The Side Hustle Show - Episode 664: The $1 Product Challenge

Hosted by Nick Loper of Side Hustle Nation | YAP Media

Introduction

In Episode 664 of The Side Hustle Show, host Nick Loper welcomes Pete Boyle from Growth Models Co. to discuss his innovative approach, the $1 Product Challenge. This strategy focuses on creating low-priced entry products to filter serious customers and build a sustainable sales funnel, ultimately leading to higher-ticket offers.

Understanding the $1 Product Challenge

Pete Boyle introduces the concept by sharing his initial struggles with traditional business strategies that didn't yield the desired cash flow. Frustrated with ineffective lead magnets that failed to convert subscribers into buyers, Pete pivoted to a different approach leveraging custom GPTs (Generative Pre-trained Transformers).

[02:08] Pete Boyle: "I created some custom GPTs that were around content marketing... you can get all four for a dollar."

Pete developed four custom GPTs focused on various aspects of content marketing:

1. Topic Identification
2. Headline Creation
3. Brief Drafting for Writers
4. First Draft Generation

Each GPT was priced at $1, making it accessible and eliminating the barrier often associated with higher-priced lead magnets.

Launching and Marketing the $1 Products

Pete details his marketing strategy, which he terms "spear phishing." Instead of outright promotion, he engaged in value-based posting within targeted content marketing communities. By addressing common pain points and subtly introducing his $1 GPTs, he attracted interested leads without violating community guidelines against direct promotion.

[05:48] Pete Boyle: "I'd follow up with in direct messages... This was how I started to get the initial sales coming through."

Pete's approach involved:

• Value-Based Posts: Addressing problems and offering solutions.
• Warm Outreach: Following up with engaged individuals through direct messages.
• Manual Sales Process: Handling transactions with tools like ThriveCart and Stripe to facilitate easy purchases and delivery of GPTs.

Initially, Pete sold 26 units, generating $26. While modest, this validated his concept and paved the way for scaling.

Building the Sales Funnel: Bump Offers and Upsells

To maximize revenue from each customer, Pete implemented a tiered sales funnel using ThriveCart. This allowed him to offer additional products during the checkout process:

1. Bump Offer ($47): Tutorials and instruction manuals on building custom GPTs.
2. Upsell ($97-$197): Comprehensive systems for creating GPTs tailored to various business needs.

[09:57] Pete Boyle: "The $1 product is... the front end. The bump offer... the upsell offer..."

This structure ensures that after the initial $1 purchase, customers are presented with higher-value offers, increasing the average order value and enhancing overall profitability.

From $1 Sales to High-Ticket Consulting

Within just 10 days, Pete's strategy led to substantial growth. Customers who purchased the $1 GPTs were primed to invest in higher-ticket services, resulting in a $3,000 consulting gig from a single client.

[17:03] Pete Boyle: "That's why in those 10 days they went from buying a $1 product to hiring me for $3,000."

This transition highlights the effectiveness of starting with a low-cost product to establish trust and demonstrate value, making customers more receptive to premium offerings.

Scaling the Strategy: Manual Outreach vs. Paid Advertising

Despite initial success through manual outreach, Pete recognizes the need for scaling his efforts. He emphasizes the importance of validating the offer manually before investing in paid advertising to avoid costly missteps.

[24:08] Pete Boyle: "Ads are a catalyst... test manually first and then once it's working, use ads to scale that reach."

Key Steps for Scaling:

1. Validate Manually: Ensure the product resonates with the target audience through direct engagement.
2. Implement Ads Carefully: Use advertising to amplify successful strategies, ensuring the average order value (AOV) surpasses the cost per acquisition (CPA).
3. Optimize Funnel Metrics: Continuously monitor and adjust offers to maintain profitability.

Round Two: Donate a Business Idea

In the second segment, Pete proposes a directory for affiliate marketers with engaged email lists. This platform would:

• Match Businesses with Affiliates: Facilitating co-promotions and sponsorships.
• Vetting Process: Ensuring affiliates have active and relevant audiences.
• Monetization Strategies: Charging for access or taking a percentage of affiliate earnings.

[32:01] Pete Boyle: "Let's call this the affiliate marketing email database business idea."

This idea aims to streamline the affiliate marketing process, making it easier for businesses to find reliable partners and for affiliates to discover profitable offers.

Round Three: The Triple Threat - Current Marketing Tactics

Pete discusses his focus on YouTube as a central marketing tool, highlighting its versatility and potential for both organic growth and paid advertising. Key tactics include:

1. Long-Form Content: Producing detailed, valuable videos to engage viewers.
2. Content Repurposing: Using tools like Descript and Socialbee to create shorts and social posts from long-form videos, maximizing reach across platforms like TikTok, LinkedIn, and Instagram.
3. Omniprominent Marketing: Ensuring content is distributed widely and consistently to build brand presence.

[38:11] Pete Boyle: "Having a face to the brand really seems to be working quite well even with smaller audiences."

By leveraging these strategies, Pete aims to enhance his content's visibility and engage potential customers across multiple channels efficiently.

Favorited Book

Pete shares his appreciation for the book "Great Leads", a direct response marketing guide focusing on effective sales message openings. He uses insights from this book to improve his video content's engagement, ensuring the first 30 seconds capture viewers' attention.

[45:04] Pete Boyle: "I've been rereading a book called Great Leads... it's all about how to open them up in different ways..."

Key Takeaways

• Low-Cost Entry Products: Starting with a $1 product can effectively filter serious customers and establish trust.
• Value-Driven Marketing: Providing genuine value through content and outreach fosters stronger customer relationships.
• Tiered Sales Funnel: Implementing bump offers and upsells increases revenue and customer lifetime value.
• Manual Validation Before Scaling: Ensuring product-market fit manually prevents costly advertising mistakes.
• Diversified Marketing Channels: Utilizing platforms like YouTube alongside traditional methods enhances reach and engagement.

Notable Quotes

• Pete Boyle: "The $1 products are a filter for those who are serious... they can continue to do business with you down the road." [20:03]
• Nick Loper: "It's like that free sample. It's gotta be good. Where $1 sample... has to be enticing enough to build that trust." [23:27]
• Pete Boyle: "People who buy from people. So I can get them to buy the next stuff." [29:38]

Resources and Tools Mentioned

• Growth Models Co: growthmodels.co
• ThriveCart: Checkout and sales funnel software
• Descript: Video editing and transcription tool
• Socialbee: Social media scheduling platform
• ConvertKit: Email marketing service
• Beehive: Community for newsletter sponsorships
• Loom: Video messaging tool

Conclusion

Pete Boyle's $1 Product Challenge serves as a compelling model for side hustlers and entrepreneurs aiming to build profitable sales funnels. By offering high-value, low-cost products, and strategically guiding customers through a tiered sales process, Pete successfully converts initial interest into significant revenue streams. The episode underscores the importance of value-driven marketing, strategic pricing, and the thoughtful scaling of business strategies.

[29:12] Pete Boyle: "...you have some trust in what you're doing and can continue to do business with you down the road."

Tune In Next Time: Join Pete Boyle again as he delves deeper into advanced strategies and continues to share actionable insights for growing your side hustle. Don’t forget to subscribe and share The Side Hustle Show with friends who are eager to turn their passions into profits.

Hustle on!