Sales Funnel Explained - Sales Funnel Tutorial For Beginners (Step By Step)

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YouTube Transcript: English (auto-generated)

00:00

  • Hey everybody, this is Russell Brunson,

00:01

and today we’re talking about sales funnels tutorials

00:04

for beginners, and to do that I want to show you guys

00:06

my very first sales funnel I built as a beginner.

00:08

In fact, this is a picture of me here on the slide.

00:10

This is me with my shaved head making a potato gun.

00:12

This is the very first, one of the very first landing pages

00:15

for howtomakeapotatogun.com and there’s a doodle

00:18

of me shooting potato guns 'cause I am a potato gun expert,

00:21

but we’re gonna talk about just the basic concepts

00:23

behind a sales funnel because I think at first people get

00:26

all complicated, like oh, it’s gonna be really difficult,

00:27

it’s gonna be hard, but I want you to understand

00:28

this is really, really simple.

00:29

So here is an actual potato gun.

00:31

I don’t know if you can see it on the camera or not,

00:32

but we’re gonna walk you guys through this.

00:34

When I first created this with my buddy Nate Plohn,

00:36

I was going to college at the time, I was trying to figure

00:38

out like how do I make money on the Internet,

00:40

and someone said you should sell information products.

00:42

I was like, that’s awesome, but I don’t know anything

00:43

about anything, and then that weekend was spring break,

00:46

and Nate and I went and we made potato guns

00:47

and had a great weekend, and then fast forward

00:50

to like the next Monday, I’m back in school,

00:51

sitting there kind of like doing the bored school thing,

00:53

and all of a sudden I was like wait a minute,

00:56

I know how to make a potato gun now.

00:57

That’s information, can I create a product about that?

01:00

And so I was freaking out, I went online.

01:02

At the time, there’s a website you could search

01:04

to see how many people were searching for different keywords

01:07

and there were 18,000 people a month searching

01:09

for the phrase how to make a potato gun or potato gun plans

01:12

or spud gun plans, and nobody had a product,

01:15

and I was like light bulb,

01:16

I’m gonna make a product teaching that.

01:17

So I got Nate, we went down to Home Depot,

01:20

we got a video camera out, we filmed this whole thing,

01:22

and we made our very first, very first product,

01:24

and I put it online and I didn’t know how to sell anything

01:26

so I just had like a basic website.

01:33

The website was like hey, come and buy my thing,

01:35

and then I went to this thing called Google.

01:37

You guys may have heard of it before, and on Google they had

01:41

these things right here, and on the side there were

01:43

these ads, and so I would pay for the Google ad,

01:45

someone would click on the ad, they’d come over here,

01:46

they would see this thing, and they’d be like oh my gosh,

01:48

I must buy this DVD so I can learn how to make a potato gun,

01:51

and some of them would give me money, and initially

01:53

when we first started selling this, we were selling it

01:54

for $37 a piece, and so people would buy that,

01:59

and that was my business, and I remember putting the ads up

02:02

and I was spending about $10 a day.

02:03

Let me do the math over here, so I was spending $10 a day

02:07

in ads over here, and from that I was averaging

02:11

about one sale a day, okay?

02:12

Now, as a college kid, I’m looking at this and I said okay,

02:16

I give Mr. Google $10 and then he gives me back 37.

02:20

That means I got $27 to put in my pocket.

02:22

Next day I gave Mr. Google $10, he gave me back 37,

02:25

I put 27 in my pocket, and I kept doing this,

02:27

and I was like I am the smartest man alive,

02:29

and then something evil happened.

02:31

The guys over at Google decided they wanted

02:32

to make more money, and so they changed their algorithms.

02:34

I’m not gonna get into that, but they changed

02:36

their algorithm, and so no longer was it

02:37

like I spend $10 and I make 37.

02:39

Instead, I started spending $10.

02:41

Excuse me, like my ad cost went up so I started spending

02:44

$50 a day to make one sale, okay?

02:48

Now I’m not the sharpest tool in the toolbox,

02:50

but I gave Google $50 and they gave me back 37,

02:54

and I was like wait, I lost money, and then I gave them 50

02:58

and I lost 37.

02:59

That’s three or four days, I’m like wait a minute.

03:01

This game sucks, I’m losing, and so I turned my ads off.

03:02

I’m like I can’t play this game, and I remember being

03:04

frustrated, and one day I got a call from my friend,

03:07

and my friend had a similar business to me.

03:08

He said, hey Russell, I think I figured it out.

03:11

I said, figured what out?

03:12

He’s like, I stopped, and he didn’t call it the funnel,

03:14

he’s like I created this thing called an upsell.

03:16

He called it an OTO, one time offer.

03:18

He said, what I did is that every single person

03:19

who bought my product, I then upsold them something else,

03:22

and I was like, well why would I do that?

03:23

He’s like, well, have you ever been to McDonald’s before?

03:25

I’m like yeah, and he’s like, well you know how you go

03:26

to McDonald’s and you go through the drive-through

03:28

and you’re like, hey, I want to order a Big Mac,

03:30

and the dude’s like cool, do you want to super size it?

03:33

Do you want fries and a coke with that?

03:34

And he starts offering you upsells.

03:35

I’m like yeah, and he’s like if you look at the math,

03:37

he’s like, McDonald’s actually loses money selling a Big Mac

03:40

but they make all their profit when someone buys the fries

03:42

or the Coke.

03:43

I was like, okay.

03:44

He’s like, right now, you’re losing money

03:46

selling your potato gun DVD.

03:48

You just gotta sell these guys fries and a coke

03:49

and then you’ll be profitable, and I was like,

03:51

I still don’t quite get it.

03:52

He’s like, if someone buys this,

03:53

like what’s the next thing you can do?

03:55

If you were trying to serve this person,

03:56

what’s the next thing you could serve them with?

03:58

And I said well, when someone buys the DVD the most annoying

03:59

thing is now they have to go to Home Depot

04:01

and they have to buy the pipes, and they have to cut them,

04:02

and like all this stuff to make this amazing gun,

04:04

and he said, well what if instead of you telling them

04:08

to go buy the stuff, what if you upsold them a kit

04:10

that did this whole thing?

04:11

I have no idea if this is gonna show up on the camera or not

04:13

but I thought it looked kind of cool, and so he said,

04:14

make an upsell where you sell them the kit.

04:18

So here is,

04:22

here is the kit, so I did some math and I started calling

04:25

around and I found these guys in northern Idaho

04:27

who actually made potato gun kits, and I would spend,

04:29

I would start selling these for $197,

04:32

and now this became my very first funnel ever.

04:35

Again, I didn’t know it was called a funnel at the time,

04:36

but someone come, they click on the ad,

04:38

they would see my DVD, they would buy my DVD.

04:40

On the next page, our upsell says hey, the DVD’s coming,

04:42

do you want me to ship the pipes with you too

04:43

so it’ll save you some time?

04:45

Just $197, people are like that would be fantastic,

04:47

and they’d click the button and they would buy it, okay?

04:49

Now, what happened, if you look at the math, was interesting

04:51

is that Google didn’t change their ad costs.

04:52

They still were charging me $50 a day, right?

04:55

So that didn’t change, but I came here and I spent $37,

04:57

so I lost some money, but then what happened is that one out

04:59

of three people who bought the DVD would buy this, right?

05:02

So let’s say I got a bunch of clicks over here, boom,

05:05

and say there’s three people right here that bought the DVD.

05:10

One of these people then would go and buy this.

05:13

For every DVD I sold, so I made $37, 1/3 of those people

05:16

bought this, so I take $197, I divide it by three.

05:19

If I do the math on that, that’s $65.

05:21

So if I take $65 plus $37, seven plus five equals 12,

05:27

nine, 10, 102.

05:28

So now I was making $102 for every single person

05:30

that bought the DVD, does that make sense?

05:32

'Cause one out of three bought the kit as well, okay?

05:34

So now I was on Google, I was paying $50 a day in ads,

05:37

but I was making, on average, $102 a day.

05:41

I put $50 in, I got $102 back, okay, and all of a sudden,

05:44

I started looking, I was like I am the smartest

05:46

man alive again.

05:47

I spent $50, I get back $102, and so I was back in business,

05:51

potato gun sales were cranking, I was having a good time,

05:53

and then I realized wait a minute, potato guns are good,

05:55

but the market’s like this little.

05:56

Like what other markets could I do this with?

05:58

And I started thinking, I said well,

06:00

what if I did this in speed reading?

06:03

I met a guy who was the world’s fastest reader, Howard Berg,

06:05

and so we set up a funnel for speed reading and it worked,

06:07

and we said, what if we did this in the dating market?

06:09

And I found someone who was a dating expert,

06:10

we plugged it in.

06:11

What if we did this with supplements?

06:12

What if we did?

06:14

And we started doing this, and the funnels obviously tweak

06:15

every single time, but the concepts are the same,

06:17

and I became obsessed, and over the next five or six years,

06:20

I launched over 100 different funnels

06:21

in 100 different markets and became obsessed with it

06:23

and it became so much fun, but this concept of a funnel

06:26

works in any business, and so what I want you guys

06:28

to understand is this is how simple it really is.

06:30

It’s not some complicated thing.

06:31

Sometimes we get all complicated.

06:33

It’s very simple, so like we buy an ad to sell something.

06:35

Somebody buys that thing, then what’s the next logical

06:37

thing they need?

06:39

Well, if they bought a potato gun, the next thing they need

06:40

is they need a potato gun kit, and that becomes my funnel,

06:42

and that’s kind of what we take people through.

06:44

All right, hope you loved that tutorial about how I turned

06:45

one of my hobbies into a sales funnel and turned it

06:47

into money and how you can do it as well.

06:49

If you don’t have a ClickFunnels account yet,

06:50

go to iloveclickfunnels.com, get a free trial along

06:53

with a whole bunch of other really cool bonuses

06:54

that you are gonna love, and on top of that I want you

06:57

to stay tuned 'cause the next video is coming up here

06:58

in about five seconds.

07:00

I’m gonna walk you guys through seven different sales funnel

07:01

secrets that’ll help increase the conversions

07:03

and how much money you make on every one of your funnels.

07:05

With that said, let’s watch the next video, let’s go.

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