Welcome to Module 2, "Launch Tree Case Studies!" You'll read and see how Russell Brunson, Frank Kern, and Brian Johnson put the Launch Tree strategy to work in the real world of Internet marketing.

Remember, you can go through the training screens at your own pace, and go back to review as much as you want.

When you're ready to take the quiz for this module, just look for the quiz icon below.

Okay, let's get started!

Introduction: Launch Tree Case Studies

A. Russell Brunson's $300,000 Launch Tree Success

B. Frank Kern's $8 Product Launch Miracle

C. Frank Kern's 20 Percent Upsell Conversion Secrets

D. Brian Johnson's $25,000 Upsell

E. Brian Johnson's "Sold Out" Sales Strategies

F. Action Steps

Module 2 – Launch Tree Case Studies

What You'll Learn in this Module...

These five case studies will show you how three ultra successful marketers — Russell Brunson, Frank Kern and Brian Johnson — put the Launch Tree strategies to work in the real world of Internet marketing... and make buckets full of money!

Each of these marketers customized the Launch Tree strategy to fit their own individual needs.

And yet, no matter what the shape and size of their Launch Tree, they saw a profit surge that was nothing short of phenomenal!

• In Case Study 1, Anik Singal interviews Russell Brunson of Dot Com Secrets fame.

• In Case Study 2, Anik Singal interviews Frank Kern who is a well known Internet marketer and owner of the Mass Control product.

• In Case Study 3, Mike Filsaime interviews Brian Johnson, who is the Chief Operations Officer of Rich Schefren’s Strategic Profits. Johnson reveals how the launch tree strategy turned the Strategic Profits product launch into a multi-million dollar launch.

So get ready to pay attention! This is real world Launch Tree strategy put to the test by some of the best in the business!

Module 2 – Launch Tree Case Studies

A. Russell Brunson's $300,000 Launch Tree Success

$300,000 extra revenue from a few simple Launch Tree tweaks?

See how Russell Brunson did it!

In this interview, Russell explains how he used the Launch Tree strategy, without creating or launching a new product, to generate massive additional sales.

To watch the video, just click this image. It will play right in this screen. Download a transcript of the video here.

WATCH VIDEO

Terms You Will Hear... and What They MeanJust so you're prepared, here are some terms that Russell and Anik use in the interview...

• Backend – Products which are usually more expensive than the initial product, offered after the initial sales process is over

• Bump – An additional product offered at the point of checkout; it could be a more expensive option; often a recurring option

• Downsell – A less expensive version of a more expensive product; for example: a digital download of a video originally sold on DVD

• Frontend – The first or initial products offered in the sales process

• Pre-sell – A pitch, often in the form of content, presented before the opportunity to make a purchase

• Squeeze Page – A landing page with an opt-in form; it requires the visitor to fill in their name and email to obtain free information, notifications of product availability, or both

• Step Up – Offering increasingly expensive upsells during the sales process

• Upsell – A more expensive product offered to a customer after he has purchased the original product

Highlights to Watch and Listen For...For each of these case studies, we'll give you the video timing for key "take aways" that you want to listen for.

• 00:59 – Intro: Russell starts explaining what he changed on his website and in the sales copy for an existing product.

• 02:20 – Summary of Russell's Launch Tree steps. Here's where Russell details the steps he took to initiate the Launch Tree Strategy. He tell you about the tweaks he made, including how he went from an 8 percent to 26 percent conversion jump on a $300 product (12 Month Millionaire).

• 04:31 – Key section on order customization! You'll want to listen carefully here! You'll learn about using "stop signs" and how to take you customer by the hand and walk them through “step one of two" etc. in the order process.

• 04:57 – First Whiteboard Lesson: Crucial changes to sales vocabulary. Now Anik and Russell diagram the sales pages for you, and show you where and how to tweak the language you use. You'll learn how not to close the buying process too soon, and exactly where to add verbiage such as "wait," "stop signs" and "step one of two." In this section they also discuss adding a video before the upsells begin.

• 09:55 – The value of the word “free.” Another key concept — adding "free" to any offer — is introduced. Anik describes how to position an offer so you can make some part of it "free." Instead of asking customers to buy eight videos for $97, they get the opportunity to buy one video at $97 and get seven additional videos free. You'll also get lots more examples for positioning “free” offers.

• 12:16 – Free + Shipping and Handling model. Find out about this powerful strategy! Free + Shipping and Handling outperforms all other models, even a "free trial."

• 16:03 – Russell discusses "sifting and sorting subscribers and buyers." A big purchase isn’t necessary to get your customers saying "yes." See how when a person gives you his credit card number for any reason, he becomes a "buyer."

• 16:55 – Price Point discussion. Russell explains why going from Free + Shipping and Handling to a $47 to $97 upsell is just about right in his Launch Tree strategy.

• 18:40 – Don't have a product? Anik helps beginning marketers who say they don’t have an upsell, a downsell or even a product. He discusses easy ways to develop a product. Pay attention if you're new to this!

• 19:41 – Second Whiteboard Lesson: Building Russell's Tree. Russell uses the write board to diagram the Launch Tree Process that he actually used. He shows you all his upsells and downsells, beginning with his initial free + shipping and handling product offer, all the way up to his final $2,000 product offer.

• 25:26 – Creative strategies for upsells. Another must-listen section! Russell tells you how to make a product in three days or less, with a real product development case as an example. He covers...

• Outlining the product• Specific development steps • Recording CDs for teaching each step

• Recording seven or eight CDs in less than two days to create a $97.00 upsell• Having CDs transcribed to create a $197 upsell

• 29:50 – More ways to make your own product easily. This section explains how to...

• Use experts to record CDs or videos• Learn that everybody is an expert at something (family, friends, even YOU!)• Get CDs transcribed• Make a product in less than three days

Module 2 – Launch Tree Case Studies

B. Frank Kern's $8 Product Launch Miracle

Want to know how you can sell a product for just $8, but make an average of $38 per visitor?

Frank Kern, of Mass Control fame (http://www.masscontrolreview.com) explains exactly how he did it, using the Launch Tree process before, during and after a launch.

To watch the video, just click this image. It will play right in this screen. Download a transcript here.

WATCH VIDEO

Terms You Will Hear and What They Mean...• Pattern interrupt: An action that changes what's normally expected in any interaction or

process.

• Post-launch: Actions that are taken after the original product is launched to generate additional sales.

• Pre-launch: Creating buzz and demand before the product is offered for sale.

Highlights to Watch and Listen For...• 01:16 – Frank explains the Mass Control concept. Frank reveals that all the customer really

cares about is what your product can do for him. So you should begin your pre-launch by associating your product with the positive emotions of the customer. (For example: Losing weight might be associated with the emotion of “pride.”) To determine that driving emotion you must:

• Identify your customer• Step into his mind-set based on real information (job, marital status, number of

children, etc.) • Identify the emotions that will persuade him to buy

• 05:28 – Frank's post-launch using Launch Tree strategy. How Frank does it...

• Diagrams a tree of upsells and downsells• Determines primary concerns people will have after they order• Makes a video that addresses those concerns

• 06:35 – Pricing! Anik asks about price points and whether Frank has a method of determining upsell pricing. Frank says that he "wings it," but he also says that...

• To make more money you must include both upsells and downsells• Don’t jump from “free” to a $4000 product• Start with a $9 product, move to a $47 product, and go up from there

• 07:52 – Are upsells and downsells "evil?" Anik asks about how to do upsells right versus doing them wrong. Frank says that the “tone” of the selling needs to remain consistent, and he shows several examples. He also talks about keeping upsell products relevant to the original product.

• 11:06 – The power of other people's products. Anik talks about using other people’s products or private label products as upsells, and how you don't have to increase traffic to increase sales — just add pages to the sales process.

• 12:11 – From an $8 sale to $38 per visitor! Anik asks Frank what percentage of sales from Frank’s “Info Millionaire” product came from post-launch sales. The average buyer spent $38 - while the original product sale was $8. Frank then explains the value of upsells, downsells and all-important recurring subscription payments.

• 14:46 – Recurring revenue! Anik asks Frank about the recurring revenue on Info Millionaire. Frank discusses the price increases and various memberships available, and explains exactly how and why he has raised prices.

• 16:13 – Retention strategies. How do you keep retention high? Anik and Frank discuss “continuity” and ways to keep people involved...

• The higher the charge, the better the stick. $300 monthly draws a completely different type of customer.. assuming that you deliver on the goods.

• Pricing paradox: The lower the price, the more you must deliver to keep customers happy.

• Involve the members!• Encourage surprise involvement (webinars, phone calls, etc.)• Aim to have direct involvements in the first month

• 26:43 – The video sales letter — does it work? Frank explains Anik that you must...

• Maintain the attention of the customer• Watch for customer pattern interrupt• Customer expecting a sales letter gets sales video instead — that interrupts the

pattern• Most videos are product demonstrations• Prelaunch videos associate the product with the primary emotion and should

deliver content

Module 2 – Launch Tree Case Studies

C. Frank Kern's 20 Percent Upsell Conversion Secrets

In the video you'll learn from the masters... Anik and Frank get in front of a whiteboard and teach you how to make your own killer Launch Trees...

Plus Frank tells you how he got a 20 percent conversion on his upsells!

To watch the video, just click this image. It will play right in this screen. Download the transcript here.

WATCH VIDEO

Terms You Will Hear and What They Mean...• Double-downsell: A two-stage downsell. You offer a less expensive version of a more

expensive product — for example: a digital copy of a CD or DVD — followed by an even less expensive version (Example: no resale rights included).

• Downsell: A less expensive version of a more expensive product, offered in response when a customer says "no" to an offer. Example: a digital download of the video just offered on a more expensive DVD.

• Info millionaire: A Frank Kern product (Expired offer page at: http://www.infomillionaire.com)

• Mass control: A Frank Kern product found at http://www.masscontrolreview.com/

• Upsell: A more expensive product offered to a customer after he has purchased the first product

Highlights to Watch and Listen For...• 00:00 to 02:50: What is a Launch Tree? Anik explains the basic concept of a Launch Tree. It's

all about creating a purchase path based on whether customers say yes or no to upsells or downsells.

• 03:13: Frank Kern's Launch Tree revealed! Watch as Frank diagrams his own Launch Tree process of his Info Millionaire product. Frank takes us through the sales process including upsells and downsells.

• 07:05: The double-downsell. Frank shows a very interesting and effective “double-downsell” option that he used for the Info Millionaire product.

• 07:55: The "mellow" sales pitch. Frank talks about shooting his videos and what was included in them. He explains that the sales pitches were "mellow," and there were few complaints about the upsells. Not only that, but 20 percent of people took him up on the upsells!

• 10:02: Oops - Frank's goof ups! Frank points out the mistakes that he made when he launched Info Millionaire. Even though the product was very profitable, he says he would do it differently now, and that he would put a product between the $9 shipping and handling offer, and the first upsell of $197.00.

• 11:22: The Mass Control launch. Frank discusses the launch of his big product "Mass Control." There was only one upsell and no downsells offered -- what happened?

Module 2 – Launch Tree Case Studies

D. Brian Johnson's $25,000 Upsell

Is it possible to start your customer at a $2500 price point and end at $25,000?

Mike Filsaime talks to Brian Johnson, the Chief Operations Officer of Rich Schefren’s Strategic Profits, about this amazing launch!

You can actually download the Launch Tree that Mike and Mike and Brian discuss in the videos.

This is your BONUS Launch Tree - very few marketers in the entire world have seen this tree. Download it here.

To watch the video, just click this image. It will play right in this screen. Download the transcript here.

WATCH VIDEO

Terms You Will Hear and What They Mean...• Congruency: Being suitable and appropriate; in marketing this means making sure your

messages don't conflict or confuse the customer.

• Conversion: In the context of Internet marketing a conversion is a sale; a conversion rate is expressed as the percent of traffic that makes a purchase (example: 20 percent conversion means that 20 percent of the people who saw the offer, bought it).

• Friction: Anything in the sales process that disturbs the flow and makes it more difficult for the prospect to say "yes." In a very real sense, this is anything that "rubs" the customer the wrong way!

• Mind-Set: The mental attitude that determines how a person will interpret and respond to situations.

• Offer: What the customer will get + how they will get it + what the customer will pay + how they will pay for it.

• One-time offer: A sales technique whereby a customer is given the opportunity to purchase a product only once. The offer will not be repeated.

• Price Point: Price points are prices at which a product is priced in a given offer; and then the price at which upsells are offered.

• Process Map: A step-by-step pictorial sequence of a process (in this case a diagram of a product launch process).

• Split Test: Rotating offers in order to determine which one converts better.

• Upsells: A more expensive product offered to a customer after he has purchased the original product.

Highlights to Watch and Listen For...• 01:35: Quick Look — The Launch Tree for Guided Process System. Mike shows you the

actual paper version of the diagram of the launch he and Brian are about to discuss.

• 02:20: The $2,497 starting point. Brian talks about The Guided Process Launch, and the initial opening price of $2,497.00.

• 03:00: What is an offer? Listen as Mike explains exactly what an offer is — most marketers get this wrong! (See definition above.)

• 03:55: The power of payment plans! Brian explains the payment options that were offered for the Guided Process. About 60 percent opted for the payment plan option. He and Mike discuss the pros and cons of payment plans, and how you can encourage a customer to make a full payment up front.

• 05:07: Should you add a finance charge? Brian recommends leaving the cost for the upfront payment and a payment plan the same. Don’t add interest to the payment plan, but do add value for an upfront payment, such as VIP status or added bonuses.

• 05:37: Customer congruency and reducing friction. Brian discusses why you want to achieve "congruency" in the mind-set of each customer, plus how you can reduce “friction” in the sales process.

• 07:49: Analysis of Brian's Launch Tree - The $25,000 goal. Brian shows the paper diagram of the Guided Process Launch Tree. He traces the customer's steps all the way up to the final upsell, which was $25,000 — 1.2 percent of customers bought the $25,000 offer! You see the inside strategy, plus Brian reveals some amazing details of the sales process.

• 10:10: Deep inside the "yes" and "no" buying cycles. Mike and Brian continue to look at the Launch Tree chart and discuss the various options offered to customers based on the choices that they made. Interesting points are made about achieving congruency.

Module 2 – Launch Tree Case Studies

E. Brian Johnson - "Sold Out" Sales Strategies

Now you'll watch the second part of Mike Filiasame’s interview of Brian Johnson, the Chief Operations Officer of Rich Schefren’s Strategic Profits.

In this short segment, Brian explains how to keep making money from all that traffic hitting your "sold out" page!

To watch the video, just click this image. It will play right in this screen. Download the transcript here.

WATCH VIDEO

Terms You Will Hear and What They Mean:• Bumps: A pre-selected additional product option in the first stage of the order process.

• Check box: A box that the user must "check" or click on to accept an offer, terms and conditions, etc.

• Evergreen products: Products with staying power, that tend to sell consistently year in and year out.

• Exit pop: A pop up that opens when a potential customer tries to leave the sales page.

• Light box: The sales page turns grey, and a white box pops up that requires some action on the visitor's part.

• Post-transaction bump: A more expensive option that occurs after the customer has already purchased a product.

• Pre-transaction bump: A more expensive option that occurs before the customer buys any product.

Highlights to Watch and Listen For...• 00:00: Check box magic. Brian continues his explanation of the Launch Tree process he used,

and introduces the topic of inserting check boxes (to receive a newsletter, etc.) to get visitors to say "yes" at various points in the sales process.

• 00:28: Bumps. Mike explains the purpose of “bumps” as they are used in the Launch Tree process.

• 01:40: What "no" really means! Brian talks about what happens when a potential customer says “no” to the first offer. 97% do say no, so you must understand how to respond to them!

• 02:07: Exit pops and light boxes. Mike and Brian talk about "exit pops” and “light boxes;" how they’re used and when. The discussion centers on the mind-set of the potential customer who initially says “no,” what you should offer them, and how.

• 03:30: Remove risk! Brian talks about conversion percentages, then goes on to talk about "risk-free" offers.

• 05:05: Capturing customer information. Mike asks Brian if there was ever simply an opt-in box on any of his sales pages, without requiring credit card information. Brian says that giving only a name and email wasn’t ever an option in the Strategic Profits product, but that you will find this option in most Launch Trees.

• 06:00: Build a list and keep selling after you're "sold out!" Once you've sold out, traffic is still coming to your page -- so don't waste it! Brian discusses what offers were made after the Strategic Profits product was sold out and Mike explains how alternate buying opportunities were presented.

Module 2 – Launch Tree Case Studies

F. Action StepsNow that you have seen and heard Russell Brunson, Frank Kern and Brian Johnson, you can see how powerful — and even magical — the Launch Tree Strategy can be.

Most importantly, you've seen how each one of these marketers tailored the Launch Tree strategy to fit his audience.

Let's quickly review some of the most important take-aways from these case studies...

From the Russell Brunson Interview, You Learned...• The Launch Tree strategy can be used to tweak the sales process of a product you are

already selling. So now you know that you can apply the Launch Tree to your own products that are already on the market -- to sell more and to improve your conversion rate dramatically.

• Just tweaking an existing sales process can really raise conversions (2:20)! Russell explained how a few little tweaks in the Tree for his 12 Month Millionaire product made his conversion rate soar from a nice 8% to an astounding 26%. And all he did was include some other upsells and tweak the language a little bit. These small changes result in HUGE additional profits.

• How to create a product in 3 days (25:26). Very important! Now the old “I don’t have a product” excuse is gone forever.

In The First Part of The Frank Kern (Mass Control) Interview, You Learned...

• Your product should be associated with the driving emotion that will cause customers to buy.

• Strategies for deciding on upsell pricing (06:35) and how not to under price your products. We'll go into pricing in detail later in this course. But if you have any doubts about pricing, especially if you tend to under-price, this is an important section to review.

• The higher the charge, the better the stick (14:46 on). $300 a month draws a completely different type of customer... assuming that you deliver on the goods.

In The Second Part of The Frank Kern (Mass Control) Interview, You Learned...

• Frank's Launch Tree diagram for the Mass Control launch (03:13). He explains every upsell and downsell of his Info Millionaire product. You can follow the exact customer path as Frank goes through it.

In The First Part of The Brian Johnson Interview, You Learned...• What an offer really is (3:00). We'll review this later in the course, but it's important to start

thinking "offer" instead of product right now.

• The power of payment plans (03:55). How to encourage customers to opt for the one-time payment, and how to properly offer payment plans. You learned that leaving both total prices the same is a powerful option. Instead of adding interest you offer added value for an upfront payment, such as VIP status or added bonuses.

• Matching upsells and downsells to customer actions (19:10). Providing customers with upsells or downsells based upon their "yes" or "no" is the most profitable way to move customers through the sales process. We recommend that you review the excellent examples Mike and Brian talk about.

In The Second Part of The Brian Johnson Interview, You Learned...• What bumps are and what "no" really means (00:28 on). Brian talks about what happens

when a potential customer says “no” to the first offer. 97% do say no, so you must understand how to respond to them!

• The use of exit pops and light boxes (02:07). These are simple tweaks that are easy to add to your pages right away.

• Capturing customer information so you can keep on selling (05:05 on)! If your product is sold out, you won't waste any of the traffic still coming to your page.

Now... Action Steps1. Review your current sales process.

2. Write down changes you can make to your sales vocabulary right now.

3. Write down all of the small things that might be causing friction in your sales process.

4. Look for ways to add a "free" component to your offers.

5. Do a quick analysis of your pricing -- main offer, bump (if you have one), and

upsells/downsells. Note down any jumps that might be too big or too small.

6. IMPORTANT! If you have no upsells or downsells right now, write down three ideas for products. They should all be products you can create using our quick methods, resale rights, PLR, etc.

7. Write down at least ten things you know about your customers. Go beyond basic things like "they are interested in Internet marketing." Get into their problems, concerns, wishes, and emotional hot buttons.

8. Start a list of concerns and issues your customers might have after placing an order.

9. Do your products make sense? Take a look at your products, especially any upsells or downsells, and how "relevant" they are. Do any stick out as being a little off base?

10.Come up with at least three ideas for recurring revenue products.

11.Compare your best and worst "offers." Look at your product with the highest conversions and the one with the lowest conversions. Compare them on the basis of each part of their respective "offers" (what your customer gets, how they get it, how much it costs, and how they will pay). Why do you think the best one is such a high converting offer? What do you think is wrong with the lowest converting offer?

QUIZChoose one: A backend is...

• Offering increasingly expensive upsells during the sales process• Products which are usually more expensive than the initial product• The first or initial products offered in the sales process• A pitch, often in the form of content

Correct Ans: Products which are usually more expensive than the initial product

Choose one: A squeeze page is...

• Offering increasingly expensive upsells during the sales process• An additional product offered at the point of checkout• A landing page with an opt-in form• A more expensive product offered to a customer after he has purchased the original product

Correct Ans: A landing page with an opt-in form

Choose one: A downsell is...

• A more expensive product offered to a customer after he has purchased the original product• The first or initial products offered in the sales process• A less expensive version of a more expensive product• Offering increasingly expensive upsells during the sales process

Correct Ans: A less expensive version of a more expensive product

Choose one: A pre-sell is...

• A less expensive version of a more expensive product; for example: a digital download of a video originally sold on DVD

• A pitch, often in the form of content, presented before the opportunity to make a purchase• Offering increasingly expensive upsells during the sales process• An additional product offered at the point of checkout

Correct Ans: A pitch, often in the form of content, presented before the opportunity to make a purchase

Choose one: A "bump" is...

• A pitch, often in the form of content, presented before the opportunity to make a purchase• The first or initial products offered in the sales proces• An additional product offered at the point of checkout; it could be a more expensive option; often a recurring

option• A landing page with an opt-in form

Correct Ans: An additional product offered at the point of checkout; it could be a more expensive option; often a recurring option

Choose one: A step up is...

• A pitch, often in the form of content, presented before the opportunity to make a purchase• The first or initial products offered in the sales process• Step A landing page with an opt-in form• Offering increasingly expensive upsells during the sales process

Correct Ans: Offering increasingly expensive upsells during the sales process

Choose one: "Frontends" (or front ends) are...

• A pitch, often in the form of content, presented before the opportunity to make a purchase• The first or initial products offered in the sales process• A more expensive product offered to a customer after he has purchased the original product• Offering increasingly expensive upsells during the sales process

Correct Ans: The first or initial products offered in the sales process

Choose one: A "post-launch" is...

• Creating buzz and demand before the product is offered for sale• A less expensive version of a more expensive product• An action that changes what's normally expected in any interaction or process• Actions that are taken after the original product is launched to generate additional sales

Correct Ans: Actions that are taken after the original product is launched to generate additional sales

Choose one: An upsell is...

• A landing page with an opt-in form• A more expensive product offered to a customer after he has purchased the original product• The first or initial products offered in the sales process• A pitch, often in the form of content, presented before the opportunity to make a purchase

Correct Ans: A more expensive product offered to a customer after he has purchased the original product

Choose one: Pattern Interrupt is...

• An action that changes what's normally expected in any interaction or process• Creating buzz and demand before the product is offered for sale• A landing page with an opt-in form• Actions that are taken after the original product is launched to generate additional sales

Correct Ans: An action that changes what's normally expected in any interaction or process