The Ecommerce Alley Podcast: Meta Ads, AI Frameworks, and Business Strategy
Trying to scale your ecommerce business is tough. Not only that, but staying profitable in the process is even tougher. Hosted by Josh Coffy every Monday, The Ecommerce Alley podcast provides strategic insights on how to grow your people, profits, and impact. From marketing to leadership & operations, you’ll get inspiration and insights that can’t be found anywhere else – but in The Alley.
The Ecommerce Alley Podcast: Meta Ads, AI Frameworks, and Business Strategy
Use This Giveaway Strategy To Rapidly Grow Your Email List
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A $5,000 giveaway added nearly 5,600 leads to a Disney fine art brand’s email list in about two weeks, almost doubling it, and roughly broke even after ad spend and cost of goods.
In this episode, we walk through exactly how that giveaway was built for The Quirky Mouse, one of our partner brands, and how to run the same play before Black Friday or as an ongoing list-growth engine. Here’s what’s covered:
- Why giving away your own product beats cash, iPads, or vacations (and how a $1,500 prize cost about $100 to fulfill)
- The thank-you page setup: an instant 10% off code plus 25 bonus entries for every friend referred, built with tools like UpViral or Gleam
- Extra entries for follows, shares, browsing collections, and a survey that 1,570 people completed
- The three-day tiered offer after the winner draw, and how it doubled as a Black Friday discount test
- The full numbers: $0.40 CPC, $0.89 cost per lead, nearly 3,000 free referred visitors, and $7,943 in sales
- Why to keep each cycle under 30 days and cap ongoing spend at 5 to 10% of your ad budget
This is a lead gen play, not direct response. The goal is to cover costs inside 30 days, then profit from a much bigger list when it counts.
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I want to show you a strategy that we use to two, three, four X uh email lists in really short windows of time or on an ongoing basis by using giveaways. And this is really powerful because there's a saying that the money is in the list. And what when I think of that, I think the money is actually in the email list. If if you don't know what the list is. And so the money is in the email list. And I look at email as the most legal way to print money on demand, where we can actually just send an email and make sales. And the larger the list, the more money that you'll make. And there's a good stat actually. This has been the stat for a long period of time here. And if you're watching this, which the cool thing about our podcasting now is Apple and Spotify, by the way, allow us to do video. So if you're listening on audio right now, go ahead and look at the video here. And I'm and I'm gonna be going through some slides, showing you some really cool strategies. Uh so I'll talk through it for all my audio folks, but I'll also uh visually walk through it as well. And so the industry average for ROI on email is $36 to $42 returns for every $1 spent according to Google. And it's kind of breaking down. Retail and e-commerce is actually $45 per $1 spent, marketing agencies is $42 per $1 spent, and tech and software is $36 on the lower end there. And so why is this important? Well, this is really important because the larger your list, the more money you can make on demand in your e-commerce business. And this is really critical when you get to moments like Q4, you get to Black Friday, Cyber Monday, while CPMs are at the all-time high of the year for advertising. What happens when you could just reach people directly with email and with SMS? Well, you make a lot more money. The people with the greatest sizes of lists that we work with make the most money when it comes to any kind of holiday where everybody's trying to get in. And so I want to show you how we do the strategy. I'm gonna walk through what I call audience stacking because this is a critical part of stacking audiences for like big sales moments throughout the year. But also I'm gonna show you how to structure a giveaway, some rules of thumb for it. And I'm gonna share the numbers of a $5,000 giveaway that we ran. I'll show you the sales we made, the list growth, the cost per click, just so you can kind of start to understand what you can expect when you run this process. But I promise you, if you are in e-commerce, you have to be growing email. The more you grow your list, the more money you'll make. But you have to grow your list in the right way because so many people have done giveaways that I've seen, and they have these terrible experiences where they get a bunch of people just want free stuff, and then the people never buy anything. And so how you structure them really does matter. Now let's go ahead. I want to get diving into this. And and so I want to show you how to double your list using giveaways, and I'm gonna show you how to build an email list so big that your fulfillment team starts to sweat, especially in Black Friday, Cyber Monday, those Q4 moments. By the way, this strategy I'm gonna share is usable all throughout the year. You don't just have to do this one. In fact, we work with clients that run run this strategy on an ongoing basis, and it's just a way to grow the email list ongoing and create cash injection along the way. So I want to show you how to build an email list so big your fulfillment team starts to sweat. And just to give you a little bit of a visual on, you know, does this kind of stuff work? Well, we do this with all of our clients. We actually teach everybody in October how to use this strategy. They don't have to use it throughout the year, though they can, but we teach them, hey, in a small enough time, how do you blow up your list? And we do this lead gen strategy using giveaways, and then it primes us for early bird Black Friday sales, Black Friday sales, and then Christmas sales. Last Q4, our clients did $27.63 million uh using our strategies, this being one of the core initial strategies. And this year, we're tracking into over 50 million of our clients doing this exact same thing. And this is important because when we get to particularly Q4, though this applies throughout the entire year, you want to stack audiences. And what I mean by that is you want to get as many people warmed up to your brand as possible. And this includes people like page engagers, meaning people that like or share or save or comment on your post or maybe watch videos. And it could be organic and this could be ads. And so we want as many page engagers as possible because when CPMs are high in certain areas of the year, when we go to these warm audiences, we're gonna make a lot more money and a higher ROI on them because they've already been warmed up to the brand. And so giveaways are a great way to do that because it's a low-cost uh way to create value and get a ton of engagement. The second type of audiences you need to be stacking are leads. And the giveaway strategy helps you stack leads because every person who enters the giveaway, we get their information. And the third thing you need to be stacking are obviously just customers. The cool thing about this giveaway strategy is it will help you stack customers. And the number one way, I believe, to stack audiences beyond what you're probably already doing. For example, you could stack page engagers and leads and customers by just running purchase conversion ads to your PDPs or running them straight to your website. You can already do that. So beyond what you're already doing, I'm not gonna tell you to just keep doing that. That's gonna stack audiences, but I want to show you how to do a giveaway that will actually grow this faster and more affordably leading into key moments throughout the year. Let's walk your giveaways here. Number one, this is step number one. Give away a product that your ideal customer would want, and then get them to engage and refer other people. We want this to have a compound effect. And the example that I have here, if you're not watching this, is actually the quirky mouse. We did this last year for the quirky mouse, which was a partner brand with us, and we ran this giveaway strategy. And the quirky mouse, if you're not familiar, the quirky mouse actually sells very Disney nerd or Disneyerd kind of stuff. Like she sells tons of apparel, but she also has like these fine art prints. So she's uh the founder is an artist and absolutely incredible. And so what she does is she she does these fine art prints of just like Disney things that if you looked at it, it would look like a nice piece of fine art. But if you don't understand Disney, you'd be like, oh, sure, it's a piece of fine art. But if you understand Disney and you're one of those super Disney adults, you would look at the thing and be like, oh my gosh, that's so cool that they have the trash cans in Paris, or uh like the or or they have the the the band, the the the annual pass holder band on their hand. Like it's just a really cool, cool thing that she does. And so what we did was rather than giving away cash, or rather than giving away a vacation, or rather than giving away an iPad or something that's super general that just literally anybody will enter, we're giving away product that only our ideal customer would want. And with this, it's Disney fine art. And we called it the Enchanted Disney Gallery giveaway, where they could enter for their chance to win all nine of her framed fine art prints for free, which was like a $1,500 value. Now, the beauty in this is it's a $1,500 value, but it actually only cost like a hundred bucks in cost of goods because art prints in particular were very, very like 90% gross profit margin. Art prints are really, really, really cheap from a Cog's standpoint. And so we created this giveaway to give away something that we know that her audience would want. Now, this is really critical because if you sell something that just literally anyone would want, you may need to consider giving away something else. But but truthfully, we've tried giving away like adjacent products and we tried doing the the vacation giveaway, and you know what? It just doesn't work because you give you anybody entering that stuff. I do find that giving away your product is probably the best. Because if someone wasn't interested in your product, they probably wouldn't want now it is free, so maybe they would want it, but it's more at least directionally saying that these types of people would be interested in the stuff that I would sell because they're entering to get the stuff for free that I sell. So you want to number one, craft a giveaway and with or craft what the giveaway offer is. And I recommend that you stack some different products. So, like another good example of this is Zero Shoes was a was a brand we worked with a little while back, and they would give away a $100 gift card every single month to Zero Shoes. And it's like, great, well, this is a gift card that I'm giving away. But in order to use the gift card, they actually have to place the order, of which, by the way, a lot of the shoes are $129. And so they would have to have a little bit of skin in the game. And by the time they place the final order, well, they they ended up paying for the cost of goods on the shoes because they did pay a little bit and covered the cost of goods. So just think about what you could give away. Now, when you offer this to them, when you when you build out this offer, what we want to do is we're gonna drive traffic from our email list in our organic and ads to a dedicated page for this. And then what when they get there, we're going to get them to engage and refer other people. So here's what it's gonna look like Step number two, we drive traffic with ads and email to kick everything off. And I say email because yes, they're already on your list. And the goal is to grow the list. But here's what happens is you build a lot of goodwill with your existing list when you do this. So if once a year you do a big old giveaway, you're gonna build goodwill with your list. You're just adding value. It's like, hey, you're on our list already. Click here and enter this giveaway. And when you do this, I recommend that you use a tool. Now, there are two tools that I really like. One of them is called Up Viral, and the other one is called Gleam, G-L-E-A-M. And I think it's gleam.io. Either way, go find a giveaway software. This is the multiplying effect, by the way. So, what happens is when you drive traffic, it allows you to embed it on your page. And a lot of the tools will actually integrate with like your Facebook Pixel, for example. So it'll help you track all the leaks. And so then you go create ads and you drive ads, and then you take your email and you drive email there, and you could do some organic, but it doesn't, organic doesn't drive that much traffic for most people, I would say. But either way, we're gonna drive people to this giveaway page to kick everything off. And when they get there, they're gonna be able to enter their name and enter their email. Once they do that, it's gonna take them to a thank you page that looks something like this. And if you're listening on audio, I'll just walk you through it. It has an image, and at the top it says you're entered to win our $1,500 plus dollar Disney art giveaway. Check your email for giveaway details to find out if you won. And then this is key. It says bonus one and bonus two. Bonus number one, it says you've unlocked 10% off our entire store with coupon code enchanted 10. And then there's a call to action button that says shop our Disney tease in subtle, subtle art. Use code enchanted 10 for 10% off. When they click that button, it takes them to the shopping page of their best sellers and auto-applies the coupon code. Then bonus two, it says share your unique link and earn 25 entries for each friend who joins. If someone you were for wins, you will also win your own gallery. Now, this is really this is really key because we wanted to say, hey, if your friend ends up winning it, we're gonna give you the gallery too. So this creates this multiplier impact on it. And then it would most of the tools will show people how many entries they have. So it's like your current entries, and then this one in screenshot says three. And then it has like a personal invite link they could just copy it and paste it to someone. And then it has a countdown to when we're drawing the winner. Now, the next cool thing about a software is that you can actually allow people to get more entries by doing other things. And this is really, really critical. I want to just pause here. We can get them in there, we can get them referring to other people, but remember, we want to stack audiences, we want them to go deeper with us. So, how do we do that? Well, we give them more points for sharing on Facebook, sharing on Instagram, following on Facebook, following on Instagram. We give them points when they explore different collections because some people come in for fine art, but why don't we have them explore all of our fine art that we have for sale? So we can give them a point value or entry value when they go explore different products. We can have them browse uh different collections. We can even, and this is really cool, have give them points to take the survey. So, for example, uh, we had people taking the survey that was like 15 to 20 questions, and it took like the average person five to six minutes to fill out this survey. And it was asking a boatload of questions, even down to like, what's your what time of year do you typically go to Disney? Do you know when your next Disney trip is planned? Which of the four parks is your favorite Disney World park? So, like asked a ton of questions to get a lot of survey feedback. And I'm gonna share the stats on on this one a little bit, but it'll get you tons of insight on your ideal customers. You get people following you, get people sharing you. And by the way, when they're, and you can give them extra points for giving you their SMS as well, their phone number. But when you create, you can create all these additional things, and what happens is they're just going deeper down the funnel with you. They're they're warming up as an audience, they're seeing all the stuff you have to offer. They're taking surveys, you're getting information on them, they're referring other people, they're following you, they're sharing you. So not only is this beneficial leading up to like Black Friday, Cyber Monday, for example, but it's beneficial beyond that when you grow your audience as a whole, which is why these are valuable to consider running throughout the year. So that's step two. Step number one, determine the giveaway. Step number two, we need to drive traffic with ads and email, even organic if you're doing that. And then here's what happens. Step three is we draw a winner and then we make a timed offer to convert leads into customers. And the goal is simply to liquidate your ad costs. We simply want to liquidate ad costs at this point because this is moving us in the right direction and growing our list tremendously by doing this as well as warming up all these other uh all these audiences. And so in this example, what happens is we ran the promo. This was several weeks that we ran it, and I think it was like two weeks. And then once we were done, we drew a winner and we did a three-day promotion to everybody and had emails lined up and we said, Hey, we have a winner. Here's the winner. By the way, for the next 72 hours only, if you spend 20, there's 25% off if you spend $75 or more. There's 30% off if you spend $125 or more, and there's 35% off if you spend $200 or more. Now, truthfully, we were just validating some ideas on like price point or uh percentage discounts to see what we would do for Black Friday Cyber Money in this case. So this was a way we were able to like pre-test BFCM offer in advance to see if people stuck to the 25%, the 30% or the 35% off based on their AOV. And so we did a three-day promo. And so it creates this urgency around it. And remember, the goal is to liquidate the costs of your ads and your cost of goods in that period of time. So we want to completely break even on this when we subtract ads and all the cost of goods. We want to break even on this. And let me let me share what happened. We spent $5,000 on ads. We had 12,655 direct visitors at an average cost per click of 40 cents, which is lower than what we would normally pay in a purchase conversion campaign. Those were those 12,600-ish people referred nearly another 3,000 visitors, which were free, by the way. So we had 2,965 referred visitors that people copy and paste and send the link to. We had 5,274 direct leads at 95 cents cost per lead. And those people referred another 308 leads to our campaign, which was free. It brought our average cost per lead to 89 cents. Now, in my slides here, if you're looking, I forgot a number and that was a four. So it's 5,274 leads, is what we had. Total sales from it of people taking advantage of the 10% off, as well as people buying in that three-day window in a two-week window of time. We spent five grand and we made $7,943.32. So just round it up to $8,000. Now, by the time we factor in the ad spend and the cost of goods, we were approximately a break-even. And what was great for us in this case is this was before Black Friday, Cyber Monday. And so it was before Black Friday, Cyber Monday, and we stacked on nearly 5,600 leads to our email list. So this really helped this brand grow their email list tremendously. It almost doubled the email list. But beyond that, some other cool things. We ended up adding 1,284 Instagram followers, 846 Facebook followers, and we got 5,000 or I'm sorry, 1,570 people to take the survey. That's mind-blowing to me. I mean, imagine if you had 1,600 approximate surveys taken. How helpful would that be to your business? If you had that much more insight on your ICP. And we had 4,048 likes, comments, and shares. And so I say all of this because this is a way that you can stack audiences, warm people up, grow your email list, liquidate costs, and prime yourself for an even bigger holiday sales moment. If right now you're listening, going into Q4, make run this play ASAP. If you're listening to this and it's not Q4, it doesn't matter. You can run this every single month if you wanted to, or throughout the year if you wanted to. Now, my only advice, only advice when you're running this is when you run the giveaway strategy, run it in a less than 30-day cycle to make sure that you ROI ad spend in a credit card cycle. That's my advice because credit cards are on a 30-day cycle. So if I'm spending five grand, my objective is in the next 30 days, I want to ROI that. So if you do this on an ongoing basis, just run the giveaway game plan once a month or every or three weeks out of the month so that that way you're at least liquidating ad spend, liquidating your cost of goods in that window of time, but it's also stacking up your email list on an ongoing basis. And if you choose to do this on an ongoing basis, my advice is that percentage-wise of your budget, just keep it to five to 10% of your overall ad budget if you want to keep your list growing in this way. And the main thing to keep in mind is remember, this is a slow, this is a long-term play over a direct response play. So a direct response play would be you're running ads straight to PDPs, sales pages, pre-sale articles, like you're running purchase conversion campaigns. This is a lead gen campaign where the goal is not to ROI on day one. The goal is to ROI in a 30-day window and then be able to really profit on the back end when your list is so much bigger because you're growing at 89 cents per lead. If you're spending $100 a day on a campaign like this, imagine that your list would be growing by 110 to 120 people per day all year round. If you only spend $100 a day on this type of campaign. If you have any questions, drop a comment below. We'll give you some feedback if you want help like determining what your offer uh might be. We run this with hundreds of brands uh every single year, and it's been an instrumental part of helping our clients stack audiences to have record sales moments throughout the year.