John Lee Dumas sold an impressive $2,137,739 in online courses in 2015. But did Infusionsoft’s lacking analytics cause EOFire to leave money on the table?
In this article, we’ll show how John Lee Dumas can use SegMetrics, our analytics software for Infusionsoft, to add at least 6 figures of revenue to his business.
John Lee Dumas is the perfect example of how giving away tons of free content can be very, very profitable.
Consider how much his business, EOFire, gives away for free:
- Seven completely-free episodes a week of EOFire, his entrepreneur-centric podcast that consistently tops the iTunes business charts
- Two 10-15 day email-courses on how to get started podcasting and hosting webinars
- A steady stream of free webinars and PDFs
All of it, totally free.
And what is all this generosity worth to EOFire?
$4,005,181. Check out EOFire’s month-by-month revenue:
Clearly, John Lee Dumas is doing well. But where is that revenue really coming from? Which promos are driving sales and which are dead weight?
EOFire breaks down its income streams in its monthly reports, but with so much free content pulling people to the site and so many different opportunities to monetize those leads, it’s not clear which lead sources and content are the most compelling for Fire Nation and profitable for EOFire — and which should be retooled or abandoned.
Take John Lee Dumas’ online courses. They account for over half of EOF’s $4,005,181 in revenue ($2,137,739 to be exact). The cornerstone of EOFire’s marketing is their email marketing and automation, powered by Infusionsoft. Infusionsoft is great for systematizing his business, but it can make figuring out the true value of his leads almost impossible.
For all of its strengths, Infusionsoft doesn’t provide actionable reports to help you optimize your marketing. Infusionsoft reports are limited or hard to read. And exporting your data and manipulating it in Excel often results in data you can’t trust and hours of busywork.
So John turned to SegMetrics — our analytics software for Infusionsoft — to uncover the truth about where his revenue is REALLY coming from.
This is the first of a multi-part series that digs into how John Lee Dumas is using SegMetrics to better understand his revenue streams to super-charge his sales. In this first article, we’ll show you how SegMetrics is helping John answer four powerful questions about EOFire’s leads:
- Do EOFire’s free email courses actually drive revenue?
- Are the automated webinars bringing in money — or are they a waste of resources?
- Which free PDFs are gold mines and which are dead ends?
- How can EOFire use all of this to dramatically boost revenue?
(A big thank you to EOFire for letting us run their data through SegMetrics and share the results. The numbers and reports you’ll see below are all real. This is SegMetrics in action. To test-drive SegMetrics for your business, get your 14-day free trial here.)
Do EOFire’s free email courses actually drive revenue?
John Lee Dumas is a master at Lead Magnets and Infusionsoft marketing automation.
A Lead Magnet is free content that you exchange for a lead’s email address. If you use Infusionsoft smartly, you’ll then deliver an automated sequence of emails to that lead to provide them even more content — and eventually a sales pitch.
Here’s how EOFire does it:
Step 1: Lead Magnet
John created two free email courses that he uses as Lead Magnets: a Free Podcast Course and a Free Webinar Course. He made these easy to find all over his site.
Step 2: Marketing Automation
Upon signing up, leads are entered into an Infusionsoft automated marketing sequence that delivers 10 to 15 days of free content packed with some of John’s best strategies for launching and hosting successful podcasts and webinars.
Step 3: The Pitch
The Free Courses not only serve up advice on how to be successful with your own podcast or webinar, they also give leads the opportunity to join one of EOFire’s paid courses — Podcasters’ Paradise and Webinar On Fire.
But do these free email courses actually convert leads and drive revenue?
Because the EOFire team has set up Infusionsoft tagging on all leads who sign up for these courses — and you should too — we can use SegMetrics to see just how valuable the 1-2 punch of Lead Magnet/Infusionsoft automation has been.
We’ll walk you through the simple process.
First, we’ll create the segment in SegMetrics…
And we can now we see the real lead value for the people who signed up for those Free Courses.
In 2015, the 21,617 people who signed up for those Free Courses brought in $900,842 in revenue. That’s an average Lead Value of $41.67 (Lead Value = Revenue / Number of Leads)!
(Note that this type of easy, powerful data analysis is not available inside Infusionsoft, nor in any other Infusionsoft analytics tool. Only SegMetrics.)
What about people who didn’t join one of EOFire’s courses? To see what they’re worth, we create a segment of all leads who DON’T have those Free Course tags …
The 34,439 leads who have NOT signed up for those free courses have brought in $658,260 in revenue. That comes to an average Lead Value of $19.11.
That means that leads who sign up for the Free Podcast Course and the Free Webinar Course are 118% more valuable than leads that don’t.
Let’s step back and think about just how valuable this free content strategy is to EOFire.
In 2015, 39% of EOF’s leads joined one of their free email courses. On average, these leads are worth $22.56 more than leads who don’t sign up for the free email courses. This is in large part because these funnels are so good at giving high-value content and converting people into paying customers.
Even with stagnant lead growth, if EOF could increase the percentage of leads that join a free mini-course from 39% to 49% — and the Free Courses continued converting 118% better — that would add $126,424 in revenue in 2016. Just from giving away a free course to more people!
And not only are each of those “Free Course Leads” worth 118% more than average leads but the sales funnel is entirely automated.
Instead of taking hours to plan and promote a live webinar or write new copy, EOFire can automatically deliver the high-impact content it already has. This means that John and the EOFire team actually have time to relax, sleep or dream up new ways to grow their business.
That’s why we invented SegMetrics: So that smart companies like EOFire can get the answers they need to grow their Infusionsoft businesses and enjoy the rewards of a successful business.
And Answer #1? Yes, EOFire’s free email courses are money-makers, and John should put more energy in sharing these valuable tools.
Everyone Loves Automated Webinars. But do they Really Convert to Sales?
Yup. In fact, leads who registered for an automated webinar in 2015 have been worth $81.05 each — 243% more than leads who didn’t.
Check out how valuable these automated webinar leads have been:
EOFire uses Easy Webinar to power its automated webinars. For the uninitiated, here’s how it works.
Step 1: The Registration
Leads receive an email inviting them to sign up for a webinar, or they find a registration page on eofire.com.
Leads pick a date and time to watch their webinar. While the webinar is pre-recorded, forcing someone to pick to a specific time fosters a sense of commitment and importance.
Step 2: The Webinar
Upon signing up, leads are sent an email with a unique link for their webinar. This link will only work for the day and time they select.
When they show up for their webinar at the right time, they will see a free, prerecorded webinar on how to grow and monetize your podcast or host successful webinars.
All of this is automated, which means more free time for the EOFire team.
Step 3: The Pitch
At the end of the automated webinar there’s a pitch for either Podcasters’ Paradise or Webinar On Fire.
Leads who signed up for either of these Easy Webinars in 2015 have had an average Lead Value of $81.05. That Lead Value is 243% higher than the Lead Value of people who haven’t registered for the Easy Webinars.
How does the automated webinar stack up to the Free Email Course in terms of its overall impact on EOFire’s revenue?
Clearly the automated webinar leads have a higher average value — $81.05 vs. $41.67 — but there’s more to it than that.
We also need to consider that 21,617 people signed up for the Free Courses and only 4,081 people have signed up for the Easy Webinars.
As a result, the people who attended the Free Courses have generated $900,842 to date while the Easy Webinar leads have generated just $330,769. That’s a nearly 3X difference. There’s value in getting a lot of people to do something that leads to conversion, even if the resulting Lead Values aren’t as high as they are for the Easy Webinars.
But here’s what makes the ultra-high Lead Value of the Easy Webinar leads so exciting for EOFire in 2016: Getting an additional 1,000 people to sign up for those automated webinars could drive a $57,390 increase in revenue.
With SegMetrics, John and the EOFire team know where to direct their leads in 2016.
Ultimately, EOFire will want to heavily promote both the Free Courses and the Easy Webinars. Both of these marketing techniques involve automation that save them tons of time, and they both dramatically improve conversion rates.
Steal a page from the EOFire playbook and do both for your Infusionsoft business and track your results with SegMetrics.
How Does EOFire Know Which PDF Downloads Convert — and Which Should be Killed?
As with any Lead Magnet, PDF downloads have varying degrees of success. It’s important to not only track which ones bring in the most leads, but also which ones are ultimately responsible for the most sales.
EOFire applies Infusionsoft tags every time someone downloads one of their PDFs. This means – you guessed it! – we can use SegMetrics to easily track how many people download each PDF and how those people have converted to sales.
This time we’ll create a segment with ALL of the PDFs we want to analyze.
Now we can scroll down to the Table Reports – where we can also track conversion based on UTM parameters, Referring URLs and Products Purchased – and see the key metrics for all of the Tags in our segment.
You can see that overall PDF downloads haven’t moved the needle as much as EOFire’s other pieces of free content, but the impact is still significant. The Lead Value of the PDF Leads is $40.44, 59% higher than the Lead Value of people who haven’t downloaded a PDF ($25.36).
Where we really start to see value is when we compare the values of the different PDFs.
The 11 Habits download and the EOFire Resource Guide have Lead Values of $30.64 and $34.56, respectively, both below the average Lead Value for PDF Leads.
Meanwhile, check out the Lead Values of the KT Burnout Template, the 4 Essential Principles Cheat Sheet and the Top 5 Reasons Podcasting is Exploding – all over $100!
That’s more than 2X as valuable as the average PDF lead!
Currently those 9,214 leads who downloaded a PDF have been worth $40.44 each. If EOFire can generate even a 10% increase in Lead Value by getting more people to download the higher-converting PDFs instead of lower-converting ones, that could result in $37,261 in additional revenue in 2016.
The takeaway here? Now that John and the EOFire team can track the value of their different PDFs in SegMetrics, they can promote the PDFs that boost Lead Values and retool (or scrap) the ones that don’t.
It pays to concentrate your marketing on the free content that works.
How can EOFire use all of this to dramatically boost revenue?
We’ve only run a few reports in SegMetrics and already we’ve identified an additional $221,075 in revenue John Lee Dumas could add to his business in 2016 — just by giving his audience more opportunities to join his valuable free content!
- And extra $126,424 by sharing EOFire’s free email courses with more people
- $57,390 more by getting 1,000 more people per month to sign up for a free, educational webinar
- And $37,261 more just by swapping out high-performing PDF for low-performing PDFs