One of the best sources of repeat and recurring revenue streams for a local business is, by far, having a robust database.
Unfortunately, too many local businesses do not have a list they communicate with regularly, or they never decided to begin collecting names and emails to create a database.
In this article, we want to uncover the three key reasons a lead magnet may be failing and three key rules you can implement, starting right away, to crush it! Let’s get started.
What’s the Motivation
The only person who enjoys change is a baby with a wet diaper! For this reason, I want to share a few reasons that will act as leverage for you to take action, build a lead magnet, and continuously grow your list of new customers.
#1 – Highest Return on Every Dollar Invested
The number I am about to share fluctuates a bit up and down but generally settles on the following: For every $1 invested in email marketing, the average return is $44.
Imagine if you gave me $1, and in return, I gave you back $44; how long would you want to play the exchange game with me?
Indefinitely right?
#2 – Warm Market Audience Means More Frequent Purchases
A case study: One of our clients, who runs a BBQ Cleaning company and does almost zero marketing beyond email marketing, over the past 24 months, has basically doubled his email database from 1,800 to 3,800. He shared how one of his clients has had his BBQ grill cleaned 13 times.
Our particular goal is to average one cleaning per every three names on the list. Or approximately 1,000 cleanings a year. Which he is on track to blow past this in 2023.
All he does is send out an email once a week, rarely ever asking anyone to get their grill cleaned, and his phone lights up. A warm market is like a dear friend. Keeping in touch is priceless.
I could go on and on about the benefits…like automation, referrals, reviews, and so on, but let’s stop here and talk about why your lead magnet is not working.
Lead Magnet Fail
I take time now and then and play the game when I see a lead magnet that interests me or looks like it may have been done well. The bad news is it’s often getting one to first base, meaning I gave my email and name, but second base, not so much.
Why?
#1 Reason My Lead Magnet is Not Working
I am always surprised and shocked at how a lead magnet, on the initial touch, will promise one thing, yet when I give my name and email to get my “goodie” or promise, it’s not what has been promised.
So, incongruous. I was promised red apples, but after I gave them my name and email address and clicked the button, I got oranges…So I stopped and deleted the offer and any communication that arrived in my inbox.
Rule #1 (You might want to write this down or take a screenshot) Underpromise and over-deliver. If you promise one apple, give them an apple and a recipe for making something with the apple. Or heck, give them two apples.
#2 Reason My Lead Magnet is Not Working
You asked me to get married and have kids on the first date!
I know you have heard this example: Guy walks into a bar. And asks every woman in the bar if they’d like to go home with him.
His success rate was dismal.
Why?
The lead magnet is supposed to be a way to meet new potential customers and build a relationship that turns into new revenue for your business.
Immediately asking someone to buy something from you, on the first touch, will yield a dismal return.
Just like our guy walking into the bar.
Rule #2 – Create a journey that “gives” vs. “takes” to your new arrival. Psychologists might refer to this as the law of reciprocity. We’ve all been there. Someone invites us over for dinner, yet when we arrive, they offer us a beverage, then some before-dinner munchies, and finally, dinner. The other items are extras given to your guests that they didn’t expect.
Remember, they came for what? Dinner.
What naturally happens as you begin cleaning up?
They insist on helping clear the plates and may even, depending on how good the dinner was, help wash the dishes.
All this happened without you even having to ask. (This is a clue!)
#3 Reason Why My Lead Magnet is Not Working
Lack of follow-up, plain and simple.
You get their name and email and send them one email asking them to buy. When they don’t, they never hear from you again.
Gary Vaynerchuck wrote a book called Jab Jab Jab Right Hook. The premise is this, give, give, give, and then ask.
Often, even with those who have follow-up emails, they will have a strong message of asking for the sale, with little or no “giving value.”
While this, like our fictitious man walking into the bar, may get one yes for every 100 asks, they will lose out on many great relationships and customers.
Rule #3 – Give at least three times before you ask someone to buy from you. But what should I give, you ask?
I would simply make a list of the top 6-10 questions your best customers need answered before they make a decision, and, taking one at a time, write an email, solving the problem with your knowledge and or product/service.
Space your solution-based emails out as follows; three solution-based emails, one “asking them to buy” email. Here is another moment you may want to write this down.
“As you create each email, use stories. This allows your readers to see themselves in the situation… then on your fourth email, where you ask them to buy, use this to refer back to the solution emails, maybe citing a case study and or a testimonial or positive 5-star customer review.”
Conclusion
I’ve given you the top three reasons I see why lead magnets fail, along with three rules (Did you catch the over-delivery here?) to help you have a higher success rate of converting traffic into names and emails in your database.
When you do this right, not only will you see the number of opt-ins grow, but your open rates will be well above average.
One client who follows our process (because we implement and maintain it for them) has seen their open rates in the low to mid 50%. The average for their industry is about 18%.
What this means, especially for a small list, is that if half of your audience is opening your email, as opposed to only 18%, meaning you can be successful, even with a smaller list, and get higher returns.
Remember, invest one dollar and get back 44!
Want to learn more? Check out our website and blogs @swingpointmedia.com/blogs, where you will find more resources to help you succeed as a local business owner.
SwingPointMedia, while we have clients from a variety of industries, we specialize in helping HVAC companies grow their digital footprint and bottom lines using organic and paid content marketing.
SwingPointMedia
Local businesses, especially the ones that are maybe too small to be managed by a marketing company, often struggle to be found by new customers on the internet. SwingPointMedia recognizes this and has created a podcast for local businesses, sharing strategies and tactics that can be applied to help you grow. In addition, SwingPointMedia offers affordable guidance and coaching to local business owners who want or need to “do it themselves” with a goal to reduce and eliminate wasted time and money chasing the wrong “best strategy” for your business.
Want to learn more? Contact us today – Jeff@swingpointmedia.com