Issue #56: Self-Liquidating offers are a thing of the past

This week I wanted to share why you need to walk away from the self-liquidating offer PLUS one of my new favorite websites you’ve gotta check out. Let’s go this:
🤖 Marketing Tip: The Self-Liquidated Offer is the “Airbrushing” of Marketing
If you’re not familiar with airbrushing, that’s the practice in media where they remove all the “flaws” in an image. This practice has come under a lot of scrutiny BECAUSE these images promote something that is, frankly, not achievable.
Just like airbrushed pictures, in 2023, the self-liquidating offer is an unreasonable performance expectation for your campaigns.
Real quick: a self-liquidating offer is an entry-point offer that covers the cost to acquire a customer, so each additional dollar goes right to the bottom line.
This was a tried-and-true strategy in the early days of digital marketing and is still being taught today. The problem is, there is more competition than ever leading to an increase in what it costs to generate leads and customers.
While there is validity to the strategy, the current state of marketing has turned the self-liquidating offer into the self-subsidizing offer.
Here’s why this is important:
  1. Just because your campaign isn’t ROI breakeven or better immediately, doesn’t mean the campaign is a loser…yet…
  2. Agencies need to diversify their offering whether that’s through new service, premium content/training, or partner deals/JVs, etc…
  3. Agencies need to invest in automation and follow-up to boost average customer value, quickly.
The simple fact is it’s not going to get cheaper to acquire customers on paid channels. And like Dan Kennedy said, “He or she that is willing and able to spend more to acquire a customer wins.”
So if you continue to run traffic to ads…even if they aren’t ROI-breakeven immediately, but have a plan to monetize after-the-fact, you win!
AI, specifically ChatGPT, has been getting a lot of attention in the last month. Yes, AI is going to fundamentally change how we do our jobs but ChatGPT is just scratching the surface of what’s possible.
That’s why everyone should bookmark Futurepedia. This is the largest directory of AI tools that’s updated daily. Go check it out!
Until next week,
CEO & Chief Wizard