The art of selling health supplements online is changing. As a revenue optimization firm, that specializes in the health and dietary supplement market, we have an advantage, or rather, the privilege of seeing the direction in which the marketplace is heading.
There are a few insights we’ve learned over the years. But there is one major insight that we’re seeing that’s happening in the market right now.
That insight is this…
There’s a shift in the way companies are selling health supplements online.
And people are more likely to buy because of it. The transition to the new way of selling dietary health supplements is happening FAST. The time to capitalize on it is now because we’re still in the middle of this transition to the new way of selling.
The Old Way Of Selling Health Supplements Online
The old way of selling health supplements online was very transaction driven.
The economics of this model is driven by cost per acquisition (CPA). Resulting in the need for a very high upfront transaction and high average order value (AOV) numbers to make an offer work.
This is why we see high price points on single-bottle offers in the $49 – $79 range, with a push towards multiple-bottle purchases. And at the same time, multiple one-time offer up-sells (OTOs) to get that high AOV.
The heavy lifting of converting a sale falls squarely on the shoulders of a strong offer and sales copy. The marketing selling techniques reflected this. As a result, direct response long-form sales letters (LFSLs) and video sales letters (VSLs) continue to flood the market.
To get any traction you needed an offer that was already proven to convert well. To get serious traffic, you’d have to pay out $100 – $150 per customer so you would need to maintain an average order value of $150 or more, just to break even. The strong affiliates for any kind of health traffic only promote offers that they can make guaranteed money on.
At this point in the game, there are simply too many big health players using the old model. They have their numbers dialed in. And the only relationship that mattered in the old game was your network of affiliate traffic sources. Which was the main way to scale a converting offer, in the old world.
But there is a new way…
The New Way Of Selling Health Supplements Online
In contrast, the new way of selling health supplements online is very customer relationship driven.
New health entrepreneurs are focusing on the audience rather than the product or traffic. The heavy lifting of converting a sale is shifting towards building trust gradually. Something we’ve talked about at great lengths before.
In the new way, health marketers are putting more into making a connection with the audience.
And they are doing that by way of one of three levels.
- Level 1 – Celebrity
- Level 2 – Specialist
- Level 3 – Expert
The Celebrity Level
The celebrity level is the easiest and quickest way to break into the new model. It’s the quickest because you can buy your way in. The health marketer simply hires a known celebrity to be the connection point between the audience and the product.
The goal is to create a halo effect. Which is a cognitive bias where our impression of a person influences how we feel and think about the product they are endorsing.
The true celebrity already has some clout and influence among the audience the supplement company is targeting.
An example is the way OmegaXL uses Larry King in its marketing as an endorsement and spokesperson.
The target customer that OmegaXL is going after the golden oldies. Their customers were regular listeners of Larry’s show which aired on the radio from 1979 – 1994, and his talk show on CNN from 1985 – 2010. OmegaXL’s target market already knows, likes, and trusts Larry.
A more modern day Internet celebrity like Kim Kardashian for Diclegis, promoting morning sickness when she was pregnant.
The celebrity level leverages accelerated trust. But the next level amplifies the trust and belief level of prospects by a factor or 10x.
The Specialist Level
At the specialist level the audiences perception of you is elevated higher than the celebrity level. You’re staking a claim in a very specific niche. Specialist build their product line and all of their marketing education to support that market.
As a result the level of trust and belief is amplified due the narrowing down of a sub market. Which is one way to position yourself as a specialist.
Another strategy to cross over to the specialist level is to add personalization to the buying process.
iFit Nourish does a good job of selling the new way with personalization of their Nourish shake. Using a series of questions around your mind and body, energy levels, food allergies and more iFit creates a specialist solution.
Providing the experience that the solution you’re giving is specialized to your prospects specific needs.
The next level takes specialization to the highest level.
The Expert Level
At the expert level, trust and belief are akin to being a Doctor, for the golden oldies at least. The doctor-level analogy is weakening with a younger demographic and certain subgroups.
Through time, positioning, and direct communication with your audience, your perception moves to the expert in your sub-niche.
To achieve the expert level your audience needs to connect your company with an individual personality. This level combines celebrity and specialty to become the expert. The difference is that you become the celebrity to your tribe, vs. hiring one as a stand-in. Which approach you take depends on the level your business is in.
A great example is the way Dr. Axe has positioned his brand as “Food is Medicine” over time.
He also uses many of the specialist strategies like personalization to elevate to the expert level.
What Does This Mean For Todays Health Supplement Marketing?
The transition from the old model to the new model for supplement marketing is still happening. There will always be laggards sticking to the old way of selling. It will still work (for a while). And in our opinion, the offer structure may still need to carry over to the new way.
But, there is a transition happening between the old way and the new way as the new guard switches over. This is one of the ways Drew Canole built Organifi.
However, the new upcoming companies like Elysium are leaving all the old baggage behind. Upstart dietary supplement companies are pioneering fresh market share with the new model.
As the new model picks up speed it will get increasingly difficult to sell health products online the old way.
The price of becoming an authority in the health space will rise. And the time investment needed to operate in a new way will become unappealing for many, making it difficult to build a health business online in the future. This will result in higher barriers to entry for new entrepreneurs.
Now is the time to build your authority and trust. Make the shift to the new model and prepare for the future today or be left behind.
Discover the 3 funnels that can help your health supplement business succeed.
Listen to the Health Supplement Business Mastery Podcast for for dietary supplement entrepreneurs and marketers.
Excited to see what info you have in your book