How to Make Money From Your Lead Magnet

conversion email list lead magnet Jun 10, 2022

Want to build your email list with a lead magnet? Great. But make sure it pays off.

In general I’m not a fan of freebies. Yes, if you’re going to ask somebody for their email address, then you should give them something in exchange for it. That’s the point of a lead magnet. It “leads” people to your subscriber list. It draws them in like a “magnet.” 

But be careful about the bait you’re using. It will determine the audience you attract.

If your objective is to ultimately generate SALES from your list, then make sure your lead magnet is poised to attract buyers. A smart lead magnet strategy involves these five assets.

  1. A taste of your product. Think of your freebie like the samples at Costo. If you’re trying to sell a frozen pizza, give customers a bite of that frozen pizza—not a bite of cheesecake. Your freebie should be an easy lead-in to the upsell. Consider what small piece of knowledge or experience you can give away in your lead magnet that will provide stand-alone value yet whet the customer’s appetite for the full solution.

    This doesn’t have to be an actual sample of your product, but it can be. For example, if you’re selling a novel, give away the first chapter for free. Get the reader hooked and wanting more.

    Or, provide something that solves the same problem your product solves, but only briefly or on the surface. Then introduce the full product as a means of going deeper. For example, I sell a printable Bible study for parents and siblings called Let’s All Get Along. It’s designed to equip parents to teach their children how to live in harmony. My lead magnet is a short, two-page list of “20 Questions and Activities to Help Siblings Get Along.” This is a collection of fun game ideas and conversation starters that spur siblings to appreciate each other and enjoy one another’s company. The lead magnet addresses behavior. The Bible study (full product/solution) addresses the root of that behavior—the heart.

  2. A mini sales page. Don’t expect people to sign up for your freebie just because it’s free. Each new subscriber is, in fact, paying for your freebie with a valuable currency—their email address. People must value your freebie enough to be willing to trust you with their email. So treat your freebie as you would a paid product. Host your sign-up form on a mini sales page that includes an appeal to their pain points and benefits of the product, plus a little info about who you are and why they should listen to you. Check out my example HERE.

  3. An upsell, also called a tripwire. Do NOT give away a freebie without a subsequent offer. You’ll just end up building a list full of freebie-seekers (i.e., non-buyers) and leaving money on the table. Always follow up your lead magnet form with an immediate redirect to a sales page. This page is called a tripwire.

    Here’s how it works. 
    • Person signs up for your freebie and clicks “submit.”
    • That “submit” button is programmed to automatically redirect the person to the sales page for your related product (the full pizza). {Note: This redirect is assigned in your email management software, such as ConvertKit, Mailchimp or Kajabi. It’s way easier than it sounds.}
    • The sales page, called a “tripwire,” begins with a transitional statement that acts as a bridge between the lead magnet and the product. For example: “Yay! Your 20 Questions guide is on its way to your inbox. Now how about changing not just your kids’ behavior, but their HEARTS, too?”

  4. An exit offer. This part is optional, and not everyone is comfortable with the strategy, but it can really boost your conversions if you’re willing to add the extra step. If someone lands on your tripwire page but doesn’t buy, they’ll attempt to close out your page. Create an “exit-intent” box that pops up when the visitor tries to leave. This box should say something like, “Sure you want to go? Take $5 off if you purchase right now.” Then include a button that links to a checkout page with the discount already calculated. Or instead of a discount, you could offer a bonus product for purchasing immediately.

    Is this a little sneaky? Not necessarily. If I buy a pair of joggers at Old Navy and they put those same joggers on clearance the next day, well, that’s just commerce. Sometimes you get a deal if you delay. My recommendation, if fairness is your goal, is to reward every customer with the same bonus upon checkout. Those who click to buy right away (rather than attempting to exit the page and hearing about the bonus ahead of time) will just be pleasantly surprised. Either way, you’ll build goodwill and customer loyalty.

  5. An email follow-up sequence. If a customer buys your product, your sales funnel should be set up to automatically send them an email containing a link or login information to access their purchase.* If they don’t buy, however, you now have their email address. (Because you started with a lead magnet, ta-da!) Nurture the new subscriber with kind and trustworthy emails explaining more about your business and your product(s). Many people aren’t spontaneous purchasers and they won’t buy off your tripwire, but they will buy later through your email marketing. Just make sure what you’re sending them is genuine and meant to provide value, not just sales talk.

Once you’ve got an effective lead magnet strategy in place (also called freebie-to-tripwire marketing), you can begin testing and tweaking as necessary. Keep track of how many people who sign up for your freebie convert to buyers. This stat will depend on a variety of factors, including:

✔ the audience you’re targeting (are they the right people for your offer?)

✔ the messaging you’re using on your lead magnet page and your sales page (are you touching on their needs and the benefits of your solution?

✔ and the cost of the product (is it within impulse-purchase range, or do buyers need more time to think about it?).

One thing is for certain. Digital product marketing is well worth the effort. Your customers will thank you, your operating budget will thank you, and your family will reap the rewards of ongoing sales!

*Don’t know how to build a sales funnel? Check out our free training HERE.


Wondering HOW to go about choosing, creating, and selling a digital product?

Check out my free masterclass:

How to Create and Sell Digital Products (without feeling stupid, salesy, or sacrilegious).