What You Need to Know About the TikTok Ban

Here's what I cover today:

Happy Monday! Welcome back to the Growth Track Newsletter. It's approximately a 4.4-minute read.

In today's newsletter, I am going to cover:

  • How to Get Creators to Sell Your Products on TikTok Shop

  • What You Need to Know About the TikTok Ban

  • How to Acquire Customers for $5 With a Low CPA Funnel

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How to Get Creators to Sell Your Products on TikTok Shop

With advertising costs soaring and the direct-to-consumer (DTC) landscape becoming increasingly competitive, finding an edge and adopting new channels quickly is crucial.

TikTok Shop has emerged as a game-changer in the e-commerce world, yet many brands have hesitated to take the plunge.

Is it just a shiny object syndrome, or is it time to start selling on TikTok Shop?

In my opinion, TikTok Shop is still in its infancy but boasts the best platform-native affiliate structure.

Unlike traditional methods that involve negotiating expensive deals with influencers, TikTok Shop allows brands to pay solely based on commission.

This is a revolutionary approach, as brands can now build a commission-based affiliate army that not only generates sales but also produces user-generated content (UGC) on autopilot.

So, how do you get started?

  1. Set Up Your TikTok Shop and Integrate with Shopify: Follow this tutorial to get started.

  2. Visit the Affiliate Center: Build a list of creators you want to work with.

  3. Create Open and Targeted Collaborations: Showcase your products in these collaborations.

  4. Reach Out to Creators: Send direct messages and invite hundreds of creators weekly to join your collaborations.

  5. Seed Free Samples: Watch as the content begins to pour in!

By following these steps, you can leverage TikTok Shop's unique affiliate structure to expand your brand's reach and drive sales in a cost-effective manner.

Now that I've shared the exciting opportunity of TikTok Shop, you might be wondering—what if TikTok gets banned?

The idea of a ban is more of a sensational headline than a simple reality. There are several layers to consider.

Recently, the House approved legislation that could force ByteDance, TikTok's parent company, to sell off TikTok. (Read about it here)

But should this deter you from leveraging TikTok for your e-commerce brand? Absolutely not. Here's why:

  1. Senate Approval: First and foremost, the bill must pass through the Senate, which currently seems unlikely.

  2. Potential Sale: Even if the legislation does pass, ByteDance is likely to sell TikTok to an American company, such as Microsoft, Facebook, or Google.

  3. Future Platforms: In the unlikely event that TikTok disappears, Meta is rumored to be developing a more competitive platform to TikTok Shop and enhancing their native shopping experience. This means that the skills you develop for TikTok Shop could easily transition to Meta's upcoming shopping updates. While this is still speculative, it's worth considering.

In summary, the potential ban should not deter you from exploring TikTok Shop as a valuable channel for your e-commerce brand. The landscape is constantly evolving, and staying adaptable is key.

Here are what others are saying about this:

How to Acquire Customers for Less Than $5 in 2024 Using a Low CPA Funnel

We implemented this strategy for a supplement brand, consistently acquiring customers for $4-$7 with a predictable LTV.

The Problem:

In competitive industries, advertisers struggle to acquire customers at a low enough rate. Furthermore, iOS updates and lack of proper attribution have made capturing customer data and targeting more challenging.

With the Low CPA Funnel, we can acquire customers inexpensively, breaking even or facing a small loss on the frontend while building retention mechanisms to ensure profitability.

We aim for a 3-month window to achieve profitability. We recently helped a supplement brand implement this strategy, and the overall LTV for this specific funnel reached profitability within 2-3 months.

This Strategy is Ideal For:

  • Supplement Brands

  • High-Value CPG

  • Beauty Brands

  • Fashion Brands (Potentially)

What is CPA?

CPA stands for "Cost Per Acquisition" or "Cost Per Action" in advertising. It measures the cost incurred by a company for a specific action or acquisition resulting from its advertising efforts, such as a sale, lead generation, or form submission.

The Offer:

  • "Free, Just Pay for Shipping"

  • "Try Our Best Flavors for $X!"

  • "Sampler Pack"

The goal is to promote a high perceived value bundle or item at an extremely low cost. We've seen success with offers like "Free, Just Pay for Shipping," where the shipping price is increased to cover COGS or absorb a small frontend loss. It's important to know your costs to identify a target, break-even CPA.

Example Offer: A sample pack plus a T-shirt and shaker bottle for FREE, just pay for shipping. Shipping would cost $5-$10 and ideally cover COGS.

The Ads:

Clear, simple stills have been successful lately, but UGC also performs well to communicate the incredible value.

Depending on your budget, I recommend testing stills to gauge messaging and angle. Once you identify the winning angle, get influencers and creators to produce UGC.

Landing Page + Upsell:

We usually build out a new landing page funnel for direct-response purposes. You could also run this as a product on your site, potentially increasing AOV as customers may add more items to their cart.

Consider immediate upsells or recommendations based on the frontend offer, such as a full serving/order of a sample they're getting or a complimentary item.

Retention + Winning the Upsell:

We use Klaviyo to immediately put these customers on their own post-purchase flow, aiming to upsell and educate them about the products, features, and brand.

Customers who purchased the freebie offer can receive special discounts on larger ticket offers. We can also send SMS messages with limited-time offers.

  • Email #1: Product Education

  • Email #2: FAQs

  • Email #3: Social Proof

  • Email #4: Hard Sell + Discount for Purchasers

  • SMS: Hard CTA with Limited Time Discount

This customer journey can become increasingly complex over time, potentially extending to an entire month-long process.

The Beauty of This Funnel:

Not only do we acquire customers for less than $10, but we also gather customer data to effectively re-market and retarget for months and years to come.

How I Can Help You

If you like this newsletter and want to work with me, there are a few ways we can do so:

  1. You can apply to work with my Agency, The Visionary Group (link)

  2. You can join the Growth Track community (link)

  3. Subscribe to my YouTube channel (link)

or, you can just reply to this email.

I reply to absolutely everybody who replies to me.

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