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Watch the Journey

288 - My Ninja Hack To 'RFM'

288 - My Ninja Hack To 'RFM'

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Something I’m testing to stimulate and increase the quality of our customers.

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It was crazy, within 24 hours of me doing that podcast, we made over 500 thousand dollars and smashed our goal. It’s crazy. The last two days we didn’t even need to do anything. But then the next two days, because of the momentum of that first initial push, it was insane. So we did, well we’ll see what happens today, in the last 3 days we needed an extra 300 thousand dollars in money, and we made almost a million.


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Good morning everybody! I hope you guys are doing awesome, it is New Year’s Eve morning. It’s the morning of the eve. I don’t know if that makes any sense. But I’m heading to the grocery store real quick to get some stuff for the party tonight. I’m really, really excited for it. Some cool things happening, just real quick.

For those of you guys who want a timeline for when, if you’re listening to this in the future, last night Rhonda Rousey fought what’s her name Nunez. The fight lasted less than 48 seconds, it was insane. I got home last night and seriously tried to find a pirated copy online because I had a hot date with my beautiful wife last night. It was crazy. I can’t even…I felt so bad for her. So that happened last night.

And last night I went and saw Star Wars Rouge One. I gotta tell you what, people are like, “Star Wars sucks. The new Star Wars is lame.” All these things, right. It was amazing. I don’t know. The fact that, I don’t want to spoil it for you, but the fact that everybody dies at the end was amazing. That was actually, I mean it’s sad, but that was so cool for the story line. And then the fact that the very end that Darth Vader has his fight scene and going through thrashing everyone. How could someone not think that movie was not amazing? I don’t know, anyway, it was amazing.

It’s funny because I get done, and not that I’m easily amused, but if you listened to my podcast a while ago, I don’t know how much money they invested in that, but I paid $12 for the ticket. Insane, they entertained me for that long and it was amazing. I loved it, it was really fun.

But I digress, because today I’ve been wanting to do a podcast because I have something that I’ve wanted to talk about for three days and I keep forgetting to talk to you guys about it. So I’m stopping everything, I almost did it last night at like two in the morning because I’m so excited but I was kind of tired. So I’m talking about it now. This is a cool thing I wanted to share with you guys because it was a big epiphany for me. In fact, let me catch up the last podcast. We told you about my goal, what we’re doing, trying to 3x the company. In one night we had three hundred thousand dollars in new money we had to make, it was insane. So we launched, some of you saw that. Plus we went and hit all of our other Hail Mary passes. Of the five Hail Mary passes we threw up, almost all of them hit.

It was crazy, within 24 hours of me doing that podcast, we made over 500 thousand dollars and smashed our goal. It’s crazy. The last two days we didn’t even need to do anything. But then the next two days, because of the momentum of that first initial push, it was insane. So we did, well we’ll see what happens today, in the last 3 days we needed an extra 300 thousand dollars in money, and we made almost a million.

In fact, it’s crazy, for us to triple the company, and I didn’t know this until after we did it. I’m glad our accountant didn’t tell me, because I would have thought it was impossible if he would have told me. I’m so glad that sometimes people don’t tell you stuff. Belief is such a funny thing. But he told me after we had smashed the record he was like, “Just to put this in perspective, for you guys to beat your record, in December, the worst month in the industry, you would have had to make 40% of the money that you had actually made all of the last year.” I was like, “What?” It’s just crazy. We ended up doing, we made, actually hit 50% of last year’s revenue in December, which is crazy because last year was an 8 figure year. So 50% of our revenue. We basically got half of our money last year, in December. And way more than 3x’d our company from the year before, which is crazy.

So I feel bad for the morons in 2017 who are running this company, because they gotta 3x that again. Oh crap, that’s me. Dangit. I was like, “The more we do now, the more we have to do next year.” So it’ll just keep raising the bar.

Alright, so I’m going to step back. There’s so many other cool things I want to share with you guys. Funnel Hacker TV episode one is finished and it’s amazing. All the other ones are in production. The two comma club video and award thing is in process and almost done. There’s so many, I can’t even tell you guys how many cool things are happening right now. The new Marketing In Your Car mp3/funnel/element in the editor are all going to be live next week, next Thursday. I’ve been going for four and a half minutes and I didn’t talk about what I’m talking about because I’m so excited. There’s so many cool things happening you guys. It’s just blowing my mind.

With all that kind of cool stuff happening. I want to share with you guys the gold nugget that I think is huge. That I can’t even, it’s going to be exciting. So here it is. For those of you guys, I feel fortunate that I got started, learning this game, back when the internet was just kind of getting new. So the only people to learn from, Corey Riddle was there. He was the pioneer, Corey Riddle. And then outside of him there was nobody that, there wasn’t a lot of people teaching. Then Armand Morin, there was a couple guys that came out, but there wasn’t a lot of stuff.

For me to learn this whole marketing game I had to go back to the old school. There’s no school like the old school. So I was learning from Gary Halpert and Dan Kennedy and Jay Abraham. So most of my foundation actually came from those guys. And then how do you actually apply it to internet marketing? And I feel bad because most of you guys who are listening now came in a day and age where there’s a million internet coaches and you miss a lot of this cool foundational stuff that I was blessed enough to get by studying these old legends.

So when I was learning from those guys, it was back, everything they were doing was direct mail. And I was always trying to figure out how to relate that back to what we’re doing. One of the big things, the way that direct mail would work is that you’d have an offer, you’d write a sales letter and you’d rent a list of people that are likely to buy your product. When you buy a list, how do you know if I’m getting a good list or a bad list. So these guys, I don’t know who it was that came up with it. But they came up a form to find out how good a list it actually is. So the formula was based on three letters. RFM. So RFM is like if you’re direct person this is second nature to you, if you’re not let me talk about what it is.

So RFM stands for Recency, Frequency, and then Monetary value. So RFM. So if I’m running a list, I want a list of people that have bought a business opportunity product. Let’s say I’m selling supplements, I want a list of people who have bought health supplements, or nerve supplements, whatever it is. So the first thing I want is Recency. Somebody who has purchased something recently. You might think that if someone bought something recently they’re not going to want my thing. No, it’s not true. One thing we know about buyers in heat, when somebody buys something, they buy a lot of things right around that period of time.

So if I’m selling a business opportunity, I want to sell somebody who’s recently bought a business opportunity. It kind of doesn’t make logical sense, but it makes perfect sense when you understand how buyers work. Think about when you first got into this business and you started learning about how to make money online, or whatever that thing was for you. You didn’t buy one thing. You were a buyer in heat and you bought a lot. So I want to sell to people who have bought things recently.

Second thing, is frequency. I want people who are buying things frequently. They didn’t just buy something once and you never hear from them again. I want someone who has bought five business opportunities in the last year. They’re frequently buying.

And the last one is M, Monetary value, people who are spending a lot of money. The more money they spend, the more they are likely to spend. People like me, I buy things recently, I buy things frequently, and I spend a lot of money. I’m like the dream buyer in the markets that I’m interested in. So RFM, that was the thing. So when I’m getting direct mail lists, the higher the RFM score is the more, the better that list is for me. What’s cool is in Clickfunnels, in Actionetics, those of you guys who’ve used the Actionetics, we haven’t started training hard core on this yet. That’ll be one of the big things for next year. But we have an RFM score. In fact, we have an RFMS score.

So if you look at the action score in contacts. So if you’re in Actionetics, click on contact, and you’ll see a little circle in the top right hand corner, it looks really cool and it’s their RFMS score, it stands for Recency, Frequency, Monetary Value, and then the S stands for Social. Because one cool thing that the internet has brought to us is the ability to watch people socially and stuff like that. One of my buddies, Jeremy Shoemoney, he found out, he did some tests and he said that….he owned an auto-responder company for a while so he was doing all sorts of cool tests and monetizations and stuff. And one of the magic things he brought to my world, he found out that somebody who joined his list who used their actual Facebook email address, or social media email address that’s hooked to a real social account, is worth 80 times more money than somebody who uses a throw-away email address. 80 times.

In fact, if people opted in and they didn’t use their Facebook email address, he would just delete them as a record. He wouldn’t even use them because it was such a waste of energy to market to them. For us, we have social as well, so RFMS. So you get the score on each of your clients that comes and you say, “Oh wow. RFMS.” How valuable is this person to you.

So you’ll see in Actionetics in the future, RFMS is going to be a big thing we’ll be talking more about. But I digress, let me come back to what I’m talking about. So for me, I had this big epiphany this weekend. As we were doing this launch and people were buying stuff and getting in. There’s something about people buying and new excitement and new energy. We’re doing this Funnel Immersion sale, and we sold a lot of them and people were going crazy. And everyone on the Facebook group was trying to convince everyone else to buy. I felt bad, some people in the Facebook group were like, “So what’s actually in this? Russell never mentioned it. So why am I giving Russell money?” and they’re like, “Who cares? Just do it. Russell says buy it, just buy it.” And everybody in our group is just jumping in, it was awesome. It was the coolest thing ever.

So anyway, I started thinking about this. And this is the pro and the con of what we’ve been doing over the last two years. My audience, especially my inner circle members and hopefully you guys listening as well. We’ve gotten really good at doing a webinar a week and bringing new blood into your business. Everybody’s doing that. So they’re getting people to purchase but then it’s kind of stopping there. We’re not getting people to purchase more often and that’s why a lot of people’s businesses are struggling. They’re getting really good at selling the first product, but then they have nothing else to offer to our audience to monetize the list that we’ve built.

So I started thinking about this and I was like, so next week on actually, it’s funny, you guys have been hearing this in the intro and the outro for a while. But we’re finally launching the mp3 player, and it’s amazing. So next Thursday we’re going to have a big launch around it, and we’re going to try to sell, I think I bought 7500 mp3 players. I think we’ll sell those in a week or so and then just go from there. I’m going to do a free plus shipping thing. And there’s not really, people are going to look at me like, “Russell this funnel is no good. You didn’t really monetize that well.” And it will, there’s actually, I think it’s a really cool funnel.

But you’re going to notice from me, I’m going to be putting out a lot of things, there just little front ends that are cool. T-shirts, just a lot of front end things, and the reason why, and I had this thing, if what we want our people doing. If someone wanted to rent a list and they’re looking for Recency, Frequency, and Monetary value, how do we stimulate those in our own lists? How do we stimulate?

So there’s different things, but I was looking at frequency. How do we stimulate frequency? No one’s ever talked about that, I’ve never thought about that before. The health of my customer list is going to be based on how frequently they’ve purchased from me. So if I don’t have very many opportunities for them to buy from me, they’re less likely to buy from me. And it’s hard to keep selling new info products. You’ve got to have a new hook, new angle. But I want people to keep buying from me. Because the act of buying is going to keep them warm.

In fact, I remember TJ Rohleder, he’s a bus op direct mail guy. I was talking to him one day and he was like, “Hey, you want to rent my list of buyers?” I was like, “What? Why would you do that?” and he was like, “The more they buy from you, the more they’re going to buy from me. I need to keep these guys frequently buying.” I was like, wow. How interesting. I never thought, it’s just such a different mindset from what I’ve always thought. Only sell them things every once in a while and build up the hype and make it this big thing. So for me, I think one of my big focuses for this year, I want to create frequency in my buying, in my customers buying habits. In your guys’. So I’m talking about you.

I want you buying from me often. In fact, I told my team that I want our customers buying something from us at least once a week minimum. I want that frequency up, because if they are buying once a week, they’re going to stay customers and they’re going to keep…..that’s the health of our list. If we want to increase the health of our list, we want to get them buying often. And I think my goal is at least once a week. So what I’m going to be doing, I’m going to try to create something cool once a week. Not like a new training program, or info product, those things are hard. But just a new thing, once a week, that you guys can buy from me.

So you’re going to see a couple of things. One, It’s going to be pulling out little pieces of like funnel Immersion. Funnel Immersion ended up with over a hundred hours of content, which is awesome. So I’m going to be pulling out little pieces of that, low ticket things, just to get people like, “Go buy this training on Tripwire.” Just pulling out little pieces. You’re going to see a lot more physical products, free plus shipping t-shirts. Free plus shipping shoes. Free plus shipping Clickfunnels bottles. Tons of little swag things that aren’t, I’m not going to make any money on them. But I’m just going to be stimulating frequency in my customers. Frequency in purchasing from my customers to increase the health of my list.

These aren’t going to become front end offers, we’re driving big Facebook ads to it, trying to optimize the campaign and all that stuff. No. I’m talking about the only goal of these things, is to increase the frequency of the buying patterns of my customers and then build a cult-ture. Because they’re going to have all these cool t-shirts and socks and shoes, and playing cards, and stickers. As many cool things as I can come up with. But that’s the thought.

Anyway, I want to throw it to you guys. I know I went really long winded on this one because I’m so excited. But think about that. How can you increase the frequency your customers are buying from you? Because that’s how we judge how good the health of a list is. It’s probably how we should judge how good the health of our customer base is. How often are they buying from you? And how do you now, now that you know that’s something that’s important, how do you stimulate that? How do you create cool crap that they’re going to want to buy?

It’s not going to be like, because it’s hard if you’re selling thousand dollar courses, you can’t do that every single week. People aren’t going to keep buying it. That’s not sustainable. So if you have a whole bunch of super low ticket things that you’re going to get from me. I’m not going to make any money on my free plus shipping things, but it stimulates the frequency of buying in my customers, which makes them better customers when I do come out with the big things. They’re used to buying weekly from me, they’re enjoying it. There’s an addiction that comes with that. I don’t know about you, but I’m addicted to buying things. I love buying things. I want to feed that addiction through frequency.

So that’s my thought for you, just think about that. How do you stimulate frequency in your customers? Doesn’t have to be weekly like me, because that’s going to be kind of crazy for most people, even for me. I don’t know how I’m going to keep up with that. But for you, think about that. Maybe it’s once a month, how do you get them, how do you increase frequency of buying?

So anyway, there you go. And I’m going to leave it there for today, but hopefully this stimulates some thoughts in your mind. How do you know this? How do you increase the R, the F, the M? How do you increase all those across the board? So if you start thinking about that and stimulating it. I need people who buy recently so, that comes back to frequency too. If I’m going to get people to buy something each week, they’re recent, and they’re frequent. So I kind of kill two birds with one stone. Two things are increased in my list of customer health. Next is monetary value, obviously free plus shipping is not, but if you sprinkle it every six weeks or every quarter with a high ticket thing, boom, it increases monetary value and keeps this thing going. And it increases the health base of your customer list.

So that’s what I’m thinking about this New Year’s. Hope it gives you guys some ideas as well. There’s some magic to this you guys. I looking right now at our, in fact I got a video from John on our team the other day. He’s like, “Look, our cult is way better than their cult.” I’m like, “What?” and I look at this video and he’s showing our social stuff versus Lead Pages, versus InfusionSoft, and if you look at it, our social profile is like, boom, trending up. People talking about us, trending up. All these things are trending up. Then you look at Lead Pages, trending down. Then you look at InfusionSoft, trending down. No one’s talking about them. Nobody care about them. What’s the difference? Boom, we’re stimulating growth, stimulating conversations, making things exciting, building a culture. Now we’re going to start increasing the frequency of this stuff and it’s going to be insane. I’m so excited.

Anyway, appreciate you all. I gotta go get some groceries or my wife’s going to kill me. So I will talk to you guys all again soon. Have an amazing New Years. You’re probably going to hear this after New Years, so I hope you had an amazing New Years. If you’re listening to this after Thursday go get your free MP3 player at Thanks everybody, talk to you guys soon.


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