The Dirty Truth About SLO's

The Dirty Truth About SLO’s

So, what IS an SLO? 

An SLO is a Self Liquidating Offer. Typically you’ll see them in your newsfeed with low-priced products and many people create these funnels with the wrong expectations or incomplete so I thought it important to share some facts today.

If you have an SLO and you’re expecting Facebook to be your ATM while you hit the beach and let the money roll in you will be sorely disappointed. There are some unicorns out there that have made it happen but it’s taken a lot of tweaking, testing and money spent on ads to do so. 

So, first things first. - Keep your expectations in check.
SLOs are Self-Liquidating Offers. If you are selling your product, offsetting your ad expense, and growing your list of buyers it’s doing.it’s.job. 

It wasn’t created to be an ATM machine. 

Second, it’s essential to have additional programs, products, and services to offer after the SLO offer to increase your average order value. 

You’re unlikely to become a millionaire from a $27 offer so think about what your product ladder should be to get those buyers in with the tiny offer but upsell them with other products - leading to your main high ticket offer.

At the bare minimum, your SLO should have two offers after the front-end offer to increase your average order value.

Example:

• Front end offer $47 (we want to see a 3-5% conversion rate here)

• Order Bump: $17 (we want to see 30% of the people taking you up on this offer) 

• One Time Offer: $97 (we want to see 10% of people buying the OTO)

We generally tell clients that they might see a cost per acquisition of $50 to $60 of a $47 offer to get one sale! So yes, you need those bumps to increase your AOV and keep moving people along in your funnel. 

Here’s an example without order bumps or upsells: 

You guess your CPA will be $50.

You spend $100 a day for 7 days = $700. 

Over 7 days you get 10 sales at $47 = $470

So, without any order bumps you’ve spent $700 only to make $470.
 

Now here’s what it would look like with order bumps and upsells: 

You guess your CPA will be $50.

You spend $100 a day for 7 days = $700.

Over 7 days you get 10 sales at $47 = $470

30% take the order bump = $111 ($3x$37)

10% take the OTO = $97 (1 x $97)

That equals $678 so your Average Order Value is $67 ($20 more than the main offer) and you’re a lot closer to break even plus have grown your list with 1 new BUYER. 

You also now know that you can spend up to $67 to get a sale and break even. What you’ll work on next is trying to get your CPA below $50 for even better results. But you won’t know until you start running ads to this offer and see what your CPA is.