What I learned from a $150MM a year company
As I wrapped up my final days in Turks and Caicos, I shared what I learned during the 1-day copywriting workshop in Florida with my email subscribers.
I gave away the name of the company my email list, but for this blog I'll respect their privacy. What's more important than the name of the company is what they've accomplished — $50 to $150 million 1-2 years!
How'd they do it? They went balls deep in copywriting. Which — surprise, surprise — is what got me interested enough to one of my favorite cities, Prague, to attend their event.
The event was great stuff. At one point, they made us put our cameras away because the numbers being shared were too confidential.
One thing I can disclose today is how they acquire customers. This is simple and powerful info, so listen up.
Here's the full breakdown of how they make $150 a year selling newsletters.
First, they have two types of newsletters:
- Frontend newsletters
- Backend newsletters
A frontend newsletter is usually $49 to $99 a year with the option to get a lifetime subscription goes for $250. The newsletters range from advice, strategy, and "insider-only" info. They're a publishing company that offers valuable insights, basically.
Now what's interesting about the frontend newsletter is their sole purpose is to acquire a customer. That's it. They're not designed to make money.
Why is that?
Because it's much easier to sell to someone who's already purchased from you. A frontend newsletter is a way to filter out buyers from non buyers.
The backend newsletters are where the money is. The backend newsletters are $2,500 or higher and are generally being offered multiple times throughout the checkout.
This means one $49/year frontend newsletter buy could potentially buy $2,500-$7,500 in backend newsletters. How cool is that?
That's, honestly, all there is to it.
If you're in the newsletter business, it's a good model to follow.
Speak of newsletters...
I recently invested $2,500 in a backend newsletter about cryptocurrency investing. I've already made a handful of investments that're, so far, doing well.
My strategy is to buy and hold for the long term. Expect cryptocurrency talk in future blog posts.
Until then, adios.