The Story
Tom White, online entrepreneur and owner of TomChalky.com was on a product launch 'treadmill'.
While he was successfully making sales online (enough that he avoided having to get a 'real job' after graduating a few years earlier) he was still forced to grind out new products each month to generate enough revenue.
His particular industry (digital fonts and graphics) was known for "race-to-the-bottom" pricing with some of his products selling for as low as $17 dollars!
Even though sales were great Tom still couldn't quite get over the hump, it was always back to the drawing board for the next product to be able to make ends meet. Since his products were so inexpensive he needed a lot of sales volume each month to meet his revenue goals
As a result he ended up creating low price bundles and discounts and ended up chasing sales while developing more and more new products. It would only be a matter of time before he was risking burn out without getting any further ahead
Tom White
tomchalky.com
"...it was running on launches. So I would launch a product...revenue goes up. I mean, that's great...but then I've got to kind of bust my balls. I'm working on a new product and then your marketing gets pushed aside and then you forget about doing this and that, your Facebook ads are running at 50 dollars a day and they're losing you money and you forget about it because you're doing this and it just turns into a juggling act..."
The Problem:
Having a wide array of inexpensive products made it a struggle each month to sell enough volume. Each new month, sales went right back to zero and it was a race to hit his targets all over again. Discounting and limited time bundles helped to create short sales spikes, but overall his sales were inconsistent and totally relied on his next release to keep any momentum in his business. He needed an easier way to generate revenue so that he could regain his peace of mind and enjoy the creative side of his work again.
The Solution:
Partnering with Automation Engage, a new product offer was created that provided a new level of value for Tom's audience while leveraging the vast catalog of products he'd already built. This new offer helped raise the average sales price significantly to require less overall product sales each month to generate consistent revenue.
The new product was called "The All Access Pass" and was a membership that could be purchased allowing customers access to everything Tom had created in the past and in the future at a price significantly less expensive than buying all of his products individually.
The Results:
With a new high-value product and a strategic campaign targeting customers and free subscribers alike, there was an immediate impact on sales for TomChalky.com. Revenue was up 4x from the previous month after three months of declining sales.
Tom White
tomchalky.com
"...(Automation Engage) came along and recommended that I launch a membership site or a membership aspect of the business, which was great. We got 36 to 37 members and it was just over four and a half thousand dollars in recurring revenue. That was four times over my monthly average...so that was very impressive especially as it's recurring..."
Armed with the knowledge that a recurring offer was viable for his audience, Tom later focused on paid acquisition and grew his membership to over 722 in less than 24 months of partnering with Automation Engage.
Tom continues to create new products, but instead of the stress of developing them quickly to maintain a consistent revenue, he can now slow his pace and be more creative knowing that his recurring members are there.
There is no longer the need to hustle just to make ends meet.
With new single products being added into his recurring membership regularly, Tom’s current members remain loyal and keep the overall churn rate low while the perceived value of his membership continues to increase.
With a recurring product offer and a traffic strategy in place, TomChalky.com continues to grow. Tom’s commitment to creating quality digital fonts and graphics while serving his audience helps to ensure that the sky's the limit for where his online business can potentially go.
Want to create a recurring income stream in your online business?
Could you benefit from having a trusted adviser on your side to provide strategy to increase your overall revenue growth? Are you already selling in excess of $1,000 on average per month?