April 7, 2020
Sales Funnel Explained – Sales Funnel Tutorial For Beginners (Step By Step)

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


– Hey everybody, this
is Russell Brunson, and today we’re talking
about sales funnels tutorials for beginners, and to do
that I want to show you guys my very first sales funnel
I built as a beginner. In fact, this is a picture
of me here on the slide. This is me with my shaved
head making a potato gun. This is the very first, one of
the very first landing pages for howtomakeapotatogun.com
and there’s a doodle of me shooting potato guns
’cause I am a potato gun expert, but we’re gonna talk about
just the basic concepts behind a sales funnel because
I think at first people get all complicated, like oh, it’s
gonna be really difficult, it’s gonna be hard, but
I want you to understand this is really, really simple. So here is an actual potato gun. I don’t know if you can see
it on the camera or not, but we’re gonna walk
you guys through this. When I first created this
with my buddy Nate Plohn, I was going to college at the
time, I was trying to figure out like how do I make
money on the Internet, and someone said you should
sell information products. I was like, that’s awesome,
but I don’t know anything about anything, and then that
weekend was spring break, and Nate and I went
and we made potato guns and had a great weekend,
and then fast forward to like the next Monday,
I’m back in school, sitting there kind of like
doing the bored school thing, and all of a sudden I
was like wait a minute, I know how to make
a potato gun now. That’s information, can I
create a product about that? And so I was freaking
out, I went online. At the time, there’s a
website you could search to see how many people were
searching for different keywords and there were 18,000
people a month searching for the phrase how to make a
potato gun or potato gun plans or spud gun plans, and
nobody had a product, and I was like light bulb, I’m gonna make a
product teaching that. So I got Nate, we went
down to Home Depot, we got a video camera out,
we filmed this whole thing, and we made our very
first, very first product, and I put it online and I
didn’t know how to sell anything so I just had like
a basic website. The website was like hey,
come and buy my thing, and then I went to this
thing called Google. You guys may have heard of it
before, and on Google they had these things right here,
and on the side there were these ads, and so I would
pay for the Google ad, someone would click on the
ad, they’d come over here, they would see this thing,
and they’d be like oh my gosh, I must buy this DVD so I can
learn how to make a potato gun, and some of them would give
me money, and initially when we first started selling
this, we were selling it for $37 a piece, and so
people would buy that, and that was my business, and
I remember putting the ads up and I was spending
about $10 a day. Let me do the math over here,
so I was spending $10 a day in ads over here, and
from that I was averaging about one sale a day, okay? Now, as a college kid, I’m
looking at this and I said okay, I give Mr. Google $10 and
then he gives me back 37. That means I got $27
to put in my pocket. Next day I gave Mr. Google
$10, he gave me back 37, I put 27 in my pocket,
and I kept doing this, and I was like I am
the smartest man alive, and then something
evil happened. The guys over at Google
decided they wanted to make more money, and so
they changed their algorithms. I’m not gonna get into
that, but they changed their algorithm, and
so no longer was it like I spend $10 and I make 37. Instead, I started spending $10. Excuse me, like my ad cost
went up so I started spending $50 a day to make
one sale, okay? Now I’m not the sharpest
tool in the toolbox, but I gave Google $50
and they gave me back 37, and I was like wait, I lost
money, and then I gave them 50 and I lost 37. That’s three or four days,
I’m like wait a minute. This game sucks, I’m losing,
and so I turned my ads off. I’m like I can’t play this
game, and I remember being frustrated, and one day I
got a call from my friend, and my friend had a
similar business to me. He said, hey Russell, I
think I figured it out. I said, figured what out? He’s like, I stopped, and he
didn’t call it the funnel, he’s like I created this
thing called an upsell. He called it an
OTO, one time offer. He said, what I did is
that every single person who bought my product, I then
upsold them something else, and I was like, well
why would I do that? He’s like, well, have you ever
been to McDonald’s before? I’m like yeah, and he’s like,
well you know how you go to McDonald’s and you go
through the drive-through and you’re like, hey, I
want to order a Big Mac, and the dude’s like cool, do
you want to super size it? Do you want fries
and a coke with that? And he starts
offering you upsells. I’m like yeah, and he’s like
if you look at the math, he’s like, McDonald’s actually
loses money selling a Big Mac but they make all their profit
when someone buys the fries or the Coke. I was like, okay. He’s like, right now,
you’re losing money selling your potato gun DVD. You just gotta sell these
guys fries and a coke and then you’ll be
profitable, and I was like, I still don’t quite get it. He’s like, if someone buys this, like what’s the next
thing you can do? If you were trying
to serve this person, what’s the next thing you
could serve them with? And I said well, when someone
buys the DVD the most annoying thing is now they have
to go to Home Depot and they have to buy the pipes,
and they have to cut them, and like all this stuff
to make this amazing gun, and he said, well what if
instead of you telling them to go buy the stuff, what
if you upsold them a kit that did this whole thing? I have no idea if this is gonna
show up on the camera or not but I thought it looked kind
of cool, and so he said, make an upsell where
you sell them the kit. So here is, here is the kit, so I did some
math and I started calling around and I found these
guys in northern Idaho who actually made potato
gun kits, and I would spend, I would start selling
these for $197, and now this became my
very first funnel ever. Again, I didn’t know it was
called a funnel at the time, but someone come,
they click on the ad, they would see my DVD,
they would buy my DVD. On the next page, our upsell
says hey, the DVD’s coming, do you want me to ship
the pipes with you too so it’ll save you some time? Just $197, people are like
that would be fantastic, and they’d click the button
and they would buy it, okay? Now, what happened, if you look
at the math, was interesting is that Google didn’t
change their ad costs. They still were charging
me $50 a day, right? So that didn’t change, but
I came here and I spent $37, so I lost some money, but then
what happened is that one out of three people who bought
the DVD would buy this, right? So let’s say I got a bunch
of clicks over here, boom, and say there’s three people
right here that bought the DVD. One of these people then
would go and buy this. For every DVD I sold, so I
made $37, 1/3 of those people bought this, so I take
$197, I divide it by three. If I do the math on
that, that’s $65. So if I take $65 plus $37,
seven plus five equals 12, nine, 10, 102. So now I was making $102
for every single person that bought the DVD,
does that make sense? ‘Cause one out of three
bought the kit as well, okay? So now I was on Google, I
was paying $50 a day in ads, but I was making, on
average, $102 a day. I put $50 in, I got $102 back,
okay, and all of a sudden, I started looking, I was
like I am the smartest man alive again. I spent $50, I get back $102,
and so I was back in business, potato gun sales were cranking,
I was having a good time, and then I realized wait a
minute, potato guns are good, but the market’s
like this little. Like what other markets
could I do this with? And I started
thinking, I said well, what if I did this
in speed reading? I met a guy who was the world’s
fastest reader, Howard Berg, and so we set up a funnel for
speed reading and it worked, and we said, what if we did
this in the dating market? And I found someone who
was a dating expert, we plugged it in. What if we did this
with supplements? What if we did? And we started doing this, and
the funnels obviously tweak every single time, but
the concepts are the same, and I became obsessed, and over
the next five or six years, I launched over 100
different funnels in 100 different markets
and became obsessed with it and it became so much fun,
but this concept of a funnel works in any business, and
so what I want you guys to understand is this is
how simple it really is. It’s not some complicated thing. Sometimes we get
all complicated. It’s very simple, so like we
buy an ad to sell something. Somebody buys that thing,
then what’s the next logical thing they need? Well, if they bought a potato
gun, the next thing they need is they need a potato gun kit,
and that becomes my funnel, and that’s kind of what
we take people through. All right, hope you loved that
tutorial about how I turned one of my hobbies into a
sales funnel and turned it into money and how
you can do it as well. If you don’t have a
ClickFunnels account yet, go to iloveclickfunnels.com,
get a free trial along with a whole bunch of
other really cool bonuses that you are gonna love, and
on top of that I want you to stay tuned ’cause the
next video is coming up here in about five seconds. I’m gonna walk you guys through
seven different sales funnel secrets that’ll help
increase the conversions and how much money you make
on every one of your funnels. With that said, let’s watch
the next video, let’s go.

19 thoughts on “Sales Funnel Explained – Sales Funnel Tutorial For Beginners (Step By Step)

  1. Sounds great and from all accounts it is great, but people need to be careful. I signed up for the $97/mo plan with the 14-day trial, but unbeknownst to me I was immediately upgraded to the $297 plan as a bonus because I signed up through an affiliate. All I got was a very brief pop up saying I had been upgraded when I opened the account. They don't tell you this, but it's your responsability to downgrade to avoid the charge of $297 instead of the $97 you agreed to. Jillian of support thinks it's just a matter of knowing how to downgrade or cancel. She was glad she was able to educate me to avoid getting charged and asked if I could do it myself or if I was self-sufficient to do it on my own. I couldn't get it through her thick head that it's not reasonable to expect the customer to know this will be necessary. I only agreed to the $97/mo charge.

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