This is how you make money from your lead magnet

In today’s digital landscape, lead magnets (or freebies, or free resources) have become one of the most effective methods for building an email list and creating a relationship with potential customers. But did you know that you can also make money from your lead magnet? It’s not just about getting contact information, but about using this strategy to drive sales and create long-term revenue. In this blog post, we’ll go over how you can use your lead magnet to increase your revenue potential and convert your leads into paying customers.

What is a Lead Magnet?

A lead magnet is a free offer that you give away in exchange for something of value, usually a potential customer's email address. It could be an e-book, a checklist, a free mini-course, a trial of your product, or anything else that appeals to your target audience. The goal is to create an incentive for people to provide their contact information so you can start building a relationship with them.

But there's an important step beyond just collecting email addresses that many people forget: turning your lead magnet into a passive income source. Here are some strategies for how you can monetize your lead magnet.

1. Sell a Related Product or Service Directly

The most obvious way to monetize your lead magnet is to use it to sell something related to what you offer. When a person downloads your lead magnet, you offer them an immediate opportunity to purchase a product or service that solves a bigger problem or provides more value, but is within the same theme as the lead magnet you just gave away for free.

Example:

If you have a free guide on how to create a successful blog, after the download you could offer an advanced course or coaching program that goes deeper into the topic. If your lead magnet is about helping people learn how to invest in the stock market, you could sell a course on advanced investing techniques or a membership where you provide regular market updates.

2. Use your lead magnet to build a tripwire funnel

A sales funnel is a process where you lead a potential customer through various steps to ultimately convert them into paying customers. Your lead magnet can be the first step in this process.

When the customer downloads their lead magnet, a small box will appear with a cheaper offer (an order bump on a hundred ring or similar) that the customer can add. A smaller cost for something that the customer feels curious about and can add quickly and easily!

Once the customer has purchased this small product, there will be an option for upsell (you can also have downsells, but more on that in a separate post), i.e. something else the customer can buy that is a little more expensive, but not as expensive as your final product. It should be related to your order bump and feel complementary to the customer, a couple, or a few hundred ringgit is just right.

Additionally, with your free resource, you collect their email address and then guide them through a series of emails offering more information, value, and ultimately an offer to purchase your product or service (which costs more than your previous order bump).

Example: You want to give away a freebie/free resource/lead magnet in the form of a PDF where customers learn how to grow their Instagram in the best way.

• Lead magnet : Free PDF that the customer downloads in exchange for your email. Once the customer fills in their email, it ends up in your trip wire funnel.
• Order bump : A box appears where the customer can quickly and easily choose to buy ready-made templates for their Instagram for 99 SEK. It is something that really streamlines and saves the customer time, which the customer is probably interested in because they wanted a guide to growing their Instagram.
• Upsell : When the customer has purchased your order bump (i.e. your ready-made templates for Instagram), a limited-time offer will appear that is only available to this customer here and now. You offer the customer to get your mini-course on how to build their Instagram for only 799kr - here and now!
• Follow-up and retargeting : If the customer doesn't buy, you can use retargeting and reminders to increase your chances of getting a conversion at a later time. Regardless of whether the purchase is made or not, you also have an email that you can process every week with your email campaigns.

Remember that customers who have bought something from you (even if it's for a small amount) are much more likely to buy in the future - provided that what you sold was of high quality, of course!

3. Use your lead magnet to build a subscription model

If you have a subscription-based business (like a membership or ongoing service), you can use the lead magnet to attract new customers to your subscription model. You can offer a free trial of your membership site or a free sample issue of your magazine or service. Once they have tried your product and experienced the value, you can convert them into a paying subscriber.

Example: If you run a membership for online courses, your lead magnet could be a free course module or a preview of course content. Once they’ve had a taste of it, you can offer them the full membership or subscription at a reduced price for a month or two.

4. Sell Affiliate Products or Services

If you don't have your own products or services to sell, you can use your lead magnet to promote other people's products through affiliate links. When someone downloads your lead magnet and follows your recommendations, you can earn a commission if they make a purchase through your affiliate link.

Example:

If you have a free guide to starting an e-commerce business, you can include affiliate links to e-commerce platforms, web development services, or marketing tools that you recommend. When your leads purchase these services through your link, you get a commission.

5. Create an affiliate program for your own course or product

If you already have a working product or service, you can create an affiliate program to get others to promote your lead magnet (and then your products). When an affiliate refers someone to your lead magnet and that person converts to a paying customer, the affiliate gets a commission.

This gives you the opportunity to use others to promote your lead magnet and at the same time make money through affiliate marketing.

Summary:

Creating and using a lead magnet isn’t just about collecting email addresses (although that’s an important part!), it’s an opportunity to convert your leads into paying customers. By offering a relevant, compelling post-download offer, creating a sales funnel, using tripwires, building a subscription model, or selling affiliate products, you can effectively monetize your lead magnet.

The key is to understand your target audience and their needs, and to use the lead magnet as a way to lead them to your products or services. By carefully planning and implementing these strategies, your lead magnet can become a powerful source of revenue for your business.