What is a Sales Funnel? And How To Create One that Actually Makes Money

Hey this Russell again and today I’m
excited because today but I just talking about Click Funnels which is one of the
coolest things in the world but for you to really utilize Click Funnels and
really have success from it I think it’s vitally important that you
not only get good at using the software and using the tool we actually become a
marketer Click Funnels was built by marketers like me for marketers know the
market their products and their services and sometimes you people come in and
they have a product have a service they want to sell to throw the Click Funnels
they build a funnel and then right nobody’s buying it nobody’s coming to my
thing no one’s give me that email I just like why not it’s because it’s not just
something you put up there and hope that the best happens it’s something we have
to understand the marketing behind it and so what I want to do during this
walkthrough is to help you out understand some of the core fundamental
concepts of marketing that are essential for your success inside of funnels to
kind of step back because I know that a lot of people they first get in click
funnels they ask what is a sales funnel well let me explain most people obviously have
heard of a website right when I got started in this business 15 years ago
websites were the thing and I was funny because I remember back then everybody
would come and they would say well do you think I need a website everyone’s
talking about website should I get one and now we kind of laugh about it because today you know like there’s no business I don’t think that doesn’t have a website
you have to have a website to exist and that’s kind of a funnels are today
funnels are the future like they are the evolution of websites that’s where
everything is going people always ask me like well do I need a funnel for my
business and I was kind of chuckle because they don’t understand the
strategy when they do it’s like oh wow like there’s no point to a website like
the only thing I need is a funnel the first core concept you have to
understand I learned initially from one of my very first marketing mentors
name’s Dan Kennedy and he said this whoever can spend the most money to
acquire customer wins and I remember hearing that and just didn’t really
resonate with me but bear with me as I share this story with you it’s gonna
make it’s gonna even find out like this is the key most important thing to
understand in business in marketing in funnels let me tell you my story so when
I got started in this business back 15 years ago I was in high school and I’d
built my very first the website selling potato guns now I had created an
information product I set up a website I’d done my best and back then the way
that everybody got traffic to the web sites was by using a website called
Google so I went to Google I started buying my very first Google Ads now as a
college student I don’t have a ton of money so I was able to invest about ten
dollars a day into Google ads and the good thing for me is I was selling this
deep for $37.00 and what happened is on
average for every ten dollars I’d spend I’d sell about one DVD so you do the
math on that I was spending ten dollars making thirty seven dollars I had $27
profit that was putting inside of my pocket now what happened is a little
while later Google shifted their algorithm and kind of changed how how
things work and the price for every single click started going up it got
bigger and bigger and bigger now what happens is one day I woke up and the ads
that I was running were the exactly the same ice skating the same amount of
clicks the amount of people my website but now instead of spending $10 a day to
do the same amount of traffic I was spending $50 a day now if you do the
math on that you spent $50 a day you make $37 day I was losing 13 dollars
every single day because of my website now I don’t know about you but I really
quickly my wife and I realized we couldn’t keep doing that and stay in
business so after four or five days I had to turn off my website and it was
over for me and unfortunately for me and for so many entrepreneurs that’s for
most entrepreneurial dreams die is in your spending money you can’t be
profitable and it just falls apart a few months later I had a friend who was in a
similar business to me and he called me up and said hey Russell I think I
figured out the secret he said I started adding upsells to all of my products and
I was like what do you mean upselling said well it’s kinda like McDonald’s
you’ve been a McDonald’s I’m like yeah he said you know when they offer you a hamburger
and I said yeah I said you know that for them to sell that hammer could actually
lose money the money for the ads and the promotion the mark and actually lose
money so silly hamburger fright 2 or 3 bucks and it costs them four or five
dollars to get you there and then drive in we said then they added this little
sentence on there and said hey would you like fries and a coke with that and the
majority people say oh yeah sure throw that in there and they did that the
fries and the coke is where they make their money so I spend you know three or
four dollars to get someone there they sell a hamburger for two dollars they
lose the dog they add fries and a coke and all sudden boom they’re profitable
and so he showed me his website he had similar websites to me selling little
information products and he said look what I did is I started having upsells
can I sell the next thing to someone who need if they bought my first product and
I said well how that worked for my potato guns I don’t know he said well
when somebody buys a potato gun DVD what’s the next thing that they need and
I was like well you know the next thing would be buy the pipes and the glue and
the barbecue igniter and all those pieces that you have to go to the store
to get he said you should make a kit and just upsell the kit and so I was lucky I
found someone up in northern Idaho who actually sold
gun kits and we did a partnership and I started adding those as upsells and so I
transitioned my my little website into my very first funnel I didn’t know
that’s what it was called at a time it was a funnel so somebody would buy my
DVD and then the next page would upsell them a potato gun kit now if you look at
the math on how this all worked I was still spending $50 a day on Google that
didn’t change they didn’t lower their prices for me they were still charging
the same amount and I was still averaging about one sell a day of my
DVDs so I was only making thirty seven dollars so I was actually losing money
but then what was cool is that one out of every three people who bought my DVD
ended up buying my upsell and buying my kit you look kind of math on that mic it
was $197 that means one out of three means I made extra $65 for every DVD I
sold that means I spent $50 a day and I was making 102 dollars a day so we do
the math on that I was actually making 52 dollars every single day now that is
when the whole light bulb went off my head I was like that
that’s the secret like if I can spend more money to acquire a customer then I
win and that’s when I realized websites made me broke but funnels actually made
me money now as I started my career after I did that I started getting
excited I started realizing like wow there’s so many ways to do funnels and I
can put funnels into any business and I started doing that I started going into
really competitive markets where there’s tons of competition and I would look and
I would see these people all I had was a website selling a product I would take
that concept and I would go start adding upsells and down cells and adding
different things in there and I start competing against these people and was
crazy as they could spend you know however many dollars a day they could
spend an avatar I could spend two or three times as much money and still make
more money and very quickly I start beating out all my competitors and every
market we win into if you’re a business and your breakeven or you’re losing some
money a funnel is the secret that’s what gets you from breaking even to becoming
profitable if you’re doing well but you want to grow a funnel is the secret it’s
how you start taking your business and scaling it you make more money for every
single person who comes into your into your funnel ok the funnels are the
secret to growing businesses and getting your message your products your services
out into the world now obviously there are lots of
different types of funnels as you learned in the earlier walk through
inside the cookbook we had 22 different types and so some of the funnels are
specifically for selling the product ok like my potato gun DVD where I sold the
DVD then I have sold a potato gun kit some some funnels aren’t for that some
funnels are for generating lead then you send emails to them and sell them things
in the future some are generate applications you can calm on
the phone some are funnels to get people into your actual location it
doesn’t right now there’s different funnels for different situations I think
a lot of people think the funnels are this mysterious thing yet it’s happening
every single day right now in fact if you run an offline business I promise
you you already have a funnel it may be a really really bad one but you have one
think about it’s let’s say you’re a chiropractor or a dentist or something
right somebody sees an ad they drive by to see your billboard and see your place
they get a referral something right and they come to your location and walk up
to your door what’s the first thing they do they open the door right and they
walk in now something’s happening – they’re coming into this funnel now
they’re greeted by somebody could be your front desk receptionist or whoever
right and they’re saying something they’re trying to get them to schedule
an appointment or set up a call or whatever the thing might be and then
after that happens and they take them to the next step and the next step and
every business has it there’s some kind of funnel so then a process you’re
taking people through all the time and the online funnels are the same
thing people think is something different but it’s not it’s if I’m
driving out from Facebook they’re gonna come somewhere to a page and maybe I
page I try ask for their email address or maybe I’m selling them a product or
I’m taking them down this path just like I would if I was selling somebody face
to face so cool thing about funnels it’s not something new or different they’re
not used to it’s the same thing you’re used to it’s just in an online format
but I wanted you to understand that’s what a funnel is I want you understand
the one core concept so whoever can spend the most money to acquire a
customer wins that’s how you grow a company that’s how you beat your
competitors let’s say some more products and say your ads more out there that’s
how like all the things that you want in business all come off of that concept
and the way you’re able to spend more money profitably is by having a funnel
think about your existing business think about the business in right now let’s
say you do have a regular website how do you take this thing with all these
things how do you restructure them into an actual funnel and you start thinking
about those things to get you excited about funnel so with that said thanks so
much and I’ll see you guys on the next training

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95 thoughts on “What is a Sales Funnel? And How To Create One that Actually Makes Money

  1. Basically always Upsell: a incentiVenue product approach that loses money to then bank on a secondary (upsell)to margin a profit?!

  2. This day and age most don't want to be tethered so a contract is a hard sale, now we just pay per month without contract fees… Marketing gives you something free to upsell??
    One whom throws in the most incentive wins,is this what Russell BRUNSON saying?!

  3. PERFECT! Too many people think a funnel is some new, obscure concept and I always try to explain how it's simply a process… something you likely already have in place… yaddy yadda. Now, I don't have to do that anymore because I can just share your video. Thanks Russell!

  4. A Funnel your exit strategy, you lure with a product that you'll possibly break even or lose on, take your customer to a upsell that'll bring you a profit margin?
    So it's all out incentive Exit strategy to then Upsell you to gain a profit margin?!
    No Wonder Marketeers don't play separates any more, leave no chance for getting Shortcut, they agitate with absolutely free Webinaring to Coax U into a justified Upsell…

  5. "You want fries with that"?
    Thee infamous McD exit strategy slogan that's to save them from falling into spending waay too much on Marketing their CRAp!!! so they upcharge you on Fries and a Coke and a smile…

  6. I would love to see how Russell would build a funnel for my business! I watch a TON of his content, reading his books, I have CF, but I’ve never seen him do anything with an artist! I’m an airbrush t-shirt artist. I primarily customize t-shirts, hats, and SandDollars (seashells). I mostly write kid’s names on their t-shirts with some design of something they’re into baseball, Fortnite, etc…) I make roughly $100K per year doing this. He says he could 10X any business.?
    I’m working on it. I know it can be done. But, I’d love to see how he would go about it ?

  7. I've been using funnels to show people how to start an ATM machine business like myself, and I must say that clickfunnels is EXTREMELY helpful in doing that.

  8. Great explanation, I sometime struggle trying to explain what a sales funnel is and you make it seem so simple

  9. Hey, man. I've been trying to add PayPal buy button to my funnel. What happened to the training module videos? Your little thingy seems to be BROKEN. Could be SIMPLE, but you've made it complicated, opaque.

  10. That's all good man but how do I drive the traffic where do I post my links where do I put the funnel to get people's emails

  11. I did remembered of the moment I really made a lot of money’s, I can see that as my mom said, if I can spend 1/3 of my money’s to helping others’s, that’s the best day is my life’s, nothing’s more happy that I can shares the goods or drinks and even money’s, that will be the greatest feelings we all had, we can shares with someone’s needed, it doesn’t matter, how much you help, just a little or you have more then maybe we can give mores, less nor more it’s no different, you did all your best already good enough for this worlds to making the victory history futures.

  12. I did said that you all is champions, without your minds, I think no one will knows who’s they really are, right now, everyone’s of us can find yourself, faith, believing, generosity, respectful, kindness and love of joyful happiness, it will be staying into our life story’s to tell your son , grandchildren’s. Or when you reborn to this earth, how nice to see something’s that you proudly of.

  13. I have zero marketing skills. Where I get lost is what I am suppose to be doing after I create the emails and launch the funnels. Where do the funnels go after you launch them?

  14. ดุเป็นเรื่องใหญ่จังฉ้นทไไม่เป็นและก็ไม่เข้าใจ

  15. Thank you for this simple description! Love how you say funnels are already something we are familiar with, we just need to think of that process in an online context. What if you are trying to get people to DO something, do upsells and these other tactics work for that too? Specifically I'm trying to drive people to register for an event, and the event is a major step in our sales funnel

  16. Thank you so much for this, I have had a genuine light-bulb moment on how I can generate a side income from my website that I am about to launch! Amazing! 🙂

  17. Great explanation Russell! Sales funnel a "you know what" at the start but once you understand the purpose of them and why they work so well I couldn't imagine how a business makes sales without them!

  18. So what if one doesn't have any kinda business?? How can they start and actually gets successful in funnels? And one Dont have any skills to teach others but passionate about fitness also ain't a certified fitness expert,what skills then we can use for funnels?

  19. Dearest Russell, I did knowing we are the hard works is come to the ends. Today's is the starting over new day's for all of us online business partners. I did really appreciated of all of you locked up in one places for all of us during with the situations, I can feeling tired of you all did feelings are! I can't put myself only anymore, to all of your futures holding on to me. Either we got it done or we all losses. No more to hanging on to it It didn't helping the worlds spreads of the light moving forwards, and catching up of the badly past historical stops the worlds moves. Thank you for all of you staying cares and love with me. I did knowing you all care for my health so much! I did knowing how can I stop my health got worsen and I knew how can I holding on until to the ends, I did knowing it's come down to the times that I need the medical helps now. I did tried to keep my medication down, because the drugs cause a lot of damages as well. I did understood drugs and sickness as well. I didn't know how. I just knowing all of that. So you all don't have to worrying about me, I will keep my doctor's appointment going into my rest of my life's to be health going everywhere with you all to helping the worlds as fast as we can. Love you all from my heart xoxoxo.

  20. The video shows some of the most tempting dishes of the Indian cuisine that makes you feel hungry every time you look at it. Great cooking performance overall!

  21. Great Video Russell! I like the explanation of sales funnel.. once you understand it, you will never be lost in digital marketing!

  22. Just like the printer industry. They sell your an affordable printer but expecting you to buy ink cartridges (upsell) in the long run.

  23. At no point does he explain what a funnel is. It's just a long rambling story about selling a DVD that teaches people how to make a potato gun.

  24. Thank you so much for such amazing information!!
    I’m reselling stuff online but the problem is there so many competitors that are selling the same product with a really lower price
    So the idea that came on my mind is making a funnel of the product and driving traffic(targeted correct audience) to my funnel that will lead to my product!
    That would be competition-free selling
    And I could sell with a high price than anyone and make more money!!
    Click funnels is awesome!!

  25. I think you may have just changed my life ? I just ordered your cookbook and your expert secrets book, and am now super excited to create this thing called a sales funnel!

  26. Excellent Mr. Brunson. Learned a lots. But my question is: how do you make sure you create a returning customers to your funnels?

  27. Only now I understand what funnels mean thanks to your very basic and simple explanation and thanks to Sillicon Girl for recommending your audio book as well that I watched just now.

  28. Thanks for the explanation for what a funnel is. That is not what I was thinking it was. It makes perfect sense now.

  29. Awesome stuff!
    I also found this great article on online sales funnels that makes it so easy to understand.

  30. So glad I've found this. I've heard a lot of this before, but you give that little bit extra that makes a huge difference. I had all these terms and strategies in my head but never knew how to connect them all together and implement them. So many make books that seem to always fall short by not telling you how to apply what they are speaking of. I guess that's the difference between just telling people all the right stuff and educating them on it. Thank you.

  31. Why didn't he just optimize his ads back in those times $50 was alot it still is today. Back then I was was max $2 a lead.

  32. Currently, i am using clickfunnels to get sales. First page is an email opt in page and second page is the sales page whereby customers will key in their emails again. If i want to split the audience into two lists – paid customers and non-paid customers, how can i do that? so that both lists will receive two separate sets of follow-ups. thanks in advance!

  33. Thanks ? Made my own YouTube channel after following Russell Advice….Have a look at it Any feedback would be appreciated n Subscribing won't hurt either ?

  34. Hey bro when you're starting out on a shoestring I have a product the skin care product that's a one-of-a-kind product that's yet to be discovered I've gone to farmers markets and then make a few bucks consistently. now to create a funnel with this product.. selling them two for the price of one might generate more business but I'm losing money to add to this product? That's where I'm at a loss I hope to hear back from you look forward to hear from you God bless bye for now Ken

  35. Thanks for the sales funnel explanation. However the math on your upsell is missing subtracting from $52 the costs you paid for the DVDs and the potato gun kits + overhead costs. So your actual profit had to be far less than $52.

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