Artificial Intelligence Podcast: ChatGPT, Claude, Midjourney and all other AI Tools

SNM161: If You Are Not Split Testing You Are Losing Money

• Jonathan Green : Bestselling Author, Tropical Island Entrepreneur, 7-Figure Blogger

Share episode

Start chasing that ball too early and you're business will never be profitable; wait too long and you're leaving money on the table. How can you manage this balancing act?

The post SNM161: If You Are Not Split Testing You Are Losing Money appeared first on Serve No Master.

Connect with Jonathan Green

speaker 0:   0:00
If you're not split testing, you're losing money. Find out why on today's episode, today's episode is brought to you by digit save money without thinking about it. Get paid $5 just for signing up at serve. No master dot com Backslash digit today. Are you tired of dealing with your boss? Do you feel underpaid and underappreciated? If you want to make it online, fire your boss and start living your retirement dreams now then you've come to the right place. Welcome to serve no master podcast where you learn how to open new revenue streams and make money while you sleep. Presented live from a tropical island in the South Pacific by best selling author Jonathan Green. Now here's your host. It's another beautiful morning on my island. I'm up extra early. Normally, I get up at five to record these podcasts episodes, but for some reason there's always people up making tons of noise. Now I'm up in four. The sun hasn't even risen yet. The bugs are biting me like crazy, but I want to talk to you about split testing, which is a very important technique. Many of us think my business is a big enough first blood testing the matter. So let me explain to you what's blood testing is in case you don't know, and we'll go through a couple ways You can help you, no matter how small your businesses split. Testing is very simply showing two different versions of something to see which is more effective. The simplest idea is you send 100 emails and you send 50 emails to one group of people in 50 different emails to the other group of people and see which one more people read or which one more people could. The Lincoln This tells you which one's more effective if you sent to e mails recommending a movie Very simple idea, continuing yesterday's idea about movie recommendations. And in the first email you really talk about the main character, and then you recommend the moving You say Click this link to see more about the movie. In the second email, you just talk about the plot, the journey. Would you say, If you like this journey, click the link and see this movie. And maybe for the 1st 1 12 people click and in the 2nd 1 18 people click Well, then you know that 50% more people are responsive. Two story rather than character. And you know, next week, when you send your next email, you recommend a movie and you tell two different ways of talking about this story. And one you can talk about the hero's journey and the next one you could talk about overcoming evil and you see, which gets about a response. In this week, you have one in August 18 and the other one gets 22. So you're testing is helping to be more and more effective, and this is just split testing with e mails. The best way to start split testing an easy way to begin is with Block Post titles. There are a lot of tools out there that are called Headline Optimizers and fact Thrive Teams has one where I can show two different headlines over and over again from my block post, and I'll see which one you click. Whichever one you click on that becomes eventually the permanent block post the winner and after I have a winner. Oh, this title is more popular than that title. I could do it again and again and again to get more and more effective. So when you're just starting with the block, you start that simple. You don't have to be really complicated. You don't need any expensive software can just be Let me write down three titles and see which one my audience likes the most. Which one gets the most clicks the most reads, and you can slowly automatically improve your blood as you get more visitors. The click the Block post they find more interesting. Those titles the better titles to start to get better and better votes and as people visit your block later on, when there've been more winners have been more champions. You'll get Maur and Maur readers. When you're first starting out, 10% of people read a block post, but then it gets to 12%. Then it's 20%. So not only is your traffic growing your conversion or your success numbers are improving. This is really wonderful. This is the simplest way to look. It's fantastic. It's the easiest place to start beyond block posts, and what most people think about we talk about split testing is advertising in sales pages and advertising was split testing. You run different versions of ads, and this is absolutely critical, their tools that are just built around split testing. If you're using Facebook, let's say you're running a Facebook ad campaign and I run a lot of Facebook ad campaigns and maybe how you found me. The first thing you could split test is the main headline. So you have a different question. Hey, do you want to become an author? You always wish you'd been an author, certainly, to finish that book, those could be three different headlines of testing and ad for people that I know. One of the authors and one of them will get a higher percentage of clicks than the other ones. The second element you could start support testing is the image. We could try different images. One image is a person saying that they're typewriter, frustrating other images of person that looks like they've just finished their book. Another picture person is holding their book. They're walking into a bookstore. So if three different images one is negative about the frustration, in other words, about the positive about the successes, and we can run both those abs and see which one gets more click throughs in which gets more sales. We wantto design the most effective at the classic Mistake, a new advertiser someone starting in business makes we make what we think is the perfect add something that everyone should respond to. It looks beautiful, and we run that one ad and we lose money. We can't figure out why. When you have a small budget, we can only afford to spend five or $7 a day on ads. It feels like that's all you can do. You gotta go all in one ad. But in fact, the technology exists now, and it's so easy to do with Facebook now. You can run split testing quite easily. You can cut multiple versions of every ad and only spend a dollar in each version of day. And the software automatically certified winners and we're track are different conversion numbers. The first number we track is how many people clicks really add. So as we're getting more sophisticated, we say, Oh, 50% people who see add one click 60% at two. We think at to the winner we want to go a step beyond that and look at which ad makes more money more people might click through at two. But when you look at the numbers you make $2 per person. You make $120 from at two, but $3 per person at once. You add ones actually making $150. It's actually more profitable, depending on the metric that matters to you. Maybe you just want to build your mailing list, so all that matters is often. And so as you get more people in your mailing list, that's all you're tracking. But maybe you're not trying to build a realist. Maybe you're trying to accomplish something else. You want to make sure that when you're testing and tracking numbers, you look at your final result. Maybe what you're really looking for is money. For every dollar you spend in ads, you want to make your money back so you have to track the money. It's tempting because it's easy to check. Click. There's easy thing to track is how you clicking at. But we want to go beyond that so that we can have effective numbers and grow our business effectively. Make sure as you're running your first split tests that what you're testing is important to you now. The end all be. All of split testing were really shines, and where most people and direct response marketing are familiar with it is on sales pages. There are certain elements of sales pages and even sales videos that we test all the time to get our best numbers. The first thing that we tested the headline. Even if you have a video, there's usually a big headline above the video. But let's say you're in the fitness space. You know, it's one of my favorite examples because it's not my space, and the first thing you might say is Want to lose £20? Find out the secret technique. You may then have a second variation that says one of those £15. Find out the secret technique, and I would not be surprised if you find out that one is far more effective than the other. You'll discover a large percentage of people respond to different numbers. It seems simple, but it might make a difference. You're next email, says Target people looking at you like you're a pig and your next headline. It's more aggressive. It really points out a negative and it says. Are you tired of this negative when people make a purchase to either moving away from pain or towards a good feeling in this case, instead of looking at accomplishing a goal? Now we're saying You want to move away from this bad feeling where people look at you and make you feel bad. Test that headline and there would be more or less effective. And what's great with software now is you just write in your three different versions of the software, automatically tests and gives you your results. It tells you which one is the most effective headline. You could also do price testing. Most consumers don't do this, but companies don't know about this. Big companies do it all the time, especially when people haven't offer running through the collect make platform, which one of the largest direct response platforms in the world. Sometimes when you see the product, it's $37. The next time it's 47 than 57 67. Those usually standard for prices that people test and they're running offer at that price. Quit and see which makes the most money, they say. Oh, I sell Maur at 67 but I make more money at 47 so then they leave the price of $47. Then the next price test will be 47 versus 49 95. This is a critical test that actually a lot of people forget to run because we love things that end in seven's. You'll notice all of my products and in seven. But when you're running enough traffic, when you have enough people seeing the sales page, you can start to test smaller and smaller things. So then you test it at 49 95 it turns out you make an extra dollar day. If you have that price point, that's pretty good, so that's locked in. Then you begin to test other things in sales videos. The moment the button appears is what a lot of people test. Should the button appear the first time you mention the price? Sometimes the button needs to peer sooner, sometimes later. Sometimes the button should be the whole time. The most common test is you start off with your button, and it appears the moment you say the price in the video with your tracking software, you can see when most people exit the video. So if your button appears at minutes 16 but you discover that a lot of people leave your video minute 12 you could move the button and tested at minute 12 seo before people leave off the button up here. So that way, more people can click it and it might make more sales. And sometimes you'll make a lot more money by allowing all those people that have got bored or about to leave to make a purchase. Sometimes we're leaving to go. I just want to buy it. But I'm tired watching this video that's happened to me is that consumer? Many times I get it. You don't have to keep selling me. Where's the button? So I could buy it? What's the price? I want to buy it. And so when you move the button earlier, your sales grew up. But sometimes people leaving because it's boring, they go. This isn't for me. I don't need this. They remove the button for your sales number, actually go down because now the people who would have stayed and watched more of the video clicked about earlier, and they see the price before they're ready to buy and you lose the sale. All of these little tests are so cheap to run now. Split testing was really built and grown in advertising in the fifties and sixties. This is where they show two different similar commercials, so that would show two different ads in different magazines to see what people respond to Maur that might show a family going on a vacation. One picture. The family has one kid, another picture. It's the parents and their two sons and another one. It's parents and have a son and a daughter, and they see which ad gets the most responses. Even radio shows do it. Radio show will run an ad and they'll say, Oh, visit our website and then enter this promo code. Promo codes are tracking links radio struggles to really track their ads effectively. This is why they have promo codes, and one of the ways they do a promo code is by tracking where they run the ad. So maybe on the morning zoo they give you the promo code zoo, then on the talk show. After that, have Proco talk than public old news. They want to see which of the show's is giving them the best responses in an advertising medium where you're jumping platforms, Where you going from radio to Internet, television, Internet or radio TV? However you're doing it When you're jumping chain mediums, you have to add a manual process to improve your tracking. So every time they say, Oh, you get the first month free or get 10% off When use our promo code, they're willing to pay that. They're going to give you that discount to get the data they need for their split tested. To find out when you heard the commercial, if it was effective, it's very hard to know if and when a radio spot was effective. It's hard to track it unless you're manually listening and manually looking at when each ad runs the best way to really learn about split testing and my favorite type of television watches infomercials. I wish it was easier tow watch infomercials on you to find it hard to find modern infomercials. I wish I could watch him all the time. Infomercials are very expensive. The more expensive something is, the more money they put into the split testing. There's this amazing TV show called Pitchman. They only did two seasons because, unfortunately, Billy Mays died after season one, but it really follows how they choose products to make infomercials for and a bit of the science making get infomercial. If you're lucky, you could make it for $6200. That's really if you're lucky, and that's because filming is very expensive. Filming a music video, which is only gonna end up being three minutes of content, can easily cost 50 $100,000 before you start adding anything cool. That's just if you're filming a band recording a song on top of a building as soon as you want to add in more element to get some more expensive. And that's because everyone in the music business and everyone the film business is in a union. When you're shooting a short video, every cameraman gets paid a specific amount based on their union numbers, then every single person who is holding up lights or holding a fan or moving things in the position or holding up a shade to prevent the light from being too bright. Everything from grips cameramen and in between all of those people broad union contracts, and that means you have to pay them a certain amount. Doesn't matter if you're doing a smaller big movie. The rules of the rules second of all their breaks, the length of their lunch and how many hours you can ask them to work are all very fixed. As soon as you go over eight hours of work, the union contract takes over. You don't get to decide how much people get paid for overtime. When you're dealing with unions, the union does. Those unions are very strong and it give you a challenge, You know? Yeah, you can try and do a young union video, but you better believe they're at least give you protesting outside. It's very hard to do that. It's very hard to kind of get involved in that very risky. I did a product once we shot some exercise videos, and it was very expensive and it was far less sophisticated than informers. So with an infomercial, because they're spending so much money, they need it to be perfect. So they'll for film several versions of each scene. Those film several versions of the introduction. Several versions of the price revealed several versions of their demonstrations. And when they start to test the infomercial, they will tested in different markets, and they start off in the cheapest markets. The first night of an infomercial. They're not running in Los Angeles, Miami or New York is the most expensive markets. Instead, they're testing it in small towns. They're testing it in the middle of nowhere, Wyoming or the middle of nowhere, Montana or even the middle of nowhere, Tennessee. Where I'm from because it's cheaper. They start up spending less money in the ad while they're tweaking and perfecting their commercial. So maybe it costs them. And these air obviously not real numbers. Maybe it cost them $100 a night to run their infomercial in Tennessee, but it's $500 a night. Run it in New York. Of course, they're gonna test in the cheaper market once they get the infomercial perfect. That's when we'll start to do things. Now. If you've ever watched infomercial, then called that phone number, that's when you learn what really happens. So every infomercial, it always ends in a 1995. They keep it under $20 because they've discovered that's the best commercial number at 29 95 the profits dropped to the floor precipitously. It's very hard to have an effective infomercial. 29 95 90 95 to get you to call once you're on the phone, they have a lot of data Before you say one word. First of all, they know the area code you're calling from, so they know which market led to the phone call. Second of all, with infomercials, they know what time the infomercials are running. So they know if you're calling after watching the 10 the 11 of the 12 o'clock infomercial, cause I know what time it is. They then begin to talkto and they're trying to doom or than just take your order. In fact, they're real. Job is up, sells. The real job is to talk you from spending $20 into spending 300 and every product in the world does this this is very standard. This is the same thing. We all do it in our marketing online products, right? Someone buys your $7 product. You Hey, if you like that, you might just love this for 27 they might love this for 97 we run them through a sequence to see what they want to buy and to generate maximum value. And what you're really trying to do is make this much money per viewer as possible where they might have been making eight cents per viewer if they just sold a $20 product. Now they're making 25 cents per viewer, and they can afford to go into other markets and the test different elements that test the pricing. The pricing is pretty standard now because they've tested it so much and so many infomercials is almost always 1995. But they'll test different versions of the product. Different free gifts. You know, Sometimes they say, Oh, we're gonna give you two knives instead of one. That's not the only version of the free gift they tested they may have tested. Hey, we're getting for this knife in this awesome chopping block, and it turns out more people want to knives and want the chopping block. Or maybe more people want the chopping block of two knives, and once they have a winner from a test, that winner becomes the standard. It becomes what's called in testing the control, and the control becomes what you have to beat when you enter a new variation. The final element of split testing I want to share with you is how it applies to copywriters talk like operating in the past. I'm building a big course called The Art of Persuasion. That's all about sales and copyrighting. When you're a copywriter and you get really good, you can go to a company and say, Pay me a big percentage of whatever I make beyond the control. This is how tier one operators make big money so you can go to a company that's making a $1,000,000 from their advertising campaign go. Hey, I want 25% of every dollar over a 1,000,000 I make you when I read a better add on a good copper etiquette right at it twice as effective. That $1,000,000 company is now $2 million company, and the copywriter who wrote that at is making $250,000 a year, and you might be thinking, Why would any company pay that much money for something? Remember, after paying the sky, the company is now making $1.75 million. That's a $750,000 increase in their profits. It's 75% bump absolutely worth it. Any copywriter who only wants to get paid a percentage of growth is awesome. Now, some companies will try and pull a fast one where you make a deal, they grow you and then you don't pay. You better believe you're gonna end up in court and your reputation's gonna be destroyed. I've been down that that That's why I always make sure I have contracts in place because sometimes people decide afterwards. You know what you did wasn't that important, even though I doubled how much money you make. But most companies are ethical, most companies on the up and up, and when they make a deal with you when you have a contract is a great copywriter, we'll pay you massive amount of money, and all you're doing is a split test. So they send 50% of the e mails or the letters of the sales page. They showed people is their control and the other 50% is your version. And if your aversion outperforms, there's you start to make a really big money instead of getting paid a flat fee. You're just all in on a percentage, and you're only on our percentage of growth. This is why I only really high level cockroach didn't get this opportunity, because if your alternative fails, they're losing money. So not every company is willing to bet on you. But it's a copywriter. Understanding. Split testing is absolutely critical to your business because split testing is everything. Testing different versions, testing different structures. There's certain ka prayers. That's all they do. You bring them in. When you have a decent sales learn, you say, Hey, can you make some variations for me? And that's what you pay for. And they're different variations or how you build your business. If you're not split testing your leaving huge amounts of money on the table, your business could be so much bigger than it is right now. And I have links below this episode to a couple of split testing tools that I think you're pretty cool. Thank you for listening to this week's episode of Serve No Master. Make sure you subscribe, so you never miss another episode. We'll be back tomorrow with more tips and tactics on how to escape that rat race. Head over to serve no master dot com forward slash podcasts Now for your chance to win a free coffee of Jonathan's bestseller Serve No, master. All you have to do is leave a five star review of this podcast. See you tomorrow. Thank you for listen to this episode of the serve. No master podcast. Join me on my Facebook page at facebook dot com Backslash serve no master.