The musicians who win aren’t the ones who spend the least—they’re the ones who know how to outspend everyone else.
As a music entrepreneur, you’re not just creating but selling your art, and it’s critical to master the economics of your business.
A key concept that can set you apart is the ability to outspend your competition when acquiring new clients. This doesn’t mean throwing cash around recklessly. It means playing smarter, understanding your numbers, and using the right strategy. Welcome to the "Encore Client System," a method designed to help you dominate ad platforms like Facebook and Google by focusing on two key metrics: Average Order Value (AOV) and Lifetime Value (LTV).
Here’s how you can make this work for you.
The Power of AOV: Make Every Sale Count
The first step in the Encore Client System is boosting your AOV. Think of this as squeezing the most out of each sale you make. When a fan buys your new album or a client signs up for a lesson, it’s not just about that one purchase. It’s about finding ways to add value—and earn more—during that transaction.
For example, if someone buys a digital download of your latest track, offer them a special deal on your exclusive online performance or a behind-the-scenes video. A musician offering guitar lessons might add a $30 bundle of PDF practice sheets or a $50 add-on to access a private Facebook group. These extras bump up the AOV without much additional effort, allowing you to earn more per customer right from the start.
The higher your AOV, the more you can afford to invest in acquiring that customer.
Mastering LTV: Build Long-Term Relationships for Big Payoffs
Once you’ve made the initial sale, it’s time to focus on the long game—LTV. This metric is all about how much a customer spends with you over their lifetime.
Increasing LTV means creating loyal fans and clients who keep coming back for more, whether it’s your next album, a new course, or a limited edition merch drop. The longer they stay engaged, the more revenue you can generate from that initial connection.
Here’s what to do next: Focus on creating opportunities for repeat sales. This could be a monthly membership for exclusive content, a series of advanced lessons, or access to a VIP group where you share new songs first. If a customer buys one lesson package, make sure there’s a next step—a more advanced course or a personalized one-on-one session. These ongoing offers keep them in your orbit and increase their value over time. It’s like turning a one-time gig into a residency; the stage is yours as long as you keep delivering value.
Why Outspending the Competition Works
Now, let’s connect the dots. By increasing AOV and LTV, you position yourself to outspend your competitors in acquiring new customers. And this matters—a lot.
When you can afford to pay more to bring in a new fan or client, you gain a massive advantage on advertising platforms. It means you can secure the best ad placements, outbid others, and stay visible to your target audience while others are forced to scale back.
Think about it: If your competitor can only afford to pay $5 per lead, but you can pay $20, you win. Your ads get shown more often, you reach more potential fans, and your message cuts through the noise. This is crucial in the crowded online world where every musician, teacher, and performer is vying for attention.
The ability to outspend isn’t about having deeper pockets; it’s about making each dollar work harder for you.
Getting Started: 3 Simple Steps to Boost AOV and LTV
- Bundle and Upsell: When someone buys your main offer, present them with a related product or service that complements their purchase. For example, if they purchase your online songwriting course, offer them a 30-minute one-on-one coaching session for a reduced rate. This not only boosts AOV but also introduces them to more of what you can offer.
- Create a Loyalty Program: Encourage repeat business with a simple loyalty program. Offer your regular clients a discount on every third purchase or early access to your next course or album. It doesn’t have to be complicated—just a small reward to show appreciation and keep them coming back.
- Automate Follow-Ups: Use email marketing to stay connected with past customers. After someone buys your online lesson or digital album, follow up a week later with a thank-you email and a recommendation for what they should check out next. It could be a new lesson series or exclusive merch. These follow-ups keep you top of mind and drive repeat purchases.
Real-World Example: How to Win with Higher AOV
Let’s say you’re running a Facebook ad campaign to sell access to your new virtual concert series. Each ticket sells for $20, and your ad costs are $10 per ticket sold. Right now, your profit is $10 per ticket. Not bad, but here’s how you can improve it.
If you add an upsell—a $15 bundle of exclusive backstage footage—your AOV potentially jumps from $20 to $35. Now, with every ticket sold, you’re not just breaking even on ad costs—you’re making an extra $15. This means you can afford to spend more on ads, outbidding competitors, and still come out ahead. It’s the kind of small change that makes a huge difference in your ability to reach a larger audience.
The Value of Knowing Your Numbers
You don’t have to be a math wizard to make this work. Just keep an eye on your AOV and LTV, and adjust your offers as you learn what resonates with your audience. Track how much your average customer spends in their first purchase and then over their lifetime. Use these numbers to determine how much you can afford to spend on ads.
For example, if your average customer spends $100 over the course of a year, you can afford to spend more than a competitor whose customers only spend $50. With a bit of fine-tuning, you’ll find yourself able to outbid others, landing your ads in front of more eyes and driving a steady stream of new fans and clients.
Focus on What Others Miss
Many musician entrepreneurs focus only on lowering their ad costs, thinking this will boost their profitability. But in reality, the real opportunity lies in maximizing the value of each customer you bring in. While others struggle to cut costs, you can focus on providing more value and earning more from each sale. It’s a shift in perspective that can change everything.
Instead of asking, “How can I lower my costs?” start asking, “How can I offer more so I can afford to pay more?” This shift is what separates those who get by from those who thrive in the competitive world of music entrepreneurship.
Wrapping It Up: Scale Up with the Encore Client System
The Encore Client System isn’t about finding shortcuts or gimmicks. It’s about understanding the economics of your business and using them to your advantage. By focusing on increasing AOV and LTV, you’ll put yourself in a position to outspend the competition, dominate ad spaces, and grow your audience faster than ever.
Remember, it’s not about how much you spend—it’s about how much you earn for every dollar you invest. The more value you create, the more you can afford to invest in finding new fans and clients. And when you do that, you’re not just building a business—you’re building a legacy.
Now, get out there and put these ideas into action. Your audience is waiting.
