StartUp / Founder Story
Explore founder stories, leadership decisions, startup building strategies and entrepreneurial lessons through curated summaries and business intelligence.
They Banned My $35K/Month Page So I Started a Business
Summary
A sudden ban from Facebook led the to pivot and launch a new business called 'Plans of Grandeur'. They aimed to generate revenue quickly by leveraging their existing newsletter and insights gained from their previous viral content. The expressed confidence in achieving significant income despite the abrupt loss of their previous revenue stream.
The implemented an A/B testing strategy to determine optimal pricing for their new product. They tested two price points, $47 and $97, to assess which would yield better conversion rates. Initial results indicated that the lower price point attracted more sales, suggesting a preference among their audience for lower-cost options.
As the business progressed, the noted that while the $97 option generated slightly more revenue per sale, the $47 option achieved a higher overall sales volume. This highlighted the importance of pricing strategy in maximizing revenue and customer engagement.
The 's marketing efforts included sending targeted emails to their newsletter subscribers, with varying strategies regarding price visibility. Results showed that emails revealing the price led to higher conversion rates, emphasizing the effectiveness of transparent pricing in email marketing.
Perspectives
Analysis of a business launch following a social media ban, focusing on pricing strategies and marketing effectiveness.
Entrepreneurial Resilience
- Launches a business in response to a sudden income loss
- Utilizes existing resources and knowledge to create new revenue streams
- Implements A/B testing to refine pricing strategies
Market Challenges
- Faces significant challenges due to social media platform policies
- Experiences uncertainty in customer engagement and pricing effectiveness
- Navigates the complexities of building a new brand from scratch
Neutral / Shared
- Explores the dynamics of pricing strategies in digital marketing
- Highlights the importance of email marketing in driving sales
- Discusses the potential for charitable contributions from business revenue
Metrics
revenue
six figure business USD
projected revenue from new business
Achieving this revenue would signify a successful pivot after a setback.
it's gonna be a six figure business by the end of today or maybe tomorrow at the worst
monthly income
35 grand a month USD
previous income from Facebook page
This figure highlights the financial impact of the Facebook ban.
making 35 grand a month on Facebook
sample_size
less than 10%
the percentage of the email list to be sampled for A-B testing
This ensures a balance between data reliability and revenue potential.
I only want to sample less than 10% of my list
deleted_list_percentage
about 92%
the percentage of the email list that was deleted to create the test samples
This indicates a significant reduction in the sample size to focus on targeted testing.
I just deleted about 92% of my list.
time_to_first_customer
within an hour
the goal for acquiring the first customer after launch
This reflects the urgency and focus on immediate revenue generation.
I want to get my first customer within an hour.
revenue
$11, 28 a year USD
annual subscription price
This pricing strategy aims to attract subscribers quickly.
$11, 28 a year.
price
$47 one time and $97 one time USD
A-B test pricing
Testing different price points can optimize revenue.
I think I want this to be pretty dang cheap, like way cheaper than I think it should be.
revenue
35K USD
monthly income from Facebook
This figure highlights the significant income loss due to the Facebook ban.
exactly how I make 35K a month on Facebook
Key entities
Timeline highlights
00:00–05:00
The speaker experienced a sudden loss of income after Facebook banned their page, prompting them to pivot and launch a new business in real-time. They plan to leverage their existing newsletter and unique insights to generate revenue quickly.
- After Facebook banned their $35,000 monthly page, the speaker quickly pivoted to launch a new business in real-time during the video, showcasing their adaptability
- The speaker is confident in their ability to build a six-figure business from scratch, leveraging their existing newsletter as a vital resource
- Identifying unique advantages is crucial for entrepreneurial success, as the speaker believes everyone has distinct insights to offer
- To effectively reach potential customers, the speaker plans to create a targeted segment of their newsletter audience, enhancing revenue generation
- The speaker exports newsletter subscribers to Google Sheets for better organization, which is essential for randomizing outreach efforts
- This journey highlights the resilience needed in entrepreneurship, as the speaker transforms challenges into opportunities, serving as an inspiration for others
05:00–10:00
The speaker is launching a business called 'Plans of Grandeur' after losing income due to a Facebook ban. They plan to use A-B testing to determine optimal pricing and emphasize speed in their launch process.
- The speaker is launching a business in real-time after losing a significant income source due to a Facebook ban. This decision reflects a proactive approach to turning a setback into an opportunity
- To determine the optimal price point for his product, the speaker plans to conduct an A-B test using a randomized sample of his email list. This method allows for data-driven decisions that can maximize revenue potential
- The speaker emphasizes the importance of minimizing friction in the business launch process. By prioritizing speed over perfection, he aims to generate revenue quickly and avoid delays that could hinder success
- He shares a personal anecdote about being labeled as having delusions of grandeur at a young age, which motivated him to prove his potential. This backstory serves as a driving force behind his entrepreneurial ambitions
- The speaker intends to name his new venture Plans of Grandeur, inspired by his past experiences. This name reflects his aspirations and the desire to challenge conventional expectations
- He highlights the necessity of securing a domain name for his business, indicating a commitment to establishing an online presence. This step is crucial for credibility and accessibility in the digital marketplace
10:00–15:00
The speaker is launching a business called 'Plans of Grandeur' and plans to use A-B testing for pricing strategies. They aim to generate revenue quickly through a pre-sale offer and digital products.
- The segment is mostly promotional, focusing on a business launch and digital products, including a newsletter and payment plans
15:00–20:00
The speaker is implementing an A/B testing strategy for their email marketing campaign to optimize pricing strategies. They aim to enhance conversion rates by minimizing friction in the checkout process and leveraging a recent viral video to drive sales.
- The speaker is implementing an A/B testing strategy for their email marketing campaign. This approach allows them to compare two different pricing strategies to determine which one yields better sales results
- They are using a newsletter platform to manage their subscriber lists and segment them for targeted marketing. This segmentation is crucial for optimizing their email outreach and improving conversion rates
- The speaker emphasizes the importance of minimizing friction in the checkout process. Reducing barriers can significantly enhance the likelihood of customers completing their purchases
- They are crafting a compelling email narrative to engage their audience after experiencing a setback with their Facebook page. This storytelling technique aims to connect with subscribers and encourage them to support the new business venture
- The speaker plans to leverage their recent viral video to drive traffic and sales for their new business. By capitalizing on this momentum, they hope to recover lost income and potentially donate to charity
- They are focused on maintaining control over their email marketing strategy by manually tagging subscribers. This hands-on approach reflects their desire for precision in targeting and communication
20:00–25:00
The speaker is launching a business called 'Plans of Grandeur' with a pre-sell offer for a training program at a discounted price of $97. They emphasize the value of the content and the commitment to ongoing updates and support through AMAs.
- The segment is mostly promotional, offering a pre-sell for a business training program at a discounted price
25:00–30:00
The speaker is testing various pricing strategies for their business, 'Plans of Grandeur', focusing on a $47 offer to maximize sales. Initial metrics indicate that the lower price point is resonating more effectively with the target audience, leading to higher conversion rates.
- The email duplication process tested various pricing strategies to identify which price point maximizes sales. This methodical approach aims to enhance revenue generation
- The $47 offer was designed to attract more customers while keeping a one-time payment structure. This pricing is anticipated to increase sales volume compared to the $97 alternative
- Excluding previous customers from the new offer helps maintain their value and satisfaction. This decision reflects a commitment to fairness in customer relations
- Initial metrics indicated a higher click-through rate for the $47 email than the $97 email. This suggests that the lower price resonates more effectively with the target audience
- Revenue from the $47 sales demonstrated a better conversion rate. Selling more units at a lower price can enhance overall profitability
- Sales data analysis showed that the lower price led to nearly three times the number of sales. This highlights the critical role of pricing strategy in revenue maximization