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$360 Million Dollar Online Business Secrets
$360 Million Dollar Online Business Secrets
Secrets
Russell Brunson
Table of Contents
Sales funnels are marketing campaigns with multiple steps. Sometimes referred to as
marketing funnels or conversion funnels, each step is designed to bring consumers to
the next one.
Breaking the buyer’s journey down into smaller steps allows you to be more precise
about how and when you present an offer to your audience.
Think about ordering at a McDonald’s. If you order a hamburger, you’re asked if you’d
like to add cheese. Order chicken nuggets and you’re asked if you want fries with that.
Order a combo meal and you’re given the chance to make it a large or ―supersize‖ it.
Now before we dive into the modern version of different types of sales funnels, I want to
let you know that the term ―sales funnel‖ has been around for many years.
Online entrepreneur and ClickFunnels founder (Russell Brunson) I was 12 years old
when I entered my first sales funnel.
As I recounts in Dotcom Secrets, I was watching TV with his dad when an infomercial
came on, and a guy named Don Lapre started talking about using classified ads to
make money fast.
Don told a story about running an ad in his local paper that made a $30 profit in the first
week.
Well, now that Don knew what sort of return he could expect, he re-invested his
earnings and began running the same ad in other papers.
And for a limited time, Don was offering viewers access to his proven system—a direct
sales box that would reveal all his sales funnel template secrets.
Four weeks later, Russell had saved enough money to order Don’s system.
After learning what he could from Don, Russell began looking for other companies that
were employing the same kind of sales funnel template.
It seemed like everyone was offering something new—and usually free—if only he’d
take the time to call or write in.
Before long he was receiving more mail than his parents: free guides, samples, how-
tos, and info kits.
As shocking as it may have been to Russell’s younger self, these companies didn’t
enjoy giving away free stuff.
By getting me—and thousands of others—to write in, to receive additional offers, to pay
for shipping and handling in exchange for a free product—each company was guiding
potential customers closer to making a purchase.
The steps have changed a bit over time (and more so in the digital marketing age), but
they all boil down to a 150-year-old process known as AIDA.
The AIDA marketing model was developed in the late 19th century by advertising and
sales pioneer Elias St. Elmo Lewis. And, it has become the backbone of almost every
successful advertising and marketing campaign since.
Why is it so successful?
AIDA takes potential customers through the emotional journey of making a purchase,
from initial attraction to taking action.
And, it works on a small or large scale. It can all be done within one page or, as I
learned, as part of a larger marketing campaign.
When you think about marketing, do you picture a catchy ad or a series of informative
emails?
For many of us, it can be hard to separate the individual advertisement from the larger
brand image or marketing campaign.
After all, many companies get their start because of just one great ad.
Right?
But, even the best print or YouTube advertisement is just the first step in a buyer’s
journey.
And, it’s the companies that do the work and analyze where customers are coming
from (and where they go after seeing an ad) that thrive online.
Sure, the AIDA model boosts conversion rates when used on a single ad or landing
page.
But, did you know it can also identify consumers earlier in the buyer journey and funnel
them to the right offer sooner?
Each company Russell contacted as a child probably published ads in an effort to grab
consumer attention.
Thousands of people saw those ads. Out of those thousands, several hundred had
enough interest to respond and join a mailing list.
Once on the mailing list, the companies sent specific info and offers as a way to
increase desirefor their product or service.
The company was now selling to a warm audience that was ready to take action and
make a purchase.
That can seem like a lot of effort for a small pay off.
So long as companies earn more than they spent on advertising and giveaways, they
can repeat the process (and revenue) on a larger and larger scale.
More than that, these companies now have enough data to review and improve their
process.
Instead of repeating marketing strategies, companies can see what is and isn’t working
at each step of the sales funnel. They just keep what works and revise or remove what
doesn’t.
With a little testing, companies are able to create more engaging campaigns capable of
reaching consumers at every stage of the buyer journey.
Now that you’re beginning to understand what a sales funnel is, I want to clear up one
potential point of confusion that you and your sales team may have run into when
researching ―sales funnels‖ or ―sales funnel templates‖ online.
While searching online for information about sales funnels, you probably ran into articles
talking about different types of ―sales funnel‖ as a tool to track the status of prospects
being worked by a sales team. You may have also seen this type of tool referred to as a
―marketing funnel‖ or ―revenue funnel‖.
How is that different from the sales funnel I’ve been talking about?
When I worked for IBM in the 90s, we had a sales meeting every week. We talked about
what deals were at what stage of the sales process, and we tracked expected revenue
numbers for each prospect on a snappy little spreadsheet.
Here is an example of a spreadsheet that HubSpot offers for tracking deals through
stages of what they call a ―sales funnel.‖
Companies like Salesforce provide a similar online tool for tracking the offline sales
process. When business owners and sales teams say they’re using Salesforce to
manage their ―sales funnel,‖ they’re tracking leads and where customers are in the
buyer journey.
This type of prospect tracking system has nothing to do with the types of sales funnels
that I’m talking about in this guide!
In this article, I’ll use ―sales funnel‖ or ―sales funnel template‖ to represent the series of
steps, pages, and incentives online that guide potential customers to a point of
purchase.
Rather than a tracking system, I’m going to be showing you a proactive, automated tool
that actually moves customers toward you!
And that’s where I want to focus the rest of this article—online marketing sales funnels.
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Online sales funnels are the next generation of digital marketing, regardless of your
business or industry.
Not only do online sales funnels do everything the traditional AIDA model does, but they
automate the process for the digital world. And, they give you better results and greater
control.
The beauty of an online sales funnel, as you’ll see in the examples below, is that you
can move prospects from one page to the next instead of relying on a single page to
close a sale.
By moving prospects through a series of pages, you can make sure they’re in the right
mindset before landing on the next page. This is called a pre-frame, and it’s one of the
most important (and most ignored) parts of any types of sales funnels.
On each page, your job is to pique the prospect’s interest and desire to go to the next
page, then the next, etc.
It all starts when people become aware of your brand, product, or service.
Maybe they see an advertisement, blog post, or social media promotion that grabs their
attention. Once they click or type in your URL, that takes them to the first step in your
funnel (typically a landing page).
At the bottom of the funnel is the action you want the person to take (generally a
purchase or an opt-in).
In the middle stages of the funnel, consumers are led through a series of steps as a way
to educate, build trust, and warm them up.
Here is a very simple 3-step online sales funnel template used to grow an email list.
In Step 1, the company presents their offer: a free resource tailored to their audience.
↓
In Step 2, the prospect has clicked on the button to get the free resource. They’ve
shown they want the offer and already taken the first step, so they’re much more likely
to provide their name and email.
↓
Step 3 is a simple confirmation page. It thanks the prospect for their interest, tells them
how to get the free resource, and offers next steps for those customers ready to do
more now.
With just 3 steps, customers can quickly move from an ad to the point of purchase.
But, what if your audience needs a little more convincing before they’re ready to buy?
Sucessful types of sales funnels that sell big-ticket offers or target cold traffic (more on
this later) often include additional steps in between the landing page and the end of the
funnel.
You might think adding more steps to the funnel would give prospects more
opportunities to lose interest. After all, getting customers to the first page is hard
enough! Why push your luck?
The length of a sales funnel is a lot like the length of the script you would use in a
traditional sales pitch. If I’m selling boxes of Girl Scout Cookies, I can use a short script:
my audience already knows they’re delicious, they support a good cause, and they’re
only available for a limited time. If I’m selling the expensive machinery that makes the
cookies, on the other hand, I’ll have to spend more time educating the prospect,
answering questions, and demonstrating value.
Here is an example of a sales funnel template that has quite a few steps. It is built to
target cold traffic, so that Russell can sell as many books as possible (instead of just
selling to people in his hot and warm markets).
Step 1: Landing page with eye-catching headers, information about the free resource,
and clear direction about how to get the offer.
These images are from Russell Brunson’s Expert Secrets book funnel.
↓
Step 2: Collecting additional information and offering an immediate upsell for
hyperactive buyers.
↓
Step 3: A one time offer (OTO) before confirming the order.
↓
Step 4: Upsell and downsell options for the OTO. This provides more detail about the
product, shows the size of the discount in a new way, and gives the customer options
as a way to increase confidence.
↓
Step 5: The confirmation page confirms the customer’s purchase and offers bonuses
and next steps as a way to quickly grow the customer relationship.
I talk more about the middle stages of the funnel—and the building blocks you can use
there—later in the article.
First, let’s look at a few more examples to see how online funnels build on traditional
marketing strategies. We’ll look at both B2C and B2B businesses.
Business-to-customer types of sales funnels are designed to generate leads and drive
sales.
At the top of the funnel, they offer free content that informs or entertains their audience.
The company takes note of how visitors engage with different content and offers, then
directs potential customers to the appropriate sales funnel (the one they’re most likely to
engage with).
In the following type of sales funnel, the first step is an article on a website.
Whole Lifestyle Nutrition by Halle Cottis uses a standard opt-in funnel as a way to grow
their email list. The goal is to turn visiting traffic into traffic they own (through an email
list or Facebook follow).
First, Cottis uses recipes, meal plans, health tips, and natural solutions to bring traffic to
the website.
↓
Once on the site, potential customers find TONS of useful information at no cost.
As people read through the recipes and learn about meal planning, they’re gaining
awareness about specific nutrition challenges and available solutions.
Once visitors see how much great information is on the site, they gain trust in the brand
and are more likely to click the banner ad.
This final landing page removes links to the rest of the site, giving prospects a clear
option: snag the free resource or don’t.
Sure, some people will leave the site. But, many others will submit their first name and
email.
And, the description of the offer makes it hard to justify leaving empty-handed. People
see not only what they’ll learn in the video presentation, but at exactly what point in the
video they’ll learn it.
And, once they’re on the Whole Lifestyle Nutrition email list, Cottis can sell to them in a
more intimate and higher-converting setting: email marketing.
Pro Tip: Did you notice that Cottis mentioned ―FREE GIFTS‖ in the description of the
presentation? Not only will this promise encourage potential customers to watch the
whole video (establishing value), but they’re already primed to hear about new offers
and solutions the brand can provide.
Rather than trying to appeal to a wide array of potential customers at different stages in
the buyer’s journey, B2B businesses are typically addressing people that know what
type of solution they need.
Monthly blog posts, social media, and word-of-mouth referrals bring businesses to the
site.
Once on the site, visitors learn all about the problems fitness professionals face and the
solutions ProFit provides.
ProFit knows site visitors are typically fitness professionals looking for help generating
leads. But, lead generation can be a complicated topic for many business owners and
entrepreneurs. So, ProFit offers a consultation as a way to change up the selling
environment and increase conversions on their high-end marketing service.
Not every visitor is going to be ready to schedule a consultation on their first trip to the
site. (Wouldn’t that be nice, though!)
So, to make sure it doesn’t miss out on potential customers earlier in the buyer journey,
ProFit also offers 52 ready-made newsletters that fitness professionals can use right
away.
And, because the offer brings people to a separate page from their website, they’re
eliminating distractions and ensuring businesses look at the details that make the offer
so compelling.
ProFit Marketing Solutions uses this click-or-leave squeeze page to create a feeling of
scarcity and define the offer in new terms.
The 52 newsletters are available at ―over 80% off‖ and ―for a limited time only‖. Put
another way, each newsletter only costs less than $2.
Not only that, but each newsletter saves time those businesses would have otherwise
had to spend creating their own content.
And, as soon as a user clicks on the button to get their newsletters, a pop-up form asks
for their name and email.
ProFit is not only turning a site visitor into a paying customer, but they’re collecting the
information they’ll need to grow that customer relationship through email marketing and
personalized offers.
But, what if you already have a high-traffic website? Do you still need to build a funnel?
Perhaps, like I had, you’ve already put a ton of work into your website.
You’ve written sales pages, published blog posts, updated the design of your website,
and included incredible offers and incentives to grow your presence online.
Perhaps, you’ve even done some SEO work and you’re ranking on page one for some
high traffic terms.
Why, then, do you need to create a sales funnel separate from your website?
Remember, all types of sales funnels are about guiding customers to a specific action.
That means eliminating distractions and controlling what they see at each stage. And,
that’s much harder to do on a website where people can wander off the sales funnel
path and navigate to any page or blog post they find interesting.
In addition to eliminating distractions, keeping your sales funnel separate from your
website makes it easier to:
As Todd Brown taught me 18 months ago, the problem with most websites isn’t traffic
(especially if you don’t limit yourself to organic traffic, only).
And that’s where any type of sales funnels provide an advantage. They keep people on
the path that you want them to take. Each page pre-frames the visitor to go to the next
page, which pre-frames them to go to the next, and so on.
Your chances of securing a new email opt-in or making a sale are much higher if you
control what page prospects see first, then second, and so on.
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An automated process that directs customers to relevant offers and upsells sounds
great, right?
But, how can you know what your sales funnel template and sales funnel should
include?
While a sales funnel guides customers through a series of steps and offers, it is the
specific offer–and where that offer is on your value ladder–that determines what funnel
you use.
What you really want to do is bring potential customers into your world. And, the easiest
way to do that is through a low-cost, low-resistance offer—like a Free + Shipping offer
or a free trial.
This low-cost offer is the bottom of your value ladder. After a customer purchases this
initial offer, you can guide them into another sales funnel for a product at a higher level
of your value ladder.
Each step up on the value ladder brings customers to a higher-cost (and higher-value)
product or service.
And, each level (or step) of the ladder will have its own sales funnel strategy.
For example, in my company, I provide online and content marketing education and
resources for therapists and mental health professionals.
The starting point on my value ladder is a $1 trial for my membership service, Private
Practice University. Once new clients are identified and have opted in for the trial
period, I can move them into a new funnel for a services higher up the value ladder.
The strategy you use to sell a low-cost product at the frontend of your funnel may be
very different than how you sell a high-ticket item at the backend.
By tailoring sales funnel strategies to different levels of the value ladder—and different
types of products and services—you can deliver a more personalized user experience
and increase conversion rate.
Pro Tip: Of course, online types of sales funnels don’t end when customers make their
first purchase. With every opt-in or purchase, you should offer relevant upsells and
downsells (each one offering undeniable value). The ability to quickly grow the customer
relationship and increase cart size is just one more way funnels have an advantage
over other types of online selling mechanisms.
Now, let’s look at some of the most successful sales funnel templates you can use at
different stages of the value ladder.
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Who knew there were so many different types of sales funnel strategies?
The following sales funnel templates are some of my personal favorites for guiding
customers through different points and products in my business.
To get the most out of each sales funnel template, consider how it can be adapted and
applied to your unique offer and audience.
Frontend Funnels
Frontend funnels are–you guessed it–at the front end of your value ladder.
These types of sales funnels are perfect for cold traffic that you want to qualify as
subscribers and buyers.
Potential customers may only be aware of the problem, not your brand or the solutions
you provide.
Free + Shipping
With the right product, these frontend funnels are proven to work on cold traffic. Even if
you aren’t turning a profit at this stage, you can acquire leads at a break-even cost.
Because every one of those customers cost NOTHING to acquire. And once they’d
entered my world, I could bring them into a related sales funnel for a higher-cost
service.
Knowing I’d earn back what I spent on lead generation meant I could afford to scale up
my marketing efforts and reach even more customers.
To my surprise, though, I kept seeing marketers shut down effective, break-even sales
funnels because they weren’t profitable.
But, these folks were forgetting that for no cost, they were turning a cold audience into
warm leads.
In most industries, a warm audience is worth MUCH more than the profits you can
generate at the lowest level of your value ladder.
So, don’t worry if you’re only breaking even with frontend sales funnels. In fact, breaking
even should be your goal at this stage.
Now, let’s take a quick look at how a few frontend funnels work
Free + Shipping offers are a common way to turn cold traffic into paying customers.
On the first page, use a video or page script to tell customers who you are, what you’re
selling, why they need it, and how they can get it.
This first page should also include a short form asking where you can ship the free
product.
After entering their address, customers will be brought to a second page that asks for
billing information.
Make sure it’s clear up front that customers will be charged for shipping.
Let’s look at Russell Brunson’s Expert Secrets book funnel one more time (you’ve seen
this example before) to see the Free + Shipping offer in action.
Once the customer enters their billing information, confirm their decision and present
them with a relevant one-time offer (OTO).
The OTO and other upsells are how you’ll make up for revenue lost giving away the free
resource. That means your offer has to be compelling.
Pro Tip:
DON’T complete the order (or say the order is complete) before offering the
upsell.
The most effective OTOs typically answer at least one of three questions consumers
have:
1.
1. What can I do next?
1.
1. How can I do this faster?
Why use a Free + Shipping template? Customers are more likely to complete the first
form when they see how short it is (and that you aren’t asking for credit card i nformation
yet). Then, once they get to the next page, they’re already committed to the process of
filling out forms.
The Free + Shipping template not only gains a subscriber, but it gets the customer to
spend money. And, that shift in mindset–even just paying for shipping–makes the
customer more receptive to additional offers.
SLOs work well for items priced between about $30 to $99. The idea is to break even
on advertising costs (hence the name ―self-liquidating‖).
Since you are selling a more expensive product than a Free + Shipping offer, most SLO
funnels will need a longer script.
Whether you present your script in a video or written out on a click-through or sales
page, make sure to include:
1.
1. Star
1.
1. Story
1. Solution
By creating a ―star‖ of the story—a character the audience can relate to—and
presenting him or her with a challenge readers understand, you help them visualize the
solution for themselves.
Why use an SLO template? There are almost no limits to advertising reach when sales
from your initial offer cover the cost of advertising. It can take a little time and testing to
find the right sales script, OTOs, and upsells. But, the right SLO presented to the right
audience is nearly unstoppable.
Offering a free trial is one of the surest ways to qualify subscribers and grow your email
list.
By providing value and letting customers test-drive your product or service before they
make a purchase, you’re actually using two sales techniques in one.
First, you’re letting customers test the product and see how they feel when they use it. If
you’ve ever gone to a pet store and spent time with the puppies or kittens, you know
how much harder it is to turn down an opportunity once you’ve seen how it will change
your life.
In addition to the test drive, customers are also aware that they’ll lose the service if they
don’t buy by the end of the trial period. And, the ―threat‖ of losing something valuable
can be a powerful motivator.
The Free Trial funnel should clearly state what the customer will receive at the top of the
first landing page. As they customer scrolls down (or through additional pages), they
find a variety of information designed to increase the perceived value and lower the
perceived risk of starting the trial.
Include basic information potential customers are looking for. What is the product? How
does it work? What do other people think of it?
Pro Tip: Use benefit-based headers to increase conversion rates. Telling customers
you have the ―#1 product on the market‖ is compelling. Letting them know you have the
―#1 product to help generate low-cost, qualified leads‖ is compelling AND solution-
focused. The more easily customers can visualize the benefits in their own life, the more
likely they are to continue reading and moving through the funnel.
Why use a Free Trial template? Instead of telling people about your product or
service, you’re showing them. A free trial lets the potential customer test your ongoing
service (or high-ticket offer) without the risk. And, as I mentioned earlier, once a
customer signs up for free trial, they’re more likely to buy a membership and respond
positively to related offers you present.
If you don’t have a recurring service option, membership funnels (or continuity funnels)
aren’t for you.
In some cases, you might use a free membership or trial period to generate leads and
grow your email list.
Other times, especially if your membership fees swim on the deep end of the pool, you
might use a low cost entry funnel (Free Trial or SLO) at the frontend of your value
ladder.
Then, after customers buy your initial offer and get on your email list, you can move
them into a more profitable membership funnel.
Pro Tip: Whenever you use the continuity funnel in your sales strategy, you’re targeting
the same customers you did with the Free + Shipping and SLO offers. If you use two or
more of these funnel templates, you can repurpose the same scripts with relatively
small changes. How’s that for a time saver?
The following funnels are designed for mid-price products. Because of the higher cost,
these products typically require more content or a longer script than frontend funnels.
Webinars are as close to an in-person sales pitch as many business owners can get
online. They’re effective in closing sales on mid-to-high price items. And because the
pitch is made online, you can record and rebroadcast the webinar over and over again.
Start by directing people to a squeeze page with a sales letter or video explaining why
they should register for the webinar.
By getting someone to register, you qualify them as a subscriber. They’re now on your
email list and ready to hear about the solution you can offer.
And, by changing the sales environment with a live (or recorded) webinar, you can turn
a surprising number of leads into paying customers.
After you master giving your live webinar (Russell suggests that you do your webinar
―live‖ many, many times to get it perfected), it’s time to build an auto-webinar funnel.
You can keep the registration page you already created. Only now, users are sent to an
updated confirmation page. In addition to the date and time for the upcoming webinar,
the updated page now gives them an option to watch a replay of ―last week’s‖ webinar
right away.
Lastly, because this is an automated webinar and you won’t be there to gauge interest
live, take the time to create unique email series that customers will receive depending
on how they engage with the webinar.
Someone who sits through the whole webinar should receive a different email than the
person who didn’t show up at all—one is ready to buy, and the other needs to be
brought back into the funnel.
Why use a webinar template? Webinars are high-converting sales strategies that
qualify subscribers and buyers, all through a simple sales funnel that you can automate
to generate income 24/7.
The Invisible Funnel might be my personal favorite for the good will it builds with
customers, all while convincing them to buy mid-range and high-ticket items.
You start by collecting payment information as customers register for the webinar or
training (like you normally would).
But, and this is a big one, they’ll only be charged after they view the content and only if
they think it’s worth the cost.
For the Invisible Funnel to work, you have to offer premium content to your audience.
Not just good content… some of your best.
The training customers access should be 3-4 hours long and jam packed with your best
tips, tricks, and advice.
And by giving customers an opportunity to opt-out of paying for the content, you build
trust and confidence. They don’t feel like you’re pushing for a sale, but trying to help
them find a solution.
Why use an invisible funnel? The Invisible Funnel can be a little intimidating the first
time you put it in place. You’re essentially giving away some of your best content and
trusting that customers will pay for it.
The strategy becomes less intimidating when you look at some of the results other
businesses have had.
When Russell Brunson tested the Invisible Funnel and asked customers for credit card
information up front, however, attendance skyrocketed to 85%!
Even after accounting for people who chose to opt-out of paying, the percent of
people paying for the Invisible Funnel training was higher than the percent of people
who even attend a free webinar.
Woah!
The Product Launch Funnel works best with warm and hot traffic, and it’s become a
marketing staple for many big companies.
1.
1. The Wow and How
1.
1. Educate & Demonstrate
1.
1. The Ownership Experience
1. The Offer
In the first video, you’re ―wowing‖ viewers with a big idea and showing them ―how‖ it is
being used in the real world.
The second video takes viewers with you as you walk through the process and
demonstrate how they can use your big idea.
The third video lets viewers see what life would be like if they purchase the product or
service.
And, the fourth video reveals exactly what you’re selling, how much it costs, and how
the viewer can get it.
Each of the four product launch videos can be long or short, and you may need to do a
little testing to find the right length for your audience.
Why use a product launch template? The four videos in the Product Launch Funnel
are a great way to break down sales pitches into manageable, digestible pieces. By
sending out just one video a day over four days, you build excitement for the product
and teach your audience why they need it before you make the offer.
Backend Funnels
For most businesses, selling high-ticket items requires a high-ticket investment. Using
traditional call centers, you might need dozens of salespeople to identify leads and
close sales.
High overhead and huge sales teams can quickly eat into profits to the tune of 5-6
figures every month!
No thank you!
Fortunately, there’s a backend funnel designed specifically to generate leads and drive
sales on high-ticket products and services found at the very top of your value ladder.
The Application Funnel is an almost unbelievably simple solution to one of the biggest
challenges businesses face: finding the big client and closing the big deal.
First, send traffic to a landing page with a case study video explaining the results clients
can expect when they buy and use the service.
After the video, interested clients click on a button to ―Apply Now‖ or ―Get Started‖ and
move to step two.
On the second page, potential clients fill out a full application. This not only helps your
sales team gather all the information they need to identify prospects and create a
proposal, but it pre-frames the high-ticket service in the client’s mind.
The final page of the 3-Step Application Funnel is a ―What Next‖ page. Here, you want
to give clients ―homework‖ to do—something simple that increases value: set their
goals, for example.
You should also explain how and when you’ll contact prospects and how clients can
contact you if they can’t or don’t want to wait for your sales team.
Why use a 3-step template? Being able to convert cold traffic to sell high-ticket offers
is a game-changer. Being able to sell high-ticket items at a fraction of the overhead cost
of competitors is a game-winner.
You can find more funnel templates on thi regularly update list from ClickFunnels.
Ok. So you know which templates work best at different stages of your value ladder.
Now it’s time to tailor the design, message, and offer to your industry and audience.
And, you can do that quickly using a process known as funnel hacking.
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Funnel hacking is the process of investigating the sales and marketing strategies your
competition is using.
The goal is to reverse engineer those components that are driving a competitor’s
success and strategically apply them to your own business.
Doing your own funnel hacking can be time-consuming, but it’s an indispensable step if
you’re going to properly understand your competitors, customers, and marketing
campaigns.
I recently started hacking membership funnels as a way to increase conversion rates for
my own continuity program.
First, make a list of all your competitors—both direct competitors and those in shoulder
industries that appeal to the same market.
Etc.
There are dozens of elements to consider when hacking a competitor’s funnel. And, as
you go through more competitor sites, you’ll begin to identify trends and patterns in your
own market.
Write everything down! Even ―simple‖ details like font size, button color, and word count
play a role in determining conversion rate.
Don’t ignore some competitors or discount funnel strategies that successful competitors
are using.
Even the best funnel builders don’t know everything about every niche.
When I first heard Russell talk about funnel hacking, he shared a story that really drove
home why the process is so important.
He was funnel hacking a competitor for his supplement business when he saw they
were selling the same product in their upsell that customers had just bought.
But, offering more bottles of the same supplement actually outperformed other upsell
offers!
Russell expected the strategy to fail, but he tested it anyway. And, it paid off in a huge
way.
Remember, your top competitors have already put a lot of time and money into
developing and testing their sales strategies.
Learn more about fast funnel hacking and some of the tools you can use with
Clickfunnels
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Making a mistake in your sales funnel isn’t the end of the world. Testing different
elements and designs in a sales funnel not only identifies what does work, just as
important, what doesn’t work.
Thankfully, we can learn a lot from mistakes our competitors have made.
Mistake #1: Trying to Sell the Biggest Item to the Cold Traffic
In most cases you’re selling to cold or warm traffic, and building a relationship with the
customer can yield higher lifetime value.
Besides, your upsell strategy can identify hyperactive buyers and direct traffic toward
high-ticket items when they’re ready.
That doesn’t mean you shouldn’t build a high-ticket sales funnel as soon as possible,
though!
You’ll need to have this funnel in place for ready-to-buy prospects. And you can alway
create frontend funnels to generate leads after your sales funnel is established.
By having a series of downsells as well as upsells during the checkout process, you
give customers additional options and keep the sales conversation going.
Some businesses are even using pop-up discounts to turn people leaving the site into
paying customers—the ultimate cold traffic conversion!
You can’t make a sale if the customer isn’t thinking about you and your product. Once
someone opts-in to an email list or makes a purchase, follow up regularly to age and
ascend the relationship.
The people requesting information and making purchases on your site are showing
interest in your content. Waiting too long to follow-up could cause them to look
elsewhere.
Even if it feels like you’ve done absolutely everything just right, you may not be getting
the cost-effective results you need.
If you’re not getting the traffic or conversions you expect, try one of the following fixes:
A complicated payment option is like throwing a hurdle in front of the customer right as
they’re about to cross the finish line. Remove obstacles and keep the path to purchase
clear.
Communication with customers should always include a call-to-action. The CTA doesn’t
have to be to make a purchase. It could be inviting them to submit a question or click on
a link to a blog or video you just posted. The goal is engagement.
You should constantly be testing different version of your funnel and analyzing
performance to see what is and isn’t working.
With so much flexibility in design and purpose, it’s easy to get over-excited and create
an overly complicated funnel.
If there are too many steps or the steps aren’t clear, you could be losing customers
before the point of purchase.
Don’t assume you know everything about sales funnel strategies in your niche. No
matter how much experience you have marketing and building sales funnels, you can’t
know everything about every industry.
Remember Russell’s story about hacking a competitor funnel for his supplement
business? If he had stuck with his initial assumption, he never would have tested the
new, more profitable upsell strategy.
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1.
1. Map out your steps.
1.
1. Add the basic building blocks.
Maybe that’s why I was so surprised when I had such trouble building my first funnel.
As I quickly learned, the actual act of putting all the pieces together from scratch and
getting them to communicate online can be surprisingly complicated.
Once you understand the strategy–what type of funnel, price points, and offers you
should have at different stages of the customer journey–you need to map out the actual
funnel.
Will you use a quiz or squeeze page to pre-frame the offer? What price will your first
offer be? How many upsells and downsells will you have?
You need to plan your follow-up sequence. How will you communicate with newly
qualified subscribers and buyers?
Once you know what you want, it’s time to put everything in place!
If you remember my story at the beginning of this article, this is where I choked!
Thankfully, sales funnel software has made the whole process much easier and faster.
Just to give you a taste of how to build a funnel with sales funnel software, here’s a 9-
minute video where Shawn Bayley, ―The Sales Funnel Nerd,‖ builds a funnel with:
2 one-time-offers (OTOs)
There are many other videos showing funnel creation on Shawn Video Youtube
Channel.
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The right software can save hours of planning and set-up on every funnel you create.
Once I started using sales funnel software, though, the process became as easy as
clicking pieces into place.
The ready-made templates and customizable designs make it easy to quickly build high-
converting sales funnels. And after extensive testing, one sales funnel software option
stood above the rest.
ClickFunnels
The program is simple enough that anyone on my team can use it, but powerful and
smart enough to keep our tech and marketing people happy.
Staying true to the idea of the funnel as a marketing strategy, the power in the
ClickFunnels system is in its simplicity.
Step #2: Choose the template you want for each step of the funnel from a list of proven
designs, or create your own.
Step #3: Finalize the funnel design to see all the steps together.
Step #4: Create the copy: edit text, add videos, create forms, and tie opt-ins to your
email autoresponder.
In less than a day (and as little as one hour!) your new funnel has gone from an idea to
a live process!
And, because ClickFunnels founder (Russell Brunson), I wrote the book on sales
funnels I include everything you need for the entire funnel-building process, from
brainstorming to data and performance analysis.
While funnel pages are separate from your website, keep the design consistent. Use the
same colors, font styles, and tone you use on your traditional website.
If you don’t have a traditional website—and you don’t really need one with the right
funnel structure—use a design that matches your pre-frame, whether you’re bringing
traffic from an email or a banner ad.
Keep your main call-to-action above the fold so users don’t have to scroll down to move
to the next step in your funnel.
Remember AIDA!
Landing pages can be long or short, but they should be strategically designed to
attract attention, establish interest, create desire for the product or service, and prompt
a specific action.
Look at competitor funnels and model your design off the ones you like most. What do
you like about their design and how can you adapt it to fit your business?
Don’t neglect headers and text! After the feature image, your header text will be the first
thing most people see when landing on the page. It should be clear and compelling (and
typically LARGE!)
Add a video! Video case studies, testimonials, and how-tos drive up conversion rates
while pre-framing customers for the next step in the funnel.
Test design changes. Just like you should test different content and offers, small design
changes can have a big impact on customer experience.
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Types of Traffic
Your pre-frame and initial offer should change depending on how you are
communicating and who you are targeting.
Cold Traffic
What is cold traffic? Cold traffic is problem-aware. They know they need a solution,
but they don’t know about your brand or product yet.
What are the best pre-frames for cold traffic? The best cold traffic pre-frames start
with a question or problem that potential customers have: ―Have You Tried Everything
to Sleep Better But Still Can’t Get a Full Night’s Rest?‖ or ―This Under the Radar
Problem May Be Killing Your Lead Generation‖
Quiz
Article
PPC
News
Blog
Video
What are the best funnels for cold traffic? The best cold traffic funnels include a free
or low-cost opt-in incentive designed to qualify subscribers (and sometimes buyers).
Free + Shipping
SLO
Ongoing Service
Invisible Funnel
Cold funnels typically need a longer pre-frame than funnels you would use for warm or
hot traffic.
Warm Traffic
What is warm traffic? Warm traffic is solution-aware. These potential customers are
already familiar with your brand or the solution you provide.
What are the best pre-frames for warm traffic? Warm traffic pre-frames should start
with a solution that potential customers want or need: ―Sleep Better at Night with This
Simple Trick‖ or ―The Email Marketing Secret that Increased My Click Rate by 55%!‖
Article
News
Blog
Video
Pre-Sell Page
Social Media
Here is an example of a Facebook video that attracts warm traffic, in this case, people
who are most likely already aware of biohacking or nutrition solutions.
What are the best funnels for warm traffic? The best warm-traffic funnels pick clients
up 1-2 stages into the buyer journey. Prospects are already aware of the problem and
they’re searching for a solution.
SLO
Ongoing Service
Sales Webinar
Invisible Funnel
Product Launch
Hot Traffic
What is hot traffic? Hot traffic is already familiar with your brand and the solution you
provide.
They are on your mailing list, they follow you on social media, and they’ll keep buying
from you as long as you’re offering value.
What are the best pre-frames for hot traffic? While hot traffic can use the same pre-
frames as cold and warm traffic, you can generally use a shorter pre-frame or script.
The hot traffic pre-frame is more about introducing the product or service and showing
value.
You aren’t convincing traffic they have a problem, just showing them the best solution.
Review Article
News
Blog
Video
Pre-Sell Page
Social Media
Sales Page
What are the best funnels for hot traffic? Hot traffic funnels can be shorter than cold
and warm-traffic funnels.
These customers are searching for solutions right now, and many will make a purchase
if you can show them the value in your offer.
Ongoing Service
Sales Webinar
Invisible Funnel
Product Launch
Knowing your traffic sources will help you determine traffic temperature so you can fill
your funnel with qualified leads.
Even if you’re bringing in cold traffic, some leads are more ―qualified‖ than others—
they’re more likely to become subscribers and buyers.
You can identify these qualified leads by identifying audience groups and where they
spend their time online.
The internet has made it easy for people with shared interests to connect. And, if you
know where to look, you can find large groups of qualified leads in just a few minutes.
Who should you look for? Consider who your dream customer is—what questions do
they have, what gets them excited, what publications do they read or subscribe to, etc.
The more you know about your audience, the more you can tailor your marketing.
Where to find them online: Finding where your dream customers congregate will take
some time, but every new source can generate hundreds or thousands of new qualified
leads.
Look for forums about your niche or industry. Find publications they subscribe to and
submit a guest post or ask for a referral in the publication’s next email blast.
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Reddit is another great way to find traffic sources. Find the Reddit forum or forums for
your industry and see what potential customers are talking about. What are they worried
about? What sites and content are they discussing?
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In addition to forums, you can also find audience groups on Facebook and other social
media platforms or through the use of PPC ads.
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The National Enquirer approach: Once you find a traffic source, you’ll only have a
split-second to grab the reader’s attention and get them to click over to your site.
That’s why Russell Brunson recommends using the National Enquirer approach: catchy
pre-frames, unusual images, and short, curiosity-inducing headlines.
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You need to grab the consumer’s attention, but you also need to deliver on the promise
of the headline and image.
If the landing page doesn’t offer the content the reader expects, or if a design or header
change makes them think they’ve landed on the wrong page, they’ll leave your site…
probably for good.
Keep your message and design consistent between your ad (or other pre-frame) and
the landing page.
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Setting Goals
That means every funnel needs clear goals and metrics you can measure to analyze
performance and effectiveness.
Are you trying to drive sales or qualify subscribers? Are you looking to break even on
lead generation and make money on the backend? What sort of return on investment
are you expecting?
Setting clear goals allows you to strategically test the structure, design, and content in
your funnel to maximize ROI. So, what sort of metrics should you measure?
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Cost of Leads vs ROI: Which Metric Matters More?Of course, there is a difference
between knowing that you need to set goals and knowing which goals to set or how
high to set them.
Some businesses focus on cost per lead (how much it costs to get one qualified lead or
subscriber). They may set goals like ―$1 per lead‖ as a way to manage marketing costs.
Other businesses prioritize ROI over the cost of lead generation. The idea is that no
matter how much a new lead costs, a high enough return on investment will always
justify the cost.
Let’s say it costs $100 to get 100 leads to your site. That’s $1 per lead, right?
But, if 2 people convert at $100 each, you have a 100% return on your investment.
Companies that focus on lead generation costs can get stuck in analysis paralysis,
constantly trying to improve the cost per lead without scaling up efforts to generate
more total leads.
Others hit their cost-per-lead goal and stick to that figure, worried they’ll lose customers
or increase costs if they try something new.
A business that prioritizes ROI, on the other hand, will see that they earned a 100%
return. And, knowing what to expect, they can scale the offer and continue investing
more to drive greater returns.
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As easy as the right software makes it to create a working sales funnel, no one builds
the perfect sales funnel on the first attempt.
Many businesses will stop testing a funnel once it starts working (if it ain’t broke, don’t
fix it).
Some worry they’ll lose customers if they make a change. Others are already moving to
their next marketing campaign, and they’d rather try something new than spend time
testing and improving an existing funnel.
Even after you start generating the traffic or conversion numbers you need, it is almost
always worth the effort to continue testing the funnel.
Let’s look at how to test each stage of the funnel with a real-world case study.
Dustin and Lacy Baler were losing money on their health food blog.
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With great traffic numbers (5,000 visitors every day!), the food blog was clearly
delivering compelling content and engaging potential customers online.
But, after reaching the site, customers weren’t taking the desired action: opting-in or
making a purchase.
So, the Balers took a deep dive into their sales funnel and email marketing strategy and
began testing.
First, they looked at the pre-frame—what sources were bringing the most traffic to their
site and how could they leverage that to generate more leads.
They also looked at types of media (video, blog, quiz) and topics their audience
engaged with. In this way, they could shift their focus and message to increase interest,
boost email conversions, and even identify new products to sell.
Next, the food bloggers began using pop-in forms and A/B testing different incentives
and form designs to increase conversions.
By testing and optimizing their funnel, the Balers were able to increase email
subscribers by 726%!
Clearly, funnel optimization is a must. And, it all starts with split testing.
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Split testing is sometimes referred to as A/B testing because you are comparing two
versions of a form or content: version A and version B.
Just like going to the optometrist, you’re picking which of two choices is better, then
repeating the process to find the best prescription.
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And so on.
There is almost no limit to what you can test. Now, let’s look at how to test.
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Determine follow-up tests. Don’t stop testing just because you found a clear,
actionable result. Use that to take your testing further.
If a red button converts higher than a green button, test red vs orange. Or different
shades of red. Or change the text on the button.
Document results. Without clear data, testing becomes a game of chance instead of
an exercise in fine-tuning.
Which email headers affect open rate? What call to action drives more clicks? What
offer converts at a higher rate?
Make sure you have a plan for what data you’re collecting, how you’re gathering the
data (from what sources), and how often you’re reviewing the data as a team.
Segment lists to target specific audiences. Are you bringing in cold, warm, or hot
traffic? How far along are they in the buyer journey? If you sell pet products, do they
own a dog or a cat?
Taking time to segment your list allows you to target specific audiences and send
personalized offers that convert at a higher rate.
Brainstorm challenges and more opportunities for optimization. Don’t limit yourself
to what you test or how you test. Look for new opportunities to demonstrate value.
The Invisible Funnel I mentioned earlier didn’t exist until the process was tested on a
smaller scale and proven effective. Now, companies around the world are using it to
qualify leads, subscribers, and hyperactive buyers.
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No matter how strategic you are in planning, setting up, and testing each step, at some
point you’ll run into holes in the funnel where customers are falling out of sales process.
To find the leak in the funnel, you’ll need to collect data. How far in the funnel are
customers getting before dropping out? At what point does your conversion rate drop?
Once you identify the leak, you need to choose how you’ll plug it. You can change the
design, the script, or the offer–each can work under the right circumstances.
If you’ve been testing your funnels, you’ll already have a large pool of data to help
choose the right solution.
If you haven’t been split testing, a leaky funnel is the perfect opportunity to start.
Here are a few common sales funnel leaks and how to plug them.
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You only have a few seconds (at most!) to grab a reader’s attention once they hit your
landing page.
Even the people who stay on your site are typically skimming the content.
Wait a sec!
Is it really worth all the effort to create great copy if people are only reading a fraction of
your message?
Absolutely!
With increasing competition and decreasing attention spans, you have less time to
convince each potential customer.
By creating great copy that’s easy to navigate and skim, you’re providing value to
customers and actually increasing the average time they spend on the page.
If you’re bringing in plenty of traffic but failing to get conversions, chances are you have
a ―content‖ or ―offer‖ problem.
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Add CTAs at the top and bottom of the content (and possibly middle)
Even the best landing page and sales script won’t work if you don’t have the right offer.
That doesn’t mean it’s a bad offer. It’s just not converting.
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The pre-frame message and design doesn’t match the sales page.
If you have great copy, design, and an amazing offer on your landing page but you’re
still converting below 20%, it could mean you have a traffic leak.
Segmenting your audience allows you to drill down and provide personalized offers.
But, targeting the wrong audience or sending a segment through the wrong funnel can
undo all your hard work!
And, trying to draw conclusions from low traffic numbers can be difficult, at best.
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It might seem like you have a problem with your offer, when the truth is that not enough
people have even seen the offer.
How can you tell the difference between the wrong offer and poor traffic?
Even with a 40% opt-in rate, this funnel may not have had a single person purchase the
OTO. That doesn’t mean the OTO isn’t a great offer-there just hasn’t been enough
traffic yet.
Now, let’s say you bring 1,000 people to your landing page every day.
To fix ―broken‖ traffic numbers, start by reviewing audience segments and how they
overlap in different funnels. For example, are you sending all pet owners (including cat
owners) through a dog food funnel?
If audience segments are being guided to the right funnels, the traffic problem might be
in your pre-frame.
Consider audience attitude and behavior, especially if you change the sales
environment at some point in your funnel
If you know when your audience is most receptive to an offer, you can plan your funnel
around that timing. Are you sending offers to stressed customers on a Monday, for
example, or happy customers on a Friday?
If you have a traffic problem in your funnel, there are a few potential fixes you can try.
Make sure the message and design on your pre-frame and landing page
match
Change your pre-frame (an email offer to hot traffic may not convert when shown
to cold traffic as a Facebook ad)
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Getting a customer to opt-in to your newsletter or make a purchase is just the beginning
of the customer relationship.
Customers typically start near the bottom or middle of your value ladder. By keeping the
conversation going after you secure a purchase (after you’re done upselling), you are
aging and ascending the relationship and moving customers up the value ladder.
The truth is that about 20% of the people who follow you are going to generate about
80% of your revenue.
So, take a little time to reassure customers that they made the right choice in signing up
or making a purchase.
Continue to provide them with valuable content based on their interests, pain points,
and how they have engaged with other funnels.
Not only are you keeping yourself top of mind between sales efforts, but you are
keeping that traffic piping hot so they’re more receptive when you recommend a new
product or service.
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To that end, there’s no replacement for building a long-term relationship with your
subscribers.
Use email marketing to show your personality and become a relatable and reliable
source of value for your audience.
Pro Tip: Many business owners worry they’ll overload customers if they send more than
one email every week or month. In my experience, every day you aren’t offering value
to your followers is a day you’re losing sales. Use different email series and styles
depending on traffic temperature and what funnel the user is currently moving through.
Building a sales funnel takes time. But, with the right strategy and tools, it doesn’t have
to take much.
Ready? Set? Start building your 7-8 figure online business now here
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