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(MS) You're One Funnel Away - Part 1 (Revisited)

514 - Creating Your Lead Funnel (ClickFunnels) -5 Day Lead Challenge - Day 3 of 5

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Episode Recap:

In 2017, I recorded this podcast with a recap of my (then) most recent Funnel Hacking LIVE presentation entitled, “You’re One Funnel Away”. As we’ve been developing the funnel strategies further and further, I wanted to take a moment and touch base again on this concept, because it’s core to everything we’re doing. And while you listen to this 2-part episode, listen and relate your business to my story, specifically in this episode - how I saved Christmas with a funnel.

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Best Quote:

These little things kept happening, it was so cool. And every project did a little better. It was like slow momentum, every one did a little better than the last one because I got more customers coming in and more people. I kept making things in different markets, potato guns and all these sorts of different things and every one of them got a little better and it was fun. I remember back then I started doing tele-seminars and I’d get 30 people online and I’d talk about something and sell it at the end and some people would buy it and it was so exciting. That was the start of this whole thing for me.


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Hey everyone this is Russell Brunson, welcome to a special Marketing Secrets episode where I’m going to let you guys see behind the scenes at one of our presentations at last year’s Funnel Hacking Live.

So this presentation is one that I was really nervous at giving, it was called “One Funnel Away” which is the whole theme of the last Funnel Hacking Live event. It’s something that I wanted to share my failures, my bankruptcy stories, the ups and the downs. Everyone here talks about the highlight reel; I wanted to share the other side of it. I don’t typically release sessions from Funnel Hacking anywhere but this one had such a big impact on our audience and let people know that everyone, including me, especially me, has big ups and big downs, yet we’re just one funnel away from success each time. So as we’re preparing for the next Funnel Hacking Live, which will be coming live soon at, I was re-watching some of the presentations and saw this one and wanted more people to have this.

So I’m going to break this up into two episodes. This is episode number one, go check it out. Leave me a comment if you like it, subscribe, tell other people about it and hopefully it will give you some hope and faith that the path you are on is right and this process is going to get you what you want and desire and let you serve other people. So that’s the game plan, check out this episode and I will see you on part two tomorrow.
Okay, so what I want to do is go on a journey with you guys, my journey, which started way back over here on my timeline, in my back story. So those who know me or have heard about me or know anything about this, initially I started learning about business when I was a 12 or 13 year old kid, sitting there with my dad watching the news and I was like, “I can’t believe he hasn’t told me to go to bed yet. This is the coolest thing in world.” And the news was on and when it ended Mash came on and I was like, “He must think I’m asleep or something. He hasn’t told me to go to bed.” I’m sitting there trying not to move, I didn’t want to let him know. I’m sitting there watching Mash with my dad, I thought it was the coolest thing in the whole world.

Then when Mash got done, he still didn’t say anything, I was like, “He’s gotta be convinced I’m asleep, this is whole cool.” Then the next thing came one and it was an infomercial, a late night infomercial with Don Lepre. How many of you guys remember Don Lepre? Yes, just an amazing person, he had an infomercial and I was so grateful for his passion and excitement, talking about what he was doing. The infomercial was about how to place tiny little classified ads and you can make a fortune. And it was it was the coolest thing. I remember sitting there listening to him and I was like, “This makes so much sense.” I’m looking at my dad like, are you paying attention to what’s happening? The whole thing made so much sense to me.

He said, “I took a classified ad, put it in the newspaper and I made 30 dollars and told my friends and family, ‘I made $30. I started a business this weekend,’ and they all laughed at me. So then I took that same ad and ran it in a thousand newspapers the next month and made 30 thousand dollars.” And I was like, mind blown. I’ve been ruined from that day on when it comes to the world. I can’t not do something like this. I was so excited, saved a bunch of money mowing lawns and everything and eventually I bought Don Lepre’s kit on the infomercial and I read it all and learned it and wasn’t able to actually do anything though because I didn’t have the money to direct mail and things like that.

But that’s how I first heard about the direct response market. I remember after I got Don Lepre’s kit I was so excited I was at the grocery store with my mom and after we were walking out, on the checkout stand there was a magazine called “Small Business Opportunity Magazine” that a whole bunch of cartoon people on the front of it. How many of you guys have seen that magazine before? That’s it? This is the greatest swipe file of direct response ads ever.

So I didn’t know it at the time, but there were thirty things, how to get rich quick. I’m like, sweet, I want to get rich quick. That’d be awesome. So I had my mom buy this magazine and I went home. If you look at it, it’s 140 pages of ads and four pages of articles, it’s pretty awesome. I was looking at every single ad, “Oh my gosh. I can sell gold chains at the mall and make money.” So I called this number for a free info kit. Free info kit gets sent to my house. And the next page it’s like something else. Page after page, all 140 pages I called every single 800 number to request the free info kit.

And about a week later, I started getting these gifts in the mail. At first it was 2 or 3 letters, then it was 10 or 15, then it was 60 or 70 letters. And I think those companies started selling my name to other mailing lists, because soon it was hundreds of letters. And the mailman could not physically shove the junk mail in the mailbox anymore because there was so much coming in. So I get home from junior high. I’d come home and walk in the house and see it on the bar. I’d see two or three letters for my parents and Russell’s stack of junk mail. They’re like, “There’s your junk mail.” And I’d take it my room and open it and read these things like, this is so cool. And all these money making ideas.

So that happened at a young age. Unfortunately I couldn’t do anything, well I tried once. This one person convinced me that direct mail was the key and all you do is get a list of buyers who bought similar products and write a sales letter and you mail it to those people and a percentage will buy. I’m like, “Awesome.” The only problem is I can’t afford a mailing list, I don’t have any stamps or envelopes or anything. So I’d done something, I made a little money doing some chores. So I asked my mom to take that money and instead buy stamps and bring me home stamps. So she brought me home 38 stamps. That’s how much money I’d made.

I had 38 stamps and I’m like, “This is so awesome.” I used to tell my brothers and sister and parents, my parents didn’t tease me, but my brothers and sisters did. I was like, “I’m going to be a millionaire any minute now. This is going to work.” And they’d be like, “Oh, are you a millionaire yet?” and totally make fun of me. So I had these 38 stamps and I’m like, “If I can get 10% of these people to buy, that’s 3 people. If I sell a $50 product that’s $150. I’ll be rich.” I didn’t know what to do, they talked about sales letters so I was like, “I’ll write a sales letter.” So I printed it out on blue paper because blue paper they’d be more likely to read. So I put it on my parents computer, wrote a sales letter, printed out 38 copies of it. I couldn’t afford an envelope so I just folded it and stapled it.
I didn’t actually have a mailing list, so I opened up the white pages and flipped through and randomly picked 38 names, I’m like, “This is going to be huge.” So I wrote it, put my stamp on it, and all my savings and put it in the mailbox and I was like, “I’m going to be rich. This is going to be amazing.” I sent it out, told everybody, “When this gets out, it’ll be over. I’ll be able to move out, get my own house. It’s going to be amazing.” Unfortunately nobody responded. That was the only time I was able to invest. I didn’t have the money to buy a classified ad in the newspaper so I just kind of kept reading all this junk mail and learning from all these people.

A couple of years later I got into wrestling and forgot about making money. But there was this seed that had been planted. I wrestled through high school, had a lot of fun, got a college scholarship, wrestled through college. When I was going to college I met my insanely beautiful wife, that most of you guys….if not she’s here hiding. I met her and fell in love really quick and spent the next 3 or 4 months trying to convince her, in fact that was probably the hardest sale I ever had, to convince her I was the right one. Did you see that picture? I was kind of a geek, not going to lie. Anyway, I convinced her to marry me and it was amazing. About the time we got engaged, I realized my dad said, “When you get married, I’m not going to keep supporting you. That’s when you become a real man.”

I’m like, “What? But dad I’m wrestling.” And he’d always send me money to pay for food and stuff but he’s like, “No, if you get married, you’re on your own.” I was like, “Crap, I want to get married but I don’t want to grow up yet.” And my wife, fiancé at the time, she was working and making money and got a second job to support us and I was wrestling and didn’t have any money. I’m like, “I gotta do something.” And luckily the greatest thing in the world happened, that happens to a lot of us. I was up late at night stressing out about this and then this little thing popped up on TV, it was an infomercial.

It was this guy talking about how people are making money with these little websites and that they were doing an event at Holiday Inn the next day and you come and get tickets. I’m like, “Oh! This is it.” So I called the number and get my tickets to Holiday Inn and show up and it’s a little, tiny room with 50 really desperate people sitting there. I get there and there’s a dude onstage all in a suit and tie and I’m like, “Whoa, that guy looks rich.” And then he started doing this thing and within 5 minutes he closed me on this $50 thing. I ran in the back and had my one credit card with a $300 credit limit, that’s all I had earned so far. So I bought my $50 dollar thing and I’m like, “I’m going to make so much money with this.”

And then he pitched on a website and it was $3 grand and everybody’s running back buying websites and I’m like, “I can’t afford a website. Dangit.” And then he pitched website hosting at $80 a month and all these things. They’re teaching, “If you call your bank you can get your credit extended.” I’m like, “Oh, sweet. I didn’t know that.” So I’m calling the bank like, “Hey can you make my credit line a thousand dollars.” I’m learning all these things, getting my credit card bigger, which was kind of cool. The I bought everything he told me. I needed the whole thing, so I buy it all. He convinced me, he’s like, “Paypal is evil. You have to have a merchant account. And it’s $6000 for a merchant account.” I’m like, “I don’t have $6000 yet.” And he’s like, “Well you can’t make money online without a merchant account. $6 grand.”

But I couldn’t afford that, but I had everything else. I went home and I was like, “cool, I have a domain name, I got hosting, a thousand dollars worth of internet web stuff.” I jumped online and I’m like, “I’m going to have a website.” I was getting excited. I started Googling things and eventually within 15 minutes I realized website hosting is not $80 a month, I realized a domain name is not $1000. I was like, crap I got taken. I was freaked out.

So I ended up calling the next day, I was like, “My son is a minor and he was at your event last night and he charged all his credit cards and he needs to be out of this contract.” And they got me out of the contract and gave me my money back. That’s one trick, if you ever need to get out of a contract, it’s worked almost every time. So those are the real Dotcom Secrets.

So at that point I was in, I was like, “Oh my gosh. I need to sell stuff on the internet. That started this thing about the time my wife and I were getting married and I was trying to sell stuff. I was selling all sorts of things. I remember initially thought it was eBay. Maybe people make money on eBay. I remember driving to the thrift store buying everything I could find that I thought was worth value. On my bike, with grocery sacks full of crap, riding my bike back home. I bought a Michael Jackson record. I was like, “Records are so old, this has got to be worth hundreds of dollars.” I ended up selling it for 13 cents on eBay. I was so depressed. I was boxing and shipping things out and when all was said and done I made $40 or $50 but my costs were $150-200. I was going and trying to find boxes for all of these weird things I had bought. It was just horrible.

I was sitting at the post office with 18 different boxes of weird things, records and all these things. And there’s this dude standing there with a big box full of cd’s. hundreds and hundreds of cd’s, and I’m here with a wheel barrel full of odd boxes and I’m like, “Dude, what are you selling?” and he’s like, “Oh I sell information products.” I was like, “What does that mean?” and he’s like, “All these cd’s have info burned on them and people pay me and I ship them a cd.” I’m like, “Is it the same cd?” and he’s like, “Yeah, I have a cd burner. I just burn them. Then I put them in these things and send them out.”

I was like, “Are you kidding me?” They’re all the same size. I could just buy one box, it would be so much easier. So that’s when we started talking about information products. I was like, “I didn’t know that was even a thing.” I got all excited about information products and started Googling stuff and started learning about information products.

I ended up buying this cd and it was a cd that 8000 coloring book pages for kids and the guy was selling it, I emailed him and said, “This cd is cool. Can I buy the rights to this cd, I want to sell it?” and he was like, “I’ve never done that before, but sure for $200 I’ll sell you the rights and you can sell it too.” I’m like, “Sweet.” So I gave him $200 that I didn’t have and he gave me the rights and I had the cd and basically all I had to do was burn it on a cd burner and I could mail it out as many times as I wanted. And he had a big long sales letter he let me use, so I put his sales letter up and started trying things.

What was cool, I started making sales. Not a lot, every other week it would make a sale for $20. I would burn the cd and ship it out and I was like, “This is so cool.” Information products became the thing and I was trying to figure out how that whole thing worked and I started bumping into people like Yanik Silver and all these different internet marketing guru’s and watching what they were doing, selling information products and I was just hooked at that point.

About that time I started watching what they were doing and I started learning and creating different things. In fact, one of my very first products ever, does anybody in this room remember the product Zip Brander? Three people. I had all these info products and I was buying resell rights to other people’s products and I’m selling these things. And I was like, wouldn’t it be cool if there was a way if when I sent this digital file to somebody, when they first opened it, instead of just getting the file they see an ad for my product and then they see the file? That was my first light bulb. It’s like zipping a file, but when you zip it would be branded and when they open it, they see your ad first. I was like this is it. I thought this was it. That was my idea, I thought it was going to change the world as we know it.

So I bought and I remember Arman Morin at the time was one of the guys I was studying. I was like Arman is so cool. Every one of his sites were so similar and I’m looking and Arman always had a big header graphic with his picture with his arms folded with a suit coat on. I was like, that’s what I need. So I got a picture of me folding my arms in a suit coat. And he had a header, so I had a header that looked just like his. His were always Ecover Generator so I was like Zipbrander, looked identical. This is where my funnel hacking started. He had this big long sales letter. I was like, this looks weird, but Arman’s doing it so I’m going to do it.

So I looked at his sales letter and wrote my own based on that. Then I was like how do I create this, I didn’t know that. My first thought is I should just become a computer engineer. That would be the coolest thing. I want to make software. So I switched my major to Computer Information Systems so I could learn how to code. It was about the time the semester was changing. So I get to class the first day and the teacher gets up there and starts talking about code and databases and all these things and structures and I was sitting there like, “oh crap. I have no idea what he’s talking about. Not even a little bit.” Within about 15 seconds I realized I am not a coder and never will be a coder. I couldn’t even understand. I thought it was a Spanish class or something. I was like I don’t even know what he’s saying.

But I didn’t know how to change my major again, so I just kind of stayed in it. I kind of got depressed, that was my one idea. I guess I can’t do it. And then I remember I was listening to a tele-seminar. I was at a wrestling tournament and we were driving to California, it was a 16 hour drive. I downloaded on my, it was pre-iPod’s, it was this tape player thing, a whole bunch of tele-seminar’s that Arman had done. I’m listening to these things in the back of the car where all these other wrestlers are partying and having fun and listening to music and I’m listening to these seminars. They were totally making fun of me the whole time, if you meet any of my wrestling buddies, they relentlessly made fun of me the entire trip. “You’re such a nerd. You’re never going to be able make money.” I’m like, “I swear I will.”

So I’m listening to these the whole way and on one of these things like 22 hours into this thing Arman says, “I don’t code software. I go to Scriptlance and I pay guys in Romania and India hardly anything to build stuff.” And I was like, Arman’s not a programmer? I thought he was a programmer. There are people in India who can do this? So literally that night I jumped on Scriptlance and actually prior to that I had tried to hire a company to do it and they had quoted me $5 thousand. I was like, “Okay, I don’t have that.”

So I took the same description I had given these guys and posted it on Scriptlance and instantly I got, all these people started bidding on it. One guy was like, “I’ll do it for $5000.” “I’ll do it for $2000.” “For $1000.” “For $500” and it came all the way down to this guy in India who was like, “I’ll do it for $20” I was like, “I got $20” So I picked him.

He was like, “So this is how I’m going to do it.” I was like, “I don’t know what you’re talking about. Just do it.” He spent 2 or 3 days and sent it back, “Here it is.” I tried it. Zipped a file and opened it and my ad showed up and I was like, “you did it. Oh my gosh.” And he’s like, “yeah, thanks for the $20.” And I was like, “No, this is going to be huge. I’m going to make millions of dollars and I feel guilty giving you $20, can I give you an extra hundred?” and he’s like, “Yeah.” So I gave him $100 and I felt good about it.

That was my very first software product that I ever did and it didn’t make me millions. I probably made 10-20 grand with that product. But it was the first one that I had a sales letter, started driving traffic, doing Google ads, I was finding JV, all these things and I started selling it and that was the first thing that made me any money. Isn’t that exciting? How many of you guys want Zipbrander? The first 30 people in the back….just kidding. It doesn’t work anymore. The coding stopped working 10 internets ago. So it’s done.

But that was my first software product, it was so cool. About that time was when I started learning more about info products. That when the Potato gun came out, the potato gun DVD. All these things, doing all these little businesses and none of them were huge smashing, million dollar successes. I didn’t pull a Dan Henrie and read a book and 5 months later made a million bucks. I was like, “Hey I made 5 grand here. Oh I made 200 dollars here.”

These little things kept happening, it was so cool. And every project did a little better. It was like slow momentum, every one did a little better than the last one because I got more customers coming in and more people. I kept making things in different markets, potato guns and all these sorts of different things and every one of them got a little better and it was fun. I remember back then I started doing tele-seminars and I’d get 30 people online and I’d talk about something and sell it at the end and some people would buy it and it was so exciting. That was the start of this whole thing for me.

Then one of my friends, BJ, he’s sitting over here. He was a wrestler in Nebraska, I wrestled at Boise State, it was my senior year, I’d made pretty good money. Probably $150-200,000, somewhere in there my senior year. He’d heard about and Boise State was wrestling Nebraska and we’re sitting there wrestling and we’re glaring at each other because we’re opposite teams and afterwards he’s like, “Hey man, someone told me you’re making money. Is that true?” I was like, “Yeah.” And he’s like, “How are you doing it?” So we talked about it a little bit.

We flew back to our places to finish out college and we kind of talked back and forth for a little while. Then after college got done he’s like, “Hey man, I want to do what you’re doing. Can I get a job?” I was like, “You want a job?” and he’s like, “Yeah.” I’m like, “What would you do all day?” and he’s like, “I don’t know. I’ll do what you’re doing.” I’m like, “okay, can we talk about marketing stuff.” He’s like, “I love talking about that.” I’m like, “This will be so cool. I have no one to talk about this stuff.” I thought it was just me.

I’m like, “So you’re actually into this stuff.” He’s like, “Yeah man.” I’m like, “Okay, yeah I’ll give you a job. Come on out.” So he jumps on a plane, flies to Boise and literally moves into our office. Slept in our office for 6 months. He’s like, “so how does this work?” I’d never had an employee before. “I don’t really know either. I’ll pay you, we can talk about marketing and sell stuff and it’ll be awesome.” Me as an entrepreneur, I was in this mode of eat what you kill. I’d sell something, make a bunch of money and I was like, sweet. Then we wouldn’t do anything for 4 or 5 months, then create something, sell it, make a bunch of money and that’s the model I was on for a long time.

Then BJ came and wanted to be an employee and I was so excited. I’m like, “sure.” He’s an employee and the weirdest thing happened. Every two weeks he wanted to get paid whether we made money or not. I had never heard that. I was like, “Okay, here’s some more money.” And then two weeks later, more money. I was like, oh crap we haven’t sold anything for a long time. Then he had some other friends who came along like, “This is cool. I want to work for you too.” I’m like, “Alright come on over. Let’s get jobs.” So I gave them jobs, his buddies and his wife and some other people. I got all these friends that want to talk about marketing with me, this is so fun.

So we had all these people coming over but the problem was that every two weeks they wanted to get paid, but we weren’t selling anything. So I’d go lock myself in the back room and be like, “Don’t bug me guys, I gotta make money so we can all hang out again.” So I’d close the door and start working and selling stuff. They’d be like, “Dude can we help you?” I’d be like, “Shut up! If you talk to me I can’t make money to pay you, so go away.” They’re like, “We feel bad, we want to help you Russell.” So I’m like, “I don’t have time to train you, otherwise we can’t make money to pay payroll.” That was this thing.

What’s interesting is, this is one of my first lessons as an entrepreneur, that was tough. We had 5 or 6 people at the time. We hired this video guy that was….there’s so many side stories, I can’t tell you all of them. He was an Indian guy who had shorts up to here and had a braid that went past his shorts. Because he told me in the interview, “Yeah, I’m a video guy.” I’m like, “Are you kidding me? We could do videos!” and he’s like, “Yeah, I got all sorts of video stuff.” So we hired him and it turned out he didn’t know anything about video at all.

But I didn’t dare to fire him because I had never fired anyone and I was so scared. Everyday we’re like, “I wish he would just quit. I don’t dare to fire him.” I don’t know what to do. All these weird learning things. This went on for a while. I was launching something every week trying to make money to cover payroll and it was this huge thing and became horribly not fun for a long time. It kept getting worse and worse to the point where it was December, it was the beginning of December, it was freezing cold and I was looking at everything and every penny I’d ever made was gone. Every idea I had how I could hustle and sell to different markets was gone. I was just drained, I didn’t know what to do.

It was Christmas time, I was outside and I went to go hang up lights around my house, and someone had sent me an iPod Nano and Stu MacLaren had done an event, I don’t even know if he knows this, he sent me the links, so I downloaded the links to his event on this iPod, plug it into my ears and start hanging up Christmas lights, which I had never done before, it was a horrible job. Turns out you can hire people for really cheap to do that and the lights look really straight. Mine were like, they looked really bad. I kept stapling through the wires and kill the lights. It was bad. And my fingers were so numb. I had this little light coat on and my fingers were so numb and I had to have my gloves off to squeeze the thing and I’d put them back in to get warm and I’d go back and I didn’t want to go back inside and get warm because I was so depressed.

I knew that the next payroll was coming up in a week or so and I was like, I don’t have money. I don’t know what to do. Tomorrow I need to go in and tell these guys or it’s going to be really awkward when payroll does come and I’m like sorry guys. So I have to tell everyone this. So I stayed outside in the cold because I didn’t want to go in and I was trying to think. So I’m stapling these Christmas lights around the house as I’m listening to this audio. In the audio there’s two different speakers talking about different business models. Back then no one was calling these things funnels, but they talked about these different business models that they were doing.

One of them was an offline guy, his name is John Olmos, some of you guys have heard about him, he’s the guy that taught me about the attractive character. He said, “I have this thing I’ve been doing where I create these cd’s and tell everyone it’s so controversial that I can’t put it on the internet.” Which is the funniest thing ever. “Because of that you have to pay me $5 and I’ll ship you this cd.” He said, “What happens is I ship them this cd but then that customer financed me sending them a sales letter.” I was like, that is brilliant, we gotta do that. I remember I filmed this cd like two years earlier, or a DVD. I was like, we could do that. We could burn that DVD and we could start sending that out.

So that was the first presentation, John Olmos. The next presentation was this guy named Matt Bacak, who’s become a close friend since then. Matt was talking about his business model, he said, “What I do is send out cd’s and people who bought cd’s, I call them on the phone and we sell them coaching.” And I was like, “You can call people on the phone.” I’m an internet nerd but I was like, “Wait..” and I was super scared but I knew there was a guy that worked for me at the time, one of my 5 or 6 friends, who had sold things on the phone before

All the sudden I was like, “Oh my gosh. What if we figured out something we could do where we could save this thing. It might actually be possible.” I’m started getting more excited. I’m hanging up Christmas lights and I’m just like, this funnel was going through my head and I’m like okay I think I’ve figured out a blend of what these two guys are saying, it could actually work.

So by the time I got done hanging up Christmas lights I texted all of them, “Guys, you don’t know this yet, we’re about to go bankrupt, but I got an idea that I think can save it. Let’s meet tomorrow morning early, I’m going to walk you guys through what I think could actually save this business.” Send.

They’re all texting back, “What? We’re going through bankruptcy.” And I’m like, “Yeah, we’re about to.” Luckily they all came in the next day and I’m like, “Okay you guys, I got a model. This is what we’re going to do.

Remember that DVD I did like two years ago? We’re going to take that, it’s going to be a free DVD, it’s going to be so controversial we can’t sell it on the internet. We’ll charge $4.95 shipping and handling. We’ll send this DVD out to them and inside the DVD we’re going to have a sales letter where we’re going to sell $5500.” I don’t know why we said that price, but they’re like, “cool, what are we going to sell for $5500?” And I’m like, “I don’t know. What do you guys want to sell?”

So we had our white board and we’re like, “If someone is going to give us $5500, it would have to be something amazing.” And we made this huge list for 2 hours of all the amazingness. I was like, “That would be awesome, but I’m not willing to do half of that stuff.” We’re not going to have them sleep at my house, we’re not going to…we crossed out all these things. I’m like, “I’m actually willing to sell this. I think people would actually buy that. That would be insane.”

So we took that and at the same time we added a newsletter. So if somebody bought the cd they joined a newsletter that was $37 a month. So they came here, joined the newsletter, $37 a month. And that was the funnel. Back then we didn’t have Clickfunnels so luckily we had one or two nerds still working for us that were able to put these pieces together and we had this really rudimentary, horrible looking funnel and it was live within a day and we’re like, “Okay let’s try it.” At the time I had a little tiny email list, this is pre-Facebook, this is Myspace days. So we push some traffic to this and we end up selling a couple hundred of these cd’s. In the cd we shipped out to them came a sales letter talking about this and it put people in a continuity program and then we called everybody about the cd, “Hey you bought the cd, how would you like to come to Boise and we’re going to give you this.” This was our hail mary pass. Please let this work.

We did that, we focused on it. We drove traffic to it, and when all was said and done, over the next two week period of time we got 800 people to get our free cd. From that, the way we used to do it is everybody was on continuity. So we had 800 people that were on this $37 continuity, but it was free for a month, so we weren’t making any money here. But we had 800 people’s phone numbers who we were able to call.

So we started calling them, and we didn’t know anything about phone sales or anything. We were like, “Hey man, you bought this cd, you want to come hang out with Russell?” They were like, “Yeah.” And in that two week period of time we sold 10 people at $5500 a piece, which ended up being $55k and that funnel saved Christmas. Is that awesome? It’s awesome.

I was able to pay all of our payroll. We had some money left over, it was awesome. And the cool thing is 30 days later, this thing started and all these people were on continuity and suddenly we had a business. This is when I learned the power of continuity. David Frye, who’s one of my favorite people in the whole world, he’s here in the audience I think, he used to always say, “Until you have continuity you don’t have a business.” And I never understood that until this. There’s David smiling over there. I love that guy. Now I found out, I had all these people.

So what happened, I don’t know the math, 800 times $37 a month, it’s like $25 k a month and we knew we have continuity now. Every single month we have $25k, that means I can pay for employees. I realized, you don’t hire employees before you have continuity. Now we had continuity. Now we actually had people covered and we could actually focus and think and that was the first funnel that saved things and turned it around for us.


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