Categories
Montreal Online Marketing

Groupon campaign behind the scene: the good the bad and the very ugly

Lately I was lazy. Do not worry I am back. I was reading every comment they say about Groupon after my very popular article.

I gave my quick response here.

Now it is time to give you the experience of a merchant. You need to know the complete process.

It is really easy to start a Groupon campaign. You answer their questions and you follow their advices.

Therefore it is easy to duplicate their system. Let me give you the numbers from my friend. My friend had a Groupon campaign for her Dance Class business in Montreal.

Like I said the process is very straightforward. It is almost too easy.

A normal class is $20. She gave two classes for $20. It is a 50% discount.

300 people choose to test this offer.

It is 300 * 20 = $6000 gross sales.  Yes 300 people respond in 24 hours.

Groupon kept 50%. In this campaign my friend had $3000 and Groupon had $3000 (simple math here).

There are two big questions you should know before you start any campaign with Groupon. It is something you should know anyway. You should know your customer cost acquisition. In this case it is 3000/300 = 10. My friend pays $10 to get one customer.

Something is missing in this equation. She gave two classes so the real cost acquisition is $20 ($10 to bring one customer to one class).

The real cost is $20 * 300 = $6000

Oh wait… is she losing her money? Of course she did not lose her money because the Groupon marketing is a win-win situation or almost a win-win situation…. First you pay Groupon only if your campaign is successful.

However you gave away a lot of resource. Not only 300 people signed up but they signed up for a free class.

Like I said the real cost is $6000. Your profit so far is $3000 – $6000 = – $3000

Now you might say it is a very bad deal because I did not include taxes….

It was not a bad deal because 25% that spend for one class buy a second class. 75 % that spend for a second class upgrade for the full program at $250 (it is a 6 months program).

In this case everyone get two classes. You might think that 225 people choose the full program (75% conversion).

It was lower than that. It was 20%. Therefore 60 people choose the full program.

The new money is 60 x $250 = $15 000

Now you add the – $3000 and you have $12 000 in pure profit.

That’s a lot of money in a very short time for zero marketing cost.

On a traditional marketing scenario, in this case, you need 256 people to make $12 000.

However the cost per acquisition is bigger of course (in our example it was $10).

Normally, you need to spend $2560 to make $12 000.

In reality the cost per people is $30 (she needs to spend $30 to get one client).

To get 256 people she need to spend $40 * 256 = $7680

To complete this madness, she save $7680 – $3000 = $ 4680

$4680 for a local business is huge.

My conclusion

Groupon is a great service and it is easy to make money with them. However, you need to make sure you put strong limits because you may end up with more customers that you can handle.

From those numbers, Groupon users are not loyal because they are deal hunters.

From my experience I think it is easy to disrupt Groupon on a local scene because you can give let say 60% to the business owner. You can also be very specific like a company that I love Beyond the rack (more about them soon).

I will not put my money on Groupon because I do not think that 5 years from now they will be there. ( my prediction)

Only in Montreal they have over 20 competitors direct and indirect.

Last word: I’m already hearing about user fatigue about those offers by e-mail.

 

Categories
Online Marketing web

Trey Smith and The software system is a huge lie… an iPhone app is not easy

I had no choice to talk about it again because my inbox was on fire today. Almost every top internet marketer in the make money online niche was promoting this launch.

software system

I noticed something crazy though. They use Microsoft and Apple success to justify this “new” service.

Yes Microsoft made billions of dollars with software but it is not easy to make money with software. It is easier than 10 years ago for example but it is still not easy.

If it was that easy every software developers would be billionaire. I will go as far to say that no software developers would be on odesk to look for work….

Why is it not easy to develop software?

To answer that question I strongly recommend that you read Bill Gates bio on Wikipedia right here.

You will notice 3 things:

Bill Gates was extremely smart.(above average)

Bill Gates was a real entrepreneur (strong passion to build something new) and a smart business man.

Bill Gates was lucky to get one of the best deals of all time with IBM.

It easy to outsource a developer but it is extremely hard to develop a smart and bug free software.

Ok are you mad because you will get fewer jobs in North America?

Not really because big companies like Google Microsoft Apple and Facebook are still hiring top notch developer for a reason. It is hard to develop smart software.

By the way I check the TV to internet software he was talking about and the software suck.

Nevertheless, it does not mean you should not buy this program or not consider software development. It is a great opportunity but it is not the easiest path.

My last word about that:

It is extremely easy to build software but it is harder to maintain and debug that software. On top of that you need a great marketing and a great customer service.

Sorry you may end up losing money.

6 month ago those marketer would go crazy over Facebook and twitter now it’s all about software.

PS: to make sure I’m not crazy, Trey Smith hire full time those developers because it is extremely hard to develop and maintain software.

Categories
Online Marketing web

Trey Smith and The software system is a huge lie… an iPhone app is not easy

I use a special e-mail address to sign up to every “Internet Marketing” newsletter possible. This week, I noticed a new product launch from Trey Smith about making iPhone app. As a computer science student I was very interested about this “product”.

I land on this page after I click

I noticed many problems:

First this title: Download my free app maker…

Sound like a push button to create an app but it is not.

As you read in the right bottom corner, it is a template ….. Lie number 1.

Make an iPhone app under $200 and then “How I sold over $2000 worth of my app in only 18 days….”

The way it is put together you might think you only need $200 to make over $2000…

Back to reality: the app that he uses as an example cost him more than $200 (thousands….). On top of that he hire the developer full time now.

You might think, ok , it is still a good deal.

There is a twist because the gold rush is not as big as it was before….

Month before this product launch he offer a service or tool (I don’t remember) in exchange that you buy his app.

This all product launch make you think it is easy to build an app. It is not easy. You need the right team with the right idea and with the perfect marketing plan. ( if it was easy I would be richer than Bill gates now )

On top of that you need to compete with big companies like EA in the video games business….

To give a better idea … The daily, from thedaily.com, it is the new app from News Corps. They are spending like 500k a week in their app….

Source (launch.is):

Before you go crazy in this new venture, you should know it is not easy and it is very competitive.

Categories
Online Marketing

Free AdSense secrets to make more money without AdSense

I just receive an e-mail about a new buzz around AdSense and AdSense secrets. I did not use Google AdSense since 2 years ago.

By the way Google own me money … check this out:

adsense payout

I have no idea how I can get my money back unless I use AdSense again.

Trust me I do not plan to use Google AdSense in a near future. I plan to never use it again.

Back to the story

My friend, last year, starts a new website. He puts AdSense on his website. He was more than happy to receive his first check from AdSense.

I cannot blame him because it is a wonderful feeling. Then he wanted to get his check faster. He was ready to buy any books or programs that might help him.

Before you buy anything you should check out Google AdSense resource center.

I use only that though. The next Google secrets are to have more traffic period and test your website templates and ads layouts.

Why I do not use Google AdSense.

There are many factors but one of them is Google AdSense ad quality.

The other day I was on Techcrunch and I saw this ugly ad.

Of course, you can always block a URL but it was too complicated to manage.

My second reason to quit Google AdSense was to make more money with less traffic.

The only way to do so is to build your own ad.

I sign up to shareasale or clickbank. I put links on the website.

You can contact me and I can help you set up everything for you.

Right now I am working on an “AdSense killer” something more effective than AdSense with less traffic. You can always contact me to discuss about that.

So far the results are amazing.

My personal advice is to not buy any AdSense books or products. It is not worth it.

Make sure you have a great website with a great community.

Here we go I said it.

Categories
Online Marketing

Submit your article to ezines articles suck. I said it now the best ezines alternative

In my previous post I said why I will never submit an article to ezines. It is good but I need to find a way to submit a great article that will help specific people.

Last week I stumbled upon an article on my favorite blog from Tim Ferriss.

It is a guest post about charisma.

It is not a subject I will search on google. However, read about the subject was very interesting.

You can read the guest post here.

Something special happened after I read this guest post. Not only I was looking to know more about the author but I was ready to buy his book.

Let’s look how he tricked me to buy his book

A quick introduction about the author

The context about this guest post

How to do it in 3 steps

A bonus: live video example about the subject (very cool example)

Explanation about this bonus

Finally a link to buy his book


Ezines vs Guest post

Now go back to ezines articles and compare the guest post article to any ezines articles.

None of them have this quality.

On top of that, none of ezines articles have the same level of feedback.

Who will make the most money? Ezines article author or the guest post?

The guest post is the answer.

Both will have massive traffic but only one will attract quality traffic.

It is quality traffic because it is from a community of real readers and lovers.

Now the next step is to reach out to popular blog to drive traffic.