46: How to recover your ad cost with a Self Liquidating Offer Funnel

Welcome to the world of advertising where your campaigns can not only pay for themselves but also drive meaningful sales.

Understanding Self-Liquidating Offers  
At the heart of effective advertising lies the Self-Liquidating Offer, a strategy designed to recover your ad costs while simultaneously generating sales. 

I define an SLO as a low-cost, high-value product that helps businesses cover their ad expenses. For instance, consider selling a $17 guide or a $27 mini-course. 

If you invest $100 in ads and sell five $20 products, your ads have effectively paid for themselves. However, breaking even is merely the starting point; the real goal is to use these initial sales to lead customers to higher-priced offerings.

The SLO Funnel Explained  
The primary function of an SLO funnel is not just to recoup ad spend but to attract potential buyers who are eager to solve their problems. 

Once a customer purchases the initial product, it’s essential to gently guide them toward the next logical step in their journey. 

For example, if you sell a $20 playbook that helps customers craft their first ad, you could offer a bonus mini-training session for $37 during the checkout process. This approach not only enhances the customer experience but also increases the average purchase value.

Calculating Success with SLOs  
Let’s break down the numbers to illustrate how SLOs can be lucrative. Imagine spending $100 on ads, resulting in five sales of your $20 playbook. 

You’ve recovered your ad costs, but here’s the magic, two of those buyers also purchase the $37 training. 

This brings your total revenue to $174, increasing your average purchase value per customer from $20 to $34. This simple yet effective strategy allows you to spend more on ads while remaining profitable.

Key Components of a Successful SLO  
To implement a successful SLO funnel, keep the following principles in mind:  

• 1. Create a small product that addresses a specific problem.  
• 2. Develop a natural follow-up offer that complements the initial purchase.  
• 3. Ensure a clear path from the mini-offer to your primary program or service.  
• 4. Avoid complicating your funnel with unnecessary upsells; focus on one main offer and one follow-up offer.

Getting Started with Your SLO  

If you’re feeling overwhelmed and unsure about what your SLO or follow-up offer should be, don’t worry. 

I offer a six-week ad intensive SLO funnel build program where you work with me to collaborate. We  design your offers, map out your funnels, and create your ads without guesswork. 

Before signing up for this, I recommend taking the free ad readiness quiz to assess whether your business is prepared for this sales strategy.

Takeaways 
In summary, mastering the Self-Liquidating Offer funnel can significantly enhance your advertising strategy by turning ad costs into profits. 

Focus on creating valuable, low-cost products that lead to higher-priced offerings, and maintain a clear and straightforward sales process. 

With the right approach, you can build a sustai

Join my Free Skool community!

Grab My Free Checklist to Audit your Ad Campaign

Get The Scoop

Subscribe to my weekly newsletter for all the news about ads, online business, and some fun surprises added to the mix!

Transcript

Stacy Covitz (00:00.258)
Hello, my friends. Welcome back or welcome if it's your first time here. This is the MetaAds Quick Tips podcast and I am Stacy Covitz, your host. Today we are continuing with our SLO funnel series all about building smart sales campaigns that can fund themselves. And again, just to be clear,

This isn't about the $5 a day awareness campaigns that I'm always talking about for visibility. These are sales ads, and these are the ones that are meant to bring in money and buyers. So let's start with what exactly is an SLO funnel, a self-liquidating offer. It's a low cost, high value product that helps you recover

or liquidate your ad costs. So self-liquidating offer. So let's think $17 guide, a $27 mini course, a $37 toolkit. If you spend $100 and you sell five $20 products, congratulations, your ads just paid for themselves. Bye.

here's the thing most people miss. Breaking even is the goal, but that's just the starting line. To make this strategy truly worth it, you have to have a higher priced offer waiting on the other side. So something like your signature coaching program or your course or your

VIP day, the SLO funnel job isn't just to cover ad spend, but to attract buyers who are already raising their hands saying, hey, I really want to solve this problem. And once they buy that first product, you gently invite them to take the next logical step, which is an offer that gets them closer to their goal. So let's just give an example.

Stacy Covitz (02:21.616)
You sell a $20 playbook. It helps people write their first ad. You offer a bonus mini training for $37 that shows them how to launch that ad. They go hand in hand, same audience, same goal. Now let's just do some quick math. You spend $100 on ads. Five people buy the $20 playbook equals $100. But...

Two of those buyers also grabbed the $37 add-on. Now you've made $174. That means your purchase value per customer went from $20 to $34. And suddenly, magic, you can afford to spend more on ads while you're still coming out ahead.

That's how smart marketers use SLOs not to get rich, but to build a system that funds their growth and leads their buyers to their main offer. I hope that makes sense. make it work, let's keep it simple. You create a small product that solves one specific problem. Add a natural next step, a complimentary offer that helps them go further.

Then you make sure there's a clear path from that mini offer to your main program or service. You don't need complicated tech or 10 upsells, just one clean offer and an add-on and one next step. So if you're listening and thinking, okay, I love this, but I have no idea what my SLO or follow-up offer should even be,

That's exactly what we build together inside my six week ad intensive SLO funnel build. We design your offers, map your funnel, test your ads, so everything works together without you having to guess on how to put it together and what to do. But again, before you start, make sure you've taken the ad readiness quiz. It's free, it takes five minutes, and it tells you if your business is ready.

Stacy Covitz (04:37.21)
for this kind of sales strategy right now. The link is in the show notes. I hope you're enjoying the series. I thank you so much for listening and I will see you next time.