Case Study #7: Fondo

_{Read Time: 6.1 Minutes}

Happy Sunday Operators ⚙️

Welcome to our weekly Sunday edition.

On Sundays, we dive into a certain tactic a company is using (or has used) to scale its business. It could be anything like operational designs, growth hacks, or organizational structure.

It’s all fair game.

Sunday editions are organized in the following way:

• Introduction to the company and the tactic

• Why you should care

• Links to learn more about the topic

• A step-by-step playbook on how to do this yourself (Premium members only)  

Having said that, I’m always looking for stories or hacks companies use to scale their business.

That’s when I ran into this tweet from the CEO of Fondo that struck a chord with me:

At Firstbase.io, my previous startup, we used to help our customers with Delaware franchise tax filings. We used to charge the customer the state filing fee. The fee was between $25 and $50 dollars.

So then why would Fondo advertise everywhere that they would file for only a $1?

What is Fondo?

I've never met a founder who started their business to handle the complexities of bookkeeping, tax filings, and tax credits. (If this is you, please reach out. You just made me lost a bet)

Fondo (YCW18) mission is simple yet ambitious.

The goal is to make you money while streamlining your financial operations.

Imagine your accountant finishing your startup's bookkeeping, tax filings, and even clawing back cash from the IRS (with startups averaging a return of $21,000 annually).

Diving deeper into what Fondo brings to the table:

• Bookkeeping: They ensure your financials are accurate, timely, and reflective of your business

• Tax Filing: Fondo ensures every deadline is met, every regulation is followed, and your startup remains in full compliance and hassle-free. They also help founders outside of the US!

• Tax Credits: Fondo's knack for securing substantial tax credits for startups, up to $500,000 yearly, is my favorite feature. For those with high R&D costs, this a financial lifeline that can bolster your cash flow

While scrolling through X, I discovered Fondo was offering a limited-time discount. Fondo is offering to file any customer's (new or old) Delaware franchise tax for $1.

All you need to do is give Fondo your information by Feb 20th. The deadline is to file is March 1st. This applies to you only if your corporation incorporated in the State of Delaware.

When you usually sign up for Fondo's tax package, this can cost $1,450 a year.

If offering tax filings is a cornerstone of Fondo's services, why would they practically give it away for $1?

Simple.

It’s to get you to trust them to handle other processes.

Why should you care?

Fondo is rolling out a special deal to grab your attention right off the bat.

This lead magnet, AKA an Entry Point Offer (EPO), is the first step on a lead magnet funnel that guides customers from a small initial sale to higher-value transactions.

Fondo's got your back with an offer that's too good to miss, making them look like the go-to experts.

While these offers are usually priced low—between $1 to $20, based on the industry standard—even a $500 tag could be appealing depending your service.

The real magic of an EPO lies in its ability to transform the customer experience from the very first touchpoint. It's about offering something so compelling that it becomes impossible to ignore.

This first taste can be a breath of fresh air for anyone trying something new, showing you how serious they are about quality.

If you're on the fence about trying something new, grabbing an EPO is a no-brainer because it lets you check things out without risking much.

Trust and credibility are currency in today's market, and an EPO is a powerful tool for building both. By engaging with an EPO, customers get firsthand evidence of a brand's reliability and the quality of its offerings.

Word-of-mouth remains one of the most effective marketing tools. Satisfied customers are the best advocates!

After trying an EPO and loving it, you might end up telling all your friends and helping Fondo get even more fans.

Happy customers are likely to share their positive experiences, amplifying brand reach organically. This means more people talking about the brand, not because they were asked to, but because they genuinely want to.

Just check out one happy customer here (Chris Bakke had over 143K+ impressions on this tweet).

An Entry Point Offer (EPO) is like getting VIP access without having to pay the VIP price.

This makes you feel great right from the start and gets you excited about what else the brand has to offer later on.

Learn More

• Fondo raised $3 million dollars in a pre-seed round in Feb 2023 (Maybe thats why they are comfortable with making this bet?)
  

• Have no idea what the Delaware Annual Report is? No worries, I got you (Get yourself familiar)
  

• If you want to handle your own Delaware Annual Report, then check out this page (I hate taxes)
  

• This list has 63 lead magnets that you can use to get inspiration for you own entry point offer (I love me a good template)
  

• Don’t know how to create your own offer? Here are the 10 factors to keep in mind when building yours (Go get that money)

How do you do this?

Check out this step-by-step guide to build your own entry offer:

Identify the Main Transformation your core product offers: 

• List the outcomes your service/product promises.

• Speak with past customers to understand the transformation they experienced.

• Use tools like SEMrush or Ahrefs to conduct keyword research and find what potential customers are searching for online.

Clarify the Value Proposition: 

• Write a clear statement that describes the value your customers receive from your core offer.

• Use customer testimonials and case studies to reinforce the value proposition.

Determine the End Goal for Your Customer: 

• Map out the customer journey, highlighting the end goal your core offer achieves.

• Use surveys or interviews to gather data on what end goal is most valuable to your target audience.

• Implement social listening with tools like Brand24 or Hootsuite to capture conversations around needs and challenges in your industry.

Brainstorm Offer Ideas: 

• Host a brainstorming session with your team to come up with creative EPO ideas that are easy for leads to start with.

• Leverage platforms like BuzzSumo to analyze competitor content and offers, identifying gaps your EPO could fill.

• Use SimilarWeb to compare traffic sources and engagement metrics, pinpointing successful strategies in your market.

Developing Your Entry-Point Offer:

• Decide between a time-based or money-based EPO based on your service/product. For services, time-based often works best.

• Conduct market research to understand what your target audience values more—time or money. Tools like Google Surveys or social media polls can be helpful.

• Determine whether your core offering is more of a service (which might align more with time investment EPOs) or a product (which could be suited to money investment EPOs).

• A time-based versus money-based offer refers to the type of commitment required from a potential customer or lead when they engage with an Entry Point Offer (EPO) or any promotional deal. Here's a breakdown of each:

• What is the difference between time-based and money based offer?

  • A time-based offer requires the potential customer to invest their time rather than their money to take advantage of the offer. This type of offer is particularly effective in service-oriented industries or where the value proposition can be demonstrated through an experience or knowledge transfer.

    Examples:

    • Free Webinars or Seminars: Attendees invest their time to learn about a topic related to the service or product you offer.

    • Free Consultations: Potential clients spend time discussing their needs and receiving preliminary advice without any financial commitment.

    • Downloadable Content: Such as guides, eBooks, or whitepapers, which require time to read and digest the information provided.

    • Free Trials: For services or software that allow users to experience the product for a limited time without payment.

    Benefits:

    • Low barrier to entry, as no financial commitment is required.

    • Builds trust and demonstrates value directly through the customer's experience.

    • Encourages engagement by providing education or solutions to problems.

  • A money-based offer requires a financial commitment from the potential customer to access the deal. This type of offer can be appealing because it often signifies a lower financial risk for trying a new product or service, making it an attractive proposition for customers on the fence.

    Examples:

    • Discounted Services: Offering a service at a lower price for first-time customers.

    • Introductory Product Offers: Such as a starter kit or sample pack at a reduced cost.

    • Paid Trials: Where customers pay a nominal fee to try a product or service for a limited time.

    • Special First-Time Buyer Discounts: Exclusive pricing available only to customers making their first purchase.

    Benefits:

    • Generates immediate revenue, even if at a lower margin.

    • Filters for more qualified leads, as those willing to pay are often more serious about purchasing.

    • Provides a tangible sense of investment from the customer, potentially leading to higher engagement.

Creating Time-Based Entry Point Offers:

• Free Guide/Downloadable Content:

  • Use Canva to design professional-looking guides or eBooks that provide valuable information.

  • Set up a landing page using tools like Unbounce or Leadpages to capture leads’ information in exchange for the free guide.

• Webinar/Seminar Registration:

  • Utilize webinar platforms like Zoom or GoToWebinar to host your event.

  • Create compelling registration pages with a clear call to action (CTA) using your CMS (WordPress, Squarespace) or through Eventbrite for seminars.

• Value-Oriented Phone Calls:

  • Implement a scheduling tool like Calendly or Acuity Scheduling on your website to allow easy booking of value calls.

  • Train your team on providing value during these calls instead of hard selling, using a script or outline prepared in Google Docs for consistency.

• Virtual Appointments/Initial Screenings:

  • For more personalized interaction, offer free virtual appointments using telehealth platforms like Doxy.me or Zoom for Healthcare.

  • Ensure your booking system integrates with your CRM to automatically follow up and gather feedback.

Creating Money-Based Entry Point Offers:

• Paid In-Person Consultations:

  • Set a nominal fee that covers the basic cost but still presents a low barrier. Use Square or Stripe to process payments seamlessly during the booking process.

  • Offer a clear value proposition for the consultation to justify the cost, detailing what the consultation will cover in marketing materials created in Adobe Spark or Canva.

• Workflows and Tools for Implementation:

  • Content Creation and Design:

    • For creating downloadable content or marketing materials, use Adobe Creative Cloud or Canva for high-quality designs.

  • Landing Page and Lead Capture:

    • Create dedicated landing pages for your EPO using WordPress with Elementor or Leadpages, focusing on fast load times, mobile optimization, and clear CTAs.

    • Optimize landing pages for SEO using Yoast SEO plugin for WordPress, ensuring your offer is easily found by search engines.

    • Integrate these pages with your CRM (HubSpot, Salesforce) for immediate follow-up workflows.

• Communication and Scheduling:

  • Use Mailchimp or ActiveCampaign to send targeted email campaigns to your existing list, announcing your EPO and its benefits.

  • Segment your email list based on interest or past interactions to tailor the message for higher engagement.

  • Use SMS reminders for appointments with tools like Twilio to increase show-up rates.

• Payment Processing:

  • For money-based EPOs, integrate a reliable payment gateway like Stripe or PayPal on your booking page to process payments securely

Develop a Detailed Offer Document: 

• Create a document detailing your core offer and EPO, including objectives, target audience, and expected outcomes.

• Write messaging guidelines that ensure consistency across all platforms when introducing both your core offer and EPO.

• Before a full rollout, test your EPO with a small segment of your audience to gather initial feedback and make necessary adjustments.

How I Can Help

In case you're new: Who's The Bottleneck?

We’re on a mission to help you build, manage, and scale your startup.

We share high-quality, vetted, and actionable operational content as we learn it from the top 1% of operators.

How we can help you scale:

• Get your 7 day free trial to get access to exclusive content, tools, and more here

• 👀 Get your product in front of startup operators by sponsoring this newsletter.

• 🤝 Looking to offload your manual HR, Finance, and Compliance work? Click here to get your own fractional COO

Spread The Word

Share The Bottleneck with friends to get a few freebies. Maybe you’ll make some new friends along the way 😆 

We’ll give you free stuff and more friends if you share a link. Only one link.

You currently have 0 referrals, only 1 away from receiving Delegation & Outsourcing Playbook.