Your $90 CPA Is Killing You (Here's How to Fix It)

0:00Unternehmer/Gast I'm currently getting $90 CPA for a 22 per month membership from ads. 52 purchases so far. That's about a 0.25 ROAS. What would you share on how to make the ads more profitable to get at least a 1.0 ROAS? I've tried a lot of new ad angles, but about the same. Well, the way that I would probably do it. So, this isn't just me me explaining what I would do is I would I would ascend them.

0:34So, you don't have time cuz I don't even know what your churn is. Let's assume that you have 20% churn and LTV is 22 * 5, right? So, that would be 110. So, 110 bucks if you spend 90 make 110, that's a bad business. You don't want that, right? Um and so, we have to find a way to ascend a certain percentage of them to something more expensive. And so, basically, your option would be you have to increase conversion 4x to break even. Really realistically, you'd want to increase conversion like 2 and 1/2 x just so you could be 50% cuz then in 30 days you get the second transaction.

1:05Alex That would be enough for me that I'd say, "Okay." I'd still try and improve it, but that would be like breathable. Um but realistically, I would want to have the four conversions. And so, write these down if you don't know what these are for communities. So, conversion point number one is that you include a call for onboarding for every person who signs up. Number two is that you DM everybody in the group and you ask them if they have any questions and you can set them via DM to buy something else. By the way, this is where you have a second community that's more expensive if you want to. This This is by the way, the guys who are doing the best. And so, as I'm saying this to you, if you have a $90 CPA, I would bet you would be able to get group ads for somewhere in the neighborhood of like 5 to $10. And if you ascend 10% of those people, your CPA will cut in half and you'll uh probably will get a higher LTV. So, conversion point number one, onboarding call. Conversion point number two, DMs. Conversion point number three is that you have a weekly Q&A call which you do as uh kind of like a webinar. But you I mean, you don't have to think of this. Don't think about slides. Just think like provide a lot of value, make a soft touch CTA about your your main thing where you help them personalize this.

2:12Alex And then, number four is that you have the VSL or webinar that does have slides. So, this is one that you would have wanted to script uh in the modules in order as the first thing that they consume. And so, the five modules would be your introduction, meaning your origin story and the opportunity at large. Big concern number one about the universe or circumstances or conditions. Big concern number two about other people who are going to get in their way. Big concern number three about why they're not good enough. About why they specifically can't be successful. And then finally, the CTA that for them to buy more [ __ ] from me. Okay? So, there's the four conversion points. So, if I'm you, I would probably run it to a free group, run these four conversion points to get into my paid group. Done.

2:55Alex That's what I would do. Aaron Brewer. I'm facing Or you can make your free group a little more expensive. You can make the paid group more expensive, too. If you do that if you run it that way, you can make the paid group probably like like 99. Make sense.