How A Simple Marketing Funnel Can Radically Increase Your Business Profits
Congratulations. On making the decision, to view this video training, you've made a smart choice that, I truly believe will, radically change your business provided. You implement, what you learn here I'm. Kevin striker with, true lift digital, marketing and if you've been feeling stuck in your business and having trouble getting your business to the next level the. Concept i'm going to share with you will, help get you unstuck I, know, it has for me in my businesses. And for, thousands of other entrepreneurs, who are fortunate enough to discover it, I want, you to pay close attention. To this because the, first time I was introduced to this, concept, to be honest I completely. Missed it I just, didn't properly wrap my head around it I guess or maybe I just didn't think that I could do it but, you definitely can, implement this immediately, into your business so be sure to pay attention don't. Make the mistake I, did because, getting this concept, changes, everything, in your business from this point forward which, if you're like me can, very literally change your life it is. Accomplished, by creating, a system that, brings in new qualified. Leads and ultimately, customers, into your business essentially. For free which. If you can imagine allows. For dramatic scaling of your business and naturally. Too much greater profits, now. I fully appreciate the, even, though we just started this video training that, I've already made some pretty bold claims, of what is possible so. Rather than try to convince you that it is possible in this, video I'm, just going to show you how it, starts. With the understanding of funnels while, you may already be familiar with marketing, funnels or sales funnels and possibly. Even already, deploying, them in your business or not there. Is a very good chance that if you're feeling stuck in your business right now that, either you are not familiar with, them or that you're not using them in the way that I'm going to be explaining, them to you in this video when. I learned this concept, it radically, changed my mindset on how, to approach my businesses, and how to truly grow, just. In case you're not familiar, with finals or the funnel concept, i'll give you my brief interpretation. Of how I view, them every. Business has some form of funnel which, is really just a path that a potential customer or, potential, client, takes with you to, becoming your customer or client now. You might be selling products, or services, or both so, for the purpose of this video let's, just call both clients, and or customers, buyers. Let's take a simple non-business, example. To illustrate a, funnel, let's. Say you've got a lot more you need to sell this would be your product, you, print off a picture of it with some details below it a price, and your phone number on a sheet of paper this, would be your ad you. Place that piece of paper up on a bulletin board at your local grocery store this, is putting your ad in front of your target market people.
In Your local area you. Start getting calls from your ad asking, questions or expressing, interest in your lawnmower a few. Of those callers have an appointment with you to come see your lawn mower in doing. So they are taking their interest up one level by, physically, coming to see your product those. That take that extra step would, not just be considered, prospects, but, leads with. One or perhaps more, than one lead you negotiate, a price one. Of them walks away with your lawnmower you, walk away with cash a sale. Has taken place that. While, simple, is a funnel, the, path that someone, takes from being a stranger to. A buyer and then. In a real business situation, hopefully onwards, to being a repeat buyer or. To put it in another way it is your sales process, the. Huge advantage, with marketing funnels is that much and in some cases all of that marketing process can be automated, so. With the broad concept, of a funnel established, let's. Take a little deeper into how this can help you radically. Change and grow your business I don't. Want to make too many assumptions about your business or oversimplify. It the, truth is I don't know your specific business but. When you're feeling stuck and you can't get to the next level in your business like, I used to your, struggle, likely, boils down to simply not getting enough, customers at. A profit, to. Help remedy that let's, break down your funnel into two parts will. Call them the front end and the back, end, most. Business owners don't understand, the separation, and struggle, forever in their business because of it first. Let's talk briefly about the back end of your funnel, because, it's the part of your funnel most business owners are already, familiar working, with your. Back end is where you offer your main products, and services, for. Most business owners all they have to their final is really, their back end and therefore. Their main products, and services, are the only revenue, generators, and are, expected to cover all the costs of the business, those. Include the costs of not just their time effort or, money used to create the products or carry out the services, but, also the costs of acquiring buyers as well like, ad spend, sales, teams perhaps or marketing, materials etc. Only. Having a back-end in your business is like driving your car but not realizing, that you accidentally, left the emergency, brake partially, on you. Pull out of your driveway and realize something, doesn't feel right but, you're not sure what it is your. Vehicle like your business is trying to pull forward and while, it does move it moves, slowly the. Engine has to work a lot harder to, get any forward, momentum at, all if you, continue like this your.
Engine Starts to whine as it gets overworked, which, is like the business and entrepreneur, getting overworked, until. A point where it fails and just stops, having. A front end is like realizing, oh look, at that the, emergency brake is on no, wonder you, take it off and immediately, everything, runs smoother and you're able to move much faster. By. Expecting, your main product, and/or service, to carry all of the costs of your business you, will continue to struggle but, by. Creating inserting. Something in front of your main product, and/or service, or back end in what, is referred to as your front end that, helps offset the, cost of acquiring new leads and customers what. You're effectively, doing is fully releasing, that emergency, brake which, allows you to really scale your business and, take it to a whole new level to. Get unstuck from where you're currently at, wouldn't. You like to be able to scale your business and jump it up to a whole new level of course, you would that's why you're here right so. Let's spend some time then on the front end of your funnel in the. Front end of your funnel, your goal is to break even on the cost you incur to, convert a stranger, to, a lead but. What kind of self-respecting business. Owner wants to just break even I hear, you but. As I'll show you shortly breaking. Even is actually, tremendously, exciting, you, are going to make money with this process likely. A heck of a lot more than you have been making once, you get this part of your final figure it out and working, well because. If you break even on the front end then, every dollar you make on the back end is pure, profit, by. Breaking even on the front end of your funnel, what, you have effectively, done is converted, a stranger, to, a lead and even a buyer for fur, let. Me say that again by. Breaking even, on the front end of your funnel, what, you've effectively, done is converted, a stranger, to, a lead and even a buyer for free. How. Many customers or, buyers could you get if it didn't cost you anything to, get them into your funnel let. That sink in for a second the, potential, for unlimited, leads and buyers, if, that. Idea doesn't get you like crazy. Excited, then, I probably didn't explain it right so, just stick with me a bit here I just. Wanted to jump in and make a quick clarification when. I use the term lead what, I am referring to is a qualified prospect. And I'll explain that in a little more detail in just a bit what. I have been saying probably. Raises more questions now, than it answers so, let's sum up what we have so far so, we can keep moving forward a final.
Is Your sales process that. Takes a stranger, to a buyer and beyond a funnel, can be broken down into two parts front-end. And back-end your. Back-end is where your main products, and/or services are, offered and sold to. Get leads for free you have to break even on the front end of your funnel, in other, words break even on at least the cost of converting, a stranger, to a lead so. With that established, let's answer two very important questions then specifically. What, exactly, is the front end of a funnel and how do you break even on that front end to. Get those answers we're going to have to dig into your funnel a little deeper and I think the easiest way to explain this is with a hypothetical, example, for illustration. Let's. Say you're a high-end, elegant, hat store kind, of like the hats worn at the royal wedding of prince william to kate or something or maybe it's just high in bowler hats cowboy. Hats or whatever it really doesn't matter you. Could have a brick-and-mortar store, or an e-commerce store or both that, doesn't matter either the, process, works for all businesses that, have customers, or buyers I was. Trying to think of a potential, example, business for this video I have no idea why the high-end. Elegant hats example, popped into my head but, just. Play along like, I know anything about like. I know anything about high-end hats your, product is probably, different anyway, in a. Traditional funnel. The way to bring in leads into the front end of your funnel is by, offering prospects. And ethical bribe in exchange, for their contact, information which. Gives you the opportunity to follow up with the. Fortune, as they say is in the follow up so. If you are selling high-end hats, maybe, you'd start by trying to get the contact information of potential, customers or prospects. By, putting together an ad offering. A bribe of let's. Say a free, picture book of the 10 most elegant, hats worn in Europe this year I have, no idea but let's pretend this is something that would be of interest to those that you feel are potential, candidates for purchasing, your main product, high-end, hats let's, also pretend for the sake of this example it's, a digital book or PDF, to keep your costs down a bit if. They respond, to your ad and give you their contact information, you, forward, them their book electronically. By. Giving you their contact information, they've, also given you permission to, follow up with them and have, qualified, themselves, to you as being interested, in high-end, elegant, hats now. They could have volunteered their contact information in exchange for your digital, picture book out of pure curiosity but. With an ethical bribe so closely tied to your main product, I think it's fair to say that they likely have some, direct interest in high-end elegant, hats, what. Has happened here so far is the stranger has shown enough interest to respond. To your ad and then, volunteer, their contact, information for, your bribe and in, doing so their, status, from a funnel perspective, at least has, changed, from one of prospect, to, one of lead a lead, from a funnel perspective, is stronger than a prospect, because, they have now formally, registered their, interest I just, want to drive that point home again, that, your bribe has to be something that, your end customer. Would have enough interest in to give you their contact information, for, it while, still being consistent. Enough with your main product, in this, case high-end, hats, offering. A free harley-davidson. T-shirt to the general public to, pull another weird product out of my noodle might, get a lot of takers perhaps, but, those takers likely wouldn't be the ones that ultimately buy your product, of high-end hats so, keep your bribe consistent.
With Your main product, or service, offering, once. They enter their contact, information what. If you immediately, made them another offer what. If you offer a low ticket item that they would find irresistible, they. Already have shown interest in high-end elegant hats by, taking you up on your free digital picture, book what. If you offered some kind of protectant. Ray that, they could use to protect their hats when they are wearing it this. I guess assumes. That they already have a high-end, elegant hat or at least are thinking of getting one maybe. There is some well-known spray, that would normally sell for something, like forty five dollars that, you could offer to them for seven bucks because. They are presumably a hat aficionado, they, know that's a smoking deal for protectant, spray so. A percentage, of your subscribers. Or leads, buy it remember. Though the, end goal of the front end of your funnel, is to break even if, you're sending out this protectant, spray at a loss you're, going in the wrong direction that's. A good point but. What you should take note of here is that those that did take the offer they, have already made the move from a stranger, to a lead and now more importantly, straight, up to a buyer which. Even. If it is at a loss is a big deal because, psychologically, there's. A transformation. That occurs when, someone buys from you even, if it is for a low ticket item that, makes it much more likely that they will buy from you again either. Now or in the future the. Key is to make an offer that adds value to your prospect, which, like I said in, the example, they understand the high value of the product, relative, to the low cost so, it's pretty much a no-brainer for, them you. Might be thinking that in your business you only have one product, or service you don't have a low ticket product, that you can sell them create. One is there. Something in your main product, or service that you can take from it and offer up front at a lower cost than the perceived value my. Bed is that there is you, may just have to think about it for a bit in the. Example, of the protective, spray even. If you don't sell that kind of spray you, may either contemplate, doing so with the new product, offering or perhaps, you just buy some of it from a third party and send them that but. We're not done let's, try to immediately recover some of that cost what. If you then offered, some form of upsell, down, sell or even, a cross sell they've. Already expressed, interest in a book about high-end elegant, hats maybe. Even taking you up on your protective, hat spray offer I don't, know if they would find it desirable not, but, what if you offered them an opportunity to buy, a decorative, hat box so, that they could have a spare, there, is such a thing right I would. Guess if you're forking out money to buy elegant hats that, you would probably want some sort of storage box to keep it in in your closet or whatever I don't know but maybe. They take it maybe they don't if you, can show them value or percentage, likely will if they, don't you could offer them a Down cell or a cross sell or maybe, a different kind of upsell or maybe you just leave it there you. Will know your customer, in your market enough to make that determination. Let's. Throw some numbers behind this example to see what we're looking at let's.
Assume That you make your bribe offer of a free digital, picture, book or PDF, perhaps in this case of the, 10 most elegant, hats worn in Europe this year to. Enough people that, you're able to get 100, of them to, take you up on your offer and exchange, your email address for it you, just acquired 100, new leads for your business. We'll. Assume that the advertising, cost of those 100, leads was three hundred dollars or three dollars per lead as. Soon, as your new lead enters their email address you immediately make them a low ticket offer for, protective, spray, you. Don't currently manufacturer. Or bottle to spray but, you end up buying a sizeable enough quantity, of it that you're able to get the $45. Retail, spray for, a wholesale price of $25 you. Sell it for the low low price of seven, bucks per bottle which, results in a loss of 18 bucks per bottle, let's. Assume out of the hundred leads that you offer your low ticket product, too since, it's such a smoking, deal fifty. Percent of them jump on it I refer. To that fifty percent that take your low ticket offer as your take rate this. Is how that looks fifty. People take the offer at seven dollars per sale for revenue of $350, those. Bottles, cost you 25 bucks per bottle for, a total cost of, 1250. For, loss of 900 bucks so. Far things don't look that awesome in your funnel you're, down three hundred bucks and advertising, costs and nine, hundred dollars on a low ticket offer for. A total of twelve hundred bucks in the hole hmm. Maybe. This funnel stuff is garbage. Look. At the bright side you've. Got 100. Leads and fifty of them or buyers so far yeah. I know you, can't take that to the bank so. Let's see how your decorative hatbox, upsell, performs, if your. Hatbox sells, for eighty dollars per box but it has a sweet, 75 percent margin or cost you 20 bucks your. Profit, per box will, assume they can only buy one results. In a profit of sixty dollars, let's. Say ten percent, or ten of your original 100, leads take, you up on your upsell, product 10. Sales at sixty dollars profit per, sale equals. Six hundred dollars of profit, so. Far you're not really making out like a bandit here 100. Leads with 50 of them converting, to buyers on your low ticket offer which. Resulted, in a loss of nine hundred dollars on top of your ad spent of three hundred dollars but. Now you've just recovered 600. Of that to, decrease your twelve hundred dollar loss to a six hundred dollar loss man. Still. In the red maybe. You can make that up in the back end I sure hope so or this example is going to suck you've. Got some awesome high-end, hats itself, for a thousand dollars apiece you, make them yourself so, your cost is about 300 bucks for.
A Profit of seven hundred dollars per hats old may. Be going from free PDF to, low ticket offer to upsell all the, way up to your main product, is a bit, too far to travel right off the bat you. Would know your market so maybe it would fly but, perhaps since your hats are a higher ticket item instead, of offering them right away you, decide to go the route of just following up with your leads by, email, or phone if, you collected that information, and knew that it worked for your market. Remember. Out of 100 leaves you've already created at, least 50 buyers depending. On whether or not the same ones that took you up on your low ticket offer also, took you up in your upsell, or not and those, 50 plus buyers are predisposed, to buying again what. If during your follow-up you are able to get just one of those leads or low ticket buyers to, make a purchase of one, of your hats on the back end to. Sum up your funnel to this point your, front end lost you six hundred dollars but. You made that up on your back end with one sale at a profit of seven hundred dollars your. Overall profit for your funnel in this example is a hundred dollars which. Boils down to a dollar a lead so, you would survive I guess you. Might be thinking right now you, mean I tried, this funnel stuff create, a front end with a low ticket product, and an upsell product, follow, up the leads that I generated, and walk out of this with a hundred dollars out of 100, leads, maybe. Your business already does way better than this but. You don't want to just survive you want to thrive well. Maybe you should quit them obviously. This funnel stuff doesn't work hell. No the. Problem is we didn't really accomplish our original, goal of, breaking, even on the front end of your funnel did we we, ended up down six hundred dollars on the front end I didn't, go through that example to waste your time I did it to help illustrate the fact that, if you miss your mark that is ok because, all is not lost we.
Just Need to tweak things a bit so that we can accomplish your goal here let's. Look at what we've created and see where we can improve things, how. Can we get the front end of your funnel to break even there. Are a lot of variables, to work with so there's a lot of potential options, let's. Throw a few of them against the wall and see if they stick let's. Keep the number of leads consistent, at a hundred so we've got the whole apples, to apples thing going on maybe. You could negotiate down your wholesale price of twenty-five dollars for the low ticket item protective, spray to twenty bucks that. Reduces your loss per bottle down to thirteen dollars from 18, consequently. Reducing, your loss from nine hundred dollars to six hundred fifty, dollars and your, overall loss, so far down. From 1,200, bucks to 950. Okay. That doesn't get you to break even yet on your front end but there's potential there to get a little bit closer FYI. It does more than triple, your funnels overall profit, from one hundred dollars to three hundred fifty dollars but, let's try something else you've. Got a really solid take rate on your low ticket offer at fifty percent so, we'll leave that where it is but, what if you can improve your offer on your upsell product, decorative, hat boxes, so, that instead of a ten percent take rate you get that number up to twenty percent or, 20 out of 100 people, that. One change would double the profit from the same 100, leads up from, six hundred dollars to, twelve hundred dollars this, would get you to break even which, is awesome, before. We celebrate too much let's, see where else we might be able to do this what. If when you offer your hatbox upsell. If they decide to pass on it instead, of offering one, box for 80 bucks you, offer 3 4 180, it's, kind of a Down sell I guess because each individual, item is now less instead. Of eighty dollars per box it's down to 60 bucks per box they're. Actually buying more but to distinguish this offer from others let's, refer to as a Down cell for now maybe, they don't need that many boxes, or maybe it's not enough of an incentive for them or, maybe it's just not the right offer bottom. Line is you have to try things out you may surprise yourself. Since. Your cost per item is still the same but, you have sold more of them if instead, of taking the upsell on one hat box the, same ten percent take the down cell, of three hat boxes your, profit doubles, from 600 bucks to 1,200, bucks and again, you've broken even on the front end of your funnel there.
Are Millions of different options, but let's try one more, maybe. You can come up with another product to offer it as additional, upsell item perhaps. It's more expensive than your first upsell, 160, dollars instead of 80 but. If the cost on that item is say forty dollars for, a profit of 120. Per item even. If you only get a five percent take grade those, five people that purchase that upsell translates. Into additional six, hundred dollars of profit on the front end which again brings you up to break even I think. You get the point which is to, reach your goal of breaking even on the front end of your funnel require, some creativity, trying, different things and testing what works and what doesn't the. Effort and time expended, on getting your front end to break even is well, worth it because once you get to that point where you're comfortable that, for a given number of prospects, you can consistently, hit that break even level then. You are in the enviable position of being able to pour gasoline on the fire and really, blow up your business with massive, growth, depending. On the size of the market that you're going after there, is the potential for unlimited, leaves being brought into your funnel for free and not just break even it's, break even on the front end but, at a profit because every, dollar you bring in in the back end of your final after covering the cost to produce the item is one, hundred percent pure, profit, just. To drive that point home again think of it this way if every. Time you gave me a dollar I consistently, gave, you back a dollar twenty how, much would you give me you, would give me every dollar you could get your hands on you. Give me ten bucks I give you 12 back you, give me a hundred i give you back 120, you. Give me ten thousand, i give you twelve thousand, give me a million, and I give you 1.2, million back and so on but. Of course you aren't limited to a twenty percent return on your investment, maybe, you get to a point where you put in one dollar and get a dollar fifty back or, two box back or ten bucks do. You see the massive potential, here in any. Of the scenarios I laid out where you break even on the front end of your funnel, you get to keep one hundred percent of the profit of every, high-end hat, sold in the back end, even. With a one-percent, take rate on your back end you, can go from your original final, prophet, of a hundred dollars or one dollar per lead to, the full profit for the item of seven, hundred dollars or seven, dollars per lead that. Alone is 7x. Profit, growth on your main product, what.
If You expanded, your main product line in your back end to two items or three. All of. Which at one hundred percent pure, profit or, imagine. If you just increase your take rate from one percent to, two percent the. Equivalent of adding one more buyer, of your main product out of 100 potential, buyers by, making a small change in the positioning, of your offer for that one item you, would go from one dollar per lead in the initial example, to seven dollars per lead in the first break even scenario, to fourteen, dollars per lead by tweaking your take rate in the blink of an eye because. The cost to acquire your customers, has already been covered in the front end of your funnel, now, you're talking a 14x. Growth in profit, you, could even profit, on the front end as well if you, were able to implement two of the scenarios as I mentioned you, would more than break even on the front end so, your overall funnel, profit would be even greater the. Sky is the limit for possibilities, and potential with the structure I put. Together this video for you because I truly want to help entrepreneurs and, business owners improve, their businesses, the, reason is simple by, possibly, playing a small part in getting you unstuck, in your business you will be in a better position to feel fulfilled in your business which, I feel every entrepreneur needs, but. Even bigger than that it will allow you to help those that you care most about and also, add tremendous, value to your customers and clients by. Extending the reach of your products and services, everyone. Would benefit the, ripple effect is awesome, it is, my sincere hope that I effectively, communicated, the power of this concept to you and that you fully grasp what you can accomplish with this this. Is how businesses, that do incredibly, well and go, at amazing rates do, it I ran. Through some numbers and scenarios, rather quickly so, feel free to go back and watch the video again if I went too fast but, try not to get too wrapped up with the numbers and examples, the. Important takeaway of the video is that you need to build a front end to your funnel that you can get to break even so. That it can offset the cost of acquiring leaves and buyers, because. Once you can do that you just have to rinse and repeat for, massive, growth in your business to. Build that front end take your main product or service, and break out something from it that you can use to get prospects, interested, in, vert them into leads and then, buyers either. Through low ticket offers, and or up sells down, cells or cross cells that, add value to them but, are also congruent with your main product, or service offering and then, follow up with them if you. Feel like you don't get it or feeling frustrated don't. Just push this concept, off to the side there, is a tremendous opportunity before, you take, advantage of it implement. What you have learned here and you will not just get unstuck you, will absolutely take, your business to a completely, new level and in, doing so you'll, better be able to achieve your goals help, your clients and customers and, help those around you after. Not really getting it the first time I was introduced to the. Concept I, was finally able to drill down on my understanding of not, just the concept, but, the successful, implementation of. It after, hearing about and studying under russell, brunson Russell. Wrote a book that lays everything out simply yet, with more detail, including, how to send buyers up what, he refers to as.
A Value ladder to, get your buyers buying, more from you by adding value to them and solving their problems, how, to find your dream customers, and how to speak to them he, breaks down a final into seven phases and then shows you various funnel types including the scripts that you can use inside them there's, two step funnels self, liquidating, offer finals, continuity. Funnels sales webinar, funnels product. Launch funnels, and more if you, really want to take your business to the next level take. What you have learned here and get busy putting it into practice to. Help you get there faster, if you are interested in picking up a free copy of Russell's, book entitled, calm. Secrets, the underground playbook for growing your company online while, it is still available, simply. Click on the link below this video or wherever you see it to, be taken to a page that explains more, of what it is about the. Book is free just have to cover the shipping to your house I hope. You enjoyed this video training, and that it really helps you in your business it's. Truly amazing what you can accomplish with, some knowledge but, knowledge is nothing, without implementation. I'm Kevin, striker with true lift digital marketing and I look forward to hearing about your success. You.
2018-03-13 10:18
