Welcome to Part 1 of “Build Your 7-Figure Evergreen Machine.”
In this series of articles, you’ll learn how to evergreen your business – transforming your sales cycle from the old-school launch model to an automated “sell while you sleep” evergreen model.
Everyone knows evergreen sales funnels are the wave of the future, but very few people are successfully pulling it off. We want to change that, because we’ve seen first-hand how evergreening can rocket a business to huge success. If everyone really understood the power of evergreen, they’d ditch their old systems in a heartbeat.
Disclaimer: The following information is aimed at people who have a proven product with a bare minimum of 100 paying customers. If you’re just getting started, we recommend you start with some beginner material (like this or this), and bookmark this article for later.
So, let’s get started.
When you first started your product, you did everything yourself. You built it, delivered it, marketed it and sold it. It was all you, all the time. When it was time to launch, you (and maybe a small team) ran yourself ragged making as many sales as possible. When the launch ended, your profits immediately dropped – and so did your energy level. That’s the up-and-down roller coaster framework that defines the launch model.
That’s okay when you’re just starting out, but it can’t stay that way forever. By its very nature, the launch model is unsustainable and prevents you from growing. The only way to grow is to remove yourself from the nitty-gritty tasks so you can focus on the big picture. And the best way to do that is by going evergreen.
This is how we define evergreen products:
Evergreen automation allows you to scale and segment both your process and product to give customers the right content at the right time without manually managing each relationship, resulting in predictable outcomes.
Let’s unpack this definition.
Evergreen automation allows you to scale and segment both your process and product.
Automation is the bedrock of evergreening. Automation takes YOU out of the equation. It’s the polar opposite of having a launch where everything succeeds or fails based on the amount of energy you put in. With automation, you set up the machine and put it into motion. You spend your time managing the overall system, not getting dragged down into the individual pieces of the system.
Automation & delegation are the core tenets of any successful business. Howard Schultz isn’t the one selling you your morning coffee, Elon Musk isn’t standing in the Tesla showroom, and Tim Cook isn’t helping octogenarians set up email on their new iMac.
Automation allows you to delegate. But instead of delegating to an employee, you’re delegating to the technology.
Automation also gives you flexibility. Unlike the launch model, where the process is always the same and every customer needs to go through an identical funnel, evergreen allows you to scale and specialize both your process and product.
You can scale because you aren’t limited by your own energy. If you want to sell to a million people instead of a thousand, that’s no problem. Your system is automated, so it makes no difference to you.
You can segment because you’re able to sort different leads into different funnels. Again, since the process is automated, it doesn’t matter if you have one product or ten. Everything takes care of itself.
And this applies to both your processes and products. You can design evergreen processes that are set to run on their own, requiring no additional effort from you once they’re set in motion. And you can design evergreen products that contain timeless, always-relevant material, requiring no additional upkeep from you once they’re launched.
In every part of your business: if it can be automated, it should be automated.
Give customers the right content at the right time without manually managing each relationship.
When you run a launch, you’re selling to a cohort on your timeframe, not theirs. You create artificial scarcity to drive urgency. You dictate when the launch will happen, and you dictate when your funnel emails will deploy. You are responsible for pushing everyone towards a purchase in a tight time frame, whether they’re ready to buy or not.
And once the launch is over, it’s over. Customers who may be interested after the fact have missed the boat. They have to wait until the next launch to purchase, and there’s no way of knowing if they’ll still be interested at that point.
Now, there’s nothing wrong with the scarcity model, and it’s a great strategy for increasing sales. But it has its limitations. We’re more interested in increasing your overall lead value through evergreening.
It works like this:
- You put an automated email funnel in place that deploys whenever someone new opts in.
- They get all of the same material they would see if you were running a regular launch, but they get it when they’re at their peak level of interest.
- They’re in their own personal, private launch, which ends (ideally) with a purchase, no matter when they started.
And compared to a one-time launch, the entire process is repeatable and testable. That means that you can see in real time whether a different email header gets better open rates, or if sending on Wednesday rather than Monday gets you better sales.
But this is about more than just the right timing.
It also encompasses the right content.
Let’s say you’re using Infusionsoft or some other software that makes it easy for you to segment or differentiate your customers.
- If they opt in on a landing page for Product 1, your software automatically puts them into the funnel with content relevant to Product 1.
- If they opt in on a landing page for Product 2, they’ll only get content relevant to Product 2.
All without you having to manage it.
Remember, because evergreen funnels are scalable, this works for one customer or one million, one product or fifty. You don’t need to worry about manually segmenting your cohorts or deploying ten different email funnels. You don’t need to worry about potential customers missing the bus. Once you set it all up, it happens automatically. And all of those warm leads will get the most relevant content at the exact moment of their peak interest – not six months later when they’ve gone cold.
This is physically impossible to do without an evergreen system in place.
Resulting in predictable outcomes.
This is the most crucial benefit of going evergreen.
With the launch model, your outcomes are “consistently inconsistent.” Even if you have a hugely profitable launch, your income will take a nosedive as soon as it’s over. Like we mentioned before, it’s a roller coaster model, pure and simple.
Evergreening is about predictability, not roller coasters.
Think of it this way:
Automated systems → predictable outcomes → predictable income → poised for growth
Try as hard as you want, but there’s no way you can grow a business on an unpredictable foundation. Imagine if Apple only made money when they launched a new product. They’d never survive.
But that’s not what Apple (or any successful business) does. They need to know they’re bringing in enough money on a consistent basis to run their worldwide retail stores and retain thousands of high-paid employees and fund their R&D. They need to know they have a predictable revenue stream. Their yearly product launches BOOST their sales, and give them new products to continually sell, but don’t REPLACE their day-to-day automated sales process.
Let’s calculate your Evergreen Revenue
You’ll need to know these numbers:
- Units (U)
- Leads (L)
- Price (P)
First, calculate your launch Conversion Rate (C):
- How many Units (U) did you sell this past year?
- (For example: U=10)
- How many new Leads (L) did you have this past year?
- (For example: L=1,000)
- Now, calculate your Conversion Rate (C) by dividing Units by Leads [(U) ÷ (L)] .
- (For example: 10 Units ÷ 1000 Leads = 1% Conversion Rate)
Next, calculate the Value per lead (V):
- How many Units (U) did you sell this past year?
- (For example: U=10)
- What’s the Price (P) of your product?
- (For example: P=$500)
- Now, calculate your Revenue (R) by multiplying Units (U) x Price (P).
- (For example: 10 Units x $500 = $5,000 Revenue)
- Now, calculated the Value (V) of each lead by dividing Revenue by Leads [(R) ÷ (L)] .
- (For example: $5,000 Revenue ÷ 1000 Leads = $5 Value Per Lead)
Now, you can easily estimate your Evergreen Revenue (ER):
- What’s your Value per lead (V)?
- (For example: $5)
- How many Evergreen Leads (EL) do you anticipate after you evergreen?
- (For example: EL=3,000)
- Now, calculate your Evergreen Revenue (ER) by multiplying your Value per lead (V) x Evergreen Leads (EL) [V x EL]
- (For example: $5 Value per lead x 3000 Evergreen Leads = $15,000 Evergreen Revenue)
Math. Aren’t you glad that you took that algebra class in high school?
Evergreen makes everything predictable. And predictability is the cornerstone of a healthy business that’s primed for growth.
Now it’s time for you to figure out your own metrics. Use the formulas above to establish your baseline launch conversion rate, then determine your value per lead, the estimate how much you’d be bringing in if you switched to evergreen. If you can’t figure out your conversion rate, use 1% as a conservative estimate, or 5% if you’re doing gangbusters.
How do your numbers look? What are the implications of going evergreen for you?
Stay tuned for Part 2 of this series, where you’ll get more in-depth information about how to put your evergreen plan in motion.