What is self-liquidating offer?
A self-liquidating offer is an offer that creates an outcome such as leads, purchases or subscriptions, which can offset or completely negate the cost of advertisement of the initial offer. In simple terms, the offer covers its own advertising costs.
Self-liquidating offers are all about upselling. If you start by offering a free product or service but also provide upgrade options, the people that opt for the upgrade will cover your ad expenses for the free product. A great example of a self-liquidating offer would be offering a free e-book that only requires your customers to sign up for free. After they receive the first book we suggest you start upselling ASAP! You can offer them a follow-up product similar to the first one they received. So if you think of it, if they decide to purchase the follow-up offer, this purchase can cover the costs of the e-books you are giving away for free as well as its marketing expenses.
Why do you need a self-liquidating offer and how is this essential for your business?
Implementing a self-liquidating offer can give you a very helpful hand with the following 3 things:
1. Building your list – A self-liquidating offer allows you to generate more leads. It brings in the cold traffic to your list by offering a product or a service. The more leads you bring in; the more chance you get to bring in a sale!
2. Liquidating your advertisement costs – By providing an upgrade to your offer, people who opt in may or may not take the upgrade. However, if 1 out 10 agrees to pay an extra $10 or $20, the extra amount would be able to cover your advertising costs! (Who doesn’t want that?)
3. Generating new leads – Since a lot of people opted in your offer, they go straight into your lead database. This will be able to give you the chance to call them, talk to them and see how to help them.
Don’t sleep on self-liquidating offers! A self-liquidating offer is essential as it has the potential to cut your costs and grow your business at the same time. Just think of it, if you cut your advertisement costs in half, you can reallocate half of your advertisement budget for other areas of your business.
If you are still not 100% sure about how to implement self-liquidating offers in your business, just give us a call or slide into our DMs on our Instagram or Facebook page. The team here at Your Social Voice will be happy to help you.