How Dan Koe Made a $4.3M Sales Funnel (Genius Strategy)

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Ryan Mathews
How did Dan Koe from $0 to over $4.3M in revenue in two years? How does Dan Koe turn his audience in...
Video Transcript:
Dan Co took his oneperson business from 0 to 4. 2 million in just two short years now of course he struggled in the beginning to get things going but quickly he's passed all of his competition what took him from0 to over $4 million per year well he has a superpower in turning raving fans into loyal customers he's a mass a massive following just in two short years of over 2 million people and today we're going to look inside of his sales funnel the top of the funnel the middle of the funnel the bottom of the funnel the three sales funnels that are generating him over $300,000 every single month and I'm going to show you his secret plan to hit $100 million in net worth within the next few years so first I want to give you a 30,000 ft overview of what he is doing you can see his funnel right here but let's dive in first to the sources that he's running he has a newsletter a YouTube channel podcast Twitter Instagram and Linkedin now in a second I'm going to show you the revenue distribution from all of these and how much he's making from each but first I want to go over how he's able to do all this as a oneperson business so it all starts with his newsletter he writes for about 2 hours every single day on his newsletter and then he reads that as a YouTube video so he just reads the script then he takes that same audio file and puts it on podcast and then he has Twitter which he takes some of the the ideas from his newsletter and tweets them as well as some original ideas he then takes Snippets from YouTube add some cool animations and post those on Instagram which is actually his biggest audience size of 1. 6 million however it doesn't account for much revenue but we'll get to that in a second lastly has LinkedIn which is more repurposed content so he's really only making one piece of content and then able to put it on all of these platforms so what is the revenue Distribution on these platforms well according to him 40 to 50% is YouTube where 15% is Instagram LinkedIn and Twitter combined so YouTube really makes up the bulk of this the newsletter accounts for about 25% and 10% accounts for the podcast the way I see it from the said looking in is Instagram LinkedIn and X might not bring in all that much revenue but they send people to YouTube and the newsletter where they're ultimately are going to get warmed up enough to buy now how does he actually turn that audience into loyal customers well there's two things number one is the number one skill I think he possesses which is writing if you listen to Dan CO's videos his writing is phenomenal if you read his newsletters his writing is phenomenal but it's not just enough to be a good writer you need to take good writing and apply good marketing to it if you watch his videos You'll see sprinkled throughout these little beliefs and different things that he's doing in order to nurture people to get them to the point of a purchase decision and in our next video we're going to go over the seven beliefs of every single successful funnel that we reviewed Sam ens Eman godi sa subie they all use these seven beliefs to get people from stranger to customer as quickly as possible and Dan is doing a lot of those things within his YouTube videos so we'll kind of talk about how he's doing that throughout this video video but let's dive in now to the funnel so there's many paths people can go on but if they go to the danco.
com this is what they'll find there's an optin to get people to join the newsletter so you can start to think about this as the top of the funnel okay they engage with him off of social media for the first time and he's trying to get them on a newsletter because he knows a lot of those people will eventually convert now I want you to notice something really quick look at this headline work less earn more enjoy life one of the things that Dan does that is genius that a lot of people miss is he's selling to an existing desire that is huge this is one of the seven beliefs we're going to cover in the next video desire but he's not just saying you know a surface level desire like make more Dan does a really good job throughout all of his marketing of sprinkling in all these different things and kind of preaching like this holistic lifestyle promise that really fills in the gaps of what his audience wants so work less earn more okay part of that is kind of like a paradox right people think they need to work more in order to earn more and he says no you don't if he follows this framework and he says enjoy life which again most people don't see these three things going together so a lot of his messaging is you shouldn't work more than four hours a day you should make over a million dollars a year that's two things that people want and he just sprinkles tons of the stuff throughout all of his marketing first he has the art of focus book which is a great entry point into his other programs with his large audience there's a percentage who aren't ready to go buy a program they can buy this first get more warmed up to them and then eventually buy the higher ticket program which brings me to the two main programs and then we're going to get into some of the real money makers in a second so this is his lowest tier program called the two hour Rider we're going to look through this really quick and see what he's doing how he's selling people and what he could be doing better in order to sell more so the headline is learn the Recession Proof skill for the digital economy without spending 4 years and $443,000 on AG degrees what's the framework he's following here number one learn the Recession Proof skill okay two things going on there he's speaking to a paino people are afraid of losing their jobs because of the recession but not only that he's also adding some curiosity what is this Recession Proof skill and what is the digital economy I feel like I'm missing out just by reading his headline but then he says without spending 4 years in $443,000 on a degree okay there's a few things going on here that you might be missing number one he's saying what they don't want okay that's pretty obvious no one wants to go spend 4 years to get a degree and 42k but the second thing he's doing is price marinating so price marinating is when you anchor with a high price point before your lower price point I don't know if he knows he's doing this but by seeing $42,000 up here when they get to the real price point it seems a lot cheaper because they have this $42,000 number sitting in their head so by comparison it's going to seem a lot cheaper then the call to action is join 8,000 students great call to action rather than just saying join now he adds some social proof in there then more social proof beneath it and next I want to show you how he actually structures these funnels so pretty much every single one of his program fals is the same it's headline call to action social proof and then a long sales letter was social proof sprinkled throughout and this sales letter is going through the seven beliefs which we don't have time to get to today but if you want to make sure you don't miss that make sure you subscribe so you can see again the things that Sam ens IMI Sabri subi and now Dan Co all do and every single seven figure funnel does but for now you can think about it as he's selling the beliefs that they need to believe in order to make a purchase decision Okay so the biggest thing that people need to believe is that they need to learn this Recession Proof skill in order to get what they want right so throughout this letter he's going to kind of push pain on the current situation that they're in as well as push desire on their desired situation create a gap between those two and then make a bridge from the current situation to the desired situation which is his product and then he introduces himself and what is he doing here he said I started out like everyone else he talks about all of these failed businesses he had why is that important well when somebody's selling a end result when somebody's selling a promise it works so much better if their current situation is the person's desired situation okay so if I'm reading this and I want to get to a million dollar a year with writing by seeing that Dan has gotten to a million dollars year with writing of course I'm going to trust him more but not only that his past current situation should be close to my current situation so if I feel like I've struggled and I've tried all these things and none of it is working then now I can relate with Dan and I can trust him more and he'll give me an aha moment that this is the new opportunity this is the thing I need so that's what he's tapping into here and then it's more of the same more salesletter more social proof hitting on different beliefs all the way down but there's another section here that I want to make sure you don't miss look at all of the social proof he's really made this wall of social proof and this is something that I think most people miss out on they don't put enough social proof in their funnels I'm still scrolling and I'm I literally just scroll as fast as I can it took me forever to get through this then he Stacks the offer showing all the things you get adding some physical values to these things $850 $97 $97 again price marinating stacking the value so when he gives you the price it makes sense then he gives the guarantee before the price which is really interesting I mean it's probably fine um but typically that would go after the price then more social roof but again we still haven't even seen the price he's getting you to the point where you you're saying I want this how much is it right that's the next logical question but then more social group 8,000 students get instant access and boom it's just 150 bucks wow I thought it was going to be 43,000 so then he Stacks the offer once again showing all of the stuff you get which makes this no longer a commodity but now you really can't put a price tag on it then it says enroll the 2hour writer now I want to go over a few things I think he could do better first off in the checkout page cuz when we go to the checkout page it's very Bland it's very simple there's no social proof it kind of looks a little bit odd doesn't look you know normally uh these things are flipped right the billing is on the left this is on the right and people are more comfortable checking out with checkouts they have used before things that look similar to what they've used before we've seen really high conversion rate boosts from just having a checkup page that is optimize so I think if he made a custom one it would work a lot better the second thing I think he could do better here is adding a vssl up here on the initial fold reading through this same script I mean this is literally what he does on YouTube right he he writes out a script for his newsletter and then he reads it people that follow him probably like video and I'd be willing to bet since 50% of his Revenue comes from YouTube and only 25 from the newsletter he would get more sales if he had video here because his audience prefers video so vssl I think would really boost the conversion rate now the third thing I think he could probably do and maybe he's tested is charge more than 150 and not only charge more than 150 but put the price ending in a 7 to a nine and the reason I say that is one of the smartest direct response marketers Dan Kennedy did a study where he tested all of the different price points from 5 to zero so he went from $395 to $400 even and he noticed the prices that ended in a s or a 9 converted much better than ending in a zero or a five it was a pretty big difference so people just like 147 or you know 149 better than 150 even though they know exactly what's happening it's just easier to swallow but the second thing I think he could do is raise this a little bit to 197 247 we've even seen higher price points from you know 200 to 247 convert higher than the lower price point simply because people value it more right obviously there's a price point where people no longer are willing to pay and there's diminishing returns but I think he could test that if he hasn't already so digital economics is the second program the headline here is productize yourself with a unique brand profitable offer and AI proof content strategy very similar framework to the last one and the page is you know almost identical socier proof long sales litter and I think you can put a vssl here and convert more people the price here is $4. 99 or $9. 99 so a little bit higher ticket but again basically the same exact funnel so let's go back to our 30,000 ft overview what's next well he recently launched a program that's 57500 it's called cortex University now this funnel is interesting you're not going to want to miss this more of the same on the first page here but he adds in two extra steps from the other funnel which is very very interesting so the headline is start your one person writing business in 16 weeks Okay cool so this page is pretty long still but the call to AC is to get more information when I fill out these eight or nine questions I land on this page and this is something I think he could do better it says we sent you an email with next steps but then it says give more inform information now I think if he just added that to the main page and didn't make me click it would work work better because more people will land on this page which would mean more people convert so I think people are probably getting stuck at that step so he has that form which is different than his other funnels and why well this program is much more expensive and there's three reasons why he's doing it one it warms me up it it forces me to be more bought into the process number two it qualifies me and number three is now he's able to contact me because he has my email address so if I go through this process and don't buy he can have Setters reach out to me he can email me in a different way and so forth so on this photo he actually has a video which is great it doesn't really look like a vssl but still that's going to work much better than just written word so I'm glad he's doing that on this one he then adds in some scarcity you know 20 enrollments March 1st again same content the same thing we're going to go over the next video the seven beliefs he goes over the different Founders inside of this program more copy more social proof you can see how the framework is exactly the same this is pretty cool he says if you stick to the program for one year you'll have a community people that share your work so you can actually grow unlike the people who try to do it alone that's kind of the big promise which isn't really you know kind of a pie in the sky promise it's it's fairly simple and and very very believable then he Stacks the offer again kind of creating as much value as possible so when he drops the price it seems worth it and the price is 5,275 but you cannot enroll on this page you have to send a message now this is super interesting I haven't really seen anybody ever do it this way which is fine um I would assume if he just moved people to a calendar where he had sales reps and people booked in a call this would convert better however maybe they tested that or maybe if they only need 20 students they just can't really justify taking hundreds of calls so maybe that's working great but it is a little bit odd but at least they're in the messages and they can close them that way uh it's just a little bit strange to message somebody about a $5,000 purchase but again they're obviously doing very very well now the last thing is arguably the most important it's how I think he's going to amass a net worth of over $100 million in the next few years and it's his SAS product cortex now why do I think that this is going to be the biggest driver in his net worth well it's simple SAS multiples are way better than education so he's making $4 million a year on his info products that's great but that's not really sellable right it's so attached to his brand it would be extremely difficult to sell and even if he did right this is coming from somebody who sold my last education business we sold it at a 2.
6x multiple and I sold it to my business partner right not somebody that wasn't involved in the business at all so 2.
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