Last week I shared the results of our first ever Event at Sock Doggo.
We partnered with AmericanDoxie.com to run a fun event that built our email list and got sales.
You might remember that I wanted to establish Proof of Concept. I wanted to be sure that if I got my product in front of the right audience they would buy. Would they pay our premium price?
So the good news is the American Doxie audience voted with their credit cards, and the answer is a big huge YES.
The bad news is that I actually don’t have an audience anywhere close to the size of American Doxie. So I know that these people will buy, but I won’t get results like this until I build a similar audience.
That’s ok. I know how to build an audience, so I can keep going.
I’ll share HOW I’m doing that in future posts.
This week, I want to share with you what it cost me in dollars to partner with American Doxie, and also what I got in exchange for my investment.
You can read on, or watch here:
Here’s why I partnered with American Doxie.
When people set out to work with a partner for an Event, I think most people are concerned with the audience size and engagement.
While I think that those are valid points, for me the most important thing is audience behavior.
When I say behavior, in terms of e-commerce, I’m really talking about purchase behavior.
I think people like us should care about audiences that CLICK and BUY.
That’s why working with Mark at American Doxie made perfect sense.
American Doxie has an audience that contains BUYERS.
Here’s what our agreement looked like
The good news: American Doxie has an audience of Buyers, and an Email list which means they can get the offer in front of their audience often and without a big spend.
The bad news: American Doxie is also selling products, and it might seem like a bad plan to promote other products to their audience. I had to get creative to make it work.
The solution: A simple win/win.
In a traditional Influencer or Referral agreement, I would have paid a fee up front or a commission on sales. You don’t get access to a valuable audience for free.
Instead of paying a fee upfront, I made American Doxie an offer that had a high ROI for them and a low cost for me.
I gave American Doxie a credit for 100 units of product for their offer.
(100 boxes + 100 individual socks)
In dollars and cents, the Partnered Event cost me about $987. (100 x $9.87 which is my cost for the product)
The sales American Doxie generated from the product were $3695.00.
It was a win/win. American Doxie got far more revenue than they would have if I had simply paid a flat fee.
And I got:
More than 1500 emails for my list. I made a custom audience of that email list and I’ll use it as a warm audience for Facebook ads.
I also made a Lookalike audience of that list, and I will use that as “as a warmish cold audience”
I will make an offer to this list by email.
I also got sales. My agreement with Mark was that he could sell as many units as his audience would buy. He ran his Perfect Giveaway Funnel for 8 days and sold 181 units. We agreed that I would invoice American Doxie for all the units sold, and I would credit them for 100 units. The difference ( 81 units) would be payable at wholesale prices.
Here’s what that looks like for me:
81 boxes at $16.00 = $1296.
81 single units at $8 = $648
My Total Sales = $1944
And here’s American Doxie’s Profit:
Sales of 100 offers = $3695.00
Profit on 81 offers = $1049
Total profit = $4744.
It cost me $987 to grow my email list AND I got sales of $1944. A big win for a brand new Business with a teeny tiny audience and no sales.
But it’s also a big win for American Doxie. They made a lot of sales, also grew their email list AND had a massively profitable week.
If you’ve got questions, comment below and ask. I’d love to hear what you think, and how you might take my idea and make it work for your business!
It’s time for me to put my head down and start working on building the audience and the business.
I’m simply going to follow the success path we lay out for our Inner Circle Members.
Over the next few weeks, I’ll share by showing what I’m implementing, and how I’ll build a solid foundation, step by step!
Interested in learning more about the Inner Circle? Click here.
Plus: The 3 things I’ll implement this week. → Watch and you’ll see what I did that cost too much money, and why. Gah!→ What I tried that did not work in February→ What DID work in February→ One big clue that dictates my next steps I’ll walk you through, step by step...
My advice to our Inner Circle Members is always to be really consistent with just a few things. If you do that, you’ll make progress. But often, it’s almost impossible to see that progress so it’s very tempting to change course and spend time looking for new...
I’ve got two months of sales under my belt at Sock Doggo. I’m feeling like the results are “ok”, but I wish they were better. Sound familiar? All of us store owners (me too) tend to see SALES as the only measure of success. And while sales are the most important thing...