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Listen "288: How to Launch Products Create Recurring Revenue and Build an Affiliate Marketing Program"
Episode Synopsis
This episode of LMScast is a great discussion between Mark Thompson from PayKickstart and Chris Badgett of LifterLMS. They dive into how you can launch products and how important recurring revenue is to scaling your business. Mark is the co-founder of PayKickstart, which is a tool that manages eCommerce and affiliates for product entrepreneurs online, so he shares some great knowledge he has picked up on his journey as well.
Mark makes a great point in this episode that understanding customers’ reasons for churning in your business and not sticking with your recurring payment program is key to making sure you’re able to keep people onboard. If your churn rate is 30-40% per month, then you shouldn’t be putting more resources into marketing the program to get more people in until you’ve fixed the hole in your ship of that high churn rate.
Mark also speaks to managing your relationship with affiliates for your site. One point is that you can reward affiliates for referrals even if they don’t convert. It could be something like $1 per lead, but that is a great way to keep them incentivized to participate in your program. Chris shares how in the LifterLMS affiliate program, and in pretty much every other company’s program, there’s an 80/20 split on commissions where roughly 20 percent of affiliates generate roughly 80 percent or more of sales.
One key takeaway from this episode is that the most successful product launches have a one-time price at the top of the funnel and upsells with at least one that includes the recurring revenue model.
At PayKickstart.com/pricing you can sign up for a 14-day free trial of any of their plans that includes a step-by-step walkthrough of how you can get set up and get your first product live, along with extensive documentation and guides on setting up products and being successful with sales and managing affiliates. Thanks for joining us!
Mark makes a great point in this episode that understanding customers’ reasons for churning in your business and not sticking with your recurring payment program is key to making sure you’re able to keep people onboard. If your churn rate is 30-40% per month, then you shouldn’t be putting more resources into marketing the program to get more people in until you’ve fixed the hole in your ship of that high churn rate.
Mark also speaks to managing your relationship with affiliates for your site. One point is that you can reward affiliates for referrals even if they don’t convert. It could be something like $1 per lead, but that is a great way to keep them incentivized to participate in your program. Chris shares how in the LifterLMS affiliate program, and in pretty much every other company’s program, there’s an 80/20 split on commissions where roughly 20 percent of affiliates generate roughly 80 percent or more of sales.
One key takeaway from this episode is that the most successful product launches have a one-time price at the top of the funnel and upsells with at least one that includes the recurring revenue model.
At PayKickstart.com/pricing you can sign up for a 14-day free trial of any of their plans that includes a step-by-step walkthrough of how you can get set up and get your first product live, along with extensive documentation and guides on setting up products and being successful with sales and managing affiliates. Thanks for joining us!
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