What is a sales funnel? A sales funnel is a series of steps you take someone through so they can continue to buy from you.
We are all experienced with sales funnels. Practically every time we go to the store to make a purchased you are offered additional options you can add to our purchase. Buy an electronic item and you are offered a extended service plan. Buy a car and you are offered an extended warranty plan. Buy a hamburger and you are offered fries and a Coke.
Buying online is no different. We make a purchase. then you are offered various upgrades. These upsells and downsells are part of the selling process. For example, here is a description of the sales funnel for a popular marketing product.
Sales funnels also occur in autoresponder email sequences. Once you subscribe to a list, you begin receiving a sequence of prepared emails. While many of these emails can present helpful tips, even free products. Many emails will promote products you can purchase.
Sales funnels keep the sales process going as long as possible. This maximizes the profit you can make from each person who subscribes to your email list.
If you do not have a sales funnel associated with products you sell or with an email list, you are not going to be competitive in today’s online marketplace. Other people will be able to afford to put more time, energy, and advertising money into attracting customers.
What is a Sales Funnel? And How To Create One that Actually Makes Money
So, you want to make money online, but where do you start? What is a sales funnel? How do you market it to the right audience? Look no further because ClickFunnels creator, Russell Brunson, will teach you!
Hey! this Russell again, and today, I’m excited, because today but I 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, we actually become a marketer.
Clickfunnels is built by marketers like me, for marketers who market their products and their services. And sometimes people come in and they have a product, have a service, they want to sell. They throw in into Clickfunnels. they build a funnel and then right nobody’s buying it. Nobody’s coming to my thing. No one’s giving me that email/ I 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 we have to understand the marketing behind it. And so what I want to do during this walkthrough is to help you out, understand some of the core fundamental concepts of marketing that are essential for your success inside of funnels. To kind of step back because I know that a lot of people, they first get in Clickfunnels, they don’t even know what a funnel is.
Most people obviously have heard of a website, right? When I got started in this business 15 years ago websites were the thing. And it was funny because I remember back then everybody would come and they would say, “My god, you think I need a website?” Everyone’s talking about website. Should I get one?
And now we kind of laugh out loud. I could stay, you know, like there’s no business I don’t think that doesn’t have a website. You have to have a website to exist. And that’s kind of where funnels are today. Funnels are the future. Like they are the evolution of websites. That’s where everything is going.
Do I Need a Sales Funnel?
People always ask me, like, well do I need a funnel for my business? And I was kind of chuckle because they don’t understand the strategy. When they do, it’s like, “Oh wow!” Like there’s no point to a website. Like the only thing I need is a funnel. The first core concept you have to understand.
I learned initially from one of my very first marketing mentors named Dan Kennedy. And he said this, “Whoever can spend the most money to acquire customer wins.” And I remember hearing that and just didn’t really resonate with me. But bear with me. As I share this story with you it’s gonna make, it’s gonna even find out like this is the key, most important thing to understand in business, in marketing, in funnels.
Potato Gun Plans Without a Sales Funnel
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’d built my very first website selling potato guns. Now I had created an information product. I set up a website. I’d done my best and back then the way that everybody got traffic to the web sites was by using a website called Google.
So I went to Google. I started buying my very first Google Ads. Now as a college student I don’t have a ton of money. So I was able to invest about ten dollars a day into Google ads. And the good thing for me is I was selling this for $37.00. And what happened is on average for every ten dollars I’d spend, I’d sell about one DVD. So you do the math on that I was spending ten dollars making thirty seven dollars. I had $27 profit that was putting inside of my pocket.
Without a Sales Funnel You Cannot Compete
Now what happened is a little while later Google shifted their algorithm and kind of changed how how things work. And the price for every single click started going up. It got bigger and bigger and bigger. Now what happens is one day I woke up and the ads that I was running were the exactly the same. I’m getting the same amount of clicks, the amount of people to my website. But now, instead of spending $10 a day, to do the same amount of traffic I was spending $50 a day. Now if you do the math on that, you spent $50 a day you make $37 day. I was losing 13 dollars every single day because of my website.
Now, I don’t know about you, but I really quickly, my wife and I realize we couldn’t keep doing that and stay in business. So 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 for most entrepreneurial dreams die is in your spending money you can’t be profitable. And it just falls apart.
How do Sales Funnels Work?
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 the secret.” He said, “I started adding upsells to all of my products.” And I was like, what do you mean upselling?
He said, “Well, it’s kinda like McDonald’s. You’ve been a McDonald’s. You know when they offer you a hamburger,” and I said yeah. I said you know that for them to sell that hammer could actually lose money. The money for the ads and the promotion the marketing and actually lose money. So a hamburger might be 2 or 3 bucks, and it costs them four or five dollars to get you there, and then drive in. He said then they added this little sentence on there, and said, “Hey, would you like fries and a Coke with that?” And the majority 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 I spend, you know, three or four dollars to get someone there. They sell a hamburger for two dollars. They lose. Then they add fries and a Coke and all sudden boom they’re profitable. And so he showed me his website. He had similar websites to me selling little information products. And he said, look what I did is I started having upsells.
Can I sell the next thing to someone who need it they bought my first product. And I said well how that worked 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? And I was like, well you know, the next thing that stood by, the pipes and the glue, and the barbecue igniter, and all those pieces that you have to go to the store to get.
Do Sales Funnels Work?
He said, “You should make a kit and just upsell the kit.” And so I was lucky. I found someone up in northern Idaho who actually sold gun kits. And we did a partnership. And I started adding those as upsells.
And so I transitioned my my little website into my very first funnel. I didn’t know that’s what it was called at a time. It was a funnel, so somebody would buy my DVD, and then the next page would upsell them a potato gun kit. Now if you look at the math on 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 sell a day of my DVDs. So I was only making thirty seven dollars. 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 kind of math on that kit, it was $197. That means one out of three means I made extra $65 for every DVD I sold. That means I spent $50 a day and I was making 102 dollars a day. So we do the math on that, I was actually making 52 dollars every single day.
Learn How to Build Sales Funnels
Now, that is when the whole light bulb went off my head. I was like, that, that’s the secret. Like if I can spend more money to acquire a customer, then I win. And that’s when I realized websites made me broke, but funnels actually made me money.
Now as I started my career after I did that, I started getting excited. I started realizing like, wow, there’s so many ways to do funnels. And I can put funnels into any business. And I started doing that. I started going into really competitive markets where there’s tons of competition. And I would look, and I would see these people. All I had was a website selling a product I would take that concept and I would go.
Matt started adding upsells, and down cells, and adding different things in there. And I start competing against these people and was crazy as they could spend, you know, however many dollars a day they could spend. But I could spend two or three times as much money and still make more money. And very quickly I start beating out all my competitors. And every market we went into.
Why Sales Funnels
If you’re a business and your 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 you 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 into your funnel.
OK. The funnels are the secret to growing businesses and getting your message, your products, your services, out into the world. Now 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. And so, some of the funnels are specifically for selling the product.
OK, like my potato gun DVD where I sold the DVD then I have sold a potato gun kit, some some funnels aren’t for that. Some funnels are for generating leads, then you send emails to them and sell them things in the future. Some generate applications. You can calm on the phone, Some funnels to get people into your actual location. Now, there’s different funnels for different situations.
I think a lot of people think the 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 really bad one, but you have one. Think about it’s, let’s say, you’re a chiropractor, or a dentist, or something, right, somebody sees an ad. They drive by to see your billboard, and see your place. They get a referral. Something, right. And they come to your location. And walk up to your door.
How to Use Sales Funnels
What’s the first thing they do? They open the door, right. And they walk in. Now, something’s happening – they’re coming into this funnel. Now they’re greeted by somebody, could be your front desk receptionist, or whoever, right, and 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, and they take them to the next step, and the next step. And every business has it. There’s some kind of funnel. .
So then, a process, you’re taking people through all the time. And the online funnels are the same thing. People think is something different. But it’s not. It’s if I’m driving out from Facebook, they’re gonna come somewhere, to a page, and maybe I page I try ask for their email address. Or maybe I’m selling them a product, or I’m taking them down this path just like I would if I was selling somebody face to face. So cool. Think about funnels. It’s not something new or different. They’re not used to. It’s the same thing you’re used to. It’s just in an online format.
What is a Sales Funnel?
But I wanted you to understand that’s what a funnel is. I want you understand the one cold, core concept. So 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.
Let’s say some more products, and say your ads more out there. That’s how, like, all the things that you want in business all come off of that concept. And the way you’re able to spend more money profitably is by having a funnel. Think about your existing business. Think about the business in right now. Let’s say you do have a regular website. How do you take this thing with all these things? How do you restructure them into an actual funnel. And you start thinking about those things to get you excited about funnels. So with that said, thanks so much and I’ll see you guys on the next training.
Want a free copy of the Funnel Hacker Cookbook? Get it here: https://funnelhackerscookbook.com/fhcb-introduction
See More Here: https://www.youtube.com/c/FunnelHackerTV
One of the best ways to learn how to build a solid sales funnel is to hack a funnel, which we do every friday LIVE. Join us as we break down and build up all different types of funnels from physicial product funnels to squeeze pages: https://www.youtube.com/playlist?list=PLoc93MnQcNN-Ap1iwek-uIj_FFRW_WI0E
Proof that with the right tools and market, you can sell anything online: https://www.youtube.com/watch?v=T3MiRlm_qN0