Is My Offer Good Enough?
My video ad has run for two days (you got me; the events of the earlier posts happened a few days before I wrote about them), and the results aren't great!
I expected this, so why did I publish the ad? Again, I wanted something running, so I had the motivation and the pressure to improve it. That worked: Yesterday evening, I created new images.
The video attempt was a bit of a stretch. I'm not comfortable with the software, nor do I have inspiration, nor do I know the best practices.
So, back to monke: I'm designing a simplistic image and a carousel showcasing the features.
Here you go:
This one will run on its own.
This is the leading image of a carousel.
The ads are up and running, I'll tell you the results in a few days.
Next, I have a few thoughts regarding my offer.
I'm currently reading Alex Hormozi's "$100M Offers". It's a terrific 150-page book (I love it when they're short).
He writes about "Grand Slam Offers", offers that are so good, people would feel stupid to say no.
A product with such an offer does not compete on price; it competes based on the offer itself. No competitor offers anything similar.
As far as I can tell, one of the main features is taking all the risk from the customer - "only pay for results", "pay one time, we'll get you customers", and so on.
My current offer doesn't do that at all. You visit the page, and you have to pay $29.99. There's no trying it out. No guarantee about the results. The whole risk is shifted to the customer.
To change it to a Grand Slam Offer, I must change that.
This might be superior: You try the artwork generator, you create up to 150 images, and you use all of its features. You can keep all of your created images, but you can only upscale/download by paying. No risk! You only have to whip out your credit card if you want the final result.
Yes, this would convert better than my pay-upfront offer. But would I make money with it?
AI-generated images aren't expensive, but every generation costs money. Let's assume the worst:
- 150 generated images: $1.50
- 150 clean-ups: $4.50
- Cost for a trial user: $1.00
- 5 Image Uploads: $0.10
Leaving server and storage costs out of the picture, that's $7.10 per user. Quite expensive, even for a worst case. This would mean that, at a price of $29.99 per cover, I'd need to convert every 4th user to make a profit.
However, once I have users trying out the app, I have control. I can boost the conversion rate by improving image quality and by providing relevant features. I can lower the amount of free generated images, fine-tune my prices to a sweet spot, and reduce trialing user costs by betting on organic traffic.
I think this could work. But it'll only be relevant if I can get more clicks. So, let's first see how the ads pan out.
Next Steps:
- Observe the ad performance
- Build my social profiles for credibility (just a few posts)
- (shift the offer if the conversion rate is too low)