Why Driving Paid Traffic To a Squeeze Page Is Like Setting Your Money on Fire
I know this goes against what most experts say.
But that’s exactly why I’m writing this. To stop the insanity.
I’m not some random chicken telling you the sky is falling either. I’ve spent millions on ad campaigns. Over $1.1 million just in FB ads. Many more millions in Google.
I’ve spoken on stages and worked with hundred million dollar companies on their ad campaigns. I’ve likely even trained your expert at some point in my 10 years of advertising.
Don’t take my word for it though. I’m going to use simple math to prove my point, because numbers don’t lie…
Let’s pretend you are buying 1,000 clicks. That’s a nice easy round number. It’s also enough traffic to not make the numbers a fluke.
Now let’s pretend on average those clicks cost $0.50. Not too high, not too low. Pretty fair price that most people can attain.
That means our starting cost is $500.
OK time to add in our squeeze page. For many of you that conversion rate (how many people opt-in) will be between 15% and 40%. There are outliers with tremendous 50% and 60%, but we are talking average numbers for average people.
Numbers any meer mortal can achieve.
Let’s go with 30% which is roughly in the middle. Don’t worry though none of those conversion rates matter. They all fail. I’ll show you soon.
$0.50 cost per click
$500 total cost
30% conversion rate
Here comes a truth bomb…
Immediately 70 cents of every dollar you spend driving traffic to that squeeze page is gone. 70% of your ad budget goes up in flames because 70% of the clicks never did anything.
There is a smarty pants reading this and thinking “but retargeting.” I’ll get to that.
30% of the clicks became leads though. They went on to the 2nd page, which I hope is a sales page or this gets way worse.
We have 300 leads now.
1000 clicks x 30% conversion rate = 300 leads.
If you offer a low priced product on the 2nd page, maybe $7 or $10. You will likely have a 3% to 5% conversion rate.
Just to prove beyond any doubt that you’re wasting money by driving traffic to a squeeze page I’m going to give you a stellar amazing conversion rate of 10%!!
300 leads x 10% = 30 sales x $10 = $300.
You spent $500 and you made $300. It’s not looking good. Let’s add yet another upsell to try and make some money.
Now you add a $50 product and by sheer magic, because you have an amazing product with killer copy you also get a 10% conversion rate on this 2nd upsell.
30 people see the 2nd upsell and 10% aka 3 of them buy. That’s another $150.
ERRRNT!!!! You still are in the red!
$500 total cost
$300 from product 1
$150 from product 2
$450 earned from $500 spent
That’s with me giving you generous conversion rates too. I’d have to also give you a magic bump on your squeeze page to 40% to make things work.
40% squeeze with 10% front end and 10% upsell will get the job done. Good luck reaching those numbers though. I’ve been doing this for 10 years and have millions of dollars worth of experience- 40/10/10 intimidates me.
Let’s Try a Few More Scenarios To Be Fair
Maybe you’re thinking just raise the prices??
But if you do that you might not get the same high conversion rates. Maybe you do. Maybe you are a unicorn who easily gets 40/10/10 conversion rates and at any price. If that’s you, you’re awesome and I’d love to hire you. Srsly.
For the rest of us, what can we do?
Let’s try a different scenario. Let’s go with a much easier to attain 25% conversion rate on our squeeze page. With a $99 product converting at a pretty typical 1%.
This is closer to most people’s reality. Some would even wish they had this.
1000 clicks x 25% = 250 leads x 1% = 2.5 sales
You only made $200 from $500 spent.
Dammit man, what the heck? All the experts told me to use squeeze pages.
It happened to me too bro.
Was a hard expensive lesson for me to learn. Here’s what I learned. It dawned on me when I looked at all my clients ad spends.
The clients paying me the least and struggling for ROI all had squeeze pages leading their funnels. The ones that paid me the most and easily scaled their campaigns to tens of thousands spent per day — didn’t.
The 8 figure and 9 figure companies I was running ads for, they never sent paid traffic to a squeeze page. Instead they went direct to sale.
They sold a $49 to $99 product right upfront.
Let’s see the math…
1000 clicks x 1% conversion = 10 sales x $99.
$500 spent and $990 made back. Just like that they are making double their money back. By removing their squeeze page.
Even with the lower priced product they make $490 which is virtually breakeven and still better than our squeeze page scenario.
The Big Takeaway
Look these are just benchmarks. Sure you can move the numbers around however you want to create a win.
Can you actually reach those numbers though? It’s easy to play with numbers on paper
If you can hit the high numbers, you’re awesome. You are in the top 5% of advertisers. The other 95% needs an easier solution.
Which is STOP WASTING 70% OF YOUR AD SPEND ON SQUEEZE PAGES. They are great for JVs, affiliates, SEO, social media, blogging, and other organic traffic methods.
When you are paying for your clicks though, it just makes more sense to drive them straight to a sale instead.
You can still build your list with the other traffic methods and now you’ll also be building a customer list.
Would you rather have a customer list or a freebie seeker list? Would you rather make it easy to profit or have really high conversion goals that are hard to achieve as well as sustain.
Some of you will cling to your beloved experts advice and keep driving paid traffic to squeeze pages. To each their own. I wish you the best. I hope you make it work.
For the rest of us looking for easier ways to profitable campaigns I created the Digital Media Buyer Institute. It’s like Udemy, but strictly for learning paid traffic.
If you liked this article and got something out of it, please give it a recommend or share it. Also, I read and reply to all comments. If you have questions, doubts, or compliments I’m all ears.
Thanks for reading.
Using a squeeze page creates a near impossible math situation that causes it to be very hard to profit from paid traffic. It’s possible, but hard. Instead make it easy to profit by going straight for the sale. Learn more tips like this at DMBIOnline.com