Marketing Secrets with Russell Brunson - How Front End Funnels Affect Churn On Your Back End Funnels

Episode Date: January 9, 2018

During the simplification of our value ladder, we discovered some really cool stuff. On this episode Russell talks about how his company has spent the last few weeks focusing on the value ladder and what they changed. Here are some awesome things you will hear in this episode: Find out what some of the analytics and churn rate are for some of Russell's current front end offers. Find out where you should start on the value ladder if you are a beginner. And Find out why you need to go to Funnel Hacking Live to get the real scoop on all of this stuff. So listen here to find out how your front end funnels can affect churn on the back end. Transcript - https://marketingsecrets.com/blog/how-front-end-funnels-affect-churn-on-your-back-end-funnels Learn more about your ad choices. Visit megaphone.fm/adchoices

What's up everybody, this is Russell Brunson and welcome to the Marketing Secrets Podcast. So the big question is this, how are entrepreneurs like us who didn't cheat and take on venture capital, who are spending money from our own pockets, how do we market in a way that lets us get our products and our services and the things that we believe in out to the world and yet still remain profitable? That is the question and this podcast will give you the answer. My name is Russell Brunson, and welcome to Marketing Secrets. All right, all right, you guys.

So, in the office, it's a rainy day, which is nice. It's melting all the snow. Which, boys, we had a really calm winter this year. Last year, we had a snowpocalypseocalypse where if you were watching Instagram and Snapchat back then, you saw how we like, our kids had like 10 days off of school because of snow days. We had to like raid Walmart for water and generators. It was insanely cool and then nothing really happened that was that bad. But this year it's just been a mild winter for us, so it was kind of nice.

Anyway, I wanted to share a couple of cool things because these are cool things that are happening that I just can't not share. All right, so hopefully you guys have heard me talk a lot about concepts like funnel stacking, right? Where it's like, what's your front end funnel and where does that lead to the second funnel? Where does that go, right? And if you look at the big push that we've done over the last 60 days in our company, it's to really, really focus on the defined value ladder and killing everything else that doesn't map to it, right?

In fact, we shut down two multi-million dollar programs because they did not fit in the value ladder, which is kind of insane. But nevertheless, we did it because that is what we're doing is pure focus pure focus on and, uh, focus and respect for the value ladder, right? So people come in and there's this, this process. And so if you look at the way that our value ladder is working now, there's one big piece I'm revealing at Funnel Hacking Live that I can't reveal yet. Oh, it's so cool though.

So, um, it's the key that like glues this whole thing together that ascends people, um, through, through the, the process. Oh, it's so cool. It's so cool. I'm in the whole presentation on Funnel Hacking Live. So's so cool. I'm going to do a whole presentation on Funnel Hacking Live. So if you don't have your tickets yet, go to funnelhackinglive.com

and get your tickets for the greatest event on planet Earth, the greatest show on Earth. You can call me PT Barnum if you want. This will literally be the greatest show on Earth. Anyway, but if you look at our value, it's very defined, like front-end offers

that all lead then to one centralized middle offer, which then all lead to one centralized back-end offer. And that's to one centralized middle offer, which then all lead to one centralized back-end offer. And that's it. And then my creativity gets to happen on a whole bunch of creating a whole bunch of front-end offers. And so we were doing some data and some analytics. And this is the coolest thing ever.

So one of the big things we're trying to figure out in ClickFunnels, because the middle, it's like here's front-end offers, middle is ClickFunnels, and then the top is like, excuse me, hiring and coaching. It used to be Inner Circle for Life until we filled that up, so now we have a new program coming out soon. It's going to be kind of our back-end coaching program. Anyway, so what was cool is we did a bunch of analytics we went through, and we looked at all of our front-end offers.

So the front-end offers, I think we got probably half a dozen or so right now that are active. And then based on that, what was the retention rate of people in the second tier of the value ladder based on the frame that they came into our value ladder through? Which was fascinating. So fascinating. So check this out. If people, the first thing that they bought from us was the 108 split test book. And then from there they sent it into ClickFunnels, our churn rate on people that that was the front end offer that came through is less than 3%. Insanely cool, right?

Now you shift, if you go the dot com secrets book, so it buys the dot com secrets book and then creates a ClickFunnels account, the churn rate is like 5% so it's a little bit worse but still pretty good then if you go to like where the other ones like expert secrets has higher the expert secrets is like 9% churn rate perfect webinar was like seven or eight I can't roll off top of her head if they just came to click phones homepage and watch the viral video it's like almost 30%. So because of this data, you'll see some big updates happening to ClickFunnels homepage. But it's just interesting that like the frame that they enter your value ladder in dramatically

affects the retention rate of them through the rest of the value ladder. Isn't that fascinating? Obviously, it's not a perfect science, right? Because somebody who's looking for split testing, uh, or who buys a split testing offer just by the default of what it is, it's probably more likely to be further along in their, in their career, right? Like they're looking for split test. Like it's not something like a brand new beginner typically look for, whereas expert secrets is definitely a brand new beginner or the gold digger viral video is like so, so beginner. So it's like, it's not a perfect science obviously because different front ends will track different

segments of the market, different people, things like that. But it's fascinating just to know that like, what is the bait you're putting out? What people does it grab? And then how do those people actually stick longterm? It's fascinating, fascinating, fascinating. So anyway, it's made me think a lot more about like, okay, new front end offers, what's the bait we're going to create. And then like, and really choreographing, I don't know if that's the right word, but choreographing

the offers to get your dream, like the best possible customers to raise their hand and walk over to you. Um, anyway you. Anyway, it's huge. I don't know if I've done a lot of podcasts on this in the past because it was such a big epiphany for me five years ago. I think about five years ago. It was like when we switched our bait, we switched our customers, we switched everything else. And so anyway, just hopefully that helps you guys.

So thinking through that, simplification of your value ladder, making sure that you've got multiple front ends that lead to one middle tier, which is typically a webinar, which then leads to one high ticket, which is typically like a phone sale or something like that. And if you're just starting your business, start with the middle tier with the webinar and focus all your effort and your energy on that until you made at least a million dollars in sales. About that time, your webinar landing page and ads and things will start to see ad fatigue

and that's when you start launching new front-end offers. You don't have to go, this is a big misconception with value ladders that you have to have a front-end and then from there you have to go to a webinar and from there you have to set people up. And that's not necessarily the case. In fact, if you look at the selling mechanism

at each rung of the value ladder, it is its own value ladder in and of itself. That makes sense. Okay. Um, the free plus shipping, I don't have to have a huge value ladder because it's like, Hey, this is a really good product. Um, pay me seven bucks or whatever and I'll give it to you. And so like, because the, um, uh, because the barrier is low, the, the, the perceived

value doesn't have to be a high, right? On a webinar, someone's spending 90 minutes with me on a webinar. That 90 minutes, I'm taking them through a value ladder, right? I'm giving them tons of value in that thing. So because of that, I can go directly to a webinar and have success, even if it's a cold prospect, because I have that 90-minute window to spend with them that's warming them up, that's ascending them up through the value ladder, right? Same thing if I get on the phone with somebody.

I can, on the phone, build a lot of value in a shorter period of time so i can you can a lot of times it's harder to go directly to high ticket sales but you definitely can do it um we've done it with a lot of other people do it um so anyway that's what i want to kind of like i love dot com secrets book but my one thing that people always get stuck on is that like they hear the constant value i'm like cool and they come come back and they're like, here's my value ladder. And they have like 80 different rungs in this value ladder. It's just like really complicated and complex. And then they're trying to create all of them before they launch any of them. And I'm like, no, pick the one that's going to be the best to begin with.

I still think a webinar funnel is the best for almost every business you can think of. Not every business, but almost every business. A webinar is the best because what you sell it for it the profits are bigger so it's easier you can make more mistakes and still have success because you're spending because the what you're selling is more expensive so it's more forgiving right and so like most we should start there and focus like just to that webinar team in at least a million dollars and then back downgrade to different front ends

when it starts hitting fatigue and then what happens is I'm gonna buy as a front end and then you send them up through. On the thank you page of your front end offer you have what we call a thank you page webinar. Which I haven't talked about this yet because we're testing it right now. Our first one's actually going live today.

But I will definitely be talking about it at Fun Hockey Live. So it ascends to the Thank You Page webinar. It ascends to the next rung of the value ladder and moves me through like that. So anyway, so much cool stuff. I wish we could spend hours and days together. And we will at Fun Hiking Live. So if you're there, please come.

We'll hang out and we'll be geeking out on stuff together. Hopefully this gives you guys some insight on value ladder. Again, it has become our major focus since the last group of Inner Circle meetings. And it will continue to be throughout this year. Simplification and mastery of the value ladder.

That is the goal. All right, guys. Love you all. Appreciate you. Thanks so much for everything, and we'll talk to you guys all soon. Bye. Want more marketing secrets? If so, then go get your copies of my two best-selling books.

Book number one is called Expert Secrets, and you can get a free copy at expertsecrets.com. And book number two is called Dotcom Secrets, and you can get your free copy at dotcomsecrets.com. Inside these two books, you'll find my top 35 secrets that we've used to become the fastest growing non-VC backed SaaS startup company in the world.