April 9, 2020
The Difference between Direct Response and eCommerce

The Difference between Direct Response and eCommerce

– This conversation has
come up a few times now, and it was funny, because originally, we were gonna write
some amazing blog posts about it, and it was gonna be all this research-driven, research-based idea on this main question. What is the difference between e-commerce and direct response marketing. And I remember hearing that conversation as we were walking by
an existing discussion that was happening, and
my heart kinda lept, and also, it sunk into my stomach. Because inherently, that’s
really a flawed question, if you think about it. So have you ever thought about that? What is the difference between e-commerce and direct response marketing? Is there a difference? Are they apples-to-apples, or
is it more apples-to-oranges? The concept that I came up with on this is, it’s actually
comparing a saddle to a horse. They’re essentially really
part of the same family. So e-commerce is an overarching category. It’s how people sell and transact with products and money online. It’s electronic commerce. That makes sense. Direct response is actually
a tactic within e-commerce. It’s a way that you can
leverage the buying habits, the psychology, and the motivations of your buyers when
they come to your page. So let me break it down in this way. E-commerce has become this really kind of a buzzword in the industry right now, where it’s, if you
wanna make money online, you gotta get into e-commerce. You gotta get into e-commerce. So what does that actually look like? For most people, it’s, let me get three or four shirts with a cat on it, and maybe a coffee mug with a cat, and you’ve probably seen these, and you put it up on your store, whatever platform you want to use, and you see the little boxes
of the different products that are on there with
the different prices, and you just hope you get customers. Now, ClickBank is not
necessarily an e-commerce store like that. You’re not gonna set up a store with multiple skews so you
can see and click and buy. ClickBank, the power of what we do is we force you to create a funnel. And if you’re not familiar with what a funnel is, a funnel is really just a step-by-step process where you bring a customer
through, making a decision, then making another decision,
and making another decision, and you’re controlling that environment of their decision-making. Does that make sense? So you have your, let’s say
we’ll use the cat thing. You have a cat T-shirt
that you wanna sell. Now you’re just gonna
promote the one cat T-shirt. Get your cat T-shirt,
and with direct response, you’re gonna put some kind
of an offer around it. This is where, at ClickBank, we empower you to create an offer,
and those are the types of things online that convert today. They do super well, and this is how people scale
businesses, is with offers. So what I really wanna
step back and say is, just because you have a product and you put it on a store does not mean you have an offer,
but with direct response, it’s a tactic of taking a product, wrapping an offer around it, you’ve probably seen those as-seen-on-TV, get the Shamwow, and wait, if you buy now, we’re gonna include two more free for just two payments of $9.95. That’s an offer. It’s not just, here’s a great product. Here’s how much it costs. The wrapping something in to make you think, whoa, that’s a good deal, and I feel like I’ve won in this process. So when you’re setting up a product to put on ClickBank, bringing it back to direct response versus e-commerce, you’re using an direct response tactic to wrap up an offer around your product. So you’re not just selling a cat T-shirt. You might be selling a cat T-shirt, plus, as a bonus, you get x. Maybe it’s five tips on how to train your cat to walk on a leash. That’d be kind of a fun product. I think we should do it. But that’s your offer, cat
T-shirt plus something free. Now they’re like, ooh,
I gotta jump on this. And usually an offer is
financially incentivized. Maybe there’s a time limit on it. Maybe there’s a limited
number, a limited supply, something around there that encourages, psychologically, your visitor,
your viewer, your customer, to want to make a buying decision. So in essence, direct response is directly empowering your viewer to make a decision on
your page, right then. It’s not like your grocery store where there’s just aisles of products and you go in, and at will, your just kinda buying what you want. It’s, you’re sending somebody to a page, to an offering, where you are leading their mindset, you’re framing their mind and how they’re viewing things, to make a decision, the
decision, that you want. And now, just to add in a
little bit of a bonus onto this whole e-commerce
versus direct response, direct response has gotten
a bad rap in the past, where it’s just slamming offers down somebody’s throat and
a way of making claims. Take two of these pills a day and you’re gonna lose 10 pounds every day. That was the traditional direct
response-style marketing. Today, the industry has shifted in such a way where it
is really encouraging, the overall market is encouraging people, as product owners, to create offers that are really value-first,
they’re value-forward. It’s not thinking, okay,
I have this cat T-shirt. How am I gonna sell these cat T-shirts? It’s, how am I gonna provide value to my customer so that we build trust? ‘Cause I don’t wanna sell ’em one T-shirt. I wanna sell ’em a whole
litter of T-shirts. I wanna sell ’em a
whole bunch of products. So that’s the mindset
you really need to take. You can take the tactics of moving somebody into a decision or framing their mind to make a buying decision, that’s a part of direct
response marketing, but really do it, again, with value in mind, and that’s how
you can build a long-term, sustainable business in this industry. So again, just to recap,
e-commerce is having products, and putting them on a website, and allowing people to make purchases from any of those products. That’s just an overarching category. Direct response is taking a tactic, taking one of those products out, creating an offer around it that forces your buyer into a decision, and running that as a funnel sequence, or as, again, a direct response offer. So it’s really a tactic within e-commerce. It’s not really one versus the other. Direct response is more the mindset of how do I get psychologically in the head of my client, in the head of my customer, right language that they understand and they relate to, and then encourage ’em
down a buying decision. So I hope that helps you. And again, at ClickBank,
that’s what we do. We empower you, as a merchant processor and as a technology
company, to create offers that are compliant, that convert well, and that we can pay you out,
and your affiliates out, on. So go check us out. Thank you, again, for watching this. If you have questions,
please post ’em below. Please share this video. I think it could help
a lot of your friends and the people who might be looking to get into business right now online. So thanks for watching, and
we’ll see you again soon.

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