Top Rules For Avoiding Business Failure (My Biggest Mistake)

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YouTube Transcript: English (auto-generated)

00:00

Hey, this is Russell Brunson.

00:02

For all you guys who are just tuning in,

00:03

right now we are doing a show.

00:04

We’re answering your number one questions

00:05

about growing companies, building funnels,

00:07

driving traffic, making money

00:08

and a whole bunch of other fun stuff.

00:09

Today’s question is about business failure.

00:12

What are your ‘Top Rules’ for avoiding business failure

00:15

and what was your biggest mistake?

00:18

I got so many big mistakes I could share.

00:21

But the top rules for avoiding business failure,

00:24

I would say, if you look at a business,

00:28

for some reason, I don’t know if it’s just me but,

00:30

I think most people that get into business,

00:31

they think it’s like this weird thing, right?

00:33

We go to business school, and we go to all these things.

00:35

I remember taking business classes

00:36

and they taught me all sorts of weird stuff

00:38

that didn’t make any sense to me, right.

00:39

Like, supply chain management and,

00:42

just, anyway I can’t even remember most of my schooling,

00:44

if I’m completely honest, yet I built a huge company

00:47

because most of those things don’t actually matter.

00:49

You start thinking about like,

00:50

what actually matters in business?

00:52

The number one thing, and most people

00:55

aren’t going to tell you this.

00:56

The number one thing really is relationships.

01:01

I wish that in my business class,

01:03

they would’ve had a class that just said this

01:04

"Russell this is the deal, people do business

01:06

with people they like, so you should become

01:08

someone, first off, that people like

01:10

and, second off, find other people

01:12

and be really really nice to them, 'kay?"

01:13

And this is tough sometimes 'cause a lot of times,

01:15

you’ll get into business, you’ll be working with people

01:17

and you have somebody who will treat you so bad

01:19

and you look at them and you wanna do,

01:21

what I wanna do sometimes and just like,

01:22

pound their face and destroy them 'cause you’re so angry.

01:25

But, what you have to understand is that,

01:26

no matter how somebody treats you in a business relationship

01:29

you always have to keep, no matter what happens,

01:32

you have to keep a good relationship.

01:33

I’m gonna share a story, I’m not gonna share names

01:35

because I don’t want to do that but,

01:36

there was somebody when we were first launching Clickfunnels

01:38

who was a close friend and a partner.

01:40

We’d done a bunch of partnership projects in the past

01:42

and when Clickfunnels came, we were about to launch it,

01:45

he actually stepped back and came back to me like,

01:48

the day before we launched it,

01:49

"hey sorry, I decided, instead of being a partner with you

01:52

and helping you sell this, I’m actually

01:54

gonna be a competitor of yours

01:56

and I’m really really sorry."

01:57

And I remember being so frustrated

01:59

and angry and upset and I wanted to just like,

02:01

fly to his home and like, you know, rip his arms off

02:04

and whatever, I don’t know, I was not happy at all.

02:08

And instead I was like, you know what,

02:09

I need to maintain this relationship

02:10

'cause I have no idea what could happen in the future,

02:12

he’s been a good friend up to this point

02:13

and maybe, you know, whatever,

02:14

I’m just gonna bite my tongue

02:15

and so I just wrote back, said "no worries,

02:17

totally understand and good luck in the future

02:18

and hopefully we’ll work on something later."

02:20

And I just stepped back, and I’m so grateful I did

02:22

because about a month and a half later,

02:23

he came, said "you know what? That thing fell through

02:25

and I apologize, I should have thought through this

02:27

and I was just being short-sighted,

02:28

I got excited about the opportunity, whatever."

02:30

He said “will you forgive me?”

02:31

and I was like “yeah, totally cool”,

02:32

he’s like “sweet” and he came back

02:34

and for about two years he was our number one affiliate,

02:36

inside of Clickfunnels.

02:37

And I’m so grateful I didn’t burn that relationship.

02:39

So, have relationships and, no matter what happens.

02:43

I dropped my red one, but I need it

02:44

because we’re about to build a fire.

02:45

Do not, there’s my log, and there’s the fire.

02:48

Sorry, I wish I was better at drawing.

02:50

But do not burn the relationships,

02:52

keep them alive, no matter what

02:53

because you never know when that person

02:55

could be useful to you and when

02:56

you could be useful to them as well.

02:58

So that’s the top rules, understanding

03:00

that the relationship is the key.

03:02

Number two, focus on your list.

03:06

Build your list, build your list, build your list.

03:08

I remember when I got started 15 years ago,

03:10

for those who’ve been around that long, you may remember,

03:13

in fact, my first mentors name was Mark Joyner

03:15

and Mark is amazing.

03:17

And I remember he would always tell me, like,

03:18

“Russell, you gotta build a list.”

03:19

And I was like “why?” And he’s like,

03:20

"you gotta focus on building a list,

03:21

that’s the key to making money online."

03:23

And, so I started building my list

03:25

and first I had, you know, a hundred people join my list

03:26

and then a thousand and then five thousand,

03:28

it was growing really slowly.

03:30

And then, about that time is when AdSense came out,

03:33

this is 15 years ago.

03:34

And if some of you guys remember AdSense,

03:36

it was like, you could make these garbage websites,

03:38

throw up these little Google ads on it

03:40

and Google would rank these sites really really high

03:41

and if someone clicked on it, you’d get paid.

03:43

I had friends making half a million dollars a month

03:45

by just making garbage sites and I’m like,

03:47

this looks way easier, I don’t have to do anything,

03:50

I just gotta make garbage and I get paid.

03:52

And Mark was like “no, focus.”

03:54

He’s like “that’s gonna go away,”

03:55

he’s like “they always do,” like,

03:56

"just focus on building your list,

03:58

focus on building your list, focus on building your list."

03:59

I’m like, “but there’s so much money right there.”

04:01

He’s like “no, focus.” And so I focused on building my list

04:03

and I’m so grateful I did.

04:05

One of my friends told me that,

04:06

the metric and this metric doesn’t hold true all the time,

04:08

but for the worst case scenario,

04:10

you should average…

04:12

$1…

04:14

per…

04:15

month,

04:17

per name on an email address on your list, 'kay?

04:19

So for example, when I had 500 people on my email list,

04:22

I was averaging about $500 a month.

04:24

When I had a thousand people on my list,

04:25

I was averaging a thousand a month.

04:27

When I got to 10,000 on my list, 10,000 a month.

04:29

When I got to 100,000, I was averaging 100,000 a month.

04:32

And a million, a million a month.

04:33

Like, it synced pretty close.

04:35

Now the better you are at this, at building relationships

04:37

with your list, the more that’ll go up.

04:39

Some people I know make five, six, seven, eight, ten dollars

04:41

per month, per name on the email address list.

04:43

So it can go up and down but that’s like,

04:44

the worst case scenario, right?

04:46

So I was focusing on building this list,

04:47

I got to 500, then a thousand, then 10,000

04:50

and then about that time is when AdSense crashed.

04:52

And friends I had making a half a million dollars a month

04:54

went out of business overnight and they were done.

04:57

And luckily for me, I had this list,

04:58

I had this asset and I was able to keep emailing this list

05:00

and keep growing it, right?

05:01

And this list got bigger and bigger.

05:03

Twice my business, I almost went bankrupt.

05:05

Two times.

05:06

And I say almost because both times,

05:07

I should have been bankrupt by any, like,

05:10

I did some stupid things, we made some bad mistakes,

05:12

the market shifted, all sorts of reasons

05:14

and excuses but looking at a paper,

05:16

I should’ve went bankrupt both times

05:17

and both times I didn’t because of my list.

05:20

My list came through, saved my butt when like,

05:21

everything was crashing around

05:23

and I had no more money.

05:24

Everything was falling around, I was like,

05:26

“how do I keep the doors open?”

05:27

I was like, “I need to make a really good offer for my list”

05:28

and I thought about what could I create for them?

05:30

And I created an offer, I emailed my list out

05:32

and money came back in.

05:33

So focusing on the list is number two.

05:36

And then number three…

05:40

Is…

05:43

no…

05:45

shiny…

05:46

objects.

05:49

Which kinda ties back into this list right here.

05:50

Go back to the fundamentals, kay?

05:54

There’s always new stuff popping up.

05:56

I remember when Amazon first hit a couple years ago,

05:57

it was like “oh everything’s on Amazon.”

05:58

And people went to Amazon, it was awesome,

05:59

then guess what happened?

06:00

Amazon started slapping you and kicking you out.

06:02

And then, it was like “oh E-commerce here,”

06:03

and then “oh Adsense” and like people have been jumping,

06:05

as like as I’ve been doing this game for 15 plus years,

06:06

people have been jumping everywhere.

06:08

The only thing that’s been consistent,

06:10

through the ups and the downs, are the fundamentals.

06:12

What are the fundamentals?

06:13

If you read the Dotcom Secrets book,

06:14

these are the fundamentals.

06:16

Here is how you build a funnel,

06:17

here’s how you attract customers into your funnel,

06:20

here’s how you communicate with those funnels,

06:21

with those people, here’s how you do, like,

06:23

this is the fundamentals of how you build

06:25

and grow a company, kay?

06:26

So focus on the fundamentals,

06:28

don’t get distracted by the new shiny object,

06:30

focus on the fundamentals.

06:31

What kind of product am I creating?

06:33

How am I selling that product?

06:34

How am I getting people to show up?

06:35

That’s all fundamentals.

06:37

If you look at, like, if I simplify this down,

06:38

to like the easiest thing possible,

06:42

this is all business is, right?

06:45

Number one, creating a product or an offer,

06:48

so here’s like, here’s the thing I’m selling

06:50

and make sure it’s awesome.

06:52

Then, I gotta figure out some way to actually sell

06:55

that product, so what’s the sales message?

06:57

And then I gotta figure out how to get people,

07:00

over here, to come and see the sales message.

07:03

Get people, come see the sales message

07:05

and then I make them a really good offer

07:06

and they give me money, that’s the fundamentals of business.

07:08

Kay? That is a funnel.

07:09

And so, those are the fundamentals, like,

07:11

if I was you guys, I would focus on

07:12

nothing but the fundamentals of how do I build a funnel?

07:14

How do I grow my list?

07:15

Like, how do I do this, over and over and over again?

07:16

Because things are gonna shift.

07:18

Mark Zuckerberg someday, as nice as he is right now,

07:20

tomorrow he’s gonna kick a bunch of us out, right?

07:22

Same things gonna happen on YouTube, on Facebook,

07:23

on Instagram, like, the platforms are gonna change

07:25

but the fundamentals don’t.

07:27

So focus on the fundamentals and that is the biggest thing

07:30

to make sure you don’t have failures

07:32

and so you can avoid all the big mistakes

07:33

that me, and a lot of the people I’ve been watching,

07:35

over the last decade and a half, have had,

07:37

when they’ve tried to play this game.

07:39

Thank you so much for watching,

07:40

every single week we publish new secrets just like this,

07:42

so make sure you subscribe, so you don’t miss any of them

07:44

and I will see you on the next video

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

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