The digital era has changed our perspective towards commerce activities. We are used to seeing and touching the products we purchase. Nowadays, we can purchase intangible goods in the form of digital data. Things like webpages, downloadable songs, e-books, mobile apps, and digital marketing content fall under the category of e-goods (electronic goods) or digital products.
We can utilize these digital products to generate an advertising system where they can breakeven on their own. We call this system “breakeven ads.” Since paid advertising would always be a concern for business owners, this system could guarantee that the cost of advertising your products is money well spent. This system helps especially in the early stages of businesses when owners are still experimenting with their market and tweaking their target customers.
Breakeven ad works by marketing your digital products using paid advertisement service. For example, you put a $20 price tag on your product. Then, you put a digital ad to market your product which costs you $0.20 per click. If you can generate at least one sale in 100 clicks, that would cover the cost of your ads. Any additional sales within that threshold are counted as Return on Advertising Spend (ROAS).
Since we are talking about breakeven ads in a test market environment, the products offered should be simple enough to solve your customers' issues instantly. Creating a specific product for a particular problem would attract more customers to click your ads, increasing the probability of generating sales. Here, we have created a five-step process to create such products for your breakeven ads.
Decide on What Kind of Product You Want to Offer
As we have mentioned above, the products should be specific and can be utilized by customers to solve their issues quickly. It should be simple enough for you to produce and does not cost too much of your money. Things like e-books, video tutorials, short courses, or webinars would suffice. They are generally cheap, easier to produce, do not require many resources, and customers could purchase one when they need it.
Both you and your customers could benefit from these products. Take e-books for example. To release one, you have to conduct some research on the topic you want to cover. It will give you a more thorough understanding of the topic itself while presenting it on your terms. By purchasing your e-book, customers could hopefully find a solution regarding an issue related to the topic you wrote.
Identify Solutions for Specific Problems
As a business owner, you should pick up a specific problem your customers might suffer from. We suggest that the problem should be common enough that almost everyone has encountered it at least once. Your product can offer a solution to this particular specific problem. Therefore, many people would try and find a solution to that particular problem and buy your product.
The solution you offer in your product should not be too time-consuming. Your customers see and purchase your product because they want to solve their problems quickly. Ideally, it should be something your customers can do in 60 minutes or less. It should also be easy enough to understand so much so an amateur could solve their issue by themselves.
Create Your Digital Product
Business owners might find the process of creating a digital product is quite intimidating. It is usually because business owners, both senior and new likely, haven’t created one before. If you are not confident to create your product—an e-book, for example, you can work with a copywriting service provider. Usually, the writer will ask you to provide the topic you want to cover, the keywords, and whether or not you have some reference related to the topic.
Whatever the product you want to utilize in your breakeven ads is, it does not have to be the prettiest or the best one out in the market. It just has to serve its purpose: solving your customers’ problems and generate sales to breakeven your advertising cost.
Publish Your Product
When the product is ready, it’s time to create a sales page. It is a separate page of your website to secure sales for your product. You can sell anything your business has to offer here, whatever it is. However, this page has only one purpose: converting visitors into customers.
This page needs some key elements to work, such as:
- A headline explaining the type of product you offer,
- Product details, description, and prices,
- A form to fill in your name and contact information (phone numbers, email, etc.),
- A call-to-action (CTA) button
Market Your Digital Product
After all that hassle of creating a digital product, it is time you market them. It is where you use a paid advertising service to market your product. You can also offer this product to existing customers if that can help them too. Whatever your decision as a business owner is, we hope that the digital product you offer can help you generate more sales for your up-and-coming business.