Funnel Hacker Onboarding #1 – Why Funnels?


On today’s special episode of the Marketing Secrets podcast, Russell shares a video for the new onboarding process in Clickfunnels. He talks about the four core things you should know and goes into detail on the first one, which is what a funnel is and does your business need funnels? Here are some awesome things you will hear in this episode:

  • Why having to spend more money to acquire a customer can be a good thing
  • A simple change Russell made to his website that saved his potato gun business
  • Why regular websites make business owners broke

Listen hear to find out more about the first core concept you need to know for the Funnel Hacker Onboarding process.

Full Episode Transcript Expand Transcript

What’s up everybody, this is Russell Brunson. I want to welcome you to the Marketing Secrets podcast. I’ve got a really special episode, actually the next 4 episodes are kind of some special episodes I want to share with you guys, that I think you’re going to love. So let’s get into it.

Alright so, on this first episode, I want to give you some back story on what’s happening and why I made these four special episodes for you. Right now inside Clickfunnels we are working towards our big viral video launch on the 15th. With that we are trying to change a whole bunch of things, fix the onboarding process, make thinks simpler, simpler for people. Because if we get a huge influx of customers, especially people who don’t really know our marketing, or understand what funnels are or how they’re doing it, we have to really simplify the process.

So that’s what we’re doing, a simplification of this whole thing. I don’t know if you’ve noticed, our Clickfunnels support has gotten so much better. We shifted from it taking on average, a little less than an hour to get live response, now we’re at a 3 minute medium. So many cool things we’ve been doing trying to prepare for this thing, which is now like two weeks away for us. It’s kind of stressful, not going to lie.

One of the cool things we’re having is this really cool gaming, badging system so when somebody comes into Clickfunnels there’s like this gamified onboarding process. You’re doing things, you’re moving throughout it, it’s going to be really cool. So by the time some of you guys are listening to this, it’ll actually be live so you can go and see it.

But in there, a couple of things with Clickfunnels. With Clickfunnels we’re teaching how to use the software, but also people have to understand the marketing behind it or else they’re not going to be successful with the software, so it’s kind of interesting. So I tried, how do I teach all this funnel psychology and stuff in a very short, compressed period of time? So we did that with one of the little badges that people will win here inside of the onboarding process. So that’s kind of what’s going down.

So with that I basically created four different videos that are the core foundational things to get people onboarded to understand the marketing behind funnels very, very quickly, very rapidly. So that’s what these episodes are about. I’m actually going to just play those four video clips. Now in the video clips I’ll say, “Click on the button down below.” And “You’re going to get this thing over here.” And “This is your homework assignment.” Just know that those are from the onboarding process. If you actually want to get the homework assignments, if you want to see the things I’ve talked about, you do actually have to login to Clickfunnels and go through the onboarding to get those.

But I want you to understand because I think, it hopefully made sense. Maybe it makes no sense. But I tried to really simplify the process of four core things that are the four things to really understand. Number one is why do we have funnels? Why is that important? Number two is the value ladder. A lot of times you think about value ladder from a high level, like first I’m going to do a book, then I’m going to have an event, then we’re going to do one on one coaching. But I want to talk about value ladder from a micro standpoint, instead of the macro.

So it’s like landing pages, how do you give value on that. And then what’s the value on the sales page, and the upsell page. How do you do that? So we go into the value ladder in video number two. Number three then is how to create an offer which is something, it’s funny in my mind, I think this common sense to me, or intuitive or I’ve done it so long I don’t think about this. But it seems like as we’ve been doing the Two Comma Club Coaching that one of the biggest problems and questions people have that Steven deals with everyday is how do we create an offer. So I’ve never really talked about that.

I guess I assumed, I think I assumed that people understood and I found out now that they don’t. So I go deep into how to create an actual offer, which I think is cool. Hopefully it was good, maybe it’s lame. But hopefully it turned out good to help you understand, “oh that’s what I need to be doing. I need to be creating lots and lots of offers. That’s the key to this whole thing.”

And then the fourth step was understanding copywriting because copywriting is like the last layer, it’s how you actually present the offer. So we have why you need a funnel, inside the funnel what is the value you’re providing each step inside the funnel. Then from there what’s the offer you’ve created in each step inside the funnel to actually provide that value and then the last one is the copywriting, which is how you actually sell the offer, which provides the value, which is how you get someone through your funnel. That’s kind of cool.

So anyway, that’s what I’m going to share with you guys. So over the next four episodes we’re going to go over that. So this first one we’re talking about why do we need a funnel. Some of you guys have obviously been funnel hackers forever and you know this stuff. Some of you guys might be like, “What the dump is Russell talking about?” So that’s what we’re talking about now, why funnels. I’m going to show you guys that clip and that’ll be what’s happening here on this episode of the Marketing Secrets podcast.

Hey this is Russell again and today I’m excited. Because today we’re not just talking about Clickfunnels, which is one of the coolest things in the world but for you to really utilize Clickfunnels and really have success from it, I think it’s vitally important that you not only get good at using the software and using the tool, but you actually become a marketer. Clickfunnels was built by marketers like me, for marketers to be able to market their products and services.

Sometimes people come in and have a product, they have a service they want to sell and they throw it into Clickfunnels and build a funnel and then they’re like, “No one’s buying it, nobody’s coming to my thing, no one’s giving me their email address. Why not?” It’s because it’s not just something you put up there and hope that the best happens. It’s something where you have to understand the marketing behind it.

So what I want to do during this walk through is to help you understand some of the core, fundamental concepts of marketing that are essential for your success inside of funnels. Because if you understand these things when you’re building funnels, your funnels will become profitable, they’ll actually make money and you’ll have success with Clickfunnels. And that’s our number one goal for you. So that’s kind of the game plan.

So to kind of step back, because I know that a lot of people when they first get into Clickfunnels, they don’t even know what a funnel is. So depending on where you’re at, you may know exactly what it is, you have a hazy idea, or you have no idea at all. Most people obviously have heard of a website. When I got started in this business 15 years ago, websites were the thing. And It’s funny because I remember back then everybody would come and they’d say, “Do you think I need a website? Everyone’s talking about websites. Should I get one?” and now we kind of laugh about that because there’s no business, I don’t think, that doesn’t have a website. You have to have a website to exist.

So we just kind of assume it now and that’s kind of what funnels are today. Funnels are the future. They are the evolution of websites. It’s where everything is going. People always ask me, “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, there’s no point to a website, the only thing I need is a funnel. It’s where everything’s going.”

So that’s what I wanted to really help you guys understand. I think the best way for you to really understand it, I’m going to tell you guys a story about how I kind of got it. And when you understand this, it should hopefully make more sense inside of your business.

So first core concept you have to understand, I learned this initially from one of my very first marketing mentors, his name is Dan Kennedy, and he said this, “Whoever can spend the most money to acquire a customer wins.” Now when I first heard that, it didn’t make perfect sense to me. I was like, “That doesn’t make any sense. Why would I want to spend a whole bunch of money?” And I remember hearing that and it didn’t really resonate with me. But bear with me as I share this story with you, it’s going to make, you’re going to find out, this is the key. The most important thing to understand in business, in marketing, in funnels. Whoever can spend the most money to acquire a customer wins.

So let me tell you my story. When I got started in this business back 15 years ago, I was in high school and I’d built my very first website selling potato guns. Now I’d created an information product, I setup a website, I’d done my best and back then the way everyone got trafficked to the websites was by using a website called Google. So I went to Google and started buying my very first Google ads. Now 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 happened is on average, for every $10 I’d spent, I’d sell about 1 DVD.

So you do the math on that, I was spending $10, making $37. So I had $27 profit that I was putting inside my pocket. What happened is a little while later, Google shifted their algorithms and kind of changed how things worked. And the price for every single click started going up and it got bigger and bigger and bigger. What happened is one day I woke up and the ads that I was running were exactly the same. I was getting the same amount of clicks, the same amount of people on 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, you spend $50 a day, make $37 a day, I was losing $13 every single day because of my website. Now I don’t know about you, but I really quickly, my wife and I realized that we couldn’t keep doing that and stay in business. After four or five days I had to turn off my website and it was over for me. And unfortunately for me and for so many entrepreneurs that’s where most entrepreneurial dreams die. You’re spending money and you can’t be profitable and it just falls apart.

I started learning this lesson. Whoever can spend the most money to acquire a customer wins. I couldn’t spend more than $37 a day, because that’s all I was making. I was capped at that. And that’s if I just wanted to break even. And so a few months later, I had a friend who was in a similar business to me and he called me up and said, “Hey Russell, I think I figured out this 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 McDonalds. You’ve been to McDonalds?” I said, “Yeah.” “You know when they you offer you a hamburger..” I said, “Yeah.” He said, “Did you know for them to sell that hamburger they actually lose money? The money for the ads, the promotion, the marketing, they actually lose money. So they sell you a hamburger for $2 or $3 and it costs them $4 or $5 to get you there in the drive-in.”

“But they added a little sentence on there. They said, ‘Hey, would you like fries and a coke with that?” and the majority of people say, ‘Oh yeah. Throw that in there.” and they did that, the fries and coke is where they make their money. So they spend $3 or $4 to get someone there, they sell a hamburger for $2, they lose a dollar, but they ad fries and a coke and all the sudden, boom. They’re profitable.”

When he said that, the light bulb went off in my head and I said, “okay, well how do I do this?” and so he showed me his website and he had similar websites to me selling little information products. He said, “Look, what I did is I started having upsells, trying to sell the next thing that someone would need if they bought my first product. “ And I said, “How would work for my potato guns? I don’t know.” And he said, “Well, when somebody buys a potato gun DVD what’s the next thing that they need?” and I was like, “Well, the next thing is they’d have to buy the pipes and the glue and the BBQ igniter and all those pieces that you have to go the store to get.” And he said, “You should make the kit and just upsell the kit.”

So I was lucky, I found someone up in Northern Idaho who actually sold potato gun kits and we did a partnership and started adding those as upsells. So I transitioned up 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 someone would buy my DVD and then the next page we’d upsell them a potato gun kit.

Now if you look at the math 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 me the same amount. And I was still averaging about one sale a day of my DVD. So I was only making $37, so I was actually losing money. But then, what was cool is that one out of every three people who bought my DVD ended up buying my upsell and buying my kit.

You look at the math, my kit was $197, that means one out of three, I made an extra $65 dollars for every DVD I sold. That means I spent $50 a day and I was making $102 a day. So you do the math behind that, I was actually making $52 every single day. Now that is when the whole light bulb went off in my head. That’s the secret. If I can spend more money to acquire a customer, then I win. That’s when I realized that websites made me broke, but funnels actually made me money.

When I started my career, after I did that, I started getting excited, I started realizing wow, there’s so many ways to do funnels and I could put funnels into any business. And I started doing that and started going into really competitive markets where there’s tons of competition. I would look and see these people, all they had was a website selling a product and I would take that concept and start upsells and downsells and adding different things in there and start competing against these people. And what’s crazy is they could spend however many dollars a day in advertizing. I could spend two or three times as much money and still make more money and very quickly I started beating out all my competitors in every market we went into.

That’s when I realized, just like Dan Kennedy told me, that whoever can spend the most money to acquire a customer wins. And that’s why funnels are so important. Especially if you’re struggling in your business right now. If you have a business and you’re break even or you’re 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 want to grow, a funnel is the secret. It’s how you start taking your business and scaling it. You make more money for every single person who comes into your funnel. The funnels are the secret to growing business and getting your message, your products, your services out into the world. That’s why we’re so excited about funnels.

So I wanted you guys to understand the concepts behind those things. Obviously there are lots of different types of funnels, as you learned in the earlier walk-through, inside the cookbook we had 22 different types. So some of the funnels are specifically for selling a product, like my potato gun DVD, where I sold a DVD and then I upsold a potato gun kit. Some funnels aren’t for that. Some funnels are for generating a lead, then you can send emails to them and sell them things in the future. Some are to generate applications so you can call them on the phone. Some are funnels to get people into your actual location.

It doesn’t really matter, there’s different funnels for different situations. But all a funnels is something where you’re taking somebody, and you’re taking them through this process to get the end result. What’s interesting is that I think a lot of people think that funnels are this mysterious thing, yet it’s happening every single day right now. In fact, if you run an offline business, I promise you, you already have a funnel. It may be a really bad one, but you have one. Think about this.

Let’s say you’re a chiropractor, or a dentist or something. Somebody sees an ad, they drive by and see your billboard, they see your place, they get a referral, something, and they come to your location, they walk up to your door, what’s they first thing they do? They open the door and walk in. Something’s happening, they’re coming into this funnel and they’re greeted by somebody. It could be your front desk receptionist or whoever. They’re saying something, they’re trying to get them to schedule an appointment or set up a call or whatever the thing might be and then after that happens they take them to the next step and the next step and every business has it. There’s some kind of funnel, some kind of process you’re taking people through all the time.

The online funnels are the same thing. People think its something different, but it’s not. If I’m driving an ad from Facebook, they’re going to come somewhere, to a page, and maybe on that page I’ll try to ask for their email address, or maybe I’m selling them a product, I’m taking them down a path, just like I would if I was selling somebody face to face.

So the coolest thing about funnels is it’s not something new or different that you’re not used to, it’s the same thing you’re used to just in an online format. When you start realizing that, you start realizing funnels are happening everywhere around you. For me, I started noticing them over and over and it gets me so excited to see it and now it’s coming back. How do I do this for my business online? So that’s kind of the game.

Now, I’m going to be walking through a lot more of these things through the next training videos down below, but I wanted you guys to understand, that’s what a funnel is. 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’s how you get your ads more out there, that’s how all the things you wan t in business, all come off that concept. Whoever can spend the most money to acquire a customer wins. And the way you’re able to spend more money profitably is by having a funnel.

So I hope at this point I’ve sold you on funnels. They are the key to everything in life, at least related to business. So I hope you understand that. With that said, your assignment right now is just to kind of think through that and understand that and understand the power and importance of funnels. Think about your existing business, think about the business you’re in right now. Let’s say you do have a regular website, how do you take all these things and how do you restructure them into an actual funnel? Where are you seeing funnels right now? If you have a regular business, do you see the funnel right now? What does that look like? What’s the process somebody’s coming through? And then what can you do to fix those things. And just start thinking about those things because it will get you excited about funnels. With that said, thanks so much and I’ll see you guys on the next training.

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Secret #1: How To Outspend EVERYONE Profitably

Is it possible to start a business without raising money? Russell explains how you can outspend all your competitors without needing to take a single dollar from venture capitalists.

The beginning of my journey from

$0 - $100,000,000

in revenue WITHOUT any venture captial

Who is Russell Brunson?

Over the past 10 years, Russell has built a following of over a million entrepreneurs, sold hundreds of thousands of copies of his books, popularized the concept of sales funnels, and co-founded a software company called ClickFunnels that helps tens of thousands of entrepreneurs quickly get their message out to the marketplace.