Self-Liquidating Offer

Imagine if you could advertise your business, for free. Imagine if you could get new customers, and it didn’t cost you money. That’s what a Self-Liquidating Offer is.

Sometimes abbreviated to SLO, this is a type of marketing campaign that pays for itself.

This might be surprising to you and to other people reading this, but the large majority of big companies and small businesses follow these steps:

  1. advertise – and then:
  2. wait for the day that their advertising will come back as profit.

If you spend $100 on a  marketing campaign today, how long would it take you to make that back? Depending on what kind of business you’re in, this will vary of course.

Here’s two examples:

  • eCommerce – Selling goods there and then. Hopefully within 24 hours.
  • Service Business – Maybe 7 – 30 days while you touch base, follow up and answer questions from the people who showed interest or asked for more info when they first saw your advertisement.

And of course, this is only if you have your ducks in a row and everything else works out.

If you’re about to advertise for the first time, it’s not only your advertising that you need to get right. You will also need to practice and trial different approaches on the back end of your marketing campaign.

How Does a Self-Liquidating Offer Work?

I thought you’d never ask!

It’s easy. Just like other marketing campaigns and advertising strategies, it’s easy! This is very different to the results ALSO being easy, but the ‘how to do it’ is easy.

Typically – it’s done like this:

  1. Advertise
  2. Get people “in front of your business”. (whatever that means for your business).
  3. Give them what they came for. 
  4. Sell them something before they leave. When 10% – 15% of people buy what you offered, hopefully this revenue will match or be more than the cost of your advertising. 

It’s “self-liquidating“. A SLO supports itself, or pays for itself as it rolls on.

The four steps I just mentioned is the 10,000 foot view. From reading these four steps you can more easily imagine what you might do in your own SLO, if you had a shopfront or a ‘in person’ business model.

If you’re mainly focusing on getting customers and making sales online, your SLO could look like this:

  1. Advertise some free info or a free “something”. To get it, your customers needs to enter their email address. Tell them “I’ll email it to you“.
  2. The customer enters their email address, and is sent whatever it is you were marketing.
  3. On the confirmation page where your website will usually say something like “Congrats! Check Your Email”, you can still have all that but you might want to adjust it to:
    • “Congrats – You’ll Get It in a Few Minutes”. 
      • ” When you get this thing, you will be able to do/see/whatever… and you will also:
        • A
        • B
        • C     (whatever these benefits are – just fill in the blanks).
    • “Because you just got this thing, I know you’ll also like this other thing. So just now while you’re here, when you grab this other thing now, I’ll give you a 50% discount. But only here and only now. Because you don’t really know me yet, I want to take one stop forward and meet you half way with this. That’s why I’m opening the door here for you, and slapping on a 50% discount sticker on this thing.”

The above is just an example of course, I’m not saying “copy this and you will make $$$ overnight!”

If you’ve never advertised online before, and if you do want to try this out – I suggest you follow this process and avoid trying to get too creative on your first attempt. By all means, once you’re cruising along and getting results I strongly urge you to test and try anything you can dream up (in small doses).

So in summary, your online Self-Liquidating Offer COULD look like this:

  • Marketing something free on Facebook or anywhere.
  • Your potential customer enters their email address to get what you’re offering them.
  • On the ‘Thank You’ page – you offer them SOMETHING GREAT for sale, at a attractive “no brainer – I must buy this” discount or deal.

Unfortunately for me, and for you, and for every other individual who has spent money on a marketing campaign before.. not everyone is going to buy your offer. It’s not that easy. And that’s a good thing, because if it was, everyone would be doing it.

What makes a SLO a little different from just any marketing campaign where you hope to break even or make a profit, it that the aim for a SLO is to have it break even within 24 hours. 

This will therefore be a low risk marketing campaign that you can leave on for as long as it continues to work.

Tides change, fashions change and what interests your customers changes as well. It’s not realistic to expect any marketing campaign to run for months or years without it ever needing to be adjusted, changed or 100% overhauled.

Also, your Self-Liquidating Offer may only make up 10% or 20% of your total marketing budget. You might find that when you try to push it further and spend more in your marketing place, your results change for the worse.

Never fear:

A 10-20% marketing campaign that runs on autopilot and breaks even every 24 hours is a golden egg. Don’t try to crack it, or profit from it. Just protect that thing like the golden egg it is. 

 


Any questions? 

Post your question below now. I’ll get back to you asap because, I love talking about this topic.

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