Free downloads are ruining your funnel (here’s the fix) 🩹
Learn how $1 can filter out 90% of time-wasters
Your lead magnet is working.
100+ downloads. 40% open rates. Good feedback.
But those subscribers have a lifetime value of $0.
Marketers spending $10,000/day on ads have been using advanced tracking to validate this, and the data is clear… free opt-in subscribers don’t convert.
But charge $1? Suddenly, they become repeat buyers.
Here’s why and how to copy it 👇
🔍 What is the $1 Lead Magnet Strategy?
Don’t give away your best content for free to cold traffic. Instead, charge $1-$10 for what you were planning to give away.
Here’s why:
✅ Instant buyer qualification (they’ve proven they’ll pull out their card)
💰 Ad costs covered immediately ($1 × 100 people = $100 toward your ad spend)
🎯 10x higher conversion rates on backend offers (buyers keep buying)
🚫 Zero tire-wasters (freebie seekers are filtered out automatically)
❌ The problem with free lead magnets
Daniel Fazio runs a marketing agency and spends $10,000/day on ads. He uses Hyros to track every customer from first click to final purchase.
Here’s what Daniel has to say about the $1 Lead Magnet Strategy:
“People who get free lead magnets never buy anything because they’re non-buyers. They just don’t buy. If you make your lead magnet $1 or $5, it magically works out with LTV.”
The rule is simple: Buyers are buyers. Non-buyers are non-buyers.
No amount of email nurturing changes this.
🧠 The psychology behind the $1 barrier
1. The Commitment Escalator
When someone pays (even $1), they’ve:
Pulled out their credit card
Entered payment information
Confirmed the purchase
Received a receipt
They’re now a customer, not a lead. And customers buy again. Leads ghost you.
2. The Sunk Cost Effect
People who pay are more likely to:
Consume the content (they paid for it)
Take action on what they learn (justify the purchase)
Open your follow-up emails (they’re engaged)
Buy the upsell (already in buying mode)
🎯 Example: How Alex Hormozi does this
Alex Hormozi doesn’t give away his books for free. He charges “for shipping.”
Step 1: Charges $9.95 to qualify buyers (will you pull out your card?)
Step 2: Uses that $9.95 to partially cover ad costs
Step 3: Identifies serious business owners vs. time-wasters
Step 4: Backend offers: $5,000+ programs, software deals, partnerships
Results:
The book has generated millions in backend sales
Created a self-liquidating offer (ad spend breaks even on book sales)
Built a list of ONLY proven buyers
Someone willing to pay $10 for a book is far more likely to pay $5,000 for his programs.
🚀 How to build your $1 Lead Magnet Funnel (4 steps)
Step 1: Take your lead magnet and charge for it
Don’t overthink this. Take what you were giving away for free and price it at $1-$10. You can add a small upgrade if you want:
Quick walkthrough video
Templates or scripts
Simple checklist
But honestly? You don’t need to. Just charge for what you already have.
✅ Copy this: Use Gumroad, Stan, or ThriveCart. Setup takes 30 minutes.
Step 2: Run cold traffic to the purchase page
Send ads, cold emails, or LinkedIn messages straight to your $1-$10 offer.
They pay immediately (no opt-in form, no nurture sequence)
You filter for buyers on Day 1
Ad costs get covered by sales
✅ Copy this: Start with $10-20/day on Facebook or Google ads. Test small before scaling.
Step 3: Upsell your main offer right after purchase
After someone buys your $1-$10 product, immediately offer your higher-ticket service ($97-$297).
Their card is already out
They just said “yes” to you
Trust is at its highest point
✅ Copy this: Most platforms (ThriveCart, Stan, Gumroad) let you add a post-purchase offer in one click.
Step 4: Email ONLY the people who paid
Forget the 5,000-subscriber free list. Build a 200-person buyer list instead.
Email 1: Deliver the product + welcome
Email 2: Share a quick win they can implement today
Email 3: Case study or testimonial
Email 4: Soft pitch your main offer
Email 5: Direct pitch with urgency
✅ Copy this: Buyers who paid $1 are 10x more likely to buy your $297 offer than free opt-ins.
🍪 Bite-Sized Growth Idea of the Week
Guinness Launches the “Guinnbrella.”
Guinness created a miniature umbrella to protect your pint from the rain.
Quick Growth Idea: What’s the absurd, hyper-specific tool your audience needs?
👉 Copywriter? Create a “Bad Headline Generator” that purposely writes terrible headlines, then offers your service to fix them.
👉 Designer? Make a “Canva Crime Report” tool that analyses someone’s graphics and roasts their font choices.
👉 Coach? Build a “Solopreneur Burnout Calculator” that shows them how many hours they’re wasting on $10/hr tasks.
💡 Your Friday takeaway
Would you rather have 5,000 people on your email list who never buy anything?
Or 200 people who already proved they’ll spend money with you?
You need more buyers.
And the fastest way to find them? Make them pay on Day 1.
TL;DR: Free lead magnets to cold traffic have a $0 lifetime value. Charge $1-$10 instead. Put your lead magnet on Gumroad/Stan, drive traffic to it, and upsell your main offer after purchase. Buyers who pay $1 are 10x more likely to buy your backend offers.
See you next week 🚀
Sam
—If you enjoyed issue #17, please tap the Like button below 💙 Thank you!
This is great thank you so much. Question for you do you know if sub stack allows you to segment your newsletter by paid purchasers of products vs free subs ? In the case of using something like gumroad or Stan ?
Not my gunnel! 😁