Recently, I was browsing YouTube when I stumbled upon the topic of sales funnels.
Here’s how it happened: I was browsing videos on how to promote my digital product, and suddenly a video that had a curious title appeared on the sidebar. At first, I was hesitant but clicked on it none the less.
As watched the video, I asked myself, “What’s a sales funnel?”
A sales funnel is a core marketing strategy that can grow a company from virtually nothing to a multi-million-dollar marketing success overnight!
To understand the concept of sales funnels, I want to introduce you to Russell Brunson. He is a genius marketer who won Ernst & Young’s prestigious Entrepreneur of the Year Award.
He used sales funnels built inside ClickFunnels to take his company from 0 to $100 Million in 3 years.
He created ClickFunnels, a software built by marketers for marketers to grow the market for their products and their services.
Here is his story…
“Hey, this is Russell, and today I’m excited because today we’re talking about sales funnels. They are one of the coolest things in the world. However, for you to really utilize them and really have success, it’s vitally important that you not only get good at using funnels but actually become a marketer.
Sometimes, people have a product or service that they want to sell. They build a funnel, and they’re like, nobody’s buying, and nobody’s coming to my thing.
No one’s giving me an email. I’m just like, why not? It’s because it’s not just something you put up there and hope that the best happens.
It’s something that you have to understand the marketing behind it. So what I want to do during this walkthrough is to help you understand some of the core fundamental concepts of marketing that are essential for your success inside of funnels.
So What is a Sales Funnel?
To kind of step back because I know that a lot of people when they first get into ClickFunnels, don’t even know what a funnel is.
Most people apparently have heard of a website right? When I got started in this business 15 years ago, websites were the thing.
It is funny because I remember back then everybody would say, “Oh, do you think I need a website? Everyone’s talking about websites. Should I get one?”
And now I kind of laugh because there’s no business that doesn’t have a website. You have to have a website to exist.
And that’s kind of what funnels are today. Funnels are the future. They are the evolution of websites. That’s where everything is going.
As people always ask me like, well, do I need a funnel for my business? And I always kind of chuckle because they don’t understand the strategy.
When they do, it’s like, oh wow! Like there’s no point of a website. The only thing I need is a funnel.
So the first core concept you have to understand (I learned this initially from Dan Kennedy, one of my very first marketing mentors), whoever can spend the most money to acquire a customer wins.
I remember hearing that and just didn’t really resonate with me. But bear with me as I share this story with you.
You are going to find out that sales funnels are the key. The most important thing to understand business, in marketing and in funnels.
Let me tell you my story. So when I got started in this business back 15 years ago, I was in high school, and I had built my very first website selling potato guns.
I had created an information product. I set up a website, I’ve done my best. And back then the way that everybody got traffic to the websites was by using a website called Google.
So I went to Google, I started buying my very first Google ads. As a college student, I didn’t have a ton of money. So I was able to invest about $10 a day into Google ads.
The good thing for me is I was selling this DVD for $37 and what happens on average for every $10 I had spent, I sell about 1 DVD.
So you do the math on that. I was spending $10 making $37. I had $27 profit that I was putting inside of my pocket.
What happened is a little while later, Google shifted their algorithm. They changed how things work, and the price for every single click started skyrocketing.
One day I woke up and the ads that I was running, were the exactly the same and getting the same amount of clicks (the number of people coming into my website).
But now instead of spending $10 a day to get the same amount of traffic, I was spending $50 a day.
If you do the math on that, I spend $50 and made $37 a day. I was losing $13 every single day because of my website.
I don’t know about you, but really quickly, my wife and I realized we couldn’t keep doing that and stay in business. After four or five days I had to turn off my website. It was over for me.
Unfortunately, I and so many entrepreneurs, that is where most of our entrepreneurial dreams die when we spend money but can’t be profitable. Everything just falls apart.
A few months later, I had a friend who was in a similar business called me up.
He said, “Hey Russell, I think I figured out the secret. I started adding upsells to all of my products,” and I was like, “What do you mean upselling.”
He said, “Well, it’s kind of like McDonald’s, you’ve been to McDonald’s?”
I’m like, “Yeah.”
He said, “Do you know that for them to sell the hamburger, they would actually lose money, the money to pay for the ads, the promotion, the marketing. They actually lose money. They sell the hamburger for $2 or $3 bucks, and it costs them $4 to get you there in the drive in.”
Then he said, “They then added this little sentence, “Hey, would you like fries and a coke with that?”
And the majority of people say, “Oh yeah, sure. Throw that in there.”
And they did that.
The fries and the coke is where they make their money. So they spend $4 to get someone there. They sell a hamburger for $2and lose the dollar. They add fries and a coke and all of a sudden boom! They’re profitable.
And so he showed me his website. He had similar sites selling little information products.
He said, “Look, what I did is I started to adding upsells trying to sell the next thing that somebody would need if they bought my first product.
I said, “Well, how would that work for my potato guns? I don’t know.” He said, “Well, when somebody buys a potato gun DVD, what’s the next thing that they need?”
I was like, “Well, you know, the next thing that they buy is pipes, glue, barbecue igniter and all those pieces that you have to go to the store to get.”
He said, “You should make a kit and just upsell it.”
I was lucky I found someone up in northern Idaho who actually sold potato gun kits. We did a partnership and started adding those as upsells.
So, I transitioned my little website into my very first funnel.
I didn’t know that’s what it was called at the time, but it was a funnel.
So somebody would buy my DVD and then the next page I would upsell them a potato gun kit.
Now let’s look at the math and see how this all worked.
I was still spending $50 a day on Google. That didn’t change. They didn’t lower their prices for me. They were still charging the same amount, and I was still averaging about one sale a day.
I was only making $37and losing money. But what was cool is that 1 out of every 3 people who bought my DVD ended up buying my upsells – my kit.
My kit was $197. That means 1 out of 3 means I made an extra $65 for every DVD I sold. That meant I spent $50 a day and I was making $102 a day.
The math behind that is that I was actually making $52 every single day.
That is when the whole light bulb went off in my head. I had found the secret.
If I can spend more money to acquire a customer, I win. That’s when I realized that websites make be broke, but funnels actually made me money.
As I started my career, after I did that, I started getting excited. I started realizing, there are so many ways to do funnels.
I can put it funnels into any business. And I started doing that. I started going into really competitive markets where there’s tons of competition.
I would look at other people in those niches, and all they had was a website selling a product.
I would take the sales funnel concept and would go match and add upsells and downsells.
I started competing against these people. It was crazy. They could spend however many dollars a day they could spend on advertising.
I spend 2 or 3 times as much money and still make more money. Very quickly, I started beating all my competitors in every market I went into.
If you’re a business and you are breaking even or losing some money, a funnel is the secret.
That’s what gets you from breaking even to becoming profitable. If you’re doing well, but you want to grow, a funnel is the secrets. You make more money for every single person who comes into your funnel.
The funnels are the secrets to growing businesses and getting your message, your products, and your services out into the world.
Obviously there are lots of different types of funnels. Inside the cookbook, we have 22 different types.
Some of the funnels are specifically for selling a product.
Some funnels are for generating lead. Then, you can send emails to them and sell them products in the future.
Some are to generate applications so you can call them on the phone.
Some are funnels that get people into your actual location.
It doesn’t mean now there are different funnels for different situations. I think a lot of people think that funnels are this mysterious thing.
The concept of funnels is actually happening every single day right now. In fact, if you run an offline business, I promise you already have a funnel.
Let’s say you’re a chiropractor or a dentist. Somebody sees an ad. They drive by a billboard, see your place and come to your location. Or they get a referral and walk up to your door.
What’s the first thing they do? They open the door and walk in.
They’re greeted by somebody. It could be your front desk receptionist. The receptionist tries to get them to schedule an appointment or set up a call. Then after that happens, they are taken to the next step and the next step.
Every business has that.
There’s a process (kind of a funnel) you’re taking people through all the time. The online funnels are the same thing. People think it is something different, but it’s not.
I want you to understand the one core concept.
Whoever can spend the most money to acquire a customer wins.
That’s how you grow a company,
That’s how you beat your competitors,
That’s how you sell more products,
That how you get more ads shown.
All the things that you want in business all come off of from that concept. The way you’re able to spend more money profitably is by having a funnel.
Think about the business you’re in right now. Let’s say you do have a regular website.
That is where ClickFunnels comes into the picture.
It is an online sales funnel builder that helps you easily create funnels for your products and services online.
It simplifies the funnel creation process as it integrates all core elements needed to have an efficient sales funnel, so you can roll out a winning sales process every single time.
Without ClickFunnels, you would need web hosting, a landing page creator, email autoresponder, and a payment gateway. Furthermore, you would have to hire a programmer to make all the tools work in unison. That could be quite expensive and take months to implement.
ClickFunnels integrates all tools together, so you don’t have to worry about all the technical details. All tools are offered on a combined package. They also have that special funnel that is just personalized for you as long as you have a business.
You can try ClickFunnels for 14 days and see all the cool features they have.
If you have any questions about funnels or Clickfunnels, please ask below!