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Case Study: Earn $3,000 Every Month in Residual Income Using an Autoresponder

First let me say that $3,000 is an ultra-conservative guess. I suspect this guy (we’ll call him Mike) is earning 3 to 5 times that much, but let’s be conservative and call it $3,000…

Case Study: Earn $3,000 Every Month in Residual Income Using an Autoresponder

Mike has found a way to earn residual income that is right underneath all of our noses. In fact, it’s a method that’s been taught for a couple of decades or more, and yet very few marketers do this.

I’m almost positive you already know of this technique. But I’m also pretty confident that you are not USING this technique, at least not to the extent Mike is using it.

On the technical side, all you need to make this work is a squeeze page and an autoresponder.

Remember, residual income is what you earn for work you do ONCE and get paid for over and over again. If you write a hit song, you get royalties every time that song is played. If you sell software as a service or a membership site, you get paid every month until that person unsubscribes.

And if you’re Mike, you do what might be the simplest thing of all: You create specially made autoresponder sequences that last for YEARS, keep subscribers interested and continuously sell, sell and sell some more.

Mike’s ENTIRE business model is built around autoresponders. It’s not just a sideline for him, it’s what pays his bills, bought him a second home and put his kids through college.

Here’s what Mike does:

He chooses a niche. His favorites are weight loss/health, along with making money online. But he works in a couple of others as well.

He writes a follow up sequence that goes on for years. YEARS. Naturally he doesn’t do this all at once. Once he targets a niche, he writes follow up emails for the first couple of weeks prior to going active. Then he adds to the sequence on a regular basis until it’s about 3-5 years long (I’m not kidding!) He sends out about 1 email per day on average, although sometimes he sends out 2 emails if he’s promoting something hard.

If you’re freaking out about writing all these emails, remember two things: You just have to write enough emails to stay ahead of your earliest subscribers. And you can always outsource the work.

Mike’s emails are a mixture of information, content, observations, humor, jokes, quotes… pretty much whatever he feels like writing that he knows will interest his niche not just today but also in years to come. And every single email does something else, too. It sells.

Sometimes the entire email is selling. Other times the selling part comes in about halfway through the email. Once in a while he doesn’t sell until the P.S. But the point is this: He delivers content his readers WANT and he never stops selling, either.

He chooses evergreen products that are likely to still be available well into the future. ClickBank is his #1 source for these.

He sells one product per week. That is, he spends 7 days talking about just one product, what it can do for the reader, anecdotal stories of what it’s done for others, common questions answered and so forth.

And here’s a little trick he uses: Because each week focuses on just one product, he makes it look like a new product launch. Mind you, he never SAYS it’s a new product. Nor does he say that the product will no longer be available after the week is over. But he does give that impression in order to give the reader a sense of urgency.

To create even more urgency, he also offers a bonus that is good for that week only. His bonuses are usually built on PLR that he’s repurposed just for this.

And here’s where it gets even MORE interesting: 5-6 times a year he promotes a PACKAGE of products that are all his. These are the same products he’s been giving out as bonuses, all with big price tags attached so they look high value. He bundles about seven of these together and offers them for one ‘low’ price. And of course he gets to keep all the profits when he does this.

Offering these PLR products as bonuses and then packaging them together to sell is optional to the system, but it does bring in more sales and revenue and it doesn’t take all that much time to source good PLR products and rename them.

Now then, this all sounds great but you’re probably wondering how he gets people to join his lists so he can send them all these emails on autopilot. And the answer is awesome lead magnets.

In fact, this is where he spends his real time and energy, because the better the lead magnet is, the easier it is to get subscribers. Often, he’ll buy the rights to a product that’s sold well and offer that as his giveaway for joining his list. When you can say that a product sold 3,000 copies at $297 but the visitor can get it for free just for subscribing, your conversion rates can get pretty high. For his non-IM niches his conversion rate is over 70%, and for his online marketing niche it’s about 50%, which is still excellent.

By taking the time and expense to get the lead magnet right, he doesn’t just increase the conversion rates on his squeeze pages. He also builds a lot of goodwill and credibility with his new subscribers, which makes it easier to get his emails read and his links clicked.

This all sounds great, right? But what about traffic?

Good question. Mike pays for all of his traffic because he likes being able to turn on the traffic switch whenever he wants for as long as he wants. He already knows what each subscriber on each list is worth for the first six months they’re on the list. Any sales that come in after six months are just gravy.

His method is to spend as much as 50% of what he will earn in the first six months on advertising. So for example if the average subscriber earns him $3.00 in six months, he’ll spend as much as $1.50 to get that subscriber. But most of his subscribers stay with him for years, so in the end he actually earns a good deal more than just $3.00 apiece.

He buys his traffic from solo ads, Facebook ads and Google ads. He also uses several less well-known methods, two of which I was able to pry out of him. One of these is paying Facebook Group leaders to promote his free offer to their members. And another method he uses is to pay product sellers to offer his free product on their download page. Since everyone who hits the download page is a buyer, these tend to be especially good leads.

Naturally Mike uses a tracking service to find out where his squeeze page traffic is coming from so he knows what’s working.

Once a new subscriber joins one of his lists, that subscriber automatically receives emails for a long time from Mike. But the emails never look dated because they’re written in a style that makes it look current. Mike does have to check and make sure the products promoted in his sequences are still active. If one of them is no longer available, he simply finds a similar product and substitutes out the URLs and the product name.

And Mike does a lot of cross promoting, too. For example, if he has a list of people who use social media for online marketing, he’ll promote his free video marketing lead magnet to that list to see if he can get them on a second and even third list. Yes, this can mean a subscriber is in maybe three different autoresponder sequences simultaneously, but the profits far, far outweigh any unsubscribes.

As you can see the hard work in this business model is getting things set up. But once you do, it takes very little work to keep things running smoothly. And if you decide to take a month off, it shouldn’t affect your income, either.

Here’s maybe the most interesting thing about this entire case study: Mike had no previous marketing or writing experience prior to setting up his first squeeze page – autoresponder funnel. He was good at technical stuff but never did any kind of sales or marketing before.

And I wonder if this didn’t help him to succeed, because his writing is very basic and sounds like it comes from that slightly weird ‘guy next door’. He just writes about what interests him in each niche, because he figures that same stuff will interest his readers. His grammar isn’t great but he tells new subscribers up front that he’s no English professor; he’s just a guy like them who enjoys doing XYZ just like they do.

It works for him. And if you choose an evergreen niche that interests you, then I think you could easily build a hands-free funnel like Mike’s and start earning some of that residual income on autopilot. You set it up, send a continuous stream of new subscribers and get sales. It’s so simple, most people overlook this – but it works.

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