenue without having to do any extra work. You’re also bringing great value to your customers through a newsletter that is tested and proven.

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When deciding who to approach for promoting products, you should first search within your own pool of associates. Then ask yourself these questions:

• Who do you already know who provides valuable information — perhaps you’re even a customer?

• Is this person honest and willing to offer his content at a fair price or percentage of profits?

• Would this person be willing to sign a simple agreement that spells out each of your responsibilities and compensation?

• Do you feel comfortable promoting this person’s products or services? Would you, yourself, buy it?

• What does this person offer that will help you and your business?

• Is this arrangement also a good investment for your partner?

When partnering with another marketeer• Always work with someone you know and trust. • Have an agreement in writing.• Make sure the terms are equally satisfactory to both parties.• Spell out each person's responsibilities.

Don’t hold back. When trying to determine what your upsells and downsells should be, the sky really is your limit. Whatever you and your team cannot produce, many outsourcing options exist to help you.

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Ready-to-use upsell and downsell ideas:

Boot Camps

These have very high perceived value and are the easiest upsells to do. Here's what we recommend for a Boot Camp upsell…

• Four to six week series• Use GoToWebinar.com• Hold one per week• Do in-depth sessions• Better yet, get experts to participate in the webinars, reveal

their secrets, etc.• Be sure to record these! Make the recordings available to those

who bought the live Boot Camp.• Make the recorded sessions only (no live attendance) as a

downsell. Charge 50 percent for the post Boot Camp recorded version.

• You can also re-purpose or recycle these recordings later.

Recordings of Live events

• If you are selling any type of training or course, videos of ses-sions that teach advanced topics will sell especially well.

• The videos don't have to be high tech. You can set up a video camera and tape yourself teaching a "class" on the topic to a group at the local library, community center, or church. The point is to tape a "live session" with an audience.

If there is any kind of complex, intimidating, or time-consuming task you can do for your customers, this will convert amazingly. Some ideas…

• "We build it for you" website businesses. You would design the site, write the copy, make the graphics and even populate with affiliate products.

• Turnkey product development. If you have a strong team of outsourcers in place, you can sell a custom product package, such as an ebook, video course, audio interview series, etc. These also have a very high perceived value.

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Module 4 – How to build your own Launch Tree

First there are different types of offers that can go on your tree. Then you'll make several initial sketches of the offers on your Launch Tree. Finally, if you haven’t done a Content Inventory and a Content Development Plan, better go back and do those now. You can't start building a Launch Tree without some offers to put on the branches - and you need products to make offers.

A. What different-sized Launch Trees look like

By mapping out your Launch Tree, you are getting an insight into the sequence your customer may follow during the checkout process. There are three different kinds of trees:

1. Short-tree if you don’t have one click technology (1-2 offers of upsells or downsells).

2. Medium tree (2-3).3. Tall tree (3-4) highly related offers.

B. The different types of offer

Provide more than one offer. Every Launch Tree consists of different types of offers, offered in a certain order based on whether your cus-tomer says “yes” or “no”.

Basic types of offer - Main offer, bump, upsell, downsell, recurrence and bonus

Post Launch offer - After your customer goes through your entire Launch Tree, you can (and should) continue to present them with of-fers. That includes not only your own products, but affiliate products (such as related software offered by another marketeer).

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Backend offer – A general term for any product you offer to your cur-rent customers after the initial Launch Tree process is over. This can be a one-off product or a recurrence product.

"Launch within a launch" offer - This is a term we use for a spe-cial type of offer you present to customers shortly after a big product duct launch. This offer is designed to ride the momentum from the launch, while your customers are still excited and hanging onto your every word. You generate some buzz for this product during the actual launch, but you don't offer it for sale until about 10–30 days after the launch closes.

Affiliate, JV, or partner offer - Here you are paid a commission for promoting someone else's product to your customers.

Now it's time to brainstorm the arrangement of your offers into your own Launch Tree!

C. Arranging (and rearranging) offers

Lay out everything you have.- First, create a flow, a story — which one would best follow which

one...• Second, lay them out based on which ones you can charge the

least to most for.• Third, decide on how many upsells/downsells you want and

what you plan on launching within a launch later.• Fourth, plan if you have recurrence — if so, have a content

plan ready for at least the next three months.

When sketching your tree, the point is to get you thinking and to show you any flaws in your sales process.

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Sketch 1 - The StoryHow do the products flow from one to the other logically? What kind of "story" do the products tell your customer?

Important note: Remember not to shove your customers into your existing products. If you try to force a tree, it won’t work. It’ll irritate your customers and it will not produce results.

Sketch 2 - The PricesPrices should make sense. Think about the prices first before you think about anything else. Be sure downsells are priced at 50% of the prior offer.

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Sketch 3 - Selection and Timing• How many upsells and downsells do you want to offer

completely? • Try to select which products will be upsells and which will be

downsells. • What products do you plan to use for a "launch within a

launch?" Choose these carefully, because they could be your highest converting products. You'll be promoting them to highly enthusiastic customers and also during the "honeymoon period" of peak momentum right after your main launch.

• Will you have a recurrence continuity program? If it’s content based (virtually all are), you need a content plan that covers at least three months.

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D. How big should your Tree be?

Is bigger necessarily better? The size of your tree depends on the number of offers you have, your projected traffic, your pricing strategies as well as how much value you feel you can pack into your sales process.

Here are some tips to help you decide on whether to shoot for a short, medium or long tree:

• If you're just starting out, go with a short tree. It's always best to get started and try on something. Don't let the lack of a big tree with lots of products stop you from at least starting!

• If you have no 1-Click technology (see Module 8), stick with a short tree and then focus on a "launch within a launch". In other words, you'll launch, bring in plenty of customers, and then carefully upsell those customers while the post-launch momentum is riding high. This also can really work well for you if you have a medium to large tree.

• If you're planning a big launch, go with at least amedium-sized tree. A large tree is probably best, and worth the extra planning, product development, and testing. You're going to invest a lot of time, energy, and planning for a big launch. So optimize for the most revenue during the launch and use a large tree.

• Never force a big tree if you don't have high quality, value-driven products to back it up. There’s nothing worse than being dragged through upsell after upsell of low-value junk products. It makes you look bad and it really annoys your customers — it will backfire!

• Remember the "launch within a launch" strategy. By plan-ning to introduce some upsells after you launch, while momen-tum is high, you can save some of your best upsells for later.

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E. Where should you place offers on your Tree?

Remember, a bump is an extra product offered right at the point of checkout.#1 Bump Recommendation: Make your bump a recurring offer, with the first month FREE.#2 Bump Recommendation: If you're going to offer a membership or subscription with a one-time payment, make it FREE to try for at least seven days. The automatic re-billing kicks in after those first seven days.

F. The pricing ladder

The price of your initial offer should always fit the niche and the type of product. The price has to be congruent with its perceived value.

The percentage of sales you make from your visitors will depend on two things:

1. The value of the offer.2. The quotation where the customer enters the sales process.

Gradual price increases and decreases are well-tolerated by customers if you follow these rules:

Rule #1 - Gradually increase the price of the offers during the actual sales process, especially between the first and second offer.Rule #2 - Your highest-priced offer should have a logical price relation-ship to your first offer.Rule #3 - Price much more gradually when starting with free down-loads.Rule #4 - If the customer pays anything for the initial tryout — Even if it is a $1 trial —your upsells can be priced higher.

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G. Five simple pricing formulas

Every niche and product is different. The only true way to know…1. Observe (copy and paste) what the top companies in your

industry are doing.2. Test!

Formula #1 - Double the value and cut the price in halfFormula #2 - Simple bump pricingFormula #3 - 3X Rule: Price the first upsell and beyondFormula #4 - The 70% ruleFormula #5 - The 50% downsell rule

There are two key rules to remember when you put a payment plan in place.

Rule #1 - Charge interest.Rule #2 - Payment plan pricing should look "pretty."

Be sure that payment plan numbers appear natural and attractive to the customer.

Payment Plan strategy #3 - Make a lump sum or payment plan into its own upsell/downsell.

It’s obviously to your benefit to collect all the money up front. Here are two strategies to convince them to pay you up front.

1. Charge interest. As we already discussed, many will not want to pay extra for the same product, especially when you have an iron-clad guarantee.

2. Free bonus for those who pay up front.

Alwaysbetransparentwhenaddingafinancecharge!

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H. The importance of downsells

Listen to your customer. When your customer says “no” to your offer, try and anticipate the reason why and provide an alternative. Downsells are vitally important for two reasons:

• Offering a downsell is the best way to turn a non-buyer into a buyer.

• Downsells can generate a huge amount of additional revenue!

Understand why people say "No". You should assume that the reason the customer said "no" was because of price. The perfect solution is obviously to lower the price. A downsell is presented when a customer says "no" to an upsell offer in your tree. The offer is either:

1. Similar to the upsell but with certain components (like bo-nuses) removed, which justifies the lower price, or

2. The same offer — broken up into a payment plan.If you are reducing the price, remember that a 50 percent reduction is the sweet spot.

Save that revenue!Through the downsell, you actually communicate some very important things to the customer:

• You tell them you are sensitive to their predicament, and to their wallet. In effect, you are saying to them, "I understand that the price might be too much for you at this time, so let me present you with an alternative which might fit your situation better."

• You show the customer that you are still willing to provide them with the most important value. You are willing to re-move the non-essentials, because you still want them to be able to get the all the benefits from the key pieces of the offer.

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I. Rules of pricing downsells

Rule #1 - Downsells are typically offered only when the initial offer was $150 or more.Rule #2 - You must offer a product that retains as much of the essential offer value as possible — but without duplicating it.Rule #3 - You must not exceed the value of the initial offer while lowering the price. Rule #4 - You must not keep the value the same while lowering the price.

The trick is to reduce the value enough to appease the ones who bought the upsell, but not enough to deflate the value altogether (hence killing your downsell conversion).

• You should always provide something different in the downsell. Often that simply means removing components.

• You have to be able to justify the downsell by clearly showing that it is, in fact, a different offer.

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J. How to easily create downsells

It’s about the starting value. If your original product has a sufficient amount of value already packed into it, this should allow you to remove components without destroying the overall value and do so at a lower cost.

• Almost any product can be turned into a downsell, provided the original price is $150 or more.

• Downsells are typically used for products only.

4 Simple ways to make downsells from what you already have:#1 - Remove components. #2 - Remove bonuses.#3 - Digitize a physical product.#4 - Offer recordings of live events.

• Use the 50 percent rule: Cut the price by 50 percent for the downsell.

• With payment plans…• Three or five payments is usually best.• Add a "finance charge."

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Module 5 – Drawing your Tree

A. The mechanics of the Tree

The “yes and no tracks” are a visual representation of what happens when a customer says “yes” or “no”. Customers who say “yes” are shown different offers than customers who say “no”. On your Launch Tree, the “yes track” and the “no track” are like branches connecting your offers together. The customer who says “yes” follows a different set of branches than the customer who says “no”.

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B. The elements of a Launch Tree

• A list of all the offers you will put on your tree:• Main offer• Bump (if you have one)• Upsells • Downsells

• Price of each offer• Affiliate commission for each offer.• Expected conversion percentage for each offer.

For example:

1. Physical Products — Account for the fulfillment and material costs.2. VIP Coaching — Account for the cost of your coaches and staff.

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C. Drawing your Launch Tree

Drawing your tree allows you to organize everything while still letting new ideas pop in. it also let you see the entire flow and have the flex-ibility to make changes as needed. A drawing shows your programmers and designers exactly what you need. Drawing helps you see the tree from the customer's point of view.

Step by Step checklist

• Short Tree: One to two upsells; downsells are optional. Recur-rences are recommended but optional. Typically no bump offer (but still recommended).

• Medium Tree: Two to three upsells; one downsell (recom-mended). Recurrence offer recommended but optional. Typi-cally no bump offer (but still recommended).

• Tall Tree: Three to five upsells; two to three downsells. Recurrences are highly recommended. Bump offer highly re- commended.

Step 1 - Print out the Launch Tree fill in the blanks diagram.

Step 2 - Write down your main offer detailsRemember, your main offer is the first product you show your visitors. Be sure to include the:

• Price • Affiliate Commission• Expected Conversion Percentage (Take a safe guess here —

feel free to use the numbers above as benchmarks.)

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Step 3 - Write down bump details• Price• Affiliate Commission• Expected Conversion Percentage

Step 4 - Write down Upsell #1 Details• Price• Affiliate Commission• Expected Conversion Percentage

Step 5 - Write down Upsell #2 DetailsNote: This is what you show the customer who said "YES" toupsell #1.

• Price• Affiliate Commission• Expected Conversion Percentage

Step 6 - Write down Downsell #1 DetailsNote: This is what you show the customer who said "NO" to upsell #1. Be sure this downsell makes sense. It should be 50 percent of the price of upsell #1.

• Price• Affiliate Commission• Expected Conversion Percent

Step 7 - Write Down Upsell #3 DetailsNote: This is what you show the customer who said "YES" to upsell#2.

• Price• Affiliate Commission• Expected Conversion Percent

Step 8 - Write Down Downsell #2 DetailsNote: This is what you show the customer who said "NO" to upsell #2. Be sure this downsell makes sense. It should be 50 percent of the price of upsell #2.

• Price• Affiliate Commission• Expected Conversion Percent

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Step 9 - Write Down Downsell #3 DetailsNote: This is what you show the customer who said "NO" to upsell #3.

• Price• Affiliate Commission• Expected Conversion Percent

D. Software to help you draw the Tree

Once you think you have created an effective tree, it's a good idea to create a formal "process map." A process map is basically a flow chart that shows all the steps – in this case, the steps your customer will take as they go through your sales process.

In your own process map, you want to include all of the following in-formation on your tree:

• Product Name• Customer Response - Yes or No• Price• Affiliate Commission• Expected Conversion Percentage

Why should you create a formal process map?The formal process map really helps when you are talking to…

• Your programmer(s)• You web designer• Writers and designers who work on your products• Your copywriter(s)• Your JV partners• Your customer support team• People who test your sales process before you go live• Anyone involved in the product launch

The tree allows everyone to see at a glance what is supposed to happen with your customers on launch day. It also helps them to visualize how everything is supposed to work.

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Software to help you draw a process mapYou can draw a process map using graphics programs like Paint or Fireworks, but that can be a tedious process. There are software pro-grams specifically designed to create process maps and to do "mind mapping" (brainstorming ideas while drawing the map).

Web-Based ProgramsBubblhttp://www.bubbl.us/Bubbl is a free online mind-mapping tool that allows you to create a quick process map and print it out. You can also email your mind map, embed it in a blog or website, and save it as an image.

Mindomohttp://www.mindomo.com/Another online mind mapping tool that allows you to create and edit mind maps, and share them. Basic accounts are free, premium accounts have a small monthly fee.

PC Programshttp://www.smartdraw.com/Smart Draw is a popular program that does a lot of the drawing for you. Pick a process map template (they have some really nice ones), input information, and let the software draw the actual map. It aligns everything automatically and generates a professional-looking process map in seconds.

MAChttp://www.omnigroup.com/applications/OmniGraffle/Mac users are lucky — OmniGraffel is one of the most powerful soft-ware packages available for making diagrams, process maps, charts, and even website mockups. The interface is intuitive and easy to learn, and there's a great "Auto Layout" feature which lines up all the items on the map according to whatever rules you specify.

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E. Critique your Tree

Provide a positive experience. When presenting an upsell or a down-sell, don’t make your customers think “That’s not fair, why didn’t you just offer me that in the first place?” Your first offer should always be your best value. All upsells need to be structured in a way that makes your best even better.

Deadly Mistake #1 - You make a "Yes" customer feel bad about what they just bought.How to avoid mistake #1 - The "make your best value better" principle

Here is what you should do: • Offer the complete DVD set as your main product. • Then offer a second, different DVD that dives into a

specialized sub-topic in depth.

Mistake #2 - Not respecting the meaning of "No". How to avoid mistake #2 - Always create a different track for the "No" customer

F. Is your Tree too big or too small?

There is no one-size-fits-all Launch Tree.

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Module 6 – The words that sell Upsells

A. Upsell VooDoo #1: The power of "Free"

Just the word ‘free’ can double your conversions. This may mean that when you use the word "free":

• You make your customer feel like they "escaped" from a prison or a trap. Accept this for free — get out of jail (or school).

• You make your customers feel noble, uplifted, joyful, happy and carefree...

• By giving them something for free, you become their friend, you endear yourself to them, heck, they love you!

Launch Tree principle: Before you start your upsell process – find something your customer can say “yes” to. Put them on the right track!

B. The psychology of Free

Three more psychological laws of human nature kick in when you offer something “free…” and get them to accept.

Law #1 – ReciprocityAs soon as people accept something for free, many feel that they "owe you." The "law of reciprocity" kicks in. You helped them, now they will help you.

Law #2 - Commitment and consistency This law states that people tend to stick to their initial commitments, no matter what that commitment was. Being steady and consistent is highly valued in society; we get praised for it all the time.

Law #3 - Removal of risk

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C. Positioning around the word "Free”

The best part of using the word “free” is that you don’t have to change your actual upsell or downsell much – just how you position it. Use “free” instead of “discount” when possible.

Example #: Buy 1, Get X FreeA) Buy two months, get the third free.B) Buy two months, get our newsletter free for one year.C) Buy two months, get any of our other products free.

A is best, because you lock the customer in for three months instead of two. Yes, in all cases they still have to pay you $800 right up front.

Example #: Just add free bonuses

Example #: Free "Priority Access Club"

You basically tell customers that with this upsell they get Gold level status for free. With this status, they will be the first to be notified of new developments and receive a special treatment throughout the year.

D. Upsell VooDoo #2: Why to never say "Thank you for your order"

Don't close the buying loop too soon! What you should say instead… Here are words that keep the psychological buying loop open:

• Order customization - Step 1 of 2 (or 2 of 3, etc.)• Order processing • Order confirmation• You are not done! Please finish the final steps• Almost complete — Please complete the final steps

With the statements above, the customer is being told “Your main order is not done. I need your attention, so don’t go anywhere!”

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E. Upsell VooDoo #3: Prime real estate – The page behind the order page

Remember the shelf space in our supermarket example? On your website you have “prime shelf space”. The page that comes right after your customer places their order is worth at least a 42 percent raise for you right now.

F. Upsell VooDoo #4: Say goodbye to the one-time offer

The bad part is that a One-Time Offer (OTO) is a blatant sales pitch. Remember, people hate to be sold. So ditch the hard sell OTOs and use a better approach.Choose, Upgrade, Customize!The big retailers don't shove an OTO in the face of their customers. In-stead, they allow them to retain control. They help customers say "yes." They give them freedom.

G. Upsell VooDoo #5: Order progress bars and timelines

If you have more than one upsell and downsell, things can get visually and mentally confusing for your customer. Some of our favorite ways to add a timeline:

• Always tell the customer where they are in the process. This way they subconsciously register what's coming next. We've found that people don't mind a longer sales process as long as they can anticipate the end-point.

• The best way is to use both a visual cue like a progress bar, and appropriate language, like "Customize your order: Step 1 of 3."

• The most common pieces of an order are Customize >> Cart >> Checkout >> Receipt. You want to be sure to include all of these.

• Another way is to "Confirm" the order. • You can also display an “Order Details” list in a sidebar or next

to items in the cart. This grays out the sections the customer has yet to finish, but allows them to click back and make changes.

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H. Upsell VooDoo #6: Order buttons…What they should (and shouldn't) say

What your button on the Upsell sales pays should pay…Most upsell pages have the same problem: “Buy now!”

1. At this point this can be a threatening statement — the word “buy” makes them think a little

2. You’re also closing the buying loop again. If you have more offers coming, you do not want to close that buying loop!

I. Upsell VooDoo #7: Importance of 1-click Upsells - Doubling your conversions!

1-click technology lets your customer buy an upsell or downsell with just one mouse click. They have to enter their credit card information just once. The system remembers their credit card, so all they have to do is just click a button to buy the next item. Make it clear to the cus-tomer what happens when they click this button. Explain they are being billed and for how much.

J. Upsell VooDoo #8: What your "No Thanks" buttons should say

Our goal is to get 60 percent to say “yes” to at least one of the offers. Since the reality is that most will say no you can’t kill the tree process by giving them an easy-to-see option to say “no”. This doesn’t mean you should hide this button!

Example for no thanks button:___ “No thanks Mike, I already know everything I need to know about [enter your topic here]. I know others will use this informa-tion to improve their life and receive an excellent return on their investment, but I am willing to take my chances, and pay more later if I change my mind.”Bold this “No Thanks” text and make sure it is a dark gray color. Let the button don’t just say “No Thanks”, but let the customer know what he is missing out on.

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K. Upsell VooDoo #9: The importance of the "Yes" check box

Insert a “Yes, I want” box. The box reads something like this: “Yes, I’m ready to get started now! Please sign me up.” This works very well, not only above an "Upgrade" button, but when sprinkled throughout your main sales page. Now they’ve committed to accepting something from you.Here's an example of a powerful "yes" statement:

And another: Note: The Terms and Conditions box should not be automatically checked. It should be unchecked by default.

L. Upsell VooDoo #10: Which colors work best

We have found these colors for buttons convert best:• Blue - Universal color of hyperlinks, always a safe choice.• Green - A calm color that's associated with money and

prosperity. It’s also great for yes buttons because it means GO!• Yellow - A "happy" color that stands out nicely (Amazon uses

this).• Black and White - Neutral, easy to read.

Avoid red. This color is the universal color for "stop" or "warning."

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M. The last word on sales letters and videos

A sales letter is the one opportunity you have to explain your offer to the customer. It lets them see your product and learn about how it can help them. Launch Tree principle: A sales letter should be as long as it needs to be. It should explain all benefits and features and provide everything your visitor needs to help them say “yes”.

Top Five sales letter writing tipsFor your main sales page copy: 1 - Justify the price in the reader's mind.To do that, you must list all the value you're offering -- every single bit. Also be sure to justify reductions or increases in price. 2 - Always bring up — and then remove — any objections.Anticipate and address them right there.

For upsell copy (in addition to #1 and #2 above): 3 - Show the reader that they are getting new, improved, or more content— more value.If that means you need a whole new sales letter to present the upsell properly, go ahead. Remember, because they already said yes, you can assume they are interested in what you have to say so say it.

For downsell copy (in addition to 1 and 2 above):4 - Reassure the reader about the lower cost.Justify it. For example, explain that digital downloads don't cost you as much as a big box of DVDs + shipping. 5 - Reassure them that they are getting almost as good a deal... and that nothing essential is left out.

Launch Tree principle: Always write a complete, compelling sales let-ter that presents your offer with all of its features, benefits and testimo-nials. A sales letter has massive advantages.

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• Some people won't sit through a video, but they will skim a sales page. A busy person can still get to the point of your sales message.

• You can use bold and highlighted words to attract someone’s attention to a certain section.

• It's easy for the reader to go back and reread a section of a sales letter— very important. Different people are attracted to different features of the product, so you have to give people a chance to check out their favorite parts, especially testimonials.

• Your sales letter can be as long as you need to make your case. You can put everything in it — every feature, every bo-nus, every testimonial, etc. Some people get antsy after just 23 minutes of video!

• The sales letter gives the reader much more control over how and when they absorb your message. Psychologically that's a much better way to treat the customer. The more control you keep in the customer's hands, the better.

Let's look at some of the disadvantages of video: • With a video, people can't skip forward to parts that interest

them without missing a key phrase, thought or point.• Videos are most effective when they are short. The longer the

video, the more likely the viewer will "bail out" before you can make your entire case.

• If someone doesn't watch the entire video, they feel incomplete — like they missed something. They may like the offer. But if they have to stop the video while it’s playing, they feel cheated. Once again, they lose control over the sales process.

• If their attention is distracted from the video for a moment, they tend to miss things. That makes it very easy for them to get into a “no" mindset. They think, "I'm not sure what this is all about, therefore I am not interested."

Obviously you are going to bump up against all these limitations with a "video only" approach!

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Module 7 – Growing the branches of your Tree

A. The mistake most marketers make: Losing momentum

There is no better time than right after launch to…• Put more offers in front of your customers. They bought from

you. They loved your product (hopefully). They’ll be excited to hear about more offers.

• Communicate like crazy with your customers. Send them follow-up emails and give them ample reasons to log in, visit your blog, and click on links in your emails.

• Show your customer that you were not just excited about helping them before the launch of your product; you’re there for the long haul with them.

• Follow-up with the non-buyers on your lead list. Remember, just because they didn't buy, doesn't mean they are not interes- ted. They want to hear from you or else they will unsubscribe.

B. Build a business, not just products

When you follow-up properly with your customers by providing a se-quence of subsequent products — you’re officially building a busi-ness.

From your customer's perspective, your business is the collective value that your entire enterprise offers. That includes not just your products or services, but your brand, mission, energy, websites, sup-port, and even the output of your team.Think of your business as an Offer — the ultimate offer. Customers perceive your business as the totality of everything you bring to the table. To them, your business is something they interact with, and that they can return to over and over again to get literally endless amounts of value.

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C. Right after your Launch — What next?

The most critical period after a launch is the first 30-40 days. If you are not active within this period, you will quickly lose the attention of your prospect or customer. By active we mean:

• Consistent and constant communication with your list.• New product offerings.• Releasing testimonials (keeping the excitement up).• Releasing proof that your product works.• Conducting webinars, teleseminars, and other events to build a

personal relationship.• Offering them more products.

If you can get them to spend more money within the first 30-40 days of their exposure to you… they will have a stronger relationship with you.

Communication must lead to growth.Here are three options that have worked very well for the authors of the Launch Tree. They use all three at the same time and recommend you do the same.

• An aff i l iate or JV launch. Team up with another marketer who has a complementary high end product you can promote to your customers. Remember, even if your list is smaller than other marketers' lists — you still have the best out of all of them. The last three times Anik has done this, he’s dominated the launch and been the top affiliate by far!Later, you'll learn how PPC Classroom recently earned over $512,000 in affiliate commissions in the few weeks after a launch by promoting a highly related product.

• A “launch within a launch” - internal launch. This strategy alone has made Mike and Anik millions after a launch. It’s a truly unique concept that 98 percent of marketers do not use.

• Launch a recurrence product. There is no better way to build and maintain a relationship with your customer than to have them paying you every month!

If a recurring element was not involved in your original launch, then you can launch one afterwards as a “launch within a launch.” However, if you already had a recurring element as a part of it, consider launching an even higher level program.

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D. Option 1: Post-Launch: Affiliate/JV Promos

Be Careful – Your relationship is on the line…Choosing an affiliate promotion is a big responsibility. Don't take this lightly. You should be very certain that the product and company you are promoting are of the value your customers expect from you.The easiest way to kill your reputation and relationship is to highly endorse a product, have a customer buy it simply because they trust you… and then have the product fail to deliver on its promises.

The Launch Tree course will teach you how to find the right affiliates and joint ventures. For now, just be aware of the following when choos-ing an affiliate promotion:

• Is this product something you like and believe in?• Do you sincerely feel that this product provides value to your

customers? • Does it fit in with your business? • Would you be proud to put your name on it? • Would you use the product yourself?• Does the product creator have a good reputation?

Remember, when you promote an affiliate product, you are putting your name, your reputation and your brand behind it.

Here are some guidelines to follow if you are setting up to put all your weight behind one affiliate promotion after your own launch. 1. Start promoting at least one week before the launch. 2. Prepare a killer stack of bonuses. 3. Choose a promotion schedule to use.

Here are specific techniques to use:1. Highly related: Just like your upsells and downsells, all your bonuses should be highly targeted. Don’t just “shove” in anything and everything you have. Add value.2. Tease during the week: Never announce your bonuses until 48 hours before the launch. We like to tease the list during the pre-launch, saying that we have a large bonus coming soon. Build the anticipation.

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3. Announce it 24 hours before launch: We typically announce the bonus about 24 hours before launch. This is the best timeframe to get the “shock and awe” effect. You’re able to use this to make your bonus page go viral very fast.We consistently see sales from many who are not even on our own lists. They planned on buying the product and found out about our bonus, and then bought it purely for the bonus.4. “Price of product X 10” rule: If you really want to destroy it and blow past any competing affiliate, use this rule.Let’s assume the price of the affiliate product is $397. The best bo-nus you can add will be worth $3,997 at least.5. Mail at least three times before launch: This is why you want to start a week before. As a bare minimum you want to mail twice for the pre-launch, and of course on launch day.6. Make a video: Videos are key, especially if you can do a product Tour or show the product being used. You’ll likely be the only af-filiate going to this length and the results will show. The video will also go viral. We typically like to make the second pre-launch mail-ing into a video release.7. Follow-up mailing two to three days after launch: You can easily see a 30 percent jump in sales if you mail again within two to three days after the launch.

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E. Option 2 & 3 — Post-Launch: Internal launches and recurrences

Option 2 Post-Launch: "Launch within a Launch". The basis principles are:

1. You develop a new product that ONLY your customers can order. You will not offer this product to the pre-launch list, or to any of your other lists or customers.

2. Drop hints about the new product from day one! You should be preparing your customers for your “launch within a launch” starting the very same day you sell them the first product. But you must do this quietly and "behind the scenes."

3. Release the "launch within a launch" product seven to 30 days after your initial launch. The earliest it should be done is 7-10 days after the first launch. And the latest it should be done is one month after launch.

A "launch within a launch" is the perfect upsell if…• you can't implement 1-Click technology right now; • you can't get your own merchant account.

The key is to start dropping those hints about the "launch within a launch" product to your new customers. Remember, you want to think of each new customer as their own little launch!

Option 3 Post-Launch: Recurrences

The authors of the Launch Tree believe it is essential to offer a recur-rence program as an upsell. This sort of product is a constant and stable source of income. This is needed to stay a business and to expand your business while you don’t have a new launch.

There are many types of recurrence programs. Just think about a monthly premium (audio) newsletter. It is mostly about the quality value of the product. As long as the customer sees and experiences the more value of the product, he will keep paying for it.

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F. Case study: Adding $1M to the annual revenue

Perfect "Launch within a Launch" timing and a high ticket recur-rence program The following idea was pioneered by Amit Mehta and it added a mini-mum of $1 million a year to their business — all recurrences.They combined two concepts:

• The Launch within a Launch — Only allowing their customers to order — not the pre-launch list.

• Higher ticket recurrence — Although they already had a recur-rence program, they were able to build so much value that their customers purchased an upgrade, and paid 400 percent more than their current recurrences!

What can you learn from this case study? Two BIG lessons…1. It’s all about value again. As long as the value is there, your

customers will pay. Don’t be shy of launching a “high-priced" recurrence program.

2. Adding recurrences creates consistent revenue you can count on. That way you can focus on building your business knowing you’ll have income the next month - even if you don’t launch a “new” product.

G. Momentum builders: Future cross sells and upsells

Now is the time to plan the upsells and cross sells that will keep the momentum of your launch going, even post-launch. Go through this list and see if you can come up with at least five more upsells and cross sells, on top of the ones you have already planned for your Launch Tree:• Different media

• Written - Digital download, print, or data CD• Spoken - Download or physical CD• Video - Download or physical DVD • Software - Download or physical CD

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• Different types of content

• Ebooks• Workbooks• Checklists and tip sheets• Process maps• Heat maps and diagrams• Newsletters• Magazines• Glossaries and FAQs• Resource Directories• Spreadsheets• PowerPoints• Articles• Reviews• Photos• Web graphics• Email exchanges• Physical books• Screen capture videos• Templates• PLR products• Resale rights products• Live teleseminars, webinars, upstream conferences• Written transcripts of audio and video• Recordings of teleseminars, webinars, upstream conferences• Recording of a live lecture, seminar, workshop, class• Memberships• Subscriptions• Courses • Live coaching• Email coaching• Platinum or elite coaching groups • Offline workshops, seminars, classes• Live events, large scale

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H. Case Study: Live event — Launch within a Launch

How live events can be a great post-launch momentum builder:1. Customers get to actively participate. The attendees at your live

event are going to get a very intimate view of you and your busi-ness, while actively participating with others who share their same goals.

2. A live event strengthens your business’ image.3. It keeps your product "top of mind" with your customers.4. It’s a one-stop shop for your product.5. Back-of-the-room sales can generate significant additional

revenue.6. It gives you an opportunity to obtain powerful testimonials

and endorsements.

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Module 8 – Increase conversions by 29% for each branch through 1-click

technology!

A. What is 1-Click technology?

1-Click technology is one of the easiest ways to gently guide your cus-tomers through the shopping cart process while drastically increasing your conversions.

When Amazon implemented its "1-Click Ordering" it discovered that customers would add more products to their cart during each shopping session. 1-Click made it incredibly easy to just click one button and purchase the item.

And here's a close up. See how Amazon makes it super easy to just click and buy?

In fact, Amazon even tried to patent one-click technology. Lucky for us, the patent application was rejected, so we can all implement one-click technology into our sales process.One-click technology allows your customer to say "yes" to your offers and pay for them by clicking one button.

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Here's how it works:• The customer accepts your initial offer and enters their credit

card information.• The system remembers the credit card information, number,

expiration date, etc…(Just make sure your system is encrypted and secure.)

• You present the first upsell to the customer. When they click the "Customize my Order" button, the system just "pings" the credit card again. The system can also be designed to only bill the credit card at the end – it totals all the charges and bills them at one time. Mike and Anik prefer to bill immediately, in pieces, as the customer is making choices.

• This can be repeated for as long as the customer stays on the upsell/downsell path.

• The customer will see the charges on their credit card state-ment.

NOTE: Some 1-click scripts will wait until the entire process is com-plete and will charge the customer one lump sum. Others will process and show multiple charges on the customer's credit card statement.

B. So why don't most marketers use 1-Click?

Why don’t more people use it? This is because:• You need a merchant account to implement 1-Click. Lots of

small- to medium-sized businesses on the internet stick to us-ing 3rd party companies. A real sign of a true business is when you have your own merchant account.

• You need a 1-Click script that will work with both your-merchant account and payment gateway.You can have the script built or you can use the Butterfly Marketing script, which is the only out-of-the-box 1-Click script we would recommend because it does not require custom coding. Either way, the technology on the credit card processing terminal has to integrate well with your payment gateway.

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• You need access to programming talent you can trust. Developing or customizing a script, integrating it in your web pages, and testing and debugging it all require an experienced programmer.

This technology will be handling and storing sensitive data, includ-ing credit card information. You need to choose a credible programmer who can be trusted.

• Testing your 1-Click process can be a big job. You need a group of people to test from different ISPs, different locations, different browsers and even different parts of the world. If you don't, you may find yourself with lots of failed orders on launch day (yes, we've been there!).

• You need to invest money and time in 1-Click. Paying for a script and a programmer, as well as getting all the order pages designed and implemented, takes time and money. If you're short on either, you need to start planning now. Begin setting aside resources to invest in getting 1-Click up and running smoothly.

• Most third-party payment processors simply won't allow you to use 1-Click. For example…• Do you use ClickBank? ClickBank says it is planning to

offer a 1-Click upsell solution in the future, but it's not yet available.

• What about PayPal? Big Warning! Do not even consider developing a script to do 1-Click ordering with PayPal. Any script that does this is a violation of the PayPal terms of agreement.

PayPal requires the customer to exit your site and go to a transaction page in order to confirm the amount (and other information). This is required, even if the customer has already entered payment information.

So if you attempt to use a 1-Click script with PayPal, your account will be shut down.Do you prefer Paydotcom? It's a great payment processor (if we do say so ourselves). But Paydotcom does not cur-rently offer 1-Click because of PayPal.

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Do you like Google Checkout? It's another nice third-party payment processor. But unfortunately, it doesn't allow 1-Click, and it doesn't look like it has plans to offer it in the future.

• What about other services – Every day new services are popping out that claim to offer 1-Click. We have not yet tested many. However, our experience shows that many do not keep the “Launch Tree” strategies in mind.

Important. Just because you do not have 1-Click does not mean you cannot use the Launch Tree. We’re going to give you advice on how to start using the Launch Tree right away — even without 1-Click technology.However, we still recommend that you work hard to get access to this technology.

For one-click technology you can choose between your own script or one out of the box.What are the benefits of purchasing a pre-made 1-Click upsell technology?There are definite benefits to using a pre-made, out of the box script like Butterfly Marketing. .

• You don't need to locate, test out, and hire a programmer.• The script has already been tested.• The script will most likely work with most major payment

gateways.But, there are also benefits of hiring someone to build a script for you:

• You can get a solution customized for your business.• As you grow, you'll need technical talent, and this is an

opportunity to develop a relationship with a programmer.• You own the script.• Your programmer will know the script he created inside out, so

changes and enhancements will be easier to do.

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With so many different options available, your first step should be to talk it over with your merchant account provider and your programmer. Why?Because different payment processors have different requirements, you should talk with all the players involved — and if you can, get them talking to each other. This will help you work out what you need to get 1-Click technology up and running for your website and your Launch Tree.

Testing your Launch Tree order processIt doesn't matter whether you use an out-of-the-box script or build your own -- you must test the entire order process completely. This includes making sure that

• Purchase confirmation emails arrive.• Product is delivered.• Logins work (if it is a membership site).• Upsells and downsells are delivered properly.• Users have access to their account or to the support system.

IMPORTANT WARNING! Do not use your own credit card to place test orders! Your credit card account could be shut down.

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C. What if you're not ready for 1-Click?

1-Click is NOT mandatory for a successful sales process.We strongly believe it's always better to get started with upsells and downsells anyway. Just try it, even without 1-Click. Why?

• It's always better to try, than not to try at all! The power of upselling and downselling won't really hit you until you give it a chance and see what happens. Even Anik had to try it with a drop dead simple upsell (not using any of the tips in this course) before he was convinced. You need to see that custom-ers will respond, even without 1-Click. That will get you fired up to make 1-Click happen for your business.

• Even if your conversions are not as high, you still make more sales — guranteed. Without an upsell, you are denying value to those customers who are your biggest fans. Because the ones who want your product badly enough will put in their credit card twice. Without a downsell, you're basically turning people away simply on the basis of price. That's not fair to you or them. You lose money, and they miss out on something that could benefit them.

• Upselling and downselling make good marketing sense. If you believe in your products, you owe it to your customers to offer them more. You want your visitors and customers to expect to see additional valuable options when they come to your site. They're used to it already, from the world's biggest companies. It's not about taking more…it's about giving more.

• Just because it's not 1-Click, doesn't mean people won't buy! People experience upsells when they go to all kinds of businesses, and sometimes they do have to pull out their wallet a second time. For example, at McDonald's, if you eat inside the restaurant, you have to pay again if you decide to order a sundae after your meal J!). So you won't be hitting them with anything new if you present them with an upsell and they can't 1-Click. Your conversions just won't be AS high.

• Upselling and downselling make good business sense — without them, you leave money on the table. Just offering one upsell and one downsell (provided they're good) will in-crease your revenue significantly.

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How to use the Launch Tree without 1-Click?

NOTE: Remember to keep it SIMPLE! You can start your Launch Tree with just 1 upsell -- you don't even need a downsell, though we recommend it. Just follow the steps and Get Started!

1. Keep your Launch Tree short. 2. Draw out a simple Launch Tree with only one upsell and down-

sell (maximum 2 products). 3. Plan your "launch within a launch" right away! This is where

you will make the majority of your profits. (We'll talk about this in detail in Module 10.)

4. Get your upsell and downsell products ready. 5. Be sure to use correct sales vocabulary in your sales process.6. Be sure to build a list! 7. Set a goal to reach before you apply for your merchant account.

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Module 9 – Always think recurrences!

Introduction

If you don't have a recurring revenue program, you could be lea- ving thousands - even hundreds of thousands - of dollars on the table every month!

• We're going to prove just how essential a recurring revenue program is by showing you how much money PPC Classroom 2.0 would have lost without a recurring revenue program.

• Then you’ll learn how to position your own recurrence offer so your customers will actually want it. It’s all about Launch Tree principles.

• We're also going to share some very important things you should implement into your recurrence program right away, to avoid those dreaded charge backs

• We’ll discuss the whole issue of “forced continuity”.• You’ll also learn that it's not just about getting people to buy

your recurrence offer.In fact, recurrence is so important; you absolutely must read this module twice from start to finish!

A. Case Study: PPC Classroom recurrence

PPC Classroom 2.0 — October 2008This launch included the complete Launch Tree of Mike and Anik, with four upsells and two downsells. On average the recurring element is worth $362,500 a month!In other words, without the recurring element, PPC Classroom would have been almost $1.5 million dollars poorer!

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Why recurrence is better than no recurrenceLaunch Tree principle: Recurring revenue allows you to build and grow a business, instead of constantly having to sell new products.

• Without recurring revenue: Your income will always be dependent on the very last product you launched. That's not really building a business.

• Without recurring revenue: It's like owning a retail store, where you have to keep selling and restocking every day just to keep the business alive.

• Without recurring revenue: You never get paid for what you did in the past.

• Without recurring revenue: If new sales stop – your business ends.

If your business model includes built-in recurring revenue, your business takes on a very different form.

• With recurring revenue: You can plan on a relatively steady flow of revenue. That allows you to build a real business that can be expanded and scaled.

• With recurring revenue: It's like owning an investment pro-perty. You have to maintain, improve, maybe even "beautify" the recurring product, but you don't have to create it from scratch or sell it over and over again.

• With recurring revenue. You can be paid again and again for value you created in the past.

• With recurring revenue: You build a stronger relationship with your customers.

• With recurring revenue: You run a real business!

Long term relationships = more revenue!• Your business will fizzle out if you don't constantly provide

your subscribers with additional value.• "Customer acquisition costs" might be advertising costs like

PPC (Pay per Click)• You always have to spend x amount of time, money, and re-

sources to acquire a customer.• By adding recurring income, your average customer is worth

much more than the initial transaction.• The additional income allows you to invest more into your

marketing

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B. How to position recurrences to make customers WANT it

Explicitly state what the customer will get, what they are agreeing to, how much it will cost, and how to cancel. Don’t hide anything in the fine print!Never hide the recurring charges!We've all seen these tactics. Some companies "trick" you into agreeing to a monthly recurring charge. Some of the nasty practices are:

• They don't explicitly tell the customer that by buying the product, he is also signing up for a recurring charge.

• They omit the continuity aspect from their sales pages altogether.

• They hide the recurring charges in the fine print, in a font so small that you can't even read it with a magnifying glass.

• They reveal the continuity charges at the very end of the sales process. Some companies really cross the line, and only tell you after your card has been charged.

• They say just enough about the program to satisfy the law, but it's still "clear as mud" to the customer.

Customers are rightfully angry if they fall victim to these practices.• "Book of the month," "fruit of the month," and "coffee of the

month" clubs; • Magazine, journal, newspaper, and newsletter subscriptions;• Monthly or annual maintenance or service contracts; • Cell phone contracts;• Monthly charges for Internet, phone, cable, and satellite; • Monthly or annual web hosting.

Be transparent!When we sign up for these continuity programs, we know exactly what we are getting into!When you sell a continuity program, remember to do the following:

• Explain exactly what the continuity program is and what they will get.

• Tell customers exactly what they will be charged. • Tell them precisely when they will be charged.

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6 Strategies to avoid charge back issues1. Always remind people that their card will be billed.2. Include cancellation instructions in every communication3. Be quick to react when someone complains.4. After the sale, be sure to send an immediate email explaining the

charges and terms.• What they purchased• Where they purchased it (the website URL)• How much they paid• The last four digits of the credit card they used• The exact wording that will appear on their credit card

statement• How to contact customer support

5. If you sell a physical product, include a copy of the terms and a receipt inside the actual product

6. Allow customers to cancel themselves without customer support.

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C. 4 "Positioning" tactics for your continuity program

By offering a continuity program, you are also accepting the responsi-bility the value of your program.

Tactic #1 - Position the continuity side-by-side with the main offer.• Present the recurring program alongside your main offer.• Sell the recurring program on its merits, just like the rest of

the offer

Tactic #2 – make ease of cancellation a selling point.Show the customer that your program is different by turning ease of cancellation into a selling point.

• It starts the relationship off right.• It reduces risk.• The customer retains freedom and control.

Tactic #3 - Properly position the benefits of educational recurrence• Can I package the benefits of my recurring offer in a more at-

tractive way? • Can I use language that is more uplifting, positive, tantalizing,

or gentle in my sales copy? • Should I deliver the product in a different, easy-to-digest for-

mat?• What if I focus on the end results my customers will get once

they've "eaten their broccoli?"

Tactic #4 - Increase up-front value (build reciprocity)Examples…

• PPC Classroom — The course that has students making over $4 million dollars a year for free?

• Butterfly marketing — The $2,000 software for free?• Net effect — The Stomper SEO Course 2.0 for free?

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D. Is "forced continuity" bad?

When forcing your customers into signing up for your continuity program, they won’t feel 100 percent safe when entering into that type of transaction.

In reality, your recurring offer is "automated continuity." But the problem is

• Nobody likes to be "forced" into doing something.• Nobody likes not being able to choose.• Nobody likes not having control.• Nobody likes being backed against a wall!

This negative mindset is apparent when you look at the typical complaints about forced continuity.

• Customers will complain that they didn’t realize a recurring subscription was required.

• Customers say they simply did not know they were signing up for a monthly fee.

• Customers will email support asking for a refund shortly after signing up (without even looking at the subscription or membership!).

In fact, there are really four ways to sell a continuity program and you only want to use one of them:

• Front-end continuity: maybe. • Hidden continuity: no! • Forced continuity: hmmm maybe. • Optional continuity: yes!

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The "new" forced continuity model - optional continuityOptional continuity has now taken centre stage in marketing circles as of late. How it works.You make the continuity program into an option that the customer can choose to remove from their cart. Essentials of the optional continuity strategy:

• The continuity program is completely transparent. All the benefits of the continuity program are featured in the sales letter. Explain why the continuity program is so valuable.

• Be sure to give the customer an obvious way to say "no" to the continuity offer.

• Recommended: Make the continuity offer free for the first month.

What to expect from optional continuity• Higher conversions

Depending on the offer and the market, the increase in conversions was anywhere from 12 percent on the low end to 28 percent on the higher end. That’s right, forced continuity had actually been suppressing re-sponse 12 – 28 percent all these years!

• Lower customer service burden• Higher tetention

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E. 16 critical strategies to make your customers STICK to your recurring program

Reengage your customer’s enthusiasm and give them clear instructions on what to do. Your goal is to literally rekindle the same sense of enthu-siasm they had in the beginning.

Strategy #1 - Be transparent from day one (and stay that way)Strategy #2 - Let the customer know that they can cancel at any timeStrategy #3 - Shift the focus from how much your product costs to how much money it can make or save for your customersStrategy #4 - "Sell while recurring" principleStrategy #5 - Implement the "pain of disconnect"Strategy #6 - Over-deliver on contentStrategy #7 - Bribe people with foodStrategy #8 - Hint about future products or benefits using the "drip method" Strategy #9 - Deliver your product in incrementsStrategy #10 - Use the "cliffhanger effect"Strategy #11 - Use the power of seriesStrategy #12 - Send unadvertised bonuses to your customersStrategy #13 - Give them special deals on your new or affiliate productsStrategy #14 - Create a recurring relationship using the power of "Free."Strategy #15 - Implement "cancellation sticks."Strategy #16 - "Resell" the customer on the program when their prod-uct arrives

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Module 10 – Post-Launch affiliate income – Monetize Your List!

A. Why you should always build a Pre-Launch lead list

Be ready to build a lead list the second you announce your pre-launch. Even if you already have a list, we recommend building a “pre-launch” list for the specific product you are launching. The main reason for this is that you have the perfect chance to “awaken” your old leads and col-lect new, fresh leads.

B. Case Study: PPC Classroom 2.0 Re-Launch List

You need to have the perfect mix to generate commissions like these:• Product relevance — it has to be perfect for your customers • Product quality — it has to be exceptional• Product price and recurring — both must be high enough to

generate huge commissions• Timing — your list has to be at PEAK readiness (three to six

weeks after launch)• Bonus — you need to be able to create a bonus with massive

value

This was simply one of those situations where everything came together perfectly.

• Our customers were at the height of attention and enthusiasm — perfect timing!

• It was a very high ticket product, with a substantial recurring fee.

• It was a standout product — one of the best of the year.• It was software, which lends itself to "demo" marketing videos.• Software is also ideal for a video/webinar bonus package (one

of the easiest to do).• It was a perfect product + market match — it fit our student

population like a glove.• It hit at the perfect time — three weeks after launch.

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C. Case Study: BFM Promotion (Anik wins a car from Mike!)

What's the moral of this story? Here we see several principles at work:

• The power of your relationship with your list — Anik's subscribers don't just open his emails, they read the emails and respond. Because of this, Anik was able to win the top spot in a very competitive environment (some of the top Internet marketers in the world were competing)!

• The power of strong JV partnerships — Some of Anik's JV partners actually promoted his link to their lists. Because of their history, they trusted his judgment on Butterfly Marketing.

• The power of cross-promotion — If Anik's friends hadn't promoted for him, their subscribers might have missed the chance to get Butterfly Marketing for just a nominal shipping and handling fee.

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D. How to build your list during Pre-Launch

Here are some rules to follow as you do your pre-launch for your new product.Rule #1 -Always collect opt-ins on your Pre-Launch page! Pre-launch traffic is especially valuable because these people are excited, or at the very least curious. Here are a few ways to collect opt-ins…

Include an opt-in box on your pre-launch website. Here's one that probably looks familiar.We offered free content videos right on the page, and "dripped" them in every few days to keep people coming back. Visitors could also join the opt-in list to get a free "leaked" chapter of this course. The videos pre-sold the free chapter, so the whole page was designed to generate excitement about the product. Within 24 hours of announcing the pre-launch, 10,016 leads signed up!

Entrance pop ups — An entrance pop up appears within a few seconds of accessing a web page. It usually contains an opt-in box plus some sort of incentive for signing up, such as a free report or free video. Many of today's entrance pop ups are very sophisticated and can override pop up blockers. They also "float above" the actual layout of a page, and can even blend in and look like they are part of the page. Because of this, visitors tend to be annoyed by entrance pop ups.

Exit pop ups — An exit pop is similar to an entrance pop, except that it appears when the visitor tries to LEAVE your site. Mike uses these a lot on his sites. Here's an example:

Priority re-notification opt-in — This is an opt-in box you put on your website after your offer is either sold out or closed to new customers. This list is specifically for those who want to be notified if and when the offer reopens. Here is a simple example at http://www.ppcclassroom.com/...

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Rule #2 – “Pay” your affiliates for the leads! Estimate $1 per lead valueNote: The value of your leads will vary drastically based on your niche. Mike has found that one dollar per name is a safe value. Our tests have shown that this one dollar per lead value has been the best marketing investment of our business to date!

What is the value of a lead? You have to figure out what a lead is worth to you. The lead carries value not only for the product you are launch-ing, but also for the promotions you do in the future.Since you are pay-ing your affiliates commissions on the product you are launching, don’t count that value into the “lead value” calculation. Just think about what you can earn from those leads in the future — post-launch.

Mike has spent some time researching this and learned that if marketed properly, a good lead is worth about one dollar per month to your busi-ness (if not more). In the case of our businesses, our leads are worth far more. However, if you use the one dollar per month number, you can do a safe calculation. So assuming you build yourself a list of 15,000 subscribers, you should be earning at least $15,000 a month. Therefore, if you “pay” your affiliates one dollar per lead, you should be in pure profit by month two!

Notice how we keep saying “pay” in quotes – that’s because we find that the best affiliate competitions don’t include money. They include prizes. To you it’s all the same, but to the affiliate it seems to make a world of difference.

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Rule #3 - Run an affiliate competition with a full range of prizes• During pre-launch, offer prizes for lead generation. This

creates massive buzz and can build a big list for you in days.• Let the affiliates control their own destiny. Notice how we

did not make the affiliates compete with one another. It’s not the “first one to get 50 leads” — you control your own destiny. Anyone with 50 leads is guaranteed to win that prize!

• Tease their egos. Even though it’s not a competition, affiliates are competitive and have an ego. We still make sure to publish a “leaderboard” so we can egg them on.They are more likely to mail again if they see that so-and-so has 1,000 leads. They think, “If he can do it so can I — I’d better mail again.”

• Prizes should be gadgets, toys, entertainment items, etc. Marketers seem to be more motivated by “toys!”

• Always offer prizes achievable by almost any affiliate (not just super affiliates). You can motivate everyone and generate 10 times more buzz by offering a prize for 50 leads or even less!

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E. Your opt-in page - Top 5 Tips for getting high conversions

After years of testing opt-in strategies of all kinds, we're no longer sat-isfied with opt-in conversions of 15-20 percent. Now we always shoot for 25 percent conversions or more.

Tip #1 – Never use long videos on the opt-in page!Here is what happens psychologically to your visitor when they see a long video:1. You say the wrong things, they lose interest.

The longer the video, the more time you have to say the wrong thing!

2. They see the “progress bar” and realize it’s 20 minutes. They don’t have 20 minutes right now so they decide to come back to it later.The kiss of death in marketing is “I’ll come back later” — very few do. Although the person did have enough time to simply opt-in, you now lost that too.

3. It’s boring. They lose interest.

Tip #2 - Always offer a free report, free chapter, or other free PDF.

Tip #3 - When you use video, make it short, snappy, upbeat, and even funny!

Tip #4 - Always split-test opt-in pages.Here are the elements that you should always split test:

• Page layouts• Colors• Headlines• Images• Text on the “Submit” button on your form• Different videos

Tip #5 - Use testimonials on the opt-in page.We simply use Google Website Optimizer — no need to buy fancy software: http://www.google.com/websiteoptimizer.• Written testimonials should be short and powerful. • The best testimonials state results.

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F. How to properly promote to your list

It's time to organize a strategy for the way to take care of them after your launch.

Step #1 - Choose ONE key targeted offer (within two or three weeks of your Launch) to promote to your listYou have a simple business goal: you're going to recover all your lead prize costs with this promotion (and then some). In other words, your lead list will be free after your first post-launch promotion.Two crucial factors…

• The timing must be right! You must start this promotion within 14-21 days after your own launch.

• You need to choose the right promotion. Ideally, this should be…• A fairly high-profile launch• VERY relevant to your list• A quality product you can endorse in good conscience• A product where bonus creation can be videos, webinars,

or teleseminars

Step #2 - Promote this product to your list during its Pre-LaunchFor the best results, make sure you participate in the pre-launch and let the merchant help you build anticipation.

• Begin promoting at least 10-14 days before the actual launch. Most pre-launches start 14-21 days before the actual launch, so you want to get in as early as possible. You need to get involved early for a couple of reasons. You need enough time to properly evaluate the product and pre-sell your list. And your list members are probably on other lists, so get a head-start.

• Second, get yourself motivated! If there's a lead competition, you're going to choose a goal and work toward it. If there's go-ing to be a sales competition, choose a prize you really want and make that your goal.

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Step #3 - Promote consistently! Use video to demonstrate the product. This works best with software products, but with a little creativity you can do it with almost any pro- duct.

If it's an information product like a course, then try to get a digital version of the core training materials. You want a digital download because you don't have enough time to get a big package delivered, let alone go through it.

Then make some videos of about five minutes each. You can do:• Case studies: Show yourself actually using the product and

document live for them how it helped.• Be sure to repeat the launch date and time a couple of times

in the video. Just don't harp on it at the expense of your content. You're not making a commercial, you're making an infomercial!

Step #4 - Create a unique bonus that adds valueTo really clinch sales on launch day, you need to offer a unique and hefty bonus created just for this product. This should preferably be a bonus you are personally involved in, such as a webinar series or video training.

Our favorite type of bonus is a teleseminar or webinar series where you act as host. In other words, a series of 4-6 online presentations where you let others do most of the work J! Remember that most experts in your niche are usually very willing to participate in these types of calls or webinars. They have their own products to promote, so they don't mind the chance to show off their expertise to a highly targeted audience. They also get to associate their name with your brand, which your list already knows and trusts.

Step #5 - NEVER miss an email at Launch Time!Whatever you do, don't miss emailing to your list at launch time! You absolutely must send an email the second the product launches.

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G. Guidelines for emailing your list in the future

Guideline #1 - Mail consistentlyWe have found over the years that it's not about how often you email your list, it's how consistently you email them. However, you should always include a link or two in every email.

Guideline #2 - Write so people want to read!• Make your emails entertaining and fun. People like to read

emails from people — not robots — so make it personal.• Don’t sell to them — inform them.

• Let them know when the product will be available, and how to get it.

• Tell them what impressed you about it.• Tell them the results you got from it.• Tell them how you think they will benefit from it.• Let them know who it's for — and who it's not for (i.e. not

for beginners)• It's good to be enthusiastic, but don’t use a lot of hype.• Teach! In every email, teach them about the product's main

strategy, and let them know the "golden nugget" inside the product.

Guideline #3 - Always keep your list informedRemember, this was a pre-launch list. The reason they signed up was because they wanted to hear what you had to say.

Guideline #4 - BUT don't overdo the promotions! Choose wiselyIf you email your list twice a day for the sole purpose of promoting another product, they're going to get bored by that fairly quickly and you'll see response rates drop.We recommend you choose your major promotions very carefully. It's better to throw all your effort behind a maximum of one launch per month, with video promos, custom bonuses, etc.

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Guideline #5 - Always add value through contentSending promotions is of course the core of your strategy — it's how you make sales while telling your customers about products that can really benefit them.

But it's also a good idea to send your customers pure content because…• It constantly reengages your list. People's minds get rein-

vigorated through content mailings, especially if the content — or your approach — is new and fresh.

• It helps build the relationship. Content shows your customers you care about more than just their wallets

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Module 11 – Let's review

A. Review of Module 1: The psychology of upselling/downselling

Module 1 covered the psychology of upselling/downselling and taught you how to present your offers in the right way.

B. Review of Module 2: Launch Tree case studies

Throughout Module 2, you watched several case study interviews with some of the top Internet marketers and learned how to build a product in only three days.

C. Review of Module 3: Easily creating valuable upsells and downsells

The encouraging aspect of Module 3 discusses how you probably already have everything you need to create those perfect, logical upsells.

D. Review of Module 4: How to build your own Launch Tree

E. Review of Module 5: Drawing your Launch Tree

Module 5 discussed how each track a customer follows is based on his response to each offer. You also learned how to get your customers started on the “yes” track and how to encourage them to stay there.

F. Review of Module 6: The words that sell upsells

In Module 6, you learned the importance words can have on your conversions. You learned about the power word “free” and you learned the words from which you should stay away.

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G. Review of Module 7: Growing the branches of your Tree

Module 7 reveals how the launch is just the beginning of the sales process. This is when your customers are the most excited about your product and the best time to approach them about recurring.

H. Review of Module 8: Increasing conversions by 29% for each branch through technology

In Module 8, you looked at the power 1-Click technology can give to your site and how it often makes it easier for the customer to say “yes”.

I. Review of Module 9: Always think recurring!

In Module 9, you learned that the best kind of revenue is recurring. You also learned the best way to turn your existing customers into recurring customers.

J. Review of Module 10: Post Launch affiliate income - Monetize your list!

In Module 10, you learned how to make your list work for you and learned specific techniques for getting money out of your list.