The History of Marketing - From Shekels to Sales Funnels

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YouTube Transcript: English (auto-generated)

00:00

  • Hey, my name is Russell Brunson, and I’m so excited

00:01

for you to watch the evolution of marketing.

00:03

I’m gonna talk to you guys about everything

00:05

from the beginning of time with bartering all the way

00:07

to sales funnels today, and I want you to watch this video

00:10

because you’re gonna understand the evolution

00:11

of how things have come and when we understand

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where they came from, it makes it easier for you

00:14

to be successful with your funnels in the future.

00:16

So we’re gonna go back to the very, very beginning of time.

00:19

Back to prehistoric bartering time.

00:21

Back then the way that people traded stuff is they bartered.

00:23

This dude’s got a goat, she’s got some fish,

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and he’s like I really want to eat fish tonight,

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I want some sushi, and she’s like sweet,

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I need some goat milk.

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Is that really a thing?

00:32

And so they traded it straight across, and it was bartering,

00:35

and bartering was awesome except for the fact

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that you’re like, well, my goat’s really cool,

00:38

I need 400 fish to like, and it just got kind of complicated

00:41

but that’s where it all began was prehistoric bartering.

00:44

Okay, the next phase, about 5000 BC is when the very first

00:47

time they started finding actual,

00:49

like the archeologists had found coins.

00:51

At least metal objects they believed were coins, right,

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and so this is when instead of just bartering,

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you could actually create value and put value inside

00:58

of a coin, and then you can say hey, I want this goat.

01:00

Cool, I’m gonna give you 10 coins, and now you could,

01:02

now money started becoming a thing and it made bartering

01:05

so much easier 'cause it wasn’t like

01:06

I don’t need 400 fish, dude.

01:08

After that, in the early 1700’s and 1800’s,

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this is where the snake oil salesman began.

01:14

This is where salesmen started using a sales pitch

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where instead of just bartering, they would go together

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and they’d get a whole bunch of people in the crowd

01:20

to come around, and then they would then present something

01:22

to them, right, like the farmer’s market model, right?

01:24

Like here I am, get a bunch of people, and then I can sell

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instead of selling one-on-one now I sell five people

01:28

at a time or 10 people at a time or 100 people at a time.

01:30

So traveling snake oil salesmen went out there

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and started making some money by doing a performance,

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getting the crow all excited.

01:34

Fast forward now to the 1800’s

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This is where the gold rush started happening,

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and what was interesting in the gold rush is that the people

01:41

who made the most money during the gold rush were not

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the people panning for gold, it was the people

01:45

who were selling the shovels.

01:46

One of my favorite stories about this,

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there’s a guy named Sam Brannan.

01:49

It was San Francisco, I believe in San Francisco

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during the gold rush, and Sam was really, really smart.

01:53

He saw these things, all these people coming to California

01:56

to go pan for gold and make a bunch of money,

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and he was like wait a minute.

01:59

Instead of doing that, what if I sell the tools,

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the picks, and the shovels, and so he went around all

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of San Francisco, bought all the picks and the shovels

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and the tools, brought them to his own shop,

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and then he got a little bit of gold and he started running

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through the streets in San Francisco saying,

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there’s gold in the American River, there’s gold

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in the American River, and people started freaking out.

02:17

They’re like oh, we need to find some gold,

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and then they’re like we need shovels, and he’s like oh,

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I’m selling shovels over here, and Sam Brannan became

02:22

the very first millionaire in California history.

02:24

Now we’re gonna fast forward to 1830’s.

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We have P.T. Barnum who is my man.

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If you guys have seen the Greatest Showman,

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it’s a story about his life.

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He’s written so many amazing books.

02:32

P.T. Barnum was one of the very first people

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to really start doing a lot of advertising

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and things like that.

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He didn’t just like have a show, he was like putting

02:38

out leaflets and fliers and pamphlets is that he may have

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been one of the very first people ever

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to send out unsolicited mail, A.K.A. spam.

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He would spam people’s mailboxes.

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Next, 1886 to 1922, this is where selling

02:50

at the top started.

02:51

This is John H. Patterson was the president

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of National Cash Register, and instead of him going

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and selling to a whole bunch of people, he would go find

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an organization and he would sell the person

02:58

at the top a goat and convince them

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that everybody below them needed goats.

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So he’d just make one sale to the influencer,

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and then the influencer then starts selling everybody else

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in their company and their team, whatever that might be.

03:09

Then we fast forward now to 1898.

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This was the invention of the very first funnel.

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So 1898, this was way before I was born

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in case anyone’s wondering.

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Elias St. Elmo Lewis, he ran an ad agency, and he came up

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with this first concept of there were four stages

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of awareness, and if you look at this it’s A-I-D-A,

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and this is something we still use today

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in direct response marketing,

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but it was the very first funnel.

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Say okay, at the top of the funnel you’ve gotta give someone

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awareness that you even exist.

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Then you have to create an interest,

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like oh, I’m interested in that.

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Then you create desire, like oh my gosh, I need that thing,

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and then you get someone to take the action, okay?

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A-I-D-A, and this is still a principle today we think about,

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we talk about all the time.

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In fact, if your marketing is struggling, it’s probably

03:49

'cause you’re going straight for the action.

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You’re like buy my crap, buy my crap.

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So even today, this principle is extremely powerful,

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and that came up in 1898 which is pretty cool.

03:58

All right, in the 1920’s we started taking marketing

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and business and promotion to the airwaves.

04:02

In 1920’s, radio burst on the scene, Dale Carnegie wrote

04:05

How to Win Friends and Influence People

04:07

which is an amazing book by the way that taught

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the importance of relationships and people,

04:11

and in the 40’s, traveling salespeople were seen

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going door-to-door selling stuff that way as well.

04:17

In the 1940’s and 50’s, this is where video

04:20

killed the radio star.

04:21

So when TV came out, and when you read the Traffic Secrets

04:24

book I actually have a whole case study about this,

04:26

but Bulova watch was the very first TV commercial ever.

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TV’s were getting put out all over the place,

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and then during, it was during one of the World Series games

04:37

Bulova watch came on and it was a 10 second ad

04:40

that cost $0.09 and it was a little picture of the watch

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and it said the world runs on Bulova.

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In fact, if you Google, if you go to YouTube

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and search Bulova ad you can actually see the original ad.

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It was like the worst ad ever, but it was the first ad

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that like interrupted people while they were watching

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a sporting event, interrupted them, and created desire

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for a thing which was the beginning

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of all interruption-based marketing which is

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what made Zuckerberg famous and all of us rich.

05:03

1960’s, this is the rapid evolution.

05:06

This is where telemarketing started coming out,

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1800 numbers, multilevel marketing, people started using

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all sorts of different selling techniques.

05:12

There’s a really good book called SPIN Selling that came out

05:14

where instead of just going and like trying to sell stuff,

05:16

SPIN Selling got people thinking differently like hey,

05:18

instead of me selling something, I need to look at myself

05:20

as a consultant, and it started shifting the way

05:22

that they sold things to create desire

05:25

and to become a consultant and it became

05:26

just a better way to sell.

05:27

1990’s, this is where the Internet started coming about.

05:30

We started surfing the web.

05:32

The power of the Internet made it where instead

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of just the big brands like the Procter and Gamble

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and people who could spend $1,000,000 on an ad on TV,

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the Internet gave the ability where people like us

05:42

could spend a little bit of money and get exposure

05:44

and eyeballs and be able to like target directly the kind

05:46

of people we’re looking for.

05:48

2000’s, this is where it became easier and easier.

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This is where, you know, tools started coming out.

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CRM’s, marketing systems, email autoresponders,

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things like that that made this whole marketing game

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even better, and then in 2010 this is where funnels

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started becoming a thing.

06:01

Companies like HubSpot popped out,

06:03

other ones where they started building tools,

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they started taking people through processes, and then 2014,

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this is where influencers started popping up all over

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the place where they could now affect product sales.

06:13

It wasn’t just you buying ads from Zuckerberg,

06:15

it was like you buy ads from people all directly,

06:17

all sorts of people, and 2015 to 2019,

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this is where we helped create the future.

06:21

Dotcom Secrets, which was my very first book ever, came out.

06:24

We talked about funnels, ClickFunnels came out

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about the exact same time as well.

06:29

People started building funnels online,

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and now we are five years into this whole mission,

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and we are at, we passed 100,000 active members last week

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which is insane.

06:38

So we’re at 100,000 entrepreneurs using this,

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and it’s growing.

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We’ve sold, what’s the stat, 4.1, $4,200,000,000

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have been processed through ClickFunnels that we can track?

06:47

It is insane, and that is the history

06:49

of funnels in a nutshell.

06:51

If you want to get a copy of the book I talked about,

06:52

the Dotcom Secrets book, where we started talking

06:54

about sales funnels and how they work,

06:55

you can get a free copy, go to dotcomsecrets.com.

06:58

On top of that, make sure if you want to get more

06:59

cool videos like this, click on the subscribe button.

07:01

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07:03

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07:04

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07:06

Thank you so much for subscribing.

07:07

I would love to hear your thoughts down below.

07:08

Let me know what you think about the evolution of marketing.

07:10

What are things we should have added?

07:11

What are things that I should add

07:12

in the future in other videos?

07:14

Let me know, and with that said, thank you so much,

07:15

and go get your free copy of the Dotcom Secrets book,

07:17

dotcomsecrets.com.

Want 6 Months of ClickFunnels™ Full Suite for FREE?! (Massive Discount)

:arrow_right: Get Full Unrestricted Access to the Funnel Hacks System

Includes: 6 Week Master Class, Traffic Hacks, Inception Secrets & Email Sequences.