Use the buying volume mindset to sell goods through live streaming!

Once upon a time, everyone agreed that live streaming was very profitable: Viya sold rockets at a price of 40 million in seconds, and the "CCTV men's group anchor" sold goods for 500 million in 3 hours... But as long as some merchants speak out, the tone has always been "not profitable" - not only are the slot fees expensive, but the goods can't be sold, and even if they are sold in time, they can't recover the cost.

So, how about we change our thinking and use the buying traffic mindset to do live streaming?

Recently, I created a group to discuss live streaming sales, and I found out after discussing in the group: As the rumors on the Internet say, nine out of ten merchants doing live streaming sales lose money - some lose a few thousand yuan, while others lose tens or even millions of yuan. A good experience sharing group has turned into a large-scale complaint site.

I was a little puzzled at the time. Why did these merchants only focus on one transaction during live streaming and not repeat purchases?

Later I figured it out. This might be caused by the fixed thinking of the traditional industry - the items are sold, the transaction loop is completed, and the users and merchants just accept their fate; you go your way, and I go mine. With this kind of thinking, the cooperation model of live streaming sales service fees plus high commissions, coupled with the low gross profit margins of merchants, will definitely result in every penny being squeezed out.

What should I do then?

This is thanks to my experience in mobile game promotion. We also do promotions with a promotion budget of 5 million to 10 million. Most of this money is spent on buying volume. Buying volume means spending money to buy users, and what matters is the customer acquisition cost and user LTV.

For example, if a budget of 5 million is invested and 100,000 users are acquired, then the cost of acquiring one user is 50 yuan. Can the users who purchased the product get their money back on the same day?

Dream on!

Generally speaking, it takes more than 3 months to recover the cost of 5 million, and the profit comes after that, which is already a very good result.

In the case of live streaming e-commerce, with a service fee of 50,000 yuan plus a 20% commission, if 5,000 users are brought in, the cost of acquiring a single user is only 10 yuan. Is there such a cheap cost of acquiring a single user in the world? Do you still think this is expensive? It costs more than ten yuan for one click to invest in a through train, so think about it carefully. As long as you follow the thinking of buying volume, the users brought in this way can be paid a service fee of 50,000 yuan, and if you ensure repeat purchases, they will come back after a few months, and it will be pure profit from then on.

Why can’t most businesses see this good thing?

Three reasons: eagerness for quick success, short-sightedness, and junk products.

Step 1: Build a private domain platform

Even if merchants know the idea of ​​buying traffic, they still cannot do it, because when monetizing private domain traffic, they need a complete private domain platform system. It includes four steps: infrastructure construction, traffic diversion, activity and repeat purchase monetization. Take the first link of infrastructure construction as an example. Infrastructure generally refers to customer service WeChat and WeChat groups. To do repeat purchases, there must be a pool to carry these users, which can be a Taobao fan group, a Tieba, or a WeChat group.

Which one to choose?

Of course it’s the WeChat group.

I suggest that every company apply for its own corporate WeChat account. First, it is safe, and second, it is convenient. Compared to a certain blocked tool, the experience is indeed a little worse, but there is no better choice. After the customer service WeChat application is completed and the WeChat group is established, the next step is to direct users who purchased products through live streaming into the group.

Does anyone know how to do this?

Yes, the little card. What an awesome company! This small traffic-generating card alone has gone through five or six versions, but most merchants still don’t know what the point of doing this is. They deserve not to make any money.

The next step is to increase activity and encourage repeat purchases, which is actually the most difficult part. I will tell you how to do it later. Gradually maximize the value of these users who have spent money to buy products through live streaming. It would be even better if they can make repeat purchases throughout their lives.

But this also depends on the product - it is suitable for snacks, skin care products, etc.; if it is an air conditioner or washing machine that you buy once every 800 years, it is another matter.

Step 2: Be able to do the math

What my boss cares most about is whether I can get a return on the 50,000 yuan I invested in service fees. The most common statement I heard in the group was almost the same: it was a loss. Here, I will take you to do some calculations, which may give some inspiration to friends who are planning to start live streaming to sell goods.

Accounting ideas that are not based on buying volume: Suppose the product is melon seeds, which cost 7 yuan a bag on a regular basis, all costs add up to 3 yuan a bag, the live broadcast price is 5 yuan a bag, the commission is 20 points, and you can make 1 yuan by selling a bag during live broadcast. The pit fee is 50,000 yuan, and 50,000 bags must be sold before the rest is profitable. If the return rate is 50%, then we need to sell more than 100,000 bags to make a profit.

Let me ask you: Can an anchor who earns 50,000 yuan for a slot bring in sales of 100,000 bags?

Of course not - if this anchor can bring in 100,000 orders, the pit fee will start at at least 500,000. No one is stupid now. You want to make money from the anchor, but the anchor is thinking about how to swallow up your company.

With this calculation, you will know why the anchors you invest in basically lose money. If you use the buying volume mindset to calculate this, it would be calculated like this. It’s still the same melon seeds, and the price is still the same. The placement fee is 50,000 yuan, but only 20,000 orders were actually sold, with a return rate of 50%. 50,000 yuan was used to buy 10,000 users, and the user acquisition cost is 5 yuan per user. There are 10,000 orders, and I make 1 yuan on each order. After deducting the 50,000 yuan slot fee, I lose 40,000 yuan.

Don't worry, we still have small cards. For 10,000 users, according to a 100% conversion rate to WeChat (how to achieve a 100% conversion rate? Figure it out yourself), there are 10,000 people. The social purchase rate of these people is calculated based on the 10% minimum data, and the number of repeat purchases is 1,000. Remember that these people’s repeat purchases are not just for the product in the live broadcast room, and the gross profit is not as low as 1 yuan. By slowly increasing repeat purchases and letting these 10,000 people bring more than 40,000 yuan in value, the live broadcast will break even.

Step 3: Know your own weight

Using the same buying volume mindset to generate repeat purchases, some merchants can make their money back, while others still lose money. Putting aside the operations team, the product itself is a very critical link. Have you noticed that the most important factor affecting user LTV (user lifetime value) is product quality. Whether a product tastes good, is easy to use, and is worth continuing to buy directly determines whether users will continue to repurchase.

The advertising idea for all products in the world is the same, whether it is a virtual product, a physical product, or even a large item like a car or a private jet, the quality of the product determines how far the product can go. As a merchant, you must know the value of your product and whether users like it.

Let me tell you a very common phenomenon. For all of you students who make products, do you not use or eat your own products? You don’t like them yourself, but you hope that users will like them. How is that possible? Are you treating users as fools? If a company selling melon seeds can eat its own melon seeds every day, and a company making beverages can really like drinking its own beverages, a company that can achieve this level, let alone 50,000 yuan for the booth fee, I think it can still make back its investment even if it is 100,000 yuan.

Taking one of the most popular nut brands at the moment as an example, I bought a big gift package for more than 40 yuan. There were a lot of things in it, including melon seeds, peanuts, canned food, walnuts, etc. I only ate a little bit of each and threw it away because it was too disgusting. If the other party does not make money when I place an order for such a product, then this company will never make a penny from me in its entire life.

There is another very small brand of cashews. They are so delicious that after eating one, you will want two. After eating a few, you have to hide them so that no one can see them. Otherwise, once you see them, you can't help but want to eat them. You can't control yourself. They are so delicious. Although their store is not big, I will buy several boxes and stockpile them. You say, if a product like this is sold through live streaming, or if it is sold through that nut brand, both of which cost 50,000 yuan for the placement fee, who has a better chance of winning?

at last

Someone asked me, can I make money by live streaming and selling goods? My answer is this: when it comes to live streaming sales, there are no products that don’t make money, only companies that don’t make money. Since some businesses are making a lot of money through live streaming, why not you? Don’t blame the entire industry just because you didn’t do a good job. Instead of complaining every day that live streaming is too difficult, it would be more practical to study how others who are doing well do it.

Author: Tiger Talks Operations

Source: Tiger Talk Operations

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