Pros and Cons of Paid Advertising vs. Organic Marketing for Digital Products

Written By Dan Henry

Need more help? Book your FREE strategy session with our office today!

We’ll help you map out a plan to fix the problems in your business and get you to the next level. Answer a few questions on our application and then choose a time that works for you.

Paid advertising vs. organic marketing?! Or both?

It's an age old question in the business world. Which one do you choose to do and why?

As with anything, there are pros and cons to both routes. And in this video, I'm going to cover those details, as well as give you a ninja hack to leveraging both in a way that will make you unstoppable!


In this video, I'm going to cover:

  • The pros and cons of paid advertising vs. organic marketing
  • Exactly how to combine these tactics to get the best of both worlds
  • AND... how to leverage your organic following to actually do the footwork for you in building a bigger audience!

Transcription

What are the pros and cons of paid advertising versus organic marketing for digital products? In which one should you do? That is what I'm going to answer in this video. By the way, if you like videos on how to grow your digital product business, make sure to subscribe to my YouTube channel. So you get notified when I release these new videos.

Hey everybody, Dan Henry here, author of digital millionaire secrets and founder of get clients.com. So let's talk about paid versus organic marketing for your online courses, coaching programs, masterminds, whatever it is that you sell, whatever digital product you sell, by the way, let me know in the comments, do you do paid marketing, organic marketing, or both would love to hear from you? So a lot of people say, should I do paid marketing? Should I do organic marketing? And which one's right for me? So the thing with paid marketing versus organic is there's a common misconception about this. A lot of people think that paid marketing costs money, which it does. And organic marketing is free. Okay, well, yes, paid marketing does cost money, but organic marketing is by no means free. Why? Because it takes your time. All right, it takes your time. Whereas paid marketing takes very little time.

I can spend money on paid marketing at breakfast and make profit by lunch. Whereas organic marketing takes a long time to get going or not a long time, just longer substantially longer than paid. And there's to scale organic marketing that takes a long time. So if we're looking at this as a either, or then I would say the, the pros would be, you know, a pro would be fast for paid and a pro for organic would be, I'm not going to say free, but I'm going to say no money because your time is worth something, right? If you're spending six hours a day, trying to drum up traffic versus 20 minutes a day, spending money on something, that's going to drum up traffic. Personally, I like to do the free sorry. I'd like to do the paid. Okay. Now a con of this is, yes, it costs money, right? But a con of this

Is it takes

Forever or at least takes a lot of time. So you might say, all right, Dan, I understand, but I don't have the money or I understand, but I don't have that much time or whatever it is here is an approach that I'd like to offer you what I call reverse organic.

What is reverse organic? Well, if you're saying to yourself, you know, Dan, I don't have a ton of money to spend on ads and I'm not very good at ads and yada yada, yada or Dan. I don't want to take forever to grow my company. There are pros and cons to both of these paid and organic methods. However, I would never, ever, and I sold $13 million of my own digital products. I would never choose just one effort I would choose to do reverse organic. What does that mean? So let's say that I spend a hundred dollars today on Facebook ads, right? And let's say I get a bunch of people to watch my webinar or to buy my book or whatever it is. And let's say some of those people buy and some of them don't. And so, yeah, I make some money or maybe I break even or whatever, but I didn't have to put that much time into it.

It took 20 minutes to write an ad, upload it to Facebook ads or YouTube ads or whatever. And it's off to the races right now with organic. Here's the thing. If I go out and I do guest blogging, I try to get interviewed on podcasts. I try to grow my Instagram, yada, yada, yada. That's the part that takes forever making sales from organic. Doesn't take very long at all. And that's where reverse organic comes in. So I use paid marketing, spend a hundred bucks, get some leads. Some people buy, some people don't. Now at the same time, I have a retargeting ad as well as an introductory email that says, Hey, I post awesome stuff on my Instagram every day, make sure to follow me. So let's say somebody sees an ad watches, a webinar doesn't buy, but as a result, they follow me on Instagram because they get a retargeting ad that says, Hey, I noticed you watched my webinar, but how would you like to follow me on Instagram?

Swipe up to follow me on Instagram. They see it. They swipe up, they go to my Instagram, they hit follow, or they get an email that says, Hey, thanks for registering for my webinar. Follow me on Instagram. If you want more tips. So now what is happening here? Well, I'm getting organic followers on my Instagram, my Facebook, et cetera, from my efforts with painting, like for instance, I have about 55,000 followers on my Instagram and almost a hundred percent of those came from people that got in my world, got in my funnels from paid marketing and then followed me on organic. As a result, they saw an email, they saw a retargeting ad, et cetera. Now on my Instagram, I will post content. And from there, I'll say something like, Hey, did you guys enjoy this content? If, if you did, you know, check out this product I have, or book a call or buy my book or whatever.

So now what happens is as I post stuff every day, and as I do organic, I'm simply marketing and, and, and, and giving content, not to people that I went out and spent tens of thousands of hours trying to grow, but simply the fallout from the paid marketing, the people that came into my world through paid and then followed me as a result. So not only are these people, you know, warmer, but they're my exact audience. Why? Because when you do organic marketing, you do shout outs with Instagram, or you do whatever you don't know who's following you, right? You don't, you don't know they could be anybody, but if the people following you or people that you targeted specifically that were interested in your products, and guess what? Not only are you getting essentially free followers or very low cost followers from what you did here, again, reverse organic.

But these are your exact customers. They are warm. They are people that are likely to buy, not just 13 year olds that follow you on Instagram because of some stupid quote you posted. Okay. Think about that. And so now what happens is I put content out on my Instagram, my YouTube channel, whatever. And so people that came into my world here, see the content here, they get nurtured and they buy. So for instance, let's just say that I spent a hundred thousand dollars in a month on paid advertising and I made $200,000 back. Now you say, well, Dan, that's only a two to one return, right? You'll you doubled your money and that's good, but here's the thing. There's another, maybe two to $300,000 in totally free sales from the organic. Cause let's say you see an ad, right? And you watch my webinar or whatever, and you go, Hey, that's cool.

But I don't know. And then you go, well, he asked me to follow him on Instagram. I got an email or I saw an ad that said, follow me on Instagram. Sorry. I'll follow them. I see some content. I see some content. This dude doesn't know what he's talking about. You know what? I'm going to buy his book. Right? I'm going, I'm going to the links in his bio on buy his book. Or, you know, what I'm going to buy is, you know, $497 program, or, you know what, I'm going to book a call, whatever it is, I do it. And now here's, here's the kicker is I'm making sales from people I've already paid for, right? So that sale is free at that point because they already paid. They already came into the paid traffic. They didn't buy right away. They're out instead of not marketing to that person ever again, or giving them like a 30 day email sequence and calling it a day by getting them on our organic channels.

As we do our thing, not only do they help grow organically by tagging people, commenting, recommending people, word of mouth. And yes, you do get new followers that way, but they get further and further nurtured and end up buying. And we've tracked this. We've had people that came in, saw an advertisement, and then three months later found that they'd been following me the whole time on Instagram, bam. They buy a high ticket program, profit. Okay. And that's the thing is when you do reverse organic, you get the best of both worlds. You get to spend money on ads, make money. And at the same time, those people follow you on organic and you get virtually a hundred percent profit sales on organic. And then the people on that organic channel help you build. So if you have people following you on Instagram or follow you on Facebook or following you on YouTube, right?

And you put that stuff out and you build your channels, then they're going to recommend it. For instance, I just got interviewed by Jordan Belfort on his podcast. Now, if I was just running ads and that was it, he probably would have no idea who I am, but because I run ads use reverse organic to build my organic as a byproduct from my ads. People constantly recommended me. Hey, Dan, you should be on this person's podcast. You should be on that person. Hey Dan, you know, let me tag this for a sec. And through that word of mouth, I ended up getting people going, Hey, I heard about you from so-and-so. Would you like to come on my podcast? Yeah. Come on my podcast. Hey, you did a great job. Hey, I heard you on this person podcast. You want to come on my podcast?

Yeah, sure. Hey, I heard you on that person's podcast and that person's you did a great job. How would you like to come on Jordan's podcast? See how that happens. It snowballs, but if you try to not spend any money and you just try to build from scratch and organic, you're going to be taking for ever. And even if it does work, even if you do do it quickly, my God, the amount of hours you're going to spend doing it is insane. And if you say, well, I'll hire an agency to build my org. You're still spending money. So why don't just pay you with paid ads, get the sale now, and then anybody that didn't buy that's on the fence Follies use on organic helps grow your organic channels for you becomes more nurtured and more warm, and eventually buys that ladies and gentlemen is reverse organic.

I rarely do anything to grow my channels and I don't have a lot of followers 50 or so thousand on, on, on Instagram. As I, as I say this, I think maybe, maybe about 50,000 on Facebook, maybe 15 or 20,000 on YouTube, maybe 15,000. And we do have had $13 million selling my digital products. I don't have millions of followers because the followers I do have where my exact customer avatar, because when I targeted those people on Facebook, I went after the exact type of people I want to sell to not random people. And those people followed me and their friends followed me. And that is how you not only build organic through paid using the reverse organic method, but the right followers, would you rather have a million followers where most of them are not going to ever buy from you or a hundred thousand followers or even $10,000 of your exact ideal clients that are highly likely to buy from you. That is the power of reverse organic. Thank you guys so much. And don't forget if you want to learn more about this. Grab a copy of my book. I'll leave a link in the description. You can get this book for free, just pay shipping and make sure to subscribe to my YouTube channel. See you guys in the next video.