The Russell Brunson Show - How We Went From $0 To $100,000,000 Using Growth Hacking And Sales Funnels (Without Taking On Any Outside Money)

Episode Date: September 20, 2017

My live presentation from the viral video launch party. On this episode Russell gives a presentation at the viral video launch of how Clickfunnels went from $0 to $100,000,000 using growth hacking and sales funnels. Here are some of the awesome things in this episode: Step by step how Russell was able to grow his business without you outside funds. How he was basically paid to introduce people into the Clickfunnels world. And why funnels are the key to growing your own business without having to take money from venture capitalists. So listen here to hear this awesome presentation that can teach you how to grow your business using sales funnels. Transcript - https://marketingsecrets.com/blog/how-we-went-from-0-to-100-000-000-using-growth-hacking-and-sales-funnels-without-taking-on-any-outside-money Learn more about your ad choices. Visit megaphone.fm/adchoices

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Companion, only in theaters January 31st. What's up everybody? It's Russell Brunson. Welcome to the Marketing Secrets Podcast. Now I still am planning on giving you guys a huge recap of the viral video event, bubble soccer, everything else that went down at the event because some crazy stuff happened. I'm also trying to get permission from Gary Vee to let me share some of his presentation with you guys here. So that's the game plan. If I'm able to do that, you'll see it soon. And you'll see my recap soon as well. But this week I've got my inner circle here,

so I'm in there locked away. So what I did want to do is I got the video clip for my presentation at the event, where I talked about how to go from zero to $100 million in sales, how we did that by using sales funnels and growth hacking. And it was a shorter presentation, but I think it was really, really cool.

I'm sure I talked really, really fast. I was also really tired. I had only slept one hour the night before. So if it doesn't make any sense, that's kind of the context of why. But hopefully I'll give you guys some ideas about how to scale a company. You hear me talk about the dot-com secrets book a lot,

like whoever can spend the most money to acquire a customer wins. And sometimes when you hear that, it's kind of depressing. Like, well, I don't have a lot of money, so I'm not going to win. And that's how I felt, especially when we launched ClickFunnels and we're competing against two companies, one that had like $40 million in funding, one that had over $100 million.

Like, how do you do that? And this presentation shows you how we did it. So after we do the little marketing secret intro here, I'm going to pick right up with my presentation from the event. I hope you love it. Thanks so much, and we'll talk to you guys soon. So the big question is this, how are entrepreneurs like us who didn't cheat and take on venture capital? We're 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 in and this podcast will give you the answers. My name is Russell Brunson, and welcome to Marketing Secrets. I put together this presentation because, like I said, the biggest question I get, especially from people that are building their own companies, is like, how in the world have you grown ClickFunnels so fast without having any money, any capital, any outside funding at all? And so I put together this presentation this morning. Like I said, I had one hour of sleep last night, and then got up and I started working on this presentation.

But to kind of walk you through what we did and some of the mindset shifts that I think are different that hopefully will help you guys as you're growing and scaling everything you guys are doing. So the title of my presentation is How We Use Growth Hacking and Sales Funnels to Go from $0 to $100 Million dollars in less than three years or a week away without taking on any outside funding. So kind of the first thing I want to go over really quickly,

just for those in the room who didn't know what I was talking about earlier, I'm going to go over what a funnel is really quick. So what is a funnel? So if you look at, actually let me step back. So the reason why I want to talk about this is it's been interesting. Like I've been doing this internet marketing game for 15 years now. This is my 15th year in the business, selling all sorts of stuff. And it's interesting because recently there's been a whole bunch of books coming out on growth hacking. I hear all these cool new ways to growth hack. And it's funny because we get the growth hacking books and read them.

It's like, that's all the internet marketing stuff we've been doing for the last decade. And now it's like real businesses are catching on and figuring out these things are really really cool so that's kind of why um that's kind of my thought behind this presentation showing how like all these funnel things this is the growth hacking this is the movement this is where things are going that we keep talking about so what's a funnel so um to explain a funnel i think the easiest way to begin with is to show you what a funnel is not so this is like a traditional style website right this is what click funnels is kind of going against all the time and most people have traditional website they've got all sorts of ads. They're paying for Facebook, YouTube, Google, all these things. And they're driving it into these websites. And it's literally like slamming

a whole bunch of people in their brick wall. Okay. And I know that because this is how I got started. I was trying this thing and it did not work. And I always say that a traditional website is kind of like having a really bad salesperson who's shy and all they do is they hand out brochures and then pray the person comes back. Like that's a traditional website what a funnel is is basically having the best salesperson on planet earth come and meet the person in the front door find out their name and walk them through the process find what they want how they want it and give them exactly what they want so that's kind of what a sales funnel is now my whole philosophy in business kind of um like i told you guys uh in the last presentation like when we started ClickFunnels three years ago,

we had two major competitors that we were looking at. Number one had just gotten $43 million in funding. Number two had just had over $100 million in funding. And I'm coming in with me and Todd, and we're bankrolling it with our big old credit cards. And we're like, okay, we're going against these huge giants that have hundreds of millions of dollars. How are we going to win?

And one of my first mentors, Dan Kennedy, he used to say this all the time. He said, whoever can spend the most money to acquire customer wins. And so I'm looking at these companies that have a hundred millions of dollars in funding. I'm like, I'm screwed. I'm not going to be able to win. These guys can outspend me every single day. And I started looking at this more and more and I didn't get it at first. Like it took me a couple of years before I understood this concept of whoever can spend the most money to acquire customer wins. And, um, like I told you this before, I guys before, I went to college here at Boise State.

And I wrestled here. And I used to carry my buddies on my back up and down the football stadium every single day before practice. Like, this is my hometown. So here in Boise, one thing we're famous for, those who are not from Idaho, is we're famous for potatoes.

And the very first product I ever put together was a DVD teaching people how to make potato gun. And you've probably heard me tell this story before, but it was a DVD of how to make potato guns. I set it up online. I was learning about internet marketing. It was really simple. I had a one-page website, and I had Google Ads. That's all that we did back in the day. So I went to Google, and I started buying ads.

I was spending about $10 a day on Google Ads, and I was selling a $37 DVD on how to make potato guns. So I'd spend $10 a day on ads and I usually average about one cell per day. So Russell, as a college kid was making a whopping $27 per day profit. I was putting into my pocket, which was pretty awesome. And that was kind of my beginning. And then, um, what happened is a little while into this whole game, um, Google shifted how everything worked and I got in big, big trouble. And all of a sudden, literally overnight, my, my website was the same, but I went from spending $10 a day in ads to $50 a day overnight. And so I spent $50 a day sending

to the exact same website, but I was only making one sale, the same thing. And so now I was losing $13 a day. And my beautiful wife, after about three or four days of that, said, you have to stop. This is not a good business. This is really, really bad. And so we stopped, and eventually had to cut up our credit cards, and I thought I missed the bubble. I'm like, dang it. We missed it. And those are actually real pictures of us cutting up our credit card back in our first home. Um, about that time I had a friend who was also in the business and he came back and he said, he said, Russell, I think I figured this out. He said, my little website, he had the same problem. Google raised the prices, algorithms changed. And like, and all of a bunch of my friends all got out of business. One of my

friends came back. He's like, I figured it out. He's like, I started adding in these things. He called them OTOs, which stands for one-time offer, but basically an upsell. He said, I started upsells to my products and I started making more money from every customer. And now I'm able to afford my ads again. I turn my ads back on. I was like, that's cool. Like, but I don't know how, like, how can I do that? I don't know how to do that. And I was like, well, I have a potato gun DVD. Like, what should I do? And he's like, well, people that buy potato gun DVDs, what else do they need? How else can you serve them? And I was like, well, I have a potato gun DVD. Like, what should I do? And he's like, well, people that buy potato gun DVDs, what else do they need? How else can you serve them? And I was like, well, we could buy them, like, the next piece is they have to buy potato gun kits. Like, to buy pipes and the barbecue, all these other pieces, right?

And so he's like, well, you should sell a kit. I'm like, well, I don't want to make kits. That would be really not cool. And he's like, well, see if you can find someone. So I ended up finding a guy in northern Idaho who actually was drop shipping potato gun kits. Did a partnership with him. And I made my very first funnel. This is my funnel transition. So people would buy my DVD and they'd upsell a $200 potato gun kit. And we send it out in the mail. That was cool. I turned

the Facebook or the Google ads back on back in the day. And what happened was I still was paying about $50 a day, but then one out of three people would start buying the potato gun kit. So if you do the math on that, one out of three people means i was averaging about 65 dollars in additional sales from every dvd i got that i sold um which meant i was spending about 50 a day in ads and now i was making 102 in ads and all of a sudden it worked again like that was magic um literally when i when i made that shift i went from um losing money to eight dollars to making 52 a day profit and i was like this is it this is the biggest thing in the world now um for me obviously potatos is a very small market and I didn't stay there long.

But the concept of that rang through my head. I was like, this is how it works. And my moral that I kind of learned from this whole experience was that websites, excuse me, the funnels make me money and websites make me broke. And so my obsession for the last decade of my life has been this. A lot of you guys have been to my events for the last decade

teaching this concept and showing kids, like, this is the key. And so when I started doing this and started realizing it, that message I heard from my mentor kept coming back to my head saying, whoever can spend the most money to acquire customer wins. That was the key. Whoever can spend the most money to acquire customer wins. And so as we came into this game of ClickFunnels, I'm looking at these people with hundreds of millions of dollars in venture capital behind them. I'm like, how in the world do we compete with that? I was like, I can't do it head for head. They can all outspend me. But if I can

build a funnel that's right, I can change everything. And if you look at the reason why we have grown as fast as we can, it's because we can literally outspend everyone. We get, man, probably three or four times a week, different people trying to put money into ClickFunnels. And most of them, we just tell them no. But a couple we've entertained just because it's interesting and I'm curious what they think we're worth it's really fun and so we're we're at lunch this day with this group and uh and the guy i'm talking to the guy and he's going through everything and he asked the question they always ask on shark tank he's like well how much do you does it cost to acquire a customer and i was like i hate when people ask me this question because

he's not going to get what i'm going to tell him and i was like well when we're running facebook ads to the home page we're spending about 120 to to acquire a free trial member. And he was like, oh, that's amazing. He's like, based on that, he said, what I can do is I can go and we can put in, you know, $50 million in cash and we get this many, like all this stuff. And I was like, well, real quick, like we actually turned those ads off. He's like, you turned those ads off? I'm like, yeah, like I got to pay for this out of my own pocket. Like, I don't want to lose 120 bucks to every customer. And he's like, well, how are you guys growing so fast? I said, well, the reason why is because we have funnels. And I explained to him some of our front-end funnels,

like my book funnels and other funnels. I said, look, for every single person that comes in with my funnels, if they buy one of my books, we spend on average about $10 to $12 on Facebook ads or other ad platforms to sell a book. But then through that funnel, we average about $32. So I said, what happens is that we spend $12, we get someone to buy one of our books,

we make net $20 of cash we put in our pocket. And then we introduced him to ClickFunnels. So every single customer, before we tell them about ClickFunnels, they actually pay us money and we put that money in our pocket. He's like, that doesn't make any sense. And I explained it again. He said, it makes sense. I said, three or four times. Then he stopped. He said, if what you're saying is true, he said, that'll change business forever. I was like, that's my whole message. That's what we do. That's what funnels are all about. So I'm going to walk you guys really quick through this, and then we're going to have Gary come up here in a minute. But one of the key concepts you guys need to understand, and this is a concept we call a break-even funnel.

Those of my Inner Circle members who are here, we spend a lot of time on this. But the break-even funnel is a funnel where you break even so that you can literally get customers for free. When you have that, you can grow your company as quick, as big, as fast as you want. So we spend a lot of time on that. This is what a breakeven funnel, where I commit a dollar in advertising in and get at least a dollar back out. If I'm good at it, I can get two or three dollars back out. Now I've got a customer. I've got some cash. Now we can put them into the other things that we have. A couple examples of some of our breakeven funnels. I grabbed these from some slides this morning to show you examples. This is my dot-com secrets book. This is a couple months ago stats. We got about 5,400 leads. We sold 2,395 books. Our average cart value during that time was

$30.81. So we spent $45,000 in ads. We made $52,000 in sales. So our profit was $7,763. Now most people, if you look at a company that our size, you'd be like, that's a waste. Like you just wasted a lot. You made $7,000. That's not that big of a deal, right? But that was to get customers. We got 5,400 people that then the next week we would say, hey, by the way, this is this really cool thing called ClickFunnels. And I got paid $7,000 to get those 5,400 people into my list, okay? That was one of our front-end products.

This is a split testing book. Same kind of thing. We have 2,000 leads. It came last month. 1,300 books sold. Average cart value is $12. Ad spend is $4,000. Sales, $18,000. So we made $13,000, but we got 2,000 people that now we can introduce into ClickFunnels. So we got paid to get all these customers. One more example is Perfect Webinar, same kind of thing. Leads, sales. I'll go through

this quickly. The same thing, made $4,000, got 1,600 customers, we introduced into ClickFunnels. Now, if you walk through those three funnels alone, and we have about a dozen or so front-end funnels we use in different platforms and things. Last month from this, basically, our front-end revenue is $96,000. Our ad cost is $81,000, so we netted a whopping $14,000. Most people are like, man, Russell, with a company with 120 employees, like you're gonna go broke fast, right? But what's amazing about that is that that brought in literally like 30 or 40,000 new people into our world who then we took them through the rest of our sequence. They're introduced to us. Now we can go and we can build a relationship with them. We can talk to them. We can serve them. We can help them understand what we do, what we believe, and introduce them into our other products and our services. And for us, obviously, that is ClickFunnels.

And so if you look at that, what that means for us is that we literally get almost 1,000 new trials for free every single day by clockwork. That comes back to talk about before. That's how we're able to grow so fast is because we can literally outspend everybody in our market. There's nobody else that we can do that. And what's cool about it is for you guys, whatever business you're in, that's the key. Remember, whoever can spend the most money to acquire customer wins.

And when you figure that out, it makes it so you can grow really, really quickly. Any kind of business, any kind of venture, anything you want to do. And so that, you guys, is how we use growth hacking and sales funds to go from zero to $100 million in just three years without taking on any outside funding. Thank you. Would you like to see behind the scenes of what we're actually doing each day to grow our company? If so, then go subscribe to our free behind-the-scenes reality TV show at www.funnelhacker.tv.