Launch tree - Internet Marketing

Launch Tree
Stefan Rooyackers

© 2009

www.seoheaven.eu

© 2009

www.seoheaven.eu

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
© 2009

www.seoheaven.eu

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 Rooyackers
Stefan 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.

© 2009

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

© 2009

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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
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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:

Procedures
1. 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 inventory
Gather 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 rights
4. 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 have
You 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
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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.
- irst, create a flow, a story — which one would best follow which
F
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 Story
How 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 Prices
Prices 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 half
Formula #2 - Simple bump pricing
Formula #3 - 3X Rule: Price the first upsell and beyond
Formula #4 - The 70% rule
Formula #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.

Always be transparent when adding a finance charge!
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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 c o m p o n e n t s (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 details
Remember, 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
• Expected Conversion Percentage

Step 4 - Write down Upsell #1 Details
• Price

Step 5 - Write down Upsell #2 Details
Note: This is what you show the customer who said YES toupsell #1.
• Price

Step 6 - Write down Downsell #1 Details
Note: 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
• Expected Conversion Percent

Step 7 - Write Down Upsell #3 Details
Note: This is what you show the customer who said YES to upsell#2.
• Price

Step 8 - Write Down Downsell #2 Details
Be sure this downsell makes sense. It should be 50 percent of the price
of upsell #2.
• Price
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Step 9 - Write Down Downsell #3 Details
• Price

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

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 map
You 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 Programs
Bubbl
http://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.

Mindomo
http://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 Programs
http://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.

MAC
http://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 – Reciprocity
As 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 Free
A) 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
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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 tips
For 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 affiliate 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
© 2009

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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
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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 process
It 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 2008
This 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 recurrence
Launch 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
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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 issues
1. Always remind people that their card will be billed.
2. Include cancellation instructions in every communication
3. 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 continuity
Optional 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 time
Strategy #3 - Shift the focus from how much your product costs to how
much money it can make or save for your customers
Strategy #4 - Sell while recurring principle
Strategy #5 - Implement the pain of disconnect
Strategy #6 - Over-deliver on content
Strategy #7 - Bribe people with food
Strategy #8 - Hint about future products or benefits using the drip
method
Strategy #9 - Deliver your product in increments
Strategy #10 - Use the cliffhanger effect
Strategy #11 - Use the power of series
Strategy #12 - Send unadvertised bonuses to your customers
Strategy #13 - Give them special deals on your new or affiliate products
Strategy #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
value
Note: 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 list
You 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-Launch
For 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 value
To 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 consistently
We 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 informed
Remember, 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 wisely
If 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.
© 2009

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Guideline #5 - Always add value through content
Sending 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
© 2009

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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.
© 2009

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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.
© 2009

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Launch tree - Internet Marketing

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