Free + Shipping Funnel e-Learning
What Brennan Valeski is saying:
In this video, you’re going to learn everything about the free plus shipping business model or the free plus shipping funnel. So what is the free plus shipping business model? Effectively, it is where you offer your customer a free item. So it could be anything such as this bracelet or such as potentially a book of some sort as well.
You offer that item for free, so that effectively your customer is able to taste what you can offer them. I wanna ask you a question – Have you ever been inside an ice-cream parlour? You can try a free sample. Or you’re at a mall maybe, and you’re maybe in front one of the Chinese restaurants and they’re like “Hey, FREE sample of this piece of chicken here!” or with a little toothpick stabbed in it.
Effectively, they’re allowing you to taste what they can offer! It’s the same thing with a free plus shipping offer. It is something that is basically very low cost with free plus shipping effectively. Free is what the offer is said as, which is really enticing in the whole internet marketing world of course. Anything which is free is like “OMG! It’s free, let me grab that ok”. And the shipping is just really really cheap to the point where you as the business owner or the person running the model is able to basically just break even with the shipping cost.
Say I put this bracelet here offered as a free plus shipping offer. This bracelet wouldn’t cost me that much to get in bulk or something like that. I get that bracelet for maybe like ten cents apiece, OK? And this is completely a hypothetical example. So say for example I’m offering this as a free plus shipping offer to someone like “Hey, FREE item! Just cover the shipping”.
So basically, how you would do it is you offer that item as a free item. And then the shipping is then labelled as $4.95 or $5.95 or $7.95 all the way up to, you know, around that range. It needs to be relatively cheap, and you’re basically offering that item for free, and they’re just covering the shipping. But technically, the shipping cost is what covers the price of the item. So you’re basically just breaking even, to the point where you’re getting people to taste your business. That’s the whole purpose of this funnel and this entire system of the free plus shipping business model.
Whether you’re doing that for E-commerce or any type of physical type of information business. Maybe it’s a book for example. This book here is Dotcom Secrets from Russell Brunson. If you’re familiar with him, then this is actually a free plus shipping model that this book is run through. So basically, he offers this book for free, and all you have to do is just cover the shipping or just pay the shipping which is $7.95. So it basically covers the cost of the book, and he ships it to you for free. I think it takes you like two weeks to get there.
It’s the same type of thing you can do with any type of product that you’re shipping to someone. So this works best in E-commerce or like I said, any kind of information type thing with a book, of course. Because it’s a physical type of product. Any kind of physical-based product, this is what this model is used for.
So basically, you’re getting your customers in order to taste what you can offer. The next thing is, well the way that you actually maximise your profits through this entire free plus shipping business model is to actually offer an upsell. Because if you are just offering the free plus shipping, such as this bracelet here, as the example, or just the book, you’re never gonna make any money! Because you’re really just breaking even, you’re getting people to spend money with you. You’re showing them what you can offer.
It’s the same thing with the ice-cream parlour, right? You go into an ice-cream store or whatever and they’re like “Here, have this free sample, taste this flavour”. You’re allowing people to taste the flavour of your business. Allowing them to taste the flavour before they go and purchase anything more expensive from you. Which is ultimately what you wanna lead people through, which is as Russell Brunson puts it as the “value ladder”, of course in that book.
Which I do actually recommend that book. I wouldn’t necessarily recommend Clickfunnels for everybody. It just depends on how you’re doing your business, but Dotcom Secrets is actually a pretty good book. So basically, the model there is you wanna get people up your value ladder. So what is the value ladder, right?
Obviously, you have this bracelet, OK? What is an upsell? How do you actually make money with this free plus shipping model? That is really what we’re coming down to here is you wanna offer an upsell. So think about if someone is at an ice-cream parlour. Let’s just keep using that example. So the first bit of the “ice-cream parlour funnel” if we put it that way, I’m just completely making this up as we go along. But it works! So you’re tasting this little ice-cream sample of the flavour, right? You’re getting a taste - “Wow, this ice-cream is actually really good! I’m actually gonna stay in this store and actually buy an ice-cream cone.”
So maybe you were thinking “Maybe I’ll just get a regular, like small cup”. And they were like “Yo, we just cooked some fresh waffle cones! If you wanna add a waffle for that, it’s only like $2 more”. And you know you want that large waffle cone, and boom! You purchased it and right then and there they just made some extra money. And it was a logical upsell, so typically you wanna offer, that’s kinda like a cross-sell in a way, but to explain that in a little bit better way there is you basically just wanna offer people more. Right? You wanna offer people more beyond just the free plus shipping system.
Because you’re not gonna make a ton of money if you’re just breaking even, of course! You’re getting customers on your customer list and your email list, which is great. It’s a great way to build that out, but of course you obviously wanna maximise your profits that you can make when you’re offering that to people. So another thing you can do is just offer maybe a couple of these bracelets. So instead of just offering one, it’s like “Hey yo, get another one for just a dollar more” or something like that. Or offer the quantity selector in the checkout system in the shipping selector. Or, you know, you can offer them get one or get two or get three or get four, get five or however you wanna do it.
It just depends on obviously what you wanna do. For a book, of course that’s not really gonna work! For a book type of funnel, you’re not really gonna offer someone like two of the same books? Because it’s not really that valuable. But if you’re selling ice-cream or, you know, this example with the bracelet, with the bracelet, someone could obviously benefit from having two of these. Or maybe flashlights or gun-cleaning oil. Any of these types of classy examples.
Someone could benefit from actually having multiple of these, and maybe giving one to a friend or whatever. Maybe people wanna ball out with a bunch of these on their wrists. It just depends on your customers there. So you could offer them multiples of these and then increase your average order value there instead of just offering them one. So there you are adding more value because you’re able to sell more to people. And all you have to do is offer that in the checkout system.
Another way, like I was saying before with the upsell kind of like selling the ice-cream cone, you could also do some sort of upsell items. So like Russell Brunson with Dotcom Secrets, he adds on like an extra funnel course or something like that, that you could also purchase on that funnel. There’s also like a take home backpack or there’s a bunch of different stuff that like pops up and he has his upsells. Those are other things that you can add into this kind of funnel and it’s really great because you’re able to offer something for free from the front end. You’re able to maximise your profits at the backend with the upsells and with the cross-sells. And with the email lists, you’re obviously gonna be able to remarket to them.
You’re basically giving people a taste of your business. So think about it like that when you’re setting up your free plus shipping model and you should be able to have some success. That is what it is – basically just offering some free items and then having a bunch of upsells and cross-sells. All that kind of stuff we just mentioned on the backend, and to get people to taste your business. That’s basically what the free plus shipping model is for.
The above video is an e-Learning topic in the WSQ Social Media Management Course (online).