Watch the video, or read the Blog Post below.
In between my sales funnels, I decided to squeeze something in for experimental purposes, to see if this would benefit me, my supplier, and of course, my customers -- a free trial on the first month of my monthly subscription box. Curious to know what happened and what the results were? This is what we are going to tackle today.
But before we get there, let us first discuss a few basics and why we are actually doing a monthly subscription box.
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What is a Subscription Box?
A subscription box is basically a sales strategy wherein you will consistently send products to your customers on a daily, weekly, monthly or yearly basis. Of course, the packages will be paid in accordance with the frequency of delivery. You get the gist of it, as long as your customer is subscribed, he or she will pay for the products at full price.
A subscription box can contain literally any sellable product you can imagine -- whether it be a downloadable resource, a video series, or a physical product -- but the best idea would be to sell something that you think is essential to an individual. As an example, amidst this global pandemic, you could even sell face masks!
Why Add a Monthly Subscription Box
The following are the main reasons as to why you should consider adding a subscription box to your sales funnels:
- Increase the conversion rate of your frontend offer;
- Generate predictable and steady income; and
- Increase average order value, so you can make more money per sale and therefore be able to spend more on ads.
In general, it's all about proper funds management. If you have a predictable and steady income, you can finally say goodbye to "profit anxiety" and learn how to allocate your funds for a change.
Related: I Added a Monthly Subscription Box to My Dropshipping Business
In a separate video, I discuss in-depth why I added a monthly subscription box to my business, and how you yourself can implement this tiny but effective trick. You can watch the video by clicking this link, or you can click this link to read the blog post.
Adding a Free Trial to Your Monthly Subscription Box
The way it works is when customers land on the subscription box page, I put in the ability to down sell the offer to a free trial. So, what happens is the customer will pay for the offer upfront and he/she will get their package for free for the first month. I set it up like this such that the upfront fee can cover for the cost of goods for that free month, and I will only start building my customers up from the second month onwards.
Actually, when you set up a subscription box via Stripe, setting up a paid trial is impossible, and this resulted to me experimenting on this free trial gig.
Let's do a more in-depth analysis:
As you can see from the numbers, with a free trial, our subscription box can only be profitable starting from the 2nd month. And that got me thinking: what if (and trust me when I say that this will more than likely happen to you, too, if you choose to use this offer for your business) my customers suddenly opt out of their subscriptions AFTER getting their free product? I won't be having any income at all!
That was when I contacted my supplier and forged a deal: I asked, "If I could get a hundred people (or more, depending on your terms) into the subscription deal, would you be willing to lower the cost of goods for the first month? After all, I would be purchasing from you for a minimum of 200 times." If so, my supplier, who is selling their product for $17, would be able to make up to $3,400 just from me. Fortunately, my supplier agreed to my terms, and was able to take 50% off the cost of goods for the first month!
The other thing I want to point out is that customers are more likely to back out when you offer a lower price point. If you, however, offer something with a little higher price, there is a lower chance for people to cancel their subscription at an earlier point in the game. This is because they are already willing to spend money on something whose quality is yet to be proven, so spending a bit more won't be too much of a problem for them anymore. They are, therefore, a lot more willing to stay after the first month and thus provide you with that sweet profit you are longing for.
Disclaimer: This is but a personal theory, but it definitely works for me and my business.
Let's Wrap It Up!
There are two main things that I want you to take away from this video/post:
- Adding a free trial to your monthly subscription box is optional, but it can help you secure a reasonable deal with your supplier simply because you are ensuring a stable source of income not only for you, but also for them.
- There will be customers who will take advantage of your offer and opt out of their subscriptions once they receive their free packages. This situation is inevitable, although you can reduce the risk of encountering these instances by slightly increasing your monthly offers. In theory, customers who are willing to pay more upfront have a lesser tendency to "bottom feed".
Before we end this post, I would like to invite you to my monthly membership group, The Pirate Club, where you can get everything you would need to build a successful online store. By joining in and becoming a pirate yourself, you gain access to the following:
- The Pirate Academy;
- The Pirate Product App;
- The Pirate Community; and loads more!
Intrigued? The Pirate Club is now open with an early-bird pricing plan, so be sure to grab this super affordable deal before it expires!
If you have any more questions about ClickFunnels, my monthly subscription box or anything regarding this video, feel free to personally contact me via the Contact Form HERE. You can also leave your comments and feedback below, and our team over at WagePirate will definitely get back to you with a response. For more reviews, news and updates, don't forget to subscribe to my YouTube channel!