Russell Brunson’s FUNNEL STRATEGY - (Dotcom Secrets Animated Summary)

this is Russell Brunson and his amazing book contains the actual Playbook and strategies he uses to transform both his businesses and those of his clients he is famous for being the funnel guy and I'll share with you his overall sales funnel strategy that he has used to bring his company to $160 million in Revenue but not only that in this channel we don't just stick to the basics we want to understand the details so we'll explore how Brunson structures and communicates offers and upsells at various price levels and for different types of customers basically you're

about to watch an intensive course about sales funnels and how successful businesses guide customers towards more premium products and services to grow exponentially let's start by explaining the difference between a funnel and a standard website a website is like a brochure where the user has many choices and you don't guide them at all usually the more choices there are the more confused the customer is and the more confused they are the less they buy a funnel on the other hand is a sequence of well-defined pages where each page has a single clear purpose like collecting

an email contact for example or selling something a user on that page has two choices either do what the page is designed to make them do or leave there are no Alternatives or middle ground so here you have much more control over the customer's journey and how to guide them towards a purchase by definition a funnel is wider at the beginning and narrower at the end this means that many will enter your funnels but only a percentage of these will buy and an even smaller percentage will purchase all the upsells you offer and this is

normal those who buy a lot are your ideal customers and the more clearly you have defined who your ideal customers are the easier it will be for you to attract them with your promotions and convert them into customers Brunson has studied and tested a specific sequence of pages for each type of customer and service which we will look at in detail later but first I want to show you the overall strategy the visual map of what a company should aim to create in terms of how to structure their offer what you are seeing now is

called the value ladder it's essentially the map of your business at the bottom you have free or lowcost products and resources and as you move up you have more expensive products or services that offer more and more value to the customer at each step of this lad the sales strategy is not always the same there are specific funnels and precise sales methods that need to be implemented which Brunson uses in his businesses and has codified for us now all of this might seem very clear and almost obvious to many in theory but in practice it's

not so straightforward and most importantly most businesses don't apply it for example a chiropractor usually has a business where they simply perform physical treatments they have a single offer at most they might also sell some supplements but not much else this would be the value ladder of this business as you can see it's very incomplete I assure you there are many businesses like this with a bit of creativity this value ladder could be completed Brunson explains how he helped a specific chiropractor restructure his value ladder as you see and it was a great success another

issue many businesses face is the solvency of their customer acquisition campaigns they're always breaking even or operating at a loss so they can never increase their advertising spend to scale the company does that sound familiar to me it does I've often had this problem unfortunately here too funnels can help Brunson talks about how one of his early businesses was selling a DVD online with instructions for making potato guns he had a paid promotion on Google which brought people to a sales page and he sold his product with a profit of $27 per day that was

already a good result but then Google raised it its prices and his campaign was losing $13 per day and he was about to shut it down that's when he first discovered the power of upsells to those who wanted to buy his DVD he also offered a kit with all the materials to build the potato guns something the customer would have had to buy in a store so he was actually providing an additional valuable service to the customer saving them time the upsell cost $197 one in three people bought the upsell so Brunson went from a

loss of$ $1 per day to a profit of $52 per day this is the power of upsells it increases the average order value of the customer and allows you to more easily bring your campaigns into solvency calculating the solvency of a campaign is simple you just need to calculate your cost per acquisition CPA and compare it with the average cart value ACV the CPA is calculated by dividing the money spent on promotion by the number of customers acquired ired while the ACV is simply the average amount customers spent on their first order with various upsells

included if the average cart value is higher than the cost to acquire a customer the funnel works and you can invest more if not you need to adjust something you've probably understood that the funnel applies to the entire business as in the chiropractor example but also to individual steps of the ladder in fact each step has its own funnel with its own upsells now before we delve into the details of the individual funnels within the value ladder I want to explain the basic strategy of upsells at each step Brunson has conducted various tests to understand

the right number of upsells to optimize sales without annoying the customer with too many promotions and thus ruining the long-term relationship with them at the expense of an additional short-term sale The Sweet Spot for Brunson is two upsells plus an order bump let's start with the order bump to understand what it is and how it works when a customer is about to buy an offer and is in the shopping cart they find a small box underneath with an offer they can check to add to their order this is a strategy you've likely seen both online

and offline for example near my house there was a bar where the cashier when you were about to pay would always offer to add something like a chocolate nowadays Amazon when you buy an ebook always suggests if you want to add the audiobook for a small additional fee by checking a simple box a good order bump is something easy to understand and its price in relation to what you're buying is acceptable for example at the bar if you spend $5 they offer an order bump for a 50 chocolate Amazon if you buy an $8 ebook

offers the audio book for $3 meanwhile if you buy a $97 online course the order bump could be about $27 for example now staying online a customer can accept or decline this order bump and click to purchase when they do they land on the first upsell page here it's important not to close the loop don't write your order is complete but something like wait your order isn't finished yet please customize your order and then you present your first upsell except in one case for e-commerce that we'll see later upsells shouldn't offer the same thing you

sold as the primary product but should be something complimentary or the solution to the next problem the customer will have for example if you sold an ebook on how to get a sixpack don't sell another ebook on that because the customer with their initial purchase thinks they've already solved that problem Instead try to think about what they might need next for example after someone has obtained a sixpack the next problem that arises is how to maintain it then you can sell a nutritional guide for maintaining it or something similar if they decline optionally you can

try to offer a downsell something less expensive or you can end there if they accept this upsell you move to a second page where you offer your second and last upsell of this sequence obviously these upsells must have advantageous prices compared to the usual sale price they must be special deals finally they arrive at a thank you page that thanks them for their purchase provides any instructions on how to use the products they've bought and gives them the opportunity to take the next step right away if they want that is to enter the next funnel

of the value ladder understanding the sequence of upsells and seizing the moment when a buyer has decided to make a purchase by offering them more buying options is crucial this is where the seven stages of a funnel come into play stage one determine the traffic temperature starting from the bottom with non-customers there are three types of traffic hot warm and cold hot traffic knows what product they want knows who you are and what you sell the communication here is usually more direct focusing immediately on the product warm traffic knows what they desire but not the

specific product they want they might know some of your competitors but not you with this type of traffic it's good to start by communicating about their desire before introducing them to the product cold traffic is neither aware of the product nor the desire but is aware of the problem they have they don't know you here you start by talking about the problem each group needs to be approached differently with distinct communication Styles and landing pages stage two pre-frame bridge this stage is extremely important it's about the state in which you put someone when they enter

your funnel to illustrate Russell Brunson typically had a certain conversion rate for his sales presentations however one day he worked with someone who was a master at pre-framed Brunson at an event setting the stage for the audience in just the right way the result you using the same presentation Brunson typically delivered he increased the conversion threefold from that point on Brunson Incorporated pre-frame extensively preparing the prospect as much as necessary what does this mean in Practical terms for your marketing it means that the colder the traffic the longer the pre-frame needs to be with hot

traffic and often with warm traffic the ad itself might be enough to create the necessary pre-frame however with cold traffic it's often necessary to have a long ER presentation possibly adding an intermediary page stage three qualify subscribers when you bring traffic to a landing page the goal here is to obtain the prospect's email here you start filtering people because only a percentage will provide their email stage four qualify buyers immediately after a user leaves their email you want to see who the buyers are note the word immediately don't wait as soon as they leave their

name and email take the them straight to a sales page offer something inexpensive to lower the price barrier and identify the buyers stage five identify hyperactive buyers after the first sale offer propose the order bump sequence plus the two upsells I explained earlier this helps identify hyperactive buyers why do it immediately because when someone is actively seeking something the window of opportunity to find a solution won't stay open forever some want a solution right away the these people need the option to buy immediately or you risk losing them and there are those willing to pay

more to solve their problems at this point you end up with three different lists hyperactive buyers buyers and subscribers stage six age and Ascend the relationship once people are on your lists you need to engage with them in your company there should be an attractive character and that's probably going to be you the idea of an attractive character was introduced in this book as as someone with an appealing personality but it's a concept that Brunson evolved into the idea of the expert in his second book expert Secrets the main point is that your business and

products are appealing because you have a story to tell that adds value for example there was a personal trainer specialized in weight loss to really understand what his customers felt and to help them he gained 75 and then got back in shape now he shares his story and sells his weight loss programs which are very attractive with such a story you see it's the relationship you create between you the attractive character and the customer that moves them up the value ladder and makes them more attached to your company when someone joins your lists you manage

them in two ways look at this to clear things up when they're in a funnel you use what's called a soap opera sequence which I'll explain soon after they finish that sequence they enter a broadcast list where they receive newsletters the so SC Opera sequence is named that way because it works like TV series each episode opens a new Loop that makes you want to watch the next one we should try to use the same technique to create the same interest and desire to open the next email open a loop in an email and close

it in the next one encouraging people to open the next email because they want to know the answer to the previous one keep it simple use short sequences of five emails so if things aren't going well it's easier to fix them I have included the typic email sequence template in theom Secrets Playbook you can find the link to understand what it is and how to get it below in the description every email except the first one has the same call to action towards the offer of that funnel the first one doesn't because as soon as

they signed up for that funnel they saw a sales page immediately so the offer was made there two things can happen here if someone buys they are removed from this funnel and directed to the next one if they don't buy and the email seek sequence ends they are put on the broadcast list where you send single newsletters not in sequence and not scheduled here every email has a hook a story and an offer the strategy here is to make them buy or sign up again on another landing page to put them in a new soap

opera sequence to make them buy again stage seven change of sales environment the last stage is for very expensive products it's hard to sell them online so it's good to get them on the phone or to an event to handle the sale there all right having looked at the seven stages of a funnel let's now delve into the details of the different steps to create funnels at various levels as promised oh and I almost forgot don't get overwhelmed by the number of funnels and products you need to create for a complete structure this process will

take some time the key is to have the overall idea of where you want to go Brunson himself advises his clients to start with just one level of the ladder and get that working well before adding others here again is the value lad lad that will guide us in this journey I've added the categories of funnels we will now explore starting with lead funnels this category of funnel aims to collect the user's contact so you can connect your company's attractive character with the Prospect and start building a trust relationship brunson's top three lead funnels are

as follows the first is the classic squeeze page where there's a free resource also known as a lead magnet given in exchange for the prospect's name and email in the same category we find survey funnels or quizzes this is a quiz with a series of questions that gives a personalized result at the end it's particularly suitable if you have multiple targets and things to sell the structure is quiz questions at the end of the quiz you ask for the contacts name and email and once they fill out the form they go to the result page

the more specific this page is the better it converts the third type is a bit more special it's about Summits here you organize an online Summit with various speakers who have their own audience the idea is that they promote the event to their lists for The Prestige of being in the summit and also for the affiliate commissions you'll offer after the invited people have registered they land on a thank you page here you confirm their registration and also make an offer for example to have the event recordings while with free registration they can only watch

the videos on that specific day on the first day of the summit you put the speakers videos on page and send the page link by email to those who got registered the interviews are pre-recorded and are put on the page they remain available for 24 hours then you remove them and put the ones for the next day if the summit lasts several days usually the summit lasts a maximum of 3 or 4 days at the end of The Summit and also after the other two lead funnels remember to make an offer with the usual upsell

mechanism previously explained let's move to the next level of the value ladder the unboxing funnels these usually offer a lowcost resource typically something between1 and $100 but this range isn't strict they're called unboxing funnels because these resources might be part of a larger offer composed of multiple items to be sold later at a higher price however you can also sell them individually starting at a lower price so more people can access the first paid step of the value ladder in this category we start with book funnels they're named this way because you usually offer a

free book with bonuses and charge only for shipping and handling but the same can be done with a physical product that isn't a book and you can add the usual upsell sequence then there are cart funnels these apply particularly to e-commerce the structure is similar to the usual one but there are a couple of important differences first when selling a physical product in e-commerce you have the leverage of quantity you can offer better prices for larger quantities thus encouraging the customer to order more the other difference is that in the first upsell unlike other funnels

you offer more of the product they bought at a favorable price especially if the product is consumable and needs reordering the rest is standard the last type of unboxing funnels recommended by Brunson are challenge funnels here you sell a challenge to achieve a result providing all the service during the challenge period to achieve it for example create your funnel in 30 days or weight loss program for 15 days Etc these challenges also have prizes for the best performers here too the same concepts of order bump and upsell apply with a couple of adjustments the first

is that you should sell things that the customer thinks can help them win the challenge the second adjustment is that you should include as prizes what you will offer at the end of The Challenge as the next step starting to increase the desire for them let's go to the third category the presentation funnels as the name suggests these funnels typically involve a more more detailed presentation for selling because the products are more expensive to give you an idea the prices here range roughly from 00 to $2,000 the first type are funnels with video sales letters

this isn't complicated it's a classic funnel as we've seen before the only difference is that on the first page there's a sales page with a fairly long sales video about 20 or 30 minutes that uses the storytelling script Brunson explains in another book we'll look at then the are the usual order bumps and upsells next we have webinar funnels it's pretty much the same thing but the presentation is done via webinar instead of a recorded video and the attendees are sent to a sales page with the usual order bumps and upsells when I say usual

I mean the same mechanism but the type of products and services you offer changes at each level to match what you're offering finally there are product launch funnels these are used when launching a new product on the market basically you direct traffic to a squeeze page to register for a free Workshop once they register they access the first video then you release the other videos in the following days one at a time in the first video you want to wow them by showing the concept of the new opportunity you're presenting in the second you explain

how this new opportunity has transformed you or others in the third you break down the false beliefs they have about what would prevent them from succeeding with what you're offering in in the last video you make the offer with the usual order bumps and upsells the last category is the backend and phone funnels these are dedicated to more expensive products typically above $2,000 because they are harder to sell online using other methods in these cases it's better to change the sales environment and take them off the internet to the phone or to a live seminar

where the sale is made the best funnel here is the application funnel where you essentially flip the sales flow instead of cold calling clients to sell you set things up by creating a scarcity of available spots to show that you're selective about who you accept you create an application form where the clients have to sell to you that they are worthy of working with you the questions you ask should qualify the lead to reject those who are not suitable and would just waste your time finally we have memberships this is a separate product that we

could insert here in the value ladder usually in jargon it's called continuity because you find a way to sell to the customer continuously and memberships are a good example of this but not the only one so the one you see now is the complete value ladder keep in mind that if you're interested in the topic the book also includes screenshots of the pages Brunson uses and scripts for all the various steps to properly apply them and if you look at his websites you'll notice he does exactly what he teaches the strategy is what you've seen

here so here you've seen how to structure your sales funnels but as mentioned in the video a big difference in sales is made by the attractive character you create for your business and the type of communication you use if you want to understand how to master these two topics you should check out this video on brunson's second book expert Secrets which delves into these Concepts until next time