Cashing in on Cash For Clunkers With Myspace

Have I told you enough about the local affiliate opportunities? Well here is real life case study we just completed.

About 4 weeks ago when the cash for clunkers program was about to start I saw it as a great opportunity to drive leads to a local car dealership. We have a great relationship with Huber Chevrolet in Omaha Nebraska so I called them up and setup a meeting with them.

The Pitch

When you approach companies about driving leads to them its always best if you already have a relationship with them. I can tell you right now if you think you can cold call or walk in asking for the manager of a business its going to be a hard, if not an impossible sale. Like you, since birth I have built relationships by using the services of dentists, optometrists, lasek eye surgeons, bariatric surgeons, plastic surgeons, plumbers, roofers, lawn mowers, photographers, wedding cake makers, and of course car dealerships just to name a few. All of these businesses can benefit dramatically from internet leads.

In this case it was our local friendly car dealership. Now we have purchased many vehicles with them over the years and they knew that I did “computer stuff” but nothing specific.

During the initial meeting I asked a lot of questions.

  • On average how much is a sale of a car worth to you?
  • Every time a salesman phone rings with a new lead what is that worth to you?
  • If I were to send you emails of people who filled out a form online with their name, email and phone number what would those leads be worth to you?

They were pretty fourthcoming with the information. Most companies, especially performance driven commission businesses, will know what these numbers are. If a company has not figured out what a new customer is worth to them…. Its possible you maybe want to help them figure that out first. In fact I would actually say that.

Me: What is a new customer worth to you?
Them: We have no idea.

Me: Are you really serious about growing your business?

That is a service in itself but thats for another post.

By the end of the meeting Huber Chevrolet told me about how they had a separate sales division that did nothing but answer phone calls and emails from internet leads and they valued each of those at XX (they asked me not to reveal the specifics).

I told them I would charge them $10 per internet lead (a small fraction of what they are currently paying) but with the condition I could publish a lot of the data on my case study (what your reading). I also told them I wanted to exclusively use MySpace for this test because in past ones we mainly focused on Facebook for driving social network traffic. I really like the super advanced targeting features of MySpace MyAds. They allowed us to target not only cities but specific zip codes. In addition to the geographic targeting we could also target people who were interested in cars or whatever else we thought would convert well.

They were pretty excited to get started. That night I registered and had our designer make 4-5 different versions of the landing page rotating through Google’s Website Optimizer to see which one converted the best. Here was the winner converting at 74% (not to bad):

Then we had a bunch of ads made… something like 4-5 per size (there is 3 sizes on MySpace).

Here was the one that converted the best and we ran with:

Our average CPC for this ad was AMAZINGLY low. 13 cents per click on average for over 800 clicks which converted to about 600+ total leads.

Now at $10 per internet lead coming to us its not hard to see how crazy profitable this is.

Click for full image

If you want to get started trying this on your own you should start by downloading my free guide on setting up your own affiliate program. Then signup with MySpace MyAds with code SHOE75 for $75 in free adspend.

There is currently a HUGE dislocation for these social networks…. especially in the local space. SO GET ON IT!!!