MBA2455 How To Use a Waiting List to Launch Your Next Thing

Summary

The $100 MBA Show: MBA2455 How To Use a Waiting List to Launch Your Next Thing

Release Date: April 15, 2024

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Introduction

In episode MBA2455 of The $100 MBA Show, host Omar Zenhom delves into the strategic use of waiting lists to effectively launch products and services. Drawing from over two decades of entrepreneurial experience and the successful bootstrapping of multiple multi-million dollar businesses, Omar provides actionable insights and proven techniques to harness the power of waiting lists, regardless of whether you're launching something new or promoting an existing product.

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Why Waiting Lists Work

Boosting Conversion Rates

Omar begins by highlighting a compelling statistic:

"Businesses that use waiting lists see on average a 30% increase in conversion rates compared to those who don't."
(02:15)

This significant uptick underscores the effectiveness of waiting lists in driving sales. By creating anticipation and a sense of scarcity, waiting lists compel potential customers to take action, translating interest into tangible sales outcomes.

Psychological Underpinnings

Delving deeper, Omar references a study by the Harvard Business Review, explaining that:

"Consumers are more likely to perceive products with waiting lists as being in high demand and of higher quality just by the fact they have to wait for it."
(04:30)

This perception not only elevates the brand's value but also provides the leverage to command higher pricing, as customers associate the product with exclusivity and superior quality.

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Real-World Examples

Louis Vuitton's Scarcity Tactic

Omar cites Louis Vuitton as a prime example of effective waiting list utilization:

"If you walk by a Louis Vuitton in any major city, you’ll notice a long line outside. Inside, only a handful of people are browsing. This creates demand and makes the product seem special."
(05:45)

By intentionally limiting store capacity, Louis Vuitton fosters a high-demand environment, ensuring that those who wait are more likely to make a purchase upon entry.

Superhuman's Waiting Strategy

Another illustrative case is Superhuman, an email client:

"When I signed up for Superhuman's waiting list, I received an invitation to purchase within 24 to 36 hours. This short wait period effectively primed me to buy."
(07:20)

Despite the brief waiting period, the anticipation generated was sufficient to convert sign-ups into customers, demonstrating that even short waits can be highly effective.

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Implementing an Effective Waiting List Strategy

Omar outlines a four-step strategy to successfully implement waiting lists:

1. Craft a Killer Landing Page

"Landing pages with videos can increase conversions by up to 80%."
(08:10)

Incorporating a concise explainer video can significantly boost engagement and sign-up rates. Whether you're presenting a new product or an existing one, a well-designed landing page is crucial for capturing interest.

2. Drive Traffic to Your Page

Omar emphasizes leveraging both organic and paid traffic:

• Organic Traffic: Regular blogging can drive up to 55% more website visitors. Including a call-to-action for the waiting list at the end of each post can funnel engaged readers to sign up.

• Paid Advertising: Utilizing Facebook and Instagram retargeting ads—targeting users who have previously visited your site—can effectively encourage repeat visits and sign-ups without the high costs associated with cold audience targeting.

3. Nurture Your Leads

Personalization is key in this phase:

"Personalized emails have an average open rate of 18.8% compared to just 13.1% for non-personalized emails."
(09:05)

By addressing subscribers by their first names and tailoring content based on their interactions, you can maintain their interest and prepare them for the eventual purchase trigger.

4. Execute a Flawless Launch

On launch day, ensure that the buying and onboarding experiences exceed customer expectations:

"Businesses that provide exceptional customer experiences can increase their revenue by up to 15%."
(09:50)

A seamless and rewarding customer journey not only drives immediate sales but also fosters long-term loyalty.

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Conclusion

Omar concludes by sharing his personal success stories, including the growth of Pre Sold Webinar Ninja into a business with over 30,000 users and millions in revenue, ultimately leading to a lucrative exit. He reinforces the efficacy of waiting lists in both launching new ventures and scaling existing ones.

"Sometimes in the beginning of your business career you're in a rush to make sales, you just want to put it out there without a waiting list. But trust me, anticipation, scarcity works."
(10:30)

Omar encourages entrepreneurs to adopt waiting list strategies, even with minimal waiting periods, to capitalize on the inherent psychological advantages and drive substantial business growth.

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Key Takeaways

• Waiting lists can significantly increase conversion rates by creating urgency and perceived value.
• Personalization in nurturing leads enhances engagement and boosts email open rates.
• Strategic traffic generation through blogging and retargeting ads maximizes sign-up potential.
• A flawless launch experience ensures customer satisfaction and loyalty, leading to sustained revenue growth.

By implementing these strategies, entrepreneurs can effectively leverage waiting lists to not only launch their next big thing but also to build a loyal and engaged customer base.

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For more practical business lessons and actionable strategies, visit The $100 MBA Show.

Transcript

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[Omar Zenhom]

Hey o welcome to the $100 MBA show. Because a better business begins with you. That's why we deliver practical business lessons. I'm your host, your coach, your teacher, Omar Zenholm, and in today's episode, you will learn how to use a waiting list to launch your next thing. I've been using waiting lists in our businesses for over a decade, and it's for good reason. They simply work. And in today's episode, I'm not only going to show you why they work, but how they work and how you can set one up for your next launch. Now, regardless if you have something coming up that you're launching or or you have an established product that you're selling right now, today's lesson is applicable. You're going to be able to use this waiting list method even if your product is ready. Trust me, after I share with you some of the information and data that proves waiting lists actually improve your sales regardless of the wait time, even if it's a day or even a few hours, you're going to want to implement it right away. So let's get into it. Let's get down to business. Now, before we jump into the nuts and bolts of the why and the how, let me Hit you with a stat that will make you rethink your launch strategy or how you sell your thing right now. Did you know that businesses that use waiting lists see on average a 30% increase in conversion rates compared to those who don't. 30% is huge. That's the difference between 100 sales and 130 sales. That could be the difference between making ends meet at the end of the month or living comfortably. That's right, by building anticipation and scarcity, you're priming your audience for action. That's why the conversions skyrocket like that. But I'm not just going to share with you these really compelling numbers. I'm going to share with you the psychology behind it all. According to a study by Harvard Business Review, consumers are more likely to perceive products with waiting lists as being in high demand and of higher quality just by the fact they have to wait for it. So not only does a waiting list boost conversions, but it also enhances the brand's perceived value, which makes it possible for you to pull another lever. Pricing. You can actually demand more for your products. You're going to have a higher asking price because people feel like it's worth it. I'm going to give you a very simple example. Ever been in a major city and walked by a Louis Vuitton store? I use Louis Vuitton a lot on this podcast as an example because they're very good at these strategies, using scarcity and increasing the perceived value of their products by doing some simple things. So if you walk by a Louis Vuitton at any point in your life in a major city, you'll notice that there's a line outside of Louis Vuitton. Often a very long line is the store at capacity and it's just packed and there's not enough room for these people. No, this is manufactured by Louis Vuitton. They actually limit the number of people in the store. Inside the store, there's just maybe a handful of people, five, six, seven people browsing around. If it's a larger store, maybe ten or a dozen. The rest wait outside. What does this do? Well, it creates demand. People see this long line outside the store, they're like, that's got to be something special. People are willing to wait. And then those who are online waiting for their turn, when it's their turn and they open that door and that representative from the store says, hey, it's your turn, is your opportunity. Now you are special. Come on inside and experience the high quality experience of Louis Vuitton. There's A high likelihood that you're going to buy something after all of that. You're not going to just walk out empty handed after you've invested so much of your time and energy waiting to go inside. Also, when you're waiting online, you're thinking about the products they have. You're looking through the window, you're thinking about, what do I need? Maybe I need a new wallet. Oh, maybe I should get a bag for my mom for her birthday. That's next month. It's priming you to buy. So waiting lists are fantastic for this. Even online, when people sign up for a waiting list, they already are somewhat committing to participating in the purchasing experience with you. They're saying, hey, I'm interested enough to give you my name and email address. Let me know when I can buy because I want to buy. That's essentially what they're saying when they sign up for a waiting list. This is why I'm saying it doesn't really matter how long the wait is. Say, for example, you're launching your product in two weeks and you put up a waiting list and they have to wait two weeks to be invited to buy. That's good, but just as good is waiting 24 hours. There's a lot of software apps that do this. Superhuman, which is an email client that helps you be more organized through email, was a master at this and continue to do this with their latest products and features. I remember when I was invited to sign up to the waiting list of Superhuman. I signed up and then about 24 to 36 hours later, I got an email saying, hey, there's a spot for you. You can purchase now. There's spots limited. Here's a link. Go ahead and buy now. I'm saying that this is great if you're about to launch something, but it's also great even if you have an existing product, just like Superhuman, that example. So if you have an existing product, like a course, for example, instead of just having it open all the time, meaning that you have a waiting list, they sign up for the waiting list and then you invite them via email after a certain period of time saying, hey, there's a spot open, or we have opened up the ability to buy, now go ahead and buy. You can choose how long that could be. It could be 12 hours, it could be 24 hours, it could be two days. But the point here is, is that you're priming them to buy. There's less commitment to signing up to a waiting list than pull out your credit card and buying right Then and there, when they hit your website for the first time, when they go to your website and they sound like they're interested, a waiting list is a good place for them to sign up. Why? Because maybe they want more information, maybe they want to think about it. By putting up the waiting list kind of form, they're able to fill it in and start thinking about it. And then when the email comes to tell them to buy, it's kind of the trigger to say, okay, stop thinking about it. Now it's time to buy. So let's talk strategy. How do we go about implementing a waiting list effectively? Step one, Craft a killer landing page. Did you know that landing pages with videos can increase conversions by up to 80%? That's right. Incorporating a video, a sales video, an explainer video into your landing page can capture attention and keep visitors engaged for longer. Staying on your site, that's what you want. This increases the likelihood of signups to your waiting list. This is why I highly encourage you even shoot a short video in your home office or on your phone or whatever it might be, even if it's 30 seconds to a minute explaining the value of signing up and what will happen when they sign up so that they feel a sense of comfort that they're in the right place and that they should sign up for your waiting list. Now, if you have an existing product, your landing page might be your sales page. The page where you sell your product and where they normally sign up for it. Now instead of them buying, they're going to sign up for the name and email address. Just one step more. And then you send them an email inviting them to buy on a separate page to check out. This is seeing the long term result. You want to increase conversions for the long run, not just in the moment. And you know that the conversion rate will be better because I just told you that 30% more buy off a waiting list. Now, we start with the landing page because you want to make sure when they land on your page they convert. But we want to make sure that we get people to the page. But the conversion part is more important. That's why I said number one. But step two is to drive traffic to that page. According to a study by HubSpot, businesses that blog regularly receive an average of 55% more website visitors than those who don't. So blogging is actually a good way to drive traffic to your site. And then at the end of the blog post, you can have a call to action to sign up for your waiting list to whatever you do if you have some cash, you can invest. Paid advertising is one of the best ways to drive traffic. The best ways to start with paid ads is with Facebook and Instagram ads. And in particular, one of the best ways to start with ads is with Facebook and Instagram. Retargeting ads. These are ads that you show to people on Facebook and Instagram that have been on your site already. I'm sure you've seen these before. You've been on Amazon or you've been on some e commerce site, and then you see those products advertised on Facebook. And often you'll see products that are similar to them from other companies. This is called retargeting. This allows you to advertise to people that have been on your site to encourage them to go back to your site and basically finish the job. Sign up for your waiting list. The reason why I say start with this is because it's rather inexpensive compared to other ads and you're not selling or you're not advertising to cold audiences. You're inviting people that have already been on your site, and it's a good conversion tool to drive more traffic to get you to close more sales.

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[Omar Zenhom]

All right, step three is to nurture those leads. I'm talking about taking care of them like they are your own flesh and blood. Personalization of emails is huge. Calling people by their first name, incorporating their name in your messaging, even personalizing it based on their actions in their email or their actions on your mailing list is huge. Did you know that personalized emails have an average open rate of 18.8% compared to just 13.1% for non personalized emails. That difference of 5.7% is huge for your bottom line. So don't be afraid to personalize your emails when you're nurturing them on your waiting list, especially if there's a longer wait time. We're talking about days or weeks to prime them and tell them about the unique benefits of your product or service so that when it's time to buy, it's a no brainer. And finally, the moment of truth. It's launch day. If you haven't launched your product already, when you send that email to everybody, say hey, it's now open, now it's time to buy. You want to make sure that that experience, that email, the buying experience, the onboarding experience is flawless. According to a study by McKinsey and Company, businesses that provide exceptional customer experiences can increase their revenue by up to 15%. So don't just meet your customers expectations, exceed them, deliver on your promise and go above and beyond that and watch your waiting list convert into loyal raving fans and dollars of course. So there you have it. The waiting list strategy backed by cold hard data and my own experiences. I use a waiting list and pre sold webinar ninja about 10 years ago. That's a business that grew to over 30,000 users, millions in revenue, and of course eventually we sold the company and exited recently in one of the biggest successes of my career. We use waiting lists to launch our $100 MBA programs. We use waiting lists to launch our live events and on and on and on. Why? Because they work. Thanks so much for listening to the $100 MBA show. If you've been listening to this podcast, whether this is your first episode, your third episode, maybe your 20th episode, and you've gotten any value from it, the best way you can say thank you to me and our team is to subscribe is to follow this podcast on Spotify or Apple Podcasts or whatever podcast player you use. This allows us to get more reach and reach other listeners like you so that we can reinvest in this business in this podcast so we can continue to give you great lessons regularly. Thank you in advance for doing that. Before I go, I want to leave you with this. Sometimes in the beginning of your business career you're in a rush to make sales, you just want to put it out there without a waiting list. But trust me, anticipation, scarcity works. Have the patience, have the calm and calculated perspective of I know that this stuff has been used by other companies, by major brands and I want to use it too so I can leverage the power of scarcity and perceived value or high perceived value. Give it a try. Even if that waiting period is short, like a few hours or a day, you won't regret it. Thanks so much for listening and I'll check you in the next episode. I'll see you then. Take care.

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