Customer acquisition is a tough nut for startups to crack. With countless articles, tweets, and podcasts filled with success stories, it’s easy to feel overwhelmed. Extracting the main learnings from these sources is time-consuming, and testing various strategies can feel like navigating a labyrinth.
So, what’s the most effective way to drive growth? Let’s analyze Systeme.io’s approach and uncover their secrets to making over $215,000 in monthly recurring revenue (MRR) from affiliate marketing.
- Trusting your gut: Following your instincts can sometimes lead to breakthroughs, but for the newcomers in the field, it often results in wasted time and resources. Relying solely on intuition in the highly competitive world of startups can be a gamble that doesn’t always pay off;
- Investing in courses: High-quality courses are incredibly valuable, but finding the right one can be both challenging and costly. Online education offers a wide range of options — from in-depth programs to quick tutorials. It's essential to choose a course that fits your learning style and business needs to gain the skills you need effectively.
- Hiring professionals: Engaging top-tier marketing agencies might seem like a silver bullet, but it comes with a hefty price tag and they often prioritize larger clients. Hiring full-time marketers can be more budget-friendly, but they might not have the experience or speed needed for quick growth. Finding the right balance between cost and expertise is essential.
What is Systeme.io?
Systeme.io is an all-in-one platform designed to streamline online business operations. It enables users to build sales funnels, host webinars, manage memberships, run affiliate programs, send unlimited emails, and sell physical products.
While its website builder isn’t as feature-rich as some competitors, it’s well-suited for small and local businesses seeking simplicity and functionality.
- Monthly recurring revenue (MRR): Over $675,000
- Affiliate contribution: 30% of MRR
- Commission paid in last 30 days: $324,000
- Systeme.io’s earnings from affiliates: $215,000
- Number of affiliates: 112,934
Systeme.io monetizes both its SaaS platform and various informational products. These products serve as paid lead magnets, promoted through their community and social media channels. Additionally, their strong affiliate program plays a significant role in driving sales and revenue.
Earnings from info products
In the last 30 days, Systeme.io generated over $23,082 from informational products alone. Their top-selling info product brought in roughly $7,600, priced at just $7 per unit, translating to over 1,000 sales in a single month.
This strategy highlights the power of low-cost, high-volume sales in boosting revenue.
Early growth strategy
Aurelien Amacker, the founder of Systeme.io, used his existing email list of 50,000 subscribers from his online business, which was already making $30,000 per month from online courses. When he launched Systeme.io, he sent out a few emails to this list and quickly gained 400 paying customers, bringing in around $15,000 in monthly recurring revenue right away.
In 2019, when Systeme.io’s MRR was around $120,000, their revenue distribution was as follows:
- $50,000 from paid subscriptions to Systeme.io;
- $30,000 from online course sales;
- $40,000 from coaching sales.
Key points:
- The first $100,000 in MRR came from the French market;
- Aurelien’s journey began with creating courses, then selling coaching services, and eventually building Systeme.io;
- It took three years to grow from 1 to 1,000 customers in the English market, with a current total of 8,500 active customers.
The secret sauce: Conversion-focused emails
Since February 2022, a customer has received approximately 63 emails from Systeme.io. Although not part of every email campaign, the emails they did receive stood out — highly focused on conversions with clear calls to action. These emails effectively engaged the customer, offering valuable insights and prompting decisive actions.
Systeme.io’s strategy centers on sending emails that not only nurture leads but also drive conversions. Each email is meticulously crafted with a specific goal in mind, whether promoting a new product, offering a discount, or providing educational content. This targeted approach keeps subscribers engaged and significantly increases the likelihood of purchases.
Affiliate marketing: A major revenue driver
Affiliate marketing is a cornerstone of Systeme.io’s success. With over 112,934 mediabuyers enrolled in their program, they have built a vast network of partners promoting their products. In the last 30 days, they paid out $324,000 in commissions, which, given their 60% commission rate, means they earned over $215,000 from affiliate-driven sales.
This model not only encourages affiliates to promote Systeme.io but also helps them reach new audiences. Affiliates use their own platforms — like blogs, social media, and email lists — to showcase Systeme.io to potential customers who may not have come across the platform otherwise.
Using info products for growth
Systeme.io’s info products play a dual role: they serve as lead magnets and revenue generators. By offering valuable content at a low price point, they attract a large number of buyers. These products are then promoted within their community and through social media channels, further increasing their visibility.
In the last 30 days alone, Systeme.io made over $23,082 from info products. Their top-selling product, priced at just $7, resulted in over 1,000 sales. This strategy demonstrates the effectiveness of using low-cost, high-value products to drive significant revenue.
Continuous improvement and adaptation
A key factor in Systeme.io’s success is their commitment to continuous improvement. They constantly refine their products, marketing strategies, and customer engagement tactics. By staying attuned to market trends and customer feedback, they ensure that their offerings remain relevant and valuable.
For instance, Systeme.io’s email campaigns are not static. They regularly test different subject lines, email formats, and calls to action to identify what resonates most with their audience. This iterative approach allows them to maximize the effectiveness of their marketing efforts.
Conclusion
Systeme.io’s evolution from a startup to a powerhouse generating over $215,000 in monthly recurring revenue through affiliate marketing showcases the effectiveness of strategic growth and adaptability. Their success stems from skillfully utilizing email marketing, forming valuable affiliate partnerships, and offering info products, all of which contribute to a sustainable and thriving revenue model.
Their journey provides key insights for aspiring entrepreneurs: prioritize data over instincts, seek out high-quality education, find the right balance between cost and expertise when hiring, and always be open to refining your strategies. Systeme.io’s success shows that with the right approach, you can turn a simple idea into a thriving business.
