In today’s Daily Nugget video we are going to talk about how to calculate the cost of a failed marketing funnel experiment.
Calculating this cost starts with understanding that YOU WILL FAIL. How you fail will determine whether you stay in or are taken out of the game.
Key point #1 is that you need to be able to fail cheaply so you have the latitude to find the right combination to hit the gas pedal and go.
Think of each experiment as a training course where you will continue to learn, and ultimately build your first successful funnel that is making you money.
Building a spreadsheet with assumptions that calculate advertising, click costs, front end conversion rate, etc will give you an idea of how much each experiment could cost. This gives you an idea of how many “courses” you may need to take before seeing a positive outcome.
Remember the purpose of each experiment is not only to generate a profit, but to also prove that all the numbers work if your costs are low enough.
When you watch this video, you will learn:
- The key point to creating funnel experiments and how to make them work for you.
- How to build a spreadsheet factoring in different assumptions to conclude the cost of an experiment.
- How to use these assumptions to calculate how many experiments you are able to test.