What is a Sales Funnel? And How To Create One that Actually Makes Money

Hey this Russell again and today I'm excited because today but I just talking about Click Funnels which is one of the coolest things in the world but for you to really utilize Click Funnels 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 Click Funnels was built by marketers like me for marketers know the market their products and their services and sometimes you people come in and they have a product have a service they want to

sell to throw the Click Funnels they build a funnel and then right nobody's buying it nobody's coming to my thing no one's give 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 click funnels they ask what is a sales funnel well let me explain most people obviously have heard of a website right when I got started in this business 15 years ago websites were the thing and I was funny because I remember back then everybody would come and they would say well do you think I need a website everyone's talking about website should I get one and now we kind of laugh about it because today 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 a funnels are today funnels are the future like they are the evolution of websites that's where everything is going 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

name's 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 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 the 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 deep 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 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 ice skating the same amount of clicks the amount of people

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 realized 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 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 said well it's kinda like McDonald's you've been a McDonald's I'm like yeah he said 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 mark and actually lose money so silly hamburger fright 2 or 3 bucks and it costs them four or five dollars to get you there and then drive in we 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 the dog 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 if 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 would be buy the pipes and the glue and the 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 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 mic 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 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 start 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 an avatar 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 win into if you're a business and your breakeven 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 lead then you send emails to them and sell them things in the future some are generate applications you can calm on the phone some are funnels to get people into your actual location it doesn't right 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 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 thing 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 but I wanted you to understand that's what a funnel is I want you understand the one 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 funnel so with that said thanks so much and I'll see you guys on the next training