Category Archives: Expert Positioning

Case Study – Now NOT To Handle A Membership Site Cancellation (And What To Do Instead)

As you know, a Membership Site, SAAS or some kind of business where people pay monthly subscriptions is usually seen as far more valuable than one where people make one off purchases because the income tends to be more reliable. You can start off each month knowing roughly how much you will earn based on the previous months’ income, plus new subscribers and minus cancellations.

In addition to buyers being happy to pay a higher earnings multiple for subscription business than for other businesses, banks like lending for subscription businesses and Venture Capital investors are more comfortable funding them if you want to raise capital

That’s why one of your main goals is to keep existing subscribers happy with great content and/or services, while doing everything you can to attract new subscribers.

Of course you are going to have attrition because people will cancel their subscription for a whole bunch of reasons, and you are never going to know why unless you ask them. Even then, some people aren’t going to tell you the real reason. They just aren’t.

How NOT To Treat Your Membership Site Members

With this background, I thought I’d share an example of how NOT to respond to somebody who cancels their subscription to your product or service.

As you know, I am an active trader and I’m a member of a number of large trading and investing Facebook groups. My own Facebook group has about 3,400 members, with around 800 of them active participants.

I’m always on the lookout for products and services to help other members with their analysis and trading education, and when I find something truly worthwhile I share it in my group and sometimes in other groups where that is allowed.

For the last few months I’ve been subscribing to a trading service from a guy who thinks very much like me. He’s had pretty good results overall, and I was relatively happy with the updates he was sharing.

Thing is I prefer to do my own analysis, and the outside influence from him was becoming more of a distraction than a benefit. So yesterday before my next month’s payment was due, I cancelled my subscription.

A few minutes later, I received this message from the owner (I’ve redacted his details to protect his identity):

Membership Site

As you can see, his message is highlighted and reads, LOL you let the volatility get you didn’t you? Probably overleveraged too?

Now sending a message like this to someone who’s been a trader and investor in markets for over 25 years is about as arrogant and condescending as somebody can be. It is the sort of thing that can undo months or years of goodwill with just 12 words.

I was pretty shocked, but here’s the initial reply I sent back:

membership Site

I was initially just going to move on but after getting over my initial shock that somebody who knows nothing about me could make such a ridiculous and uninformed assumption based on zero evidence, I thought this might be a teaching moment that could help him in the future.

Here’s the message I sent a few minutes later:

Membership Site

As you can tell, I was a little pissed off but I wanted to point out it’s not a good idea to make assumptions about why people do anything. There is never any upside to doing that, there is only ever downside.

A few minutes later I received this reply:

Membership Site

I was speechless…

So Let’s Pull This Reply Apart And Examine It Step By Step

In the first line he writes: “I’m pretty sure I hit the nail on the head”. So right up front he is calling me a liar. So far he’s off to a great start if he wants to lose any future business from me.

In the next few lines he doubles down: “I need to get rid of novice emotional traders. You folks are just too draining, always needing babysitting during every correction, always overleveraging despite my best efforts to stop you from doing that.”

The arrogance and patronising superiority dripping from these few lines is breathtaking. He is saying that anyone who cancels their subscription, regardless of the reason, is a stupid, clingy newbie who isn’t worth his time.

Nice…

Then he brings it home with this clanger: “Better to just clean out these people. I can’t teach them and I can’t prevent them from destroying their portfolios no matter how hard I try.”

Talking down to one person like this using terms such as “You folks” and “these people” is never going to endear them to you. As you can imagine it’s more likely to infuriate them.

Again, there’s zero upside to doing this.

I didn’t reply back because any further correspondence seemed futile at that point.

So What Can You Learn From This?

1. Only Good News By Email

Only ever use email for GOOD News. If you have to share bad news or something negative with somebody else, do it in person, on the phone, over Skype, Zoom or some other way you can do it personally.

That way people can hear your voice inflections and tone, (and potentially see your body language and other non-verbal cues), and you can deal with misunderstandings immediately so things don’t go pear shaped.

There are countless ways an email message can be mis-read, misunderstood, misconstrued, or mis-interpreted which can turn an innocent communication into a relationship destroying disaster.

Remember, only Good News by email

2. The customer is always right (even when they are a pain in the arse or wrong)

There are going to be numerous occasions when you’d like to unload on a customer or client because of something they said or did. The way to handle it is NOT to write a message like the one above and then blast it back while you are angry or emotional.

By all means, you may want to write a message expressing your anger and frustration and why the customer is wrong, why he is a moron or why she is a complete dumb-arse. That’s fine.

The important thing to remember is once you’ve pounded out a message like that, walk away, take a breath, calm down, and then DELETE it.

Then either leave the issue alone, contact the person personally, or write a more constructive message (more on this below).

It doesn’t matter what type of business you are in, but particularly if you have a Membership Site, SAAS or other subscription business, losing a customer can end up being very expensive.

Second And Third Order Consequences

We always have to consider the second and third order consequences of every decision we make, so let’s do a hypothetical example based on the situation we’ve been discussing.

After receiving the message pointing out my character flaws and explaining how I suck as a customer, what are the potential Second and Third order consequences that could come from that?

Probably nothing positive, that’s for sure.

If the person receiving a message like this is an angry keyboard warrior (which I am not) your reputation could be trashed online to the point you may not be able to recover. Social Media has given everyone a megaphone and some people just love to spread bile, hate and negativity wherever they go.

I’m sure you know what I mean.

A disgruntled customer can:

  • Leave a negative Google Review which can permanently destroy your reputation
  • Trash talk you in Facebook Groups, on Instagram, Snapchat, YouTube and any one of dozens of other Social Media sites. Depending on how determined they are, they could potentially reach millions of people with a negative message about your business and there’s often nothing you can do to stop the bleeding. You could find yourself ‘Cancelled’ with no recourse. If the mob comes for you they don’t care about facts or logic or inclusion or diversity or anything like that. They just want you destroyed.
  • Report you to all types of overbearing Government Regulators who love prying into the affairs of businesses looking for any kind of potential malfeasance so they can prosecute and shame you
  • Burn through hours of time for you or your customer support people in an effort to rectify their grievance, regardless of how minor it may be

As I said, there is plenty of downside. No upside.

On the other hand, by finding our exactly why a customer cancelled their subscription (or asked for a refund), you have a great opportunity to remedy any issues and reactivate a subscriber or sell them something else, either immediately or in the future.

What Are The Potential Second Order Consequences?

First up, a reactivated customer is going to immediately start paying you again, and for a digital subscription business such as a Membership Site the cost of adding one more member is basically zero. The entire amount is profit because you have no marketing or fulfilment costs. It’s probably the closest thing to free money you can find.

Next up, a happily reactivated subscriber who feels heard and appreciated is likely to share their positive experience on Social Media and could potentially generate a lot of new subscribers for your business.

Let’s Do Some Numbers

Let’s do some basic numbers based on a $50 per month subscription being shared with members of my own Facebook Group.

To start with there’s $50 per month which equals $600 per year from my subscription.

Then if I share the service with my 3,400 Group members and over time 5% of them decide to join, it could lead to $600 per year multiplied by say 170 members = $102,000 per year

Third Order Consequences

But it gets even better when we look out further.

If we apply a multiple of 5 times revenue to this amount to work out the increase in the business’s value from reactivating this one customer and gaining their referrals, we get $513,000. This increase in the business’s value is an true asset that can be leveraged even further.

In our trading example, let’s say the owner goes to a financier or bank and has a line of credit approved for 50% of that $513,000 which is $256,500.

As we all know, the stock market has a habit of rising for periods of time and then crashing every few years. The great thing is traders and investors know that after every crash, the market always recovers and eventually makes a new high.

What if our trader waited for the next crash and then ploughed the $256,500 in funds from the overdraft into stocks that are now worth half the price they were a few months ago or even less, knowing they will eventually recover?

This Can Become A True Wealth Building Opportunity…

Now this is only one option for leveraging the increased value of the traders business just by being good to customers and not being an arsehole when somebody cancels their subscription.

Other options could be bringing in Venture Capital partners to fund future growth, or selling part of the business to generate a bit payday, or creating a Hedge Fund, or any number of other ideas.

A Better Idea

So now you’ve seen the potential opportunity of NOT burning customers with sanctimony and condescension, what would be a better option for working with a subscriber who cancels their membership?

What if we started by thanking the subscriber for their previous business, found out why they cancelled (or why they asked for a refund), and then went out of our way to restore and even strengthen the relationship?

What might that look like?

Well, it could start with an email saying something like this:

___________________

Hey Rocky,

First of all I’d like to thank you for being a subscriber for the last 6 months, I truly appreciate your business.

I noticed you’ve just cancelled your subscription and I wanted to reach out personally and make sure everything is okay. I try really hard to make the newsletter as helpful as I can, and I apologise if the things I’ve been sharing didn’t suit your needs at the moment.

So I can improve the newsletter and make it more relevant for you, I’d really appreciate you letting me know what made you decide to cancel your subscription today.

Please be as frank and honest as you like. I truly want to know how I can improve the service to meet your needs.

To let me know why you cancelled and what we can do to improve the newsletter, please hit reply and share your thoughts.

Thankyou again for giving us a try,

Warm regards,

Rocky

P.S. I’m really serious about hearing back from you, and I will read your feedback personally. Please hit reply right now and let me know what made you decide to cancel and how we can improve.

___________________

Not everyone is going to reply, but many people will. When you hear their feedback you (or somebody on your team) can work with them to personally overcome any issues and in many cases reactivate them again.

Maybe you could offer them a bonus for coming back on board, or a reduced rate, or personal coaching from somebody on your team, or extra training and support. Whatever they need, offer it to them if it’s within your power.

Remember, every subscriber you reactivate is potentially worth thousands, tens of thousands or even hundreds of thousands of dollars to you over time. Make people an irresistible offer to reactivate their subscriptions and watch the cash roll in.

I hope you have found this post helpful, and if you have any questions, feel free to post them in the comments below or get in touch using the contact page.

Thankyou for reading,

Warm regards,

Rocky

P.S. Being able to create a Perfect Product is a great start, but you also need a way to generate sales in a consistent way. Running a Product launch is a proven way to not only build your list, but generate Social Proof and make a large number of sales quickly. To learn how to launch your product successfully, check out Jeff Walker’s free Product Launch Masterclass here.

PLUS: When you’re ready, here are 3 ways I can help you to grow your business using product launches:

1. How To Build A Profitable Launch List.
Building an email list is critical if you plan on doing a launch for your product, service or business. List Warrior will show you a proven way to use free software to build a responsive list of prospects who are ready to buy from you during your launch. Click Here.

2. How To Create The Perfect Product 
Creating a product that is perfect for your audience does not need to be difficult. How To Create The Perfect Product shows you how to build high value products your audience will love one after the other. Click Here.

3. How To Attract Buyers To Join Your Launch List So They Can Purchase Your Perfect Product.
Once you have created your Product Launch List and your Perfect Product is ready to go, you need to attract people into your world so they can buy from you. One Minute Free Traffic gives you a proven way to attract buyers with ‘Automated Traffic Machines’ so you can send those people to your optin page, your sales page, your Facebook Group or anywhere else you choose.    To learn more Click Here.

And don’t forget to check this out 🙂

How to Earn $20 in 20 Minutes With Any Topic, Niche or Hobby

How To Attract People To Your Product Launch Using Social Media

Learning how to attract people to your product launch using social media and then capturing their details on an email database before sending them to your Pre Launch Content is a time-tested and proven way to make sales.

Having said that, it’s not always easy and there are plenty of traps. Here’s what we’ll cover in this post to help you optimise your results:

• Choosing Your Platforms
• Understand How Social Media Works
• Create Content That Intrigues People And Gets Clicks

Let’s jump in…

Choose Your Platforms

The first step is to choose which social media platforms you’ll focus on. The top options include:

• Facebook
• Twitter
• LinkedIn
• YouTube
• Instagram
• Pinterest

The idea is to focus on two or maybe three platforms that will be most beneficial to your business. You need to consider two things:

• Where does your audience congregate? This is the most important factor to consider when deciding which platforms to use. You’ll need to do some research such as finding out the key demographics of people on the various platforms, as well as looking at your competitors’ pages on these sites to see where they get the best results (shares, comments and other interaction).

• What type of content do you intend to post? For example, if you intend to post a lot of videos, then obviously YouTube should make your list. On the flip side, if you’re not interested in posting photos, then Instagram isn’t a good choice.

Once you know where you’re going to post, then move to the next step…

Understand How Social Media Works

While your newsletter is basically a monologue, social media is different because it works best when you create a dialogue with your followers. This means you can’t just blast out content and then ignore any interaction you receive. You need to be ‘social’ if you want to encourage people to engage and interact, and then interact directly with your followers.

This means doing things such as:

• Liking replies to your content.
• Replying to comments. (As your followers grow, you won’t be able to reply to everyone, but you should seek to post a few replies on every post.)
• Sharing/retweeting your follower’s content.

In other words, build relationships by engaging with your audience in a real dialogue (instead of a monologue).

Next…

Create Content That Gets Clicks

Now that you’re on the right platform and prepared to engage with your audience, the next thing you need to know is how to create content that gets clicks, shares, and comments. Take a look at these tips…

Give People What They Want

In order to figure out what they want, you’ll need to do some market research to find out what sort of content your audience tends to respond to the best. In addition to your regular market research (such as seeing what products people are buying), you’ll want to check out your competitors’ social media pages.

Pay attention to two things:

1. The general topic for the content. Do you see any sort of pattern? For example, if you’re in a dieting niche, do people tend to respond best to nutrition-related posts versus exercise-related posts?

2. The general format for the content. For example, does the audience seem to like memes? Videos? Infographics? Tips posts? Etc.

Next…

Ensure It’s a Quick Read Or View

People on social media don’t usually have time to read overwhelming pieces of content. That’s why you want to create content that people can read or view quickly, ranging from a meme that takes a second or two to read, to a video that perhaps takes two or three minutes (tops) to watch.

Craft an Enticing Title

People often decide whether to read or watch something based on the title, which is why you need to develop benefit-driven titles. If you can arouse curiosity, that’s good too. E.G., “The Conversion-Doubling Trick That Takes Just Two Minutes!”

Create Something Unique

People aren’t going to share your content or click through to your website if you’re sharing stuff that looks like every other piece of content on the web. That’s why you need to create something unique.

This can be as simple as sharing a unique story (such as an inspirational video), or even just a single little-known tip. It doesn’t have to be groundbreaking – it just needs to be somewhat uncommon.

Generate Positive Feelings

Content that goes viral and gets other interaction (such as likes, loves, cares and clicks) tends to generate emotion, especially positive emotion. A good goal is to create something that makes people say “Wow!” or “Awww!” or “That’s heartwarming!” or “That’s awesome!”

Encourage People to Interact

If you want people to share and comment on your content, then ask them to do something.

For example, if you’re looking for comments, then ask questions or encourage people to share information, for example, ask them:

• What do you think?
• What’s your favourite tip?
• Have you ever had an embarrassing moment like this?

If you’re looking for people to share, then centre your call to action around that goal. Something like:

• Share this with your friends, because these days they could probably use a smile!
• Know someone who [needs some benefit]? Share this now.
• Be a hero among your friends and family and share this with them.
• Please do me a favour and share this on your page – I appreciate it!
• Share this if you agree!

Now a few parting thoughts…

Conclusion

The big social media platforms are really useful when it comes to generating prospects for your Product Launch, but you need to have a plan in place in order to make the most of these platforms. That’s why you’ll want to put these ideas to work in order to build better relationships with people in your audience and generate more launch traffic.

Of course there’s no guarantee the people you are interacting with on social media will become customers, which is why you need a proven process to take them from uninterested to aware, then interested in maybe buying from you, and finally into customers. This is exactly what Product launch Formula does.

If you’d like to see how the PLF process has worked for other entrepreneurs and business owners, you can do that by checking out these 60 Case Studies of real people who have used the formula successfully. By watching the ones that interest you, you’re probably going to have some ‘ah-ha’ moments of your own.

So check out the Product Launch Formula Case Studies page here and let me know what insights you had while watching other people using the process in their businesses.

Warm regards,

Rocky

P.S. Being able to create a Perfect Product is a great start, but you also need a way to generate sales in a consistent way. Running a Product launch is a proven way to not only build your list, but generate Social Proof and make a large number of sales quickly. To learn how to launch your product successfully, check out Jeff Walker’s free Product Launch Masterclass here.

PLUS: When you’re ready, here are 3 ways I can help you to grow your business using product launches:

1. How To Build A Profitable Launch List.
Building an email list is critical if you plan on doing a launch for your product, service or business. List Warrior will show you a proven way to use free software to build a responsive list of prospects who are ready to buy from you during your launch. Click Here.

2. How To Create The Perfect Product 
Creating a product that is perfect for your audience does not need to be difficult. How To Create The Perfect Product shows you how to build high value products your audience will love one after the other. Click Here.

3. How To Attract Buyers To Join Your Launch List So They Can Purchase Your Perfect Product.
Once you have created your Product Launch List and your Perfect Product is ready to go, you need to attract people into your world so they can buy from you. One Minute Free Traffic gives you a proven way to attract buyers with ‘Automated Traffic Machines’ so you can send those people to your optin page, your sales page, your Facebook Group or anywhere else you choose.    To learn more Click Here.

And don’t forget to check this out 🙂

How to Earn $20 in 20 Minutes With Any Topic, Niche or Hobby

Please Note: As a PLF owner and user since 2008 and one of Jeff’s affiliate partners, I may receive a commission from Jeff if you invest in his program at the end of the Masterclass – but it won’t cost you anything extra.

The Most Profitable Implementation Of Product Launch Formula I’ve Ever Seen

A Product Launch is a multi-step strategy you can use to generate an enormous amount of sales in a very short period of time. A launch helps you to stand out from all of your competitors who are using traditional marketing by creating an event for your customers and prospects to participate in and share with their family and friends.

The release of the new Top Gun movie was a perfect example of how to use a Product Launch to generate over a Billion dollars in box office receipts in just a few weeks.

Another tremendously profitable implementation of the Product Launch Formula process recently turned a group of company founders into multi-millionaires or even billionaires. Here’s how they did it…

Using A Product Launch For A Nasdaq Listing

A short while back a new company called Snowflake was listed on the Nasdaq stock exchange. Nothing special or ground-breaking about that you might say. But the way the promoters attracted media attention and developed awareness in the community to the point where there was literally a feeding frenzy as shares went on sale today is a case study in what to do right and something we could all model on a smaller scale.

Here’s the back-story: Snowflake is a SaaS (Software as a Service) company that helps businesses move their brick and mortar and non-internet businesses to the ‘Cloud’. This is a mega-trend and any business in that space is being valued much more aggressively by the market than other types of businesses.

Bear in mind the company is apparently losing money hand-over-fist, has never made a profit, probably won’t make a profit for several years even if everything goes right for them, and according to some analysts was valued at around 100 times sales.

This is astonishingly expensive. Yes the company is growing strongly, but they also have huge competition from Amazon, Google, and many other behemoths with long track records of killing startup companies before they reach critical mass.

When the promoters issued the most recent batch of shares (which was just 10% of the company’s total available shares) they priced them at $120 each. Today as the stock listed they opened at $270 and traded as high as $316 before falling back to close at around $253.

Because the promoters and founders still hold 90% of the shares in the company, the high price of the shares listed on the market makes their shares much more valuable today than they were yesterday. I would imagine they are cracking the champaign corks at the moment.

I’m sure there were a lot of other things going on behind the scenes (just like any Product Launch) but here are some of the most obvious:

Their Use Of Mental Triggers

Jeff Walker discusses Mental Triggers at length in PLF. There are about a dozen of them that will move the needle in a launch. Here are the ones Snowflake used to create such wild success:

Social Proof – Commentators on CNBC have been excitedly discussing Snowflake for the last few weeks, talking about how many big and experienced investors the company already had on board and how these people wouldn’t have been interested if the company was a dud.

Authority – The company has the Worlds greatest value investor, Warren Buffet, as an early stage investor. By highlighting the fact Warren was a shareholder, they company use his authority to entice other investors to invest when the stock was listed today.

A Bargain – Warren Buffet is a ‘value investor’ which at it’s core means he doesn’t buy things that are overpriced. The fact he saw ‘value’ in Snowflake undoubtedly encouraged other big names to throw their hats into the ring. This is regardless of the fact the company is a Technology stock priced insanely high for anyone buying today. If Warren’s in, others want to be in too.

Scarcity – The fact that only 10% of the company’s shares were listed created immense scarcity. Most of the commentators on CNBC applied for shares but none of them were allocated any. This is additional proof of the scarcity of the shares. And everyone knows that when something is scarce it is more valuable.

Liking – The founders and senior promoters were regularly wheeled out by media organisations to discuss their plans for the company. The people interviewed kept saying all the right things and making all the right noises, so it was hard not to like them.

FOMO – Fear of missing out is a powerful motivator, especially when combined with genuine scarcity. The talking heads on the various media channels were relentlessly pushing the line that Snowflake was going to be the years biggest IPO (Initial Public Offering or Stock Market Listing) and it was the biggest software IPO EVER. The constant chatter whipped potential investors into a lather and their fear of missing out led the stock price to rocket right from the opening bell and say much higher than it might have without the help of those in the media.

These are just the obvious Mental Triggers Snowflake used with great effect to use the Product Launch Formula process to generate millions (billions?) of dollars in additional wealth for founders and employees overnight.

Of course there’s no guarantee any of us will ever do something like that, but the mental triggers combined with the other elements of the PLF process have worked for thousands of years, and will continue working in the future.

IF you’d like to see how the PLF process has worked for other entrepreneurs and business owners, you can do that by checking out these 60 Case Studies. By watching the ones that interest you, you’re probably going to have some ‘ah-ha’ moments of your own.

So check out the Product Launch Formula Case Studies page here and let me know what insights you had while watching other people using the process in their businesses.

Warm regards,

Rocky

P.S. Being able to create a Perfect Product is a great start, but you also need a way to generate sales in a consistent way. Running a Product launch is a proven way to not only build your list, but generate Social Proof and make a large number of sales quickly. To learn how to launch your product successfully, check out Jeff Walker’s free Product Launch Masterclass here.

PLUS: When you’re ready, here are 3 ways I can help you to grow your business using product launches:

1. How To Build A Profitable Launch List.
Building an email list is critical if you plan on doing a launch for your product, service or business. List Warrior will show you a proven way to use free software to build a responsive list of prospects who are ready to buy from you during your launch. Click Here.

2. How To Create The Perfect Product 
Creating a product that is perfect for your audience does not need to be difficult. How To Create The Perfect Product shows you how to build high value products your audience will love one after the other. Click Here.

3. How To Attract Buyers To Join Your Launch List So They Can Purchase Your Perfect Product.
Once you have created your Product Launch List and your Perfect Product is ready to go, you need to attract people into your world so they can buy from you. One Minute Free Traffic gives you a proven way to attract buyers with ‘Automated Traffic Machines’ so you can send those people to your optin page, your sales page, your Facebook Group or anywhere else you choose.    To learn more Click Here.

And don’t forget to check this out 🙂

How to Earn $20 in 20 Minutes With Any Topic, Niche or Hobby

Please note: As a PLF owner and user since 2008 and one of Jeff’s affiliate partners, I may receive a commission from Jeff if you invest in his program at the end of the Masterclass – but it won’t cost you anything extra.