Lesson 3 – What Topics Should Your Lead Magnet Cover?
In the last chapter, you’ve learned that you need to give away a lead magnet / freemium so that people want to give you their email address.
The 4 steps below will show you what topic/content to create for your lead magnet.
Step 1 – Determine WHO Is Your Perfect Customer
Everyone has a finite amount of time.
As small entrepreneurs, we also have a finite amount of money.
The 80/20 Pareto principle states:
“For many events, roughly 80% of the effects come from 20% of the causes.”
Taking this into the customer context, not every customer is equal. A small percentage will spend much, much more money with you than others.
This translates to: you should determine WHO your PERFECT customers are. These are the types of customers who would spend huge amounts of money with you, compared to the average customer.
This is not to say that you should ignore those who are not your perfect customers. This is to say that because our time and budget is limited, we should focus our efforts on those that would give us the biggest bang for our buck — our Perfect Customers.
We aim straight for the gold. Silver and bronze can come later.
E.g. The perfect customers for BirdSend are Infopreneurs and Service-Based Businesses who understand email marketing can significantly grow their sales and at the same time want to know exactly how much revenue they’re making with email marketing.
A good way to determine your perfect customer is to create a perfect customer/buyer persona.
This means you should know things about your perfect customers, like their:
- Occupation: what they do, their position, how much they earn
- Hobbies: what they like to do
- Goals / Aspirations: what they would like to achieve or get
- Problems: the problems they face
- Buying habits: where do they buy and when
Based on the above demographics, you then determine how you can best help your perfect customers.
Step 2 – WHERE Do Your Perfect Customers Hang out?
Now that you know who your perfect customers are, it’s time to go and find them.
The best place to start is to go to places they already hang out and engage with them there. It’s already crowded with the kind of people you’d want to sell to.
Enter the world of communities.
Offline, you can go to seminars, events, trade shows/exhibitions, meetups, etc.
Online, communities can be found via forums and Facebook groups.
But not just any forum or group in your niche. The forums and groups must already have active users who are actively participating.
It’s no use participating and trying to engage in a dead forum where there is little to no discussions.
It takes the same amount of time and effort in giving value to other members in a dead or busy forum. You might as well spend your time wisely and participate in places where there are already a lot of users and discussions going on.
BUT you can’t simply jump in and blatantly sell your offers. You’ll get kicked out of the group in no time… especially in popular communities where there are a lot of active discussions. The moderators are ready to pounce on you the moment you promote.
To find forums, simply go to Google and type in:
Golf niche — type in “golf forum” (if you’re in a sub-niche like golf swing [a pretty popular topic], most likely there is a sub-forum for that, and it’d be better to participate in the sub-forum instead of the general golf forum)
Pay attention to how popular the sub-forum is by looking at the number of topics and replies, and when the latest post was.
To find Facebook groups, login to your Facebook account and type in keywords related to golf and then selecting “Groups”:
The rule is always to help others first and contribute value before you sell anything. This goes not only for forum or group posting, but for everything you do in life, be it personal or business.
Here’s a good rule of thumb when participating in communities
- Help other members first by answering their questions if you know the answer (it’s pointless to answer something that you don’t know the answer to — you’ll damage your reputation as a result).
- Help other members or post valuable tips 4 times before promoting (4:1 ratio) — help them 4 times, promote 1 time.
- Make sure to read the forum/group rules regarding promotions. If they don’t allow, then don’t. In this case, you don’t have to worry because when you provide helpful advice and tips, even if you can’t promote, they’ll check out your profile. Make sure to polish up your profile.
- Ensure whatever you’re promoting is relevant to the conversation and can really help members solve their problems.
Step 3 – WHAT Are The problems They’re Trying To Solve?
If you’ve done Step 2 correctly, this step should be straightforward for you.
The more members you help, the better you understand them.
You’ll discover what their pain points and problems are. You’ll empathize with them more by reading their comments and participating in the discussion and asking them more questions, as you help more members.
The more urgent the problem, the better for you as the solution provider. Urgent means they want to solve the problem NOW, not later.
Note down the problems they’re trying to solve.
Step 4 – Flesh Out The Reverse CVM / Sales Funnel
Now that you know the various problems your target audience are facing, create your Customer Value Maximization (CVM) / sales funnel in reverse.
Start with the end in mind.
You want to strategically think about “the whole enchilada” of products/services you want to sell. You should always have different products/services that solve different specific problems that increase in value and price.
As can been in the diagram above, the flow is:
Traffic → Freemium / Lead Magnet → Slide → Essence → Profit Booster
Suppose you’re a swimming coach. You’d want to work your CVM backwards, like this:
- What is the highest value / most expensive offer you want to sell?
- What is the 2nd most expensive offer?
- What is the 3rd most expensive offer?
- etc until you reach your Freemium / lead magnet
Your reverse CVM could look like this:
- Most expensive / Profit Booster — Video is cool, but if you want to learn how to swim better and faster, you can come to XYZ swimming pool and let me directly coach you. Nothing beats having a personal coach giving you direct feedback.
- 2nd most expensive / Essence — Do you also want to master the fastest swimming style in the world — freestyle? If yes, I show you how in this training series.
- Least expensive / Slide — Video series that teach you how to swim breaststroke
- Freemium / Lead Magnet — Free video shows beginners how to learn the basics of swimming correctly and effectively, including breathing and treading water
In this example, your offers increase in value and price as you go deeper into your CVM — which also means that the number of people taking up your offer decreases as you go deeper.
This is to be expected.
As mentioned earlier, there will always be a small segment of your customers who are willing to and can afford to spend much, much more than others.
These are your Perfect Customers.
Of course, the more expensive your product is, the more value you must deliver.
Now that you know the entire product line you’ll be offering, you can create your Freemium / lead magnet — always keeping in mind the goal of the lead magnet is to create a slippery slide path towards your Slide so that a maximum number of leads become customers.
And from Slide -> slippery slide towards your Essence -> slippery slide towards your Profit Booster, etc.
Slippery slide means the connection between one offer and the next is tightly related, so that you achieve high conversions at each stage.
As you can see, fleshing out your CVM / Sales Funnel backwards like this allows you to make better judgments as to what kind of product/service/lead magnet to offer at each of the CVM stage.
Most people create their CVM in order from Freemium to Profit Booster, which is wrong. No wonder they don’t tend to sell many of their offers.
Because if you create your Freemium first, it might not be closely related to your Slide.
Then you create your Slide, which might not be closely related to your Essence, etc.
- If you run out of ideas on what content to cover for your Freemium / lead magnet, create your Slide first and take the first chapter out and make it the Freemium / lead magnet. We call this splintering off your paid products.
- In the swimming example above, you could sell swimming accessories and gear to your students. If you don’t want to carry inventory and skip the hassle of selling physical products, you can become an affiliate of a company and earn commissions by recommending these things. The idea here is to get you to think out of the box.