The Russell Brunson Show - Jay Abraham Q&A Interview - Part 2 of 4

Episode Date: May 25, 2022

On today's episode, you get to hear part 2 of a recent interview Russell did with Jay Abraham. Hit me up on IG! @russellbrunson Text Me! 208-231-3797 Join my newsletter at marketingsecrets.com ClubHouseWithRussell.com Magnetic Marketing Learn more about your ad choices. Visit megaphone.fm/adchoices

Air Transat presents two friends traveling in Europe for the first time and feeling some pretty big emotions. This coffee is so good. How do they make it so rich and tasty? Those paintings we saw today weren't prints. They were the actual paintings. I have never seen tomatoes like this. How are they so red? With flight deals starting at just $589, it's time for you to see what Europe has to offer. Don't worry, you can handle it. Visit airtransat.com for details. Conditions apply. AirTransat.

Travel moves us. What's up, everyone? This is Russell. Welcome back to part two of the special Jay Abraham interview series. I hope you enjoyed the first episode. It was really fun to have Jay ask me a whole bunch of cool questions, and hopefully you got some value from the conversations. In this next episode, I'm going to release the second part of this interview, another 20 or so minutes long.

And this one, we start talking about, um, internal company culture versus customer culture, which is something that I've been really good at one of these. And I struggled the other one is things I'm learning. We talk about two comic club awards and how, how we use that to build a community and to, to build an amazing culture. We talked about bringing customers on as employees. We talked about having ambition, going after multiple big businesses and how I believe entrepreneurs are called to serve. We talked about acquisitions and building funnels. We talked about the three things that determine success in any offer,

which you guys know this. You've been around my world for a long time. It's hook, story, offer. We go deep in hook, story, offer. We talk about a whole bunch of other cool things. Again, it's insane. This interview, this next part is only 21 minutes long or something. And how much stuff we covered is there's a lot in there. So hopefully you get a lot of value from this episode. If so, let us know. And I'll see you guys afterwards for part

three on the next episode. 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 this podcast. We'll give you the answer. My name is Russell Brunson and welcome to Marketing Secrets. I'm one gradient away from talking about dot-com secrets, but I want to hit it on one more thing. Let's talk about culture because I think you must have a great culture in your organization to keep growing at that rate. And also let's talk about

creative collaboration because it works many ways. It can be affiliate joint venture. It can be sharing knowledge, expertise. Take those macro thoughts and run with them any way you want. Yeah. So create culture is important. I think in two sides, there's the internal company culture, but it's also the culture of the customers. And both of those are, they're different, but they're very, very powerful. So if you look at ClickFunnels, one of the most powerful things we did was not just creating a software platform, but I wanted to create a movement. I wanted, like, if you look at our people, they call themselves funnel hackers. They all wear t-shirts, they funnel hackers. They have people who tattoo it to themselves.

They're part of something bigger than just, oh, I use the software. When you use someone's software, if the software changes and one gets better, they'll jump around. But when they're part of something bigger, they're part of a culture, they stick for forever. And so for me, and I wrote about this in my Expert Seekers book. I wrote a whole chapter about how do you create a movement that gets people connected where they don't leave you. And there are a lot of different, a lot of ways to do that. One of the most powerful, I don't know if you guys have seen these before, but we launched an award inside of our company called the Two Comma Club Award. And there's two commas because two commas is a million dollars.

So anytime someone makes a million dollars inside of a funnel, they get this big, huge thing. It's a record, gold record with commas on it. And they come to our events, they come on stage, they get recognized and all these things are happening. And for people like when they first start seeing that, like that's their goal, that's their mission. That's what they want to do. I think it was, uh, Napoleon Bonaparte said that, um, that, uh, it's amazing what a man will do for a scrap of ribbon, right? Like it's the same thing. Like all of us want to be rewarded. And I think in every business now, that's something that people can do. So we did it with entrepreneurs. I think this became the, the award show for entrepreneurs, but now we've seen people, um, inside of our, inside of our community who modeled this for their community. So there's

people who are musicians who are using, uh, funnels to grow their companies and they have awards for musicians. Like you get your first 10,000 songs downloaded, you get this award and you get a million songs downloaded, you get this award. You get a million songs downloaded, you get this award. And now their customers are all fighting internally for these awards and this recognition because they want to be part of this thing, right? And so that's been a big part of creating that culture. And so there's that side. And there's also the company culture. One of the things we found that's been super helpful with company culture is a lot of our hiring also comes from within our community. So there are people who are already

using the platform, who already believe in the mission. They already, you know, they, they, they love what we're doing anyway, but for some reason they're not, they're not able to launch their own business. They haven't had success with it. Like if you look at, you know, our support team is probably 200 people. Most of those people are, are people who use the platform first. They were customers. They were customers. They loved it. They loved the idea. They loved building funnels.

But they never figured out, like, how to have success for their own business yet, right? And so instead, they said, you know, when we put out applications, like, hey, if you love ClickFunnels and you want to be part of this, you can join it. And now they're like, I have a chance to work at this company that I want to use anyway. They're doing this stuff. I get to hang out with the customers I love. And so it's built this really cool internal culture as well. People who are already bought into our mission, what we're trying to do and trying to accomplish. And so there's both those sides of the culture that are, I think are so powerful and so important

that keeps people around. Um, we don't have many employees that leave the turnover is really, really small. It's because they're part of this thing that they would be, they'd be paying for it anyway, because they already that passionate about it. And now we let them come in and they can work for us. They're getting paid to be part of it and interact with our customers. And it changes the whole dynamics of your business. Those are great points.

And thank you, because I'm taking you into probably realms that I hope everyone doesn't ask you to talk about because I think there probably resides in you a lot of profound knowledge to share. And I think it's very valuable because you're a catalyst for others to basically be like a lighthouse or a beacon of how they can go from wherever they are to a better place. So you also have three or four concurrent businesses. You got ClickFunnels doing 200 million. You got your digital secrets, or is it called digital secrets? Dot-com secrets. Pardon me,

pardon me. You got your supplement business. How do you do all that? How does somebody go from glint in the eye when they're 14, you know, selling kits to make potato. By the way, a potato gun is not a real gun, everybody, because guns are outlawed. And it's just, it's a fun thing that kids do. They stick a potato in a, and it's a fun thing that a lot of kids, my kids had them and they're just fun. But how do you go from that kind of innocence and sort of theoretical ambition to growth, to multiple business growth, but you seem to be in control of your yourself and your whole world, which is and you've got plenty of time that you spend with your children. I'm always trying to to pitch him on something. And he's always taking his kids to wrestling or he's always doing things that give him quality of life, which is really interesting,

given the diversity of activities involved. And again, I'm throwing you, this is like intellectual Rorschach for entrepreneurs. So you can answer any way or you can decide you want to move on to the next question. I don't care. No, I actually love this question. So a couple of things, and I think this is, hopefully this is like everyone gets this. This is the point that I don't think most entrepreneurs and business people think about. Most business owners think of their business as, like, what is the product they sell, right?

Like, I sell an iPhone or I sell funnels. For me, like, that's not how I look at my world at all. I look at who are the people, like, what is the group of people that I've been called to serve? And so in my mind, the people that I've been called to serve are entrepreneurs. Like, those are the people who I jive with. I'm passionate about them. They help other people. It fulfills me.

And so that's what I'm called to serve. Now, it doesn't mean I have to serve them only through funnels. I can serve them through any way possible. And so for me, it started with, you know, I started trying a lot of different things initially. But eventually, ClickFunnels was the software platform that made this grow for me. That's when it started blowing up was that, but then I was like, okay, well they have the software platform, but I want to educate them too, because these are my people. I'm called to serve. Like the more simple I can make their lives, the more money I'm going to

make. So how do I make their life simpler? And so my very first book, which was called dot com secrets, it was all about teaching them. Like we give you this platform, but you have to understand the strategy behind it. So dot com secrets is the book that teaches the strategy on how to use funnels to grow your business. And so that was the first book. And then two years later, I was like, okay, people are using funnels. They understand the strategy, but they're not good at telling their stories and, like, creating customers who are going to buy from them over and over and over again. How can I make this simpler for them? And so that's when I was like, oh, I should write another book.

My second book was called Expert Secrets, which taught them now, here's how to use your expertise and your knowledge and your information and your stories to move people through your funnels and get them to buy from you and buy from you again. And then it was like, hey, what's the next problem? The next problem was that people weren't getting traffic to their funnels, right? They couldn't get people profitably to come to them. And so that was my third book was Traffic Seekers. I'm going to help write a book that's going to help them get traffic. That became the third thing. And so a lot of this just came from that, like supplements, like the supplements we have right now are for entrepreneurs to help them have more energy, more passion, and be able to,

to do what we do as entrepreneurs. And so everything is, is kind of focused around helping them. So that's number one. The second thing is that I realized that the business that I'm really in is an acquisition business. I learned this from you initially. There's three ways to grow a business. How do you acquire more customers, get them to spend more, and buy more often? I'm in this company where I've got to acquire new customers. How do I acquire customers?

I create funnels on the front end to acquire them. One thing that's kind of unique about us is we bootstrapped our company. We didn't take on any outside funding. And so all of our, all of our customers had to be, had to be created profitably. And so for us, we did that through these book funnels. Each time we have launch a book, um, it costs us about 20 to $30 to sell a book, but through the funnel, I make 50 or $60. So I'm, I'm usually profitable on every single book we sell. And so someone comes in, they buy a book, We profitably acquire that customer. And then we can sell them ClickFunnels.

And it doesn't cost us any new money. It's basically anything that happens after the book funnel is all pure profit. And so that became our business. And so what I said is I have to have a team that's really, really good at making funnels, like the best funnel team in the world. And so that became the side of the business that I run. I have a partner that runs the software side. And I run the acquisition side. I have to be able to create funnels that acquire

customers profitably. And so I have this team now. It's amazing. So I'm like, okay, here's the book I wrote, make a funnel. Um, here's the supplement, make a funnel. Here's the, and so we have the processes and the tools in place where we can create anything into a funnel. As you know, um, last year, uh, Dan Kennedy came to us and we had an opportunity to buy his company. And I was like, well, his customers are entrepreneurs. His customers need funnels. Let's do this. We acquired his company, you know, 40 years of his intellectual property. And I have a whole team now making, taking all his old intellectual property and turn them into these funnels that were popping out. And, you know, Dan's company has grown more in the last, you know,

four months than it did the last 12 years combined. And it's just because we have all the systems and things in place to be able to do that. And so, um, and it's been fun. It's, you know, my favorite thing is funnels. And we have a team that just builds funnels. It's based on any crazy idea that I want to plug in there. We, we build out the funnels and it gets entrepreneurs to raise their hands, give us money. And then we can then from there, get them into click funnels. But it all comes down to really understand who's your dream customer. And like, what are all the different ways you can serve them. I love that. So now let's take let's take the gloves off and talk about about online.

What you what you know that most people don't but don't reach anything that you charge a lot of money for. But share two things. First of all, since you are the king of funnels and you get to examine the most high performing funnels and most people don't do funnels. And I'll tell you, even though we have your service, I don't I don't do funnels anymore. Embarrassing. It's just not what I want to do is embarrassing and stupidly. But why don't you tell everyone here, what are some of the, I'll call it a denominator, the higher performing success factors in creating funnels? And I'm going to add, I always ask multiple things. And I ask multiple things so you can choose to answer one, any combination or say, those are great questions, Jay, but I want to answer a different question.

I don't care because I just want to plumb what you know that I don't and they don't, and I'm their advocate. But you can talk about what you learned about funnels. You can talk about digital marketing, lead generating, a traffic building conversion that most people don't know and realize they're probably by and large behind what you might be teaching to everyone. But it would be very helpful because everybody wants advantage. And then finally, you launched it in the beginning through very nonlinear approaches. And it requires you to think differently. And I'm a great advocate of thinking totally differently than everybody else and doing things totally different.

So you can talk about any, any combination or none of the above, you know, uh, the ball is thrown to you. Awesome. Um, yeah, I have something I think would cool to share with you guys. And it's something that's on the outside and explain it and you're all gonna make, that's really simple, but it's the key to everything. In fact, um, I have people who will hire me and, you know, they have a campaign advertising campaign and they're looking at their ad and their funnel, everything. And they'll want to pay me, you know, quarter million dollars to review their funnel. And for a while I was like, I don't know, like I didn't have a process for this. And then after doing it four or five times, I was like, this is actually a really, really simple process.

And I'm going to teach you as a process because then you don't have to give me a quarter million dollars. You can just do it yourself. But if you want to, I'll take it too, but I know it's joking. But it's interesting because there's three core things that happen in every single step. And if a step in your digital funnel is not working, it's always one of these three things. So I'll explain three things first and I'll walk you through kind of how it works. So every single step in your process from the ad to the landing page, to the sales page, the upsell, the downsell, the email sequence, the retargeting, every single thing, they all have three components. They have a hook, they have a story, and they have an offer. So hook,

story, offer. And when something's not working, it's always one of those three things. And so what happens, someone will come bring me their funnel and their campaign. Like here's our advertising campaign. What's not working. And I'll look at the ad first. I'm like, okay, what's either the hook, the story or the offer. We'll look at the ad. Like, what is it like? Is it grabbing you as a hook there? You know? So, um, and if the ads working good, but then the landing page is not when they call on landing pages, either the hook, the story or the offer. If the ads working good, but then the landing page is not working, well, the landing page is either the hook, the story, or the offer. If the ad's working, the landing page is working, but the sales page is not, well, it's either the hook, the story, or the offer.

So I want to break those things down. So the hook is the thing that's going to grab someone's attention, right? And it could be anything. It could be your face. It could be your hands. It could be the copy. It could be the words. It could be the background.

Everything we have in our power is a hook. So, for example, I always think about people that are on their phone and they're sitting back and they're on Facebook or YouTube or whatever, and they're, they're sitting here scrolling, you know, they're bored out of mind scrolling. And our hook is something that's going to grab them and stop them from scrolling for just a second. Right. And the hook, the only job hook is to grab their attention just for long enough. And then we can tell them our story. Okay. So then we have a chance. They stopped scrolling. Now we can tell them a story. Okay, so then we have a chance. If they stop scrolling, now we can tell them a story. And depending on, you know, if it's an ad,

the story might be 15 seconds. If it's a landing page, maybe it's five minutes. If it's a sales video or a webinar, it can be an hour or two. But the second step is the story. Now, the goal of the story is to increase the perceived value of the offer that you're going to make. Okay, and so it's not just the story for story's sake, but the goal of the offer that you're going to make. Okay. And so it's not just a story for

story's sake, but the goal of the story is to increase the perceived value of, of the, the offer you're about to make. And number three is the actual offer, how to make a really good offer. And so a good example, that's actually with my phone, um, you know, these phones, I think, I don't know how much iPhones cost five or $600, but I want, I wanted to demonstrate the power of a really good story at this event I went to. So I went to this event, and there's probably 2,000 men in the audience. It was called Warrior Week, and there was 2,000 men in this audience. And I brought my phone.

I said, who here would give me $600 for this phone? And nobody's hands went up. Maybe one person was like, I'll give you $600. That's the value of it. And I said, okay. I'm like, in 10 minutes from now, I'm going to tell you guys a story about this phone. And I bet you, I get you at least one of you guys to be willing to give me a hundred thousand dollars for this phone. And everyone's

like, no, there's no way. And I said, okay, let me tell you a story. So this is my cell phone. I've been carrying with me for the last, you know, however many years. And it looks like a phone, just like to everybody else. But I want to tell you what's on this phone. I said, on this phone, there's a whole bunch of really cool things. I started telling the story about, uh, the people in my Rolodex. I said, Jay Abraham's, his phone numbers in here and Tony Robbins' phone numbers in here, as well as this person. I started listing off all the people and like you'd have their, like their contact information. And then we went to my, um, to my iBooks app and I showed, I said, every single course I've ever bought over the last 20 years, after I buy the course,

I make a digital version. I put it on my phone. I start scrolling through here. I said, this is about $1.5 million worth of marketing and sales courses. Every marketing sales persuasion, personal development course from the beginning of time. Now I've purchased it and they're all on my phone. I can listen. In fact, I got, I probably got a dozen of Jay's programs right here. I could show you guys literally they're all on here. Uh, every time he's ever spoken to end up on my phone and that's our going through the other things. I went thing after thing. And all of a sudden, the value of this phone, I told the story about the phone, the perceived value got higher and higher and higher. And after I told this story, I went through all the things that are on this phone.

Then I sat down. I said, okay, let's do an auction for my phone. I mean, who are going to give me $1,000? And everyone's hands went up. Who are going to give me $5,000, $10,000, $20,000, $25,000, $30,000, $50,000? I got up to $100,000. Then $150,000. And your hands are starting to drop.

I got up to $500,000, and there were still three people's hands who were in the air. I said, you guys are dead serious. You're going to give me $500,000 right now for my phone. They said, yeah, we will. I said, okay, prove it. Come on stage. And so three people came up on stage, and they were willing to give me half a million dollars for my phone. And I said, like, two minutes ago, you were going to give me me a thousand dollars for this. Why would you give me $500,000? And one of the guys grabbed the microphone. He said, man, after knowing what's on that phone, that seems like a super good deal,

right? And that's the power of a really good story. So again, we got to grab the hook. We got to tell them a story to increase the perceived value of the thing we're going to sell them. And then we've got to make them a really good offer. And that happens again on every single page. So it happens on the ad, the landing page, the sales page, the upsells, the downsells, the email sequences, like that pattern repeats itself over and over and over again. And so for you to be good at digital marketing, it's just getting you really good. Like what's the hook that's going to grab their attention? How do I tell a story? How do I make an offer? And, and then you do that. You build out your, your sales process. And what I do is

I build the sales funnel out. I spend maybe $500 or $1,000 in ads. And I sit back and I just look. And I look at the numbers. I look at the stats. I say, okay, well, page one and page two did good. Page three didn't do good. Now, it's either a hook, story, or offer.

Which one is it? And we'll go and we'll tweak it, try it, spend some more money, sit back, and then see if it works. And we try it two or three times so all the pages are converting. And then you've got a funnel. Now we can start driving traffic and we can scale it to $40,000, $50,000 a day in sales, and then that's how the game is played. But it's just getting really good at those three simple things, which is hook, grabbing attention, telling a story, and making an offer. I love that. That's really great.

All right. So if, if you talk about where opportunity lies today online, what would you, what would you say where and how? Yeah. So the biggest thing online, I'm sure most people are familiar with is advertising costs are going up. Like that's just a big thing because Apple and Facebook got a big fight and they started blocking Pixel. So the advertising costs for everyone is going up. And so because a lot of businesses are falling away and the businesses that have the most success, one of Dan Kennedy's, my favorite quotes from him, he said, whoever can spend the most money to acquire customer wins.

And so it's having businesses where there's a front end and there's a, there's a really good backend. So my business right now, we have five free books and then I have, you know, software for a couple hundred dollars a month. But then I also have a $25,000 coaching program. I've got a $50,000 coaching program. I have $150,000 coaching program. And so because of that, because I'm able to go deep and I have big backend products and services, that's how I'm able to out compete against everybody else. And I think that the people that are, that are having the most success and services, that's how I'm able to out-compete against everybody else. And I think that the people that are having the most success and people understand that, like, I'm going to acquire a customer, but I'm going to lose some money, but that's okay because I know that over here, this is my more expensive thing than I'm going to be

selling them. And I think that's really the people that are succeeding and thriving right now, those who understand that. Because so many advertisers are dying and falling off the platforms that eventually, I think, I feel like the ad costs are going to keep going down because of that. And it's going to give those who are able to sustain a business because they have a good back end the ability to just start grabbing all that traffic and really scaling and growing quickly. And just to make sure it's translated, what he's saying is instead of looking at your current offer as a static, this is all I'm doing. If you rethink it and say, this is the lead generator, self-liquidating or slight loss on the lead generator to bring the first transaction in,

but I'm going to have many, many other ways to monetize it. And it doesn't matter whether you currently have those ways. This is where partnering, joint venturing, co-branding, buying the rights, getting licenses, figuring out what people buy before, during, after, even frankly, instead is where you can make a fortune. Talk towards that. Yeah. All right, funnel hackers, listen up. It's 2025 and let me ask you, are your B2B ads actually driving results or are they getting lost in the noise? You and I both know the pain of running campaigns

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and they do custom suits for, I don't know, $5,000 or $10,000 for these custom suits. But they were struggling. They couldn't advertise that profitably online and get people. He said, well, people who are custom suits, what do we know about them? We're like, what's something they all want. And the big aha is like, well, people that work custom suits usually wear cufflinks. So they made a cufflink offer and they found someone had a bunch of cufflinks. Um, and they put up an offer and they charged, I think it was like free, free plus two, $2 95 cents for these really cool cufflinks. And it cost them like a hundred dollars to sell a $2 cufflink. But from that a hundred dollars, that was like his dream customer. And like one out of five ended up buying a custom suit

and they blew up the business because of that. You know, my business, I have software as our core business. And so I was like, well, you know, it's really expensive. Like for me right now, click phones, it costs me about $500 or so in advertising to get a free trial, which is expensive. Like, oh, and I wasn't, again, I didn't, all my competitors are backed by venture capital. So they have money that they can, they can acquire. But I don't, I don't have that.

Like all the money comes from my own pocket. So I was like, okay, I'm going to go write a book and I'm going to sell that book. And that's, you know, I'll break even on the book. And then from there, I'll introduce some ClickFunnels. I mean, a good reason why I bought Dan Kennedy's company. You know, Dan Kennedy, he's written, I don't know, 50 books. So I now have 50 new books that I can launch.

I love it. And get people into ClickFunnels. I don't have to write any more books, which is fantastic for me. So it's just, like you said, partnering, acquiring, licensing, like looking for something that can be a front end. And it just comes back to, again, who's the customer that's going to buy the thing you want? And then what's something that, on the the low end that they would want to buy, that you can acquire them really, really inexpensively.

And then from there, move them to the more expensive products that you have. Thank you for listening to the marketing secrets podcast. If you've loved this episode, then please take a screenshot on your phone and post it to Facebook, Instagram, or wherever you post stuff and be sure to tag me and let me know why you like this episode and what you'd like

to hear in the future. That'll help me to know what's great for you. Also, Dan Kenney and I would love to give you the most incredible free gift ever designed to help you make maximum money in minimum time. This free gift comes with almost $20,000 worth of pure money-making information for free just for saying maybe. You can get this gift from Dan and from me right now at NoBSLetter.com. Not only are you going to get the $20,000 gift, you also can get a subscription to two marketing

newsletters that will be hand-delivered by the mailman to your mailbox each and every month, one from Dan Kennedy and one from me. To get this gift and your subscription, go to NoBSLetter.com right now.