Marketing Secrets with Russell Brunson - Interview With My Original Mentor - Part 2 of 4
Episode Date: August 24, 2020Want to know how ClickFunnels became so popular so fast? Or how we generated over $10,000,000 in revenue our very first year, right out of the gate? I'll give you a hint: We didn't sell ClickFunnels ...as a software. To find out how we were able to grow so fast... and how YOU can grow YOUR company by hacking what we did, listen in to part 2 of my interview with Mark Joyner! Transcript - https://marketingsecrets.com/blog/338-interview-with-my-original-mentor-part-2-of-4 Learn more about your ad choices. Visit megaphone.fm/adchoices
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Be alert, be aware, and stay safe. Hey everyone, it's Russell Brunson.
Welcome back to The Marketing Secret Show. I hope that our last episode, you enjoyed episode number
one of four with my interview with Mark Joyner. And it's fun having a chance to re-listen to it
and re-watch it and just had so much fun that night. It was such a cool experience. And so,
you know, with that said, I'm not going to do too much more other than set up. Uh, the second part of this interview with Mark and, uh,
hope you guys enjoy it. If you are enjoying this series, please, please, please, um, take a
screenshot of this on your phone, wherever you listen to your podcast and post it on Facebook
or Instagram and tag me in it. Do hashtag marketing secrets, tag me and, and please give me your
comments, your feedback, your ideas, your ahas. I'd love to hear them. And with that said, I'm
going to keep the theme song. When we come back, you'll listen to part two of my interview with Mark Joyner.
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 answers.
My name is Russell Brunson and welcome to Marketing Secrets.
All right, what would be the third most significant strategic move?
Oh,
there's a couple of different directions I could go on this one.
can I give two halves?
Please.
I love it.
I love it.
So one half is,
um,
is when we launched ClickFunnels,
it wasn't just that we're going to build a software company.
Um,
in fact,
it was probably a month or two before we,
we came out with ClickFunnels.
I went with,
uh,
I don't know if you know David Fry,
but David's,
uh, one of my mentors.
Yeah, I love David.
His wife's actually my second aunt.
Anyway, when he was dating his now wife,
I was like a little snot-nosed kid
running around at my grandma's house.
And anyway, so.
Oh, he's my buddy.
I love David.
He's my buddy.
He's a great guy.
Yeah, he's amazing.
And we were at this network marketing convention.
And I remember we were there
and the company was a software company.
We're sitting there with like 5,000 people in the room and all the people coming on stage
and they're crying and all this stuff.
And I'm just kind of confused.
Like this doesn't make any sense.
And I remember he leaned over to me after like two days of watching this.
He said, you see what they're doing?
I'm like, no, I have no idea what's happening.
I'm so confused.
He's like, they're not selling software.
So they built a community.
And I was like, oh my gosh, like that's, that's the thing.
They have this community, they have a culture.
And so when we started doing ClickFunnels, it was that, it was like that mindset.
Like, how do we build a culture?
So it's not just like a software.
It's like, I want to build something where people feel part of it.
Like it's not Russell's company.
If it's Russell's company, they're going to, they'll go to whoever's the cheapest, whoever's
got the new feature.
If it's their company, if it's their culture, that that shifts everything and so we started this whole thing from from day one
of like we're funnel hackers this is our movement that's what we believe in this is what we you know
and and two weeks ago we had our funnel hacking live we had 4,500 people in a room and people
were going crazy we got people with like click funnels tattooed on their arms like people wearing
custom funnels and like and our people come on stage crying and like, I'm looking out and I'm like, I'm like five, five, six years ago,
I, David Fry pointed out to me and like, that became a big piece of it.
So I think it was, it was not just having this as a software product, but how to make
this as a movement where it's, where it's, it's bigger than that.
So that's like, that was one big strategic thing that I think a lot of people miss.
Um, and then the second one is, um, you, I think, again, it comes back to like us as marketers.
We get so excited about the next thing, like what's the next offer we're going to create and the thing like that.
And I remember after the first year, ClickFunnels grew to a certain point.
And then me, I'm like, I need to, I want to create something new.
Even though like the market didn't necessarily need something new, but like I wanted to do something else. And, and, um, and so what we,
what I started doing is I realized that this is,
this funnel is kind of in the middle of my value ladder, right?
The webinar funnel and tons of people had seen it was starting to fatigue a
little bit. And you know, that point,
like we've done over $10 million in sales.
That's when we launched the second funnel to bring people in click funnels.
That's when basically I wrote the.com secrets book and that became a book
funnel and people come in and they buy the book, they go through the book funnel,
and then at the end of the book funnel, we send them up into the webinar.
You can see that funnel right there, by the way.
The link's up there for that.
Oh, very cool.
You guys should check that out, by the way.
That's another very, very interesting thing.
You guys need to funnel hack what the guy who teaches funnel hacking does
because this dude has mastered this
stuff and that that funnel is sick it is sick anyway keep going yeah well so i'll tell you
a story that kind of shows why why this is so powerful about but a year and a half two years
into click funnels we started getting all the calls right this is when the vcs and all the
people like start noticing you and they're like, Hey, we want to be part of your journey. Like, and I just like,
I have no desire to do any of that. And then one time, some guys like,
like we're in Boise state. Can we meet with you? I'm like, okay, like, sure.
Let's go to lunch. And it turns out they, they were in San Francisco.
They jumped in a plane, a private plane flew in and then like drove drops.
Like, Hey, like, where are you guys staying? Like, well, we just flew in.
I'm like, when, like, just right.
Like it was the whole thing that sort of tricked me
thinking like they were right there.
So I went to lunch with these guys
and they started asking me like, you know,
all the VC questions.
Like, well, how much does it cost
to acquire a ClickFunnels customer?
And I was like, well, if we drive ads to the homepage,
it's like, I can't remember the time,
$150 to acquire a customer.
And the guy starts getting all excited
and he's like, okay,
so if we were to give you like $40 million in funding, he was doing the math, like how many
customers that would equal all sorts of stuff. And he's getting all excited. I was like, wait,
wait, wait. I was like, we actually turned those ads off. He's like, what? Why would you do that?
Like, that's a great, you know, cost to acquire a customer in the Bay or whatever. And I'm like,
because like, I'm, I'm bootstrapping this thing. I'm paying for this, these customers out of my
pocket. If I'm paying $150 for a trial, I'm going to be broken like a week and a half.
And so I said, but instead of what we did is we create these, these, these book funnels
where someone comes in, they buy a book.
I said, on average, we spend about $20 in Facebook ads to sell a book, but then there's
a funnel, right?
They sell the audio book and there's a course and there's a couple of different products
in the funnel.
So we spend $20 to sell a book, but we make $40 in the book funnel. So I net $20 cash in my pocket. And then I tell those people, after you read this
book, you understand the strategy of funnels. Here's how you actually, like now you need to
use ClickFunnels. Let's say technically all of our customers actually pays $20 before we introduce
them to ClickFunnels. And this is the other book funnel, by the way, guys, if you guys want to
check that out. Yeah. So, I mean, and both of these are pretty sick because the first one was dot com secrets and then expert secrets and then anyway traffic secrets is
coming out in like a month so that's the third one i'm gonna i'm gonna be at that event can i
say that can i say it yes can i say yeah russell is holding this awesome live event he's got he
invited a small group of speakers only 200 people are going to be there in the audience and he's got, he invited a small group of speakers. Only 200 people are going to be there in the audience.
And he's, but he's going to be broadcasting this live all over the world.
I'm going to be there.
I'm going to be one of the speakers.
I was very flattered and grateful that Russell invited me to be part of this.
This is going to be sick.
Russell is going to spread this thing all over the place.
It's going to be madness. Everything that Russell has put on since, I mean,
well, over the last few years, everything you've done has just been nuts, but it's been getting
better and better and better. I'm so excited to see what you do with this one because I'm like,
I have a feeling this one is going to be, this is going to kind of eclipse any of the past campaigns you've ever done. I get it. I get it. I get a little feeling in my gut.
I'm so excited for it. It's like, as I'm writing the book,
all I can think about is how we're going to sell the book.
Like this is going to be so much fun.
Oh dude. That's awesome. That's awesome.
So fun. But what's crazy was I'm sitting there at that lunch with the VC and I'm
telling this stuff and, and I,
he doesn't understand the first time that I explained three or four times.
And finally,
I remember he said something really profound.
He said,
if what you're telling me is true,
this will change business forever.
I was like,
that's the whole thing.
Like any other company that's grown,
like a software company has grown to the size we have,
all of them have taken on money.
Like I can't find any that didn't,
maybe a couple,
but for most of it,
they all took on money to,
to,
to do,
to grow.
And I was like, instead of took on money to to to do to grow and i
was like instead of bringing on cash to to grow like you just use a funnel and it finances itself
the whole way and so i think that's a big strategic thing is like we create these like we we drink our
own kool-aid like i i literally today was work my funnel team on our next funnel for next campaign
to bring more customers in for free that we can then bring into click funnels you know so i think
that's another big piece is just understanding like you can grow a company without taking on
cash is just understanding this funnel game where your customers finance the growth. And I think
that's the best way to do it. So anyway. Well, I got to tell you what, you know, for me personally,
you know, my experience in the VC world and, you know, the acquisition world and all of that,
you know, back in the early days of online marketing before, you know,
you were still in college, but before the first dot-com bubble burst, I mean, I'll just give you
guys one example of one of the ugly things I saw. One of the, I mean, every company that I've ever
started was bootstrapped, but we had some of the same things. We had people coming in trying to
acquire stuff. You know, I started a second pay-per-click search engine. This was while
Google was still in college. I started the second pay-per-click search engine. While Google was still in college, I started the second pay-per-click search engine.
Well, I want to be very careful about how I phrase this here.
Let's just say around that same time, there was a group of people who attempted to acquire one of my companies.
And through some shady reverse merger, back-end, crazy deal. These guys basically bamboozled us out of
everything. And it turned out that a lot of the guys who were involved in that ended up going to
jail for stock fraud later. And that kind of thing, by the way, people don't understand this
is common. So, I mean, so not only, you know, are the VC guys who are like the legit VC guys,
those guys are sharks too, but there's a layer underneath those guys who are like the legit VC guys, those guys are sharks too,
but there's a layer underneath those guys who are like straight criminal sharks as well.
So, I mean, you have to be extremely careful when you're swimming in that world.
And this is why, for me, I don't want to accept outside funding for anything.
I want to bootstrap everything.
I want to surround myself around people who are as motivated as I am so that
I can grow it on, you know, by pulling our own selves up by our own bootstraps. And then we're
going to own everything. We're going to get all the profit and we don't have to worry about some
BC jerk off telling us how to run the business when they don't really understand, you know?
So I just bought bootstrap.com and my next book is going to be called bootstrap.com.
So anyway, I love it.
I'm like, I'm so excited right now.
That's awesome.
Okay.
So after the trilogy, you're starting a whole new thing.
Yeah.
And this is going to be, cause the trilogy has all been like how to books.
This one's not going to be how to book.
This is going to be like the story of like, it was crazy.
You know, click photos was built remote remote like all of our teams remote so almost every conversation has been has happened on boxer so every recording every important conversation click phone so i'm
getting all like download and transcribe right now so it's gonna be like this is actually what
russell said in fact you could like listen to like the conversations anyway um i'm i'm excited
that's gonna be my next project starting in about a year from now. Beautiful. All right. So man, I might have to skip a couple of these. All right. So
here's one. I'm feeling good. So we can keep going. Don't worry. All right. Awesome. Awesome.
Well, you're always super energetic, man. I tell you, every time I talk to Russell,
I get more energized. I mean, I'm generally a pretty energetic guy, but I just vibe because
Russell's got this just amazing, he effervesces, he effervesces energy.
All right.
So what would you say are the three biggest barriers or bottlenecks for growth in businesses right now?
In my specific business or just businesses as a whole?
Well, either one.
You pick either one.
Interesting.
So three biggest bottlenecks for growth.
I think what,
this may be a little early,
but I think one of the biggest things
people are going to see,
right now we've been in this amazing season
where advertising has been easy. Like when I first got started lying like grateful for you because i don't know
how you guys even figured out back in the day like like we were building lists and there was
no facebook there was like google wasn't really there the way like you know and so like i was
like your your audios on viral marketing and like we were building these viral sites to acquire
customers email addresses and like i remember sitting listening the farewell package you talking about all the crazy stuff you guys would do to build lists.
So it got my mind thinking like that.
Yeah, we had to get super creative.
We had to get super creative.
Oh, yeah.
No one thinks like that anymore.
So what happened is Facebook came out.
It's easy.
Everyone's in business.
And it's been like that for the last decade.
So business has been so, so simple.
And I don't think it's going
to last that much longer. Um, I think either some government regulation is going to happen or,
or they're just going to do a Google did where they started shifting away from smaller brands
and just, you know, kind of elbow us out and go after bigger companies. And, and I think that,
um, in fact, that's a big reason why we're out the traffic secrets book. If, if when you get,
hopefully you guys all have a chance to read it when it comes out, but it's very much not
tactical. Like here's how to run a Facebook ad.
Like I don't show the Facebook editor once.
It's very much like a strategic book.
Like how do you start thinking differently?
Because when Zuckerberg comes and we always joke,
it was probably because I was writing the book right when Avengers Endgame
came out and Thanos,
we just did Thanos snap and like half the world like, you know,
disappears.
We always talk about Zuckerberg.
Like we nicknamed it off as Zanos. I'm like, Zanos is going to snap his finger and half the entrepreneurs like you know disappears we always talk about look at work exactly we nicknamed in
the office zane else i'm like zane else is gonna snap his finger and half the entrepreneurs
businesses will disappear and we're seeing i had i've had probably five or six people
that are friends in the last week alone who's got facebook ads shut down and i don't like it's it's
just it's it's gonna be coming and so like i think the biggest thing is that people have had it really
good and really easy because they've been like i i I'd run Facebook ads or I run Google ad or, you know, they're just doing the basics.
They're simple. It's going to get harder. And so I think it's time for all of us to start
resharping our marketing mind. Like in the traffic secrets book, I have a whole chapter
on the integration market. I'm like, I learned this from my mentor, Mark Joyner. Like you guys,
you started learning this stuff. And like, you know, just all these different things that,
that people haven't had to learn. I think that's, you know, I'm definitely looking at it. And again, I keep giving you so much credit
because so much of my mindset initially
was based on your teachings.
But like, you know, we spend so much effort right now
focusing on list building
because I know that it's going to get harder to build a list.
Like right now, we average about,
from the clickfunnels.com site,
we get about 1,500 leads, like opt-ins a day.
And for my other funnels, we get about 3, three to 4,000 options a day. So we get almost 5,000 people a day
opting in. And that's our focal points. Cause I'm like, I'm going to keep building these lists like
crazy because someday these other things might disappear or get harder or more expensive. And,
and I'm going to have these lists and I, and I'll be able to weather the storm where a lot of people
are not going to be able to, because they're not focusing on list building, building relationships
with those lists. They're just out there buying Facebook ads because it's easy. And I'll be able to weather the storm where a lot of people are not going to be able to because they're not focusing on list building, building relationships with those lists.
They're just out there buying Facebook ads because it's easy.
And I think that's one of the biggest things that I'm fearful for.
I mean, myself, I'm like doubling down.
I think other people need to as well.
I want to interject really quick here about something because it's funny you bring this up because it's something I've been talking about a lot.
So I've been doing a lot more public speaking lately.
And one of the things that I've been talking about is exactly this. And I want to show everybody a little bit of an interesting
phenomenon. And Russell, I think you'll appreciate this. So if you guys remember Chris Anderson
writing the book about the long tail, right? And if you look at the, if this is the rank of,
or sorry, the unit numbers sold of any particular, like let's say,
imagine you take Amazon's entire marketplace,
right?
This is the number of units sold and this is the rank,
right?
So the number one selling book is going to outsell the number two selling
book by an order of magnitude,
at least,
right?
So it's like the inverse of an exponential growth curve.
So Chris Anderson's whole theory about the long tail was that because automation is making everything so easy, was that, yeah, you know, traditionally people used to focus all their energy in here because this is where all the money was.
But now, because of all the improvements we have in supply chain technology and deliveries, there's so much money in the long tail of the graph.
And if you can have an inventory of billions and billions and billions of units,
that represents enormous economic potential.
But here's what happened.
The exact opposite of what Chris Anderson predicted is the reality of what happened.
See, Facebook, YouTube, all of these platforms, they built
themselves on our backs, okay? We were the ones that created all of the content so that these
guys could be so big, and now we're the eyeballs. But guess who they care about now? If you take
this out and you take the same graph and you speak in terms of ad spending they only care about this portion of the graph why while this represents a lot of economic
potential it also represents an enormous pain in the ass for the company to manage
customers and they hate the customers and this is why when you're on Facebook and we're on YouTube now, your ads are getting shut down algorithmically or they're getting shut down by some low-level employee that doesn't this business it's going great guns and they're
like you know they're saying to their to you know to their wives this is it we've made it you know
and then the next day they wake up and then because something happened algorithmically in
facebook they they completely get shut down that you know their lives are basically shattered as a
result of that so unless you're here in terms of ad spend, you don't get their attention. They're not going
to explain to you why they shut you down. And this is why we started this thing called integration
marketing society. So you, you know, talked about integration marketing. So we're building
integration marketing society so people can band together and, you know, buttress ourselves
against the threat of this, right? That's what that whole thing is all about. So I want to have
another conversation with you
about that another time
because I think that there's a lot of potential synergy there.
I'm glad you're seeing that same thing.
So what would you say is the number two
and three bottlenecks now then?
What's up, everybody?
This is Russell Brunson.
I've got something really cool for you today
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talking specifically about this new assessment they created called Working Genius. And the
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everybody and help your company to grow. Let's see. So definitely traffic's the biggest one.
I think, and I don't know how, like historically't know historically how this all works, but it's like, you know, in advertising, advertising is all about like the pattern interrupt, right?
Like we're seeing stuff happening and then like the thing that catches our attention, like it interrupts, right?
And it used to be back, you know, when we first got started, like you'd figure out a pattern interrupt and that thing would last for, for months or years before people kind of caught on and figured it out.
And now it's tough because like we come out with a new pattern interrupt and post on Instagram.
And within like 15 minutes, there's 800 other people doing the exact same post. They just,
they see it work for us. It must work for me. Right. And start doing it. And it's like,
it's interesting because it's so easy to clone and to copy and things like that.
And, um, and so I think for people who are truly trying to like to grow companies and like,
and serve at a different level and like be creatives, like being creative is harder.
And I think that it takes, I don't know, I don't know what exactly how to phrase it right.
But it's like, I think that the me too stuff can get worse and worse because some people copying, right?
Like you got to get better at the creation and better at creative and better at like, I think that the Me Too stuff can get worse and worse because some people copy, right?
Like, you got to get better at the creation and better at creative and better at like figuring out how to break the pattern and break the pattern and stay in front of it all the time. Because it's just, it's crazy how fast things get knocked off.
Like, we have an ad or we have a campaign or something that's working and it's crazy.
In fact, I had this conversation with Dean Graciosi, he's become a dear friend and Dean ran infomercials
for a year. And he said that he would record a show and infomercial and it would, the lifestyle
was like 18 months. Every 18 months he had to record a new show. Then he came on the internet
and he's like, he's like, uh, I started doing the, my, my ads and I would launch them on,
you know, on Facebook or Instagram. He's like, they'd be killing it for a day and a half,
two days and it was gone. He's like, what? And like, they couldn't figure it out. And he basically
came back and stopped testing much stuff. He said, the biggest thing he figured out is like,
he has to create tons of creative. I said, well, how much, like one ad a week, two ads a week?
He's like, no, no, no. He's like, I carry my phone everywhere I go. I like two or three ads a day
minimum. He's walking around like with his book, like here's an ad here. He walks to his daughter's
soccer game. He's doing an ad there. And then he's like in the elevators, you're not there.
And like just tons and tons and tons and tons of creative and i figure
out like break the pattern how to like how to grab people's attention and so it's like those people
aren't willing to like if you don't love your thing enough to like i gotta create a lot more
creative it's gonna be it's gonna be hard because people just knocking you off you know i mean so
um i think that's a big part for us you know we used to spend so much time
i don't know,
like being slow on creating ads and stuff.
Now it's more like how do we stay in front of that curve
and get excited where the art isn't in like creating the next product
or the next campaign or the next funnel.
The art becomes like what's a new way I can sell the thing I already have.
And it's that big shift.
In fact, in our company, I kind of like building funnels.
I'm a little obsessed with it.
And so for a long time,
for,
um,
you know,
the way we kept growing is I create a new funnel and create a new funnel.
And like,
and,
and the tough thing is it takes,
I don't know.
It's just,
it's just hard to keep doing that.
Cause then every time you create a funnel,
you create the new ads and it's,
it's just,
it's a lot more work and effort.
Um,
whereas now it's like we, we shifted our focus tonight, less funnels, but more creative for every funnel. And it's just, it's a lot more work and effort. Um, whereas now it's like we shifted our
focus tonight, less funnels, but more creative for every funnel. And it's, it's just a different
mindset shift. And so I don't know that it's not super clearly what came out, but it's one of the
big problems I'm seeing that, that, that we're having is ad fatigue. It burns out super fast.
If you're not in front of just like creation, always trying to figure out different ways to
break the pattern, you're gonna get left behind really, really quickly. Cause the copycats are
so many of now that even if you are copying the
pattern, like the diminishing return hits so fast, you know? Well, the problem is, is people
also don't know how to copy, right? For me, there's like three levels of copying, you know,
one is straight out plagiarism, right? And then the next one is, is people take your surface stuff
and they change a few words and then they pop that up right you know
which to me is is just as dumb and is just as shady right because first of all changing a couple
words doesn't make sense when you're dealing with a completely different product right you know
there are even a lot of documents and so many different things are are different right i mean
this is where you really got to get into the real understanding of, you know,
when you're funnel hacking something or you're modeling something, what you have to understand
is the psychological structure behind it.
And this is what Breakthrough Advertising, the classic Eugene Schwartz book that everybody
should be reading.
I mean, I had to read that probably about five times before it finally sunk in.
Holy crap.
I didn't really understand it at first. I was like, oh, okay, it's interesting.
But then when it finally clicked and his whole idea, I mean, it's basically based on the notion that you've got to analyze how to connect your product with the market forces that already exist.
And every product in every market is going to have a
different way of connecting that. And you can't copy that from someone. The only way to get that
correctly, to have a real big legitimate breakthrough in the business is through the
process of analysis, right? And this, that's the core idea of, I mean, there's so many different
nuggets of wisdom for breakthrough advertising,
but that's the core thing that people had better get good at because I tell you what, if they don't,
here's what, here's what's going to happen. It's going to become like the quants in the trading
game, right? You know, the quants are like, Hey, let's see who can shave a quarter of a millisecond
off, you know, the trading time on the stock market, right? Well, if the marketing world
becomes like that, I mean, good luck to you, unless you're the guy with, right? Well, if the marketing world becomes like that, I mean,
good luck to you unless you're the guy with the best quants. The only other way to compete then
is to train your creative mind to come up with creative answers. And as you remember from the
farewell package, there are so many ways to do that. There are so many out-of-the-box ways.
You don't have to do things the same way
everyone else is doing, but everybody's getting lazy now because they see the quick way to get
it done. But I think what's going to happen to those people is going to happen. It's going to
be what happened to the people early on in the early internet era when the guys got the big,
quick SEO money. Because remember, I was telling you, hey,'t don't do the ad set don't go don't go too far down that ad sense rabbit hole
build your list right remember all those guys who were killing it with ad sense and then we're then
we're boom you know thanos snapped his fingers and then all of your money was gone right that's
going to happen to everybody who doesn't build their creative muscle. 100%. in their life, they're one funnel away from something. Some of you guys are one funnel away from quitting your job. Some of you guys are one funnel away from getting more impact.
Some of you guys are a funnel away from growing your company to the next level.
And so we created this challenge to help you to create and launch your first or your next
funnel.
No matter where you are in your business, this challenge is going to help you understand
the strategy, help you understand the tactics, help you understand all the things you need
to be successful with your funnel.
So what I recommend you do right now
is stop everything, pause this audio,
go online and go to onefunnelaway.com.
That's onefunnelaway.com and join the next challenge.
There's a challenge starting in the next few days,
so go get started right now, onefunnelaway.com.