The Russell Brunson Show - The Long Forgotten Power of Correct Affiliate Marketing Implementation

Episode Date: August 5, 2024

In my last Inner Circle, one of the last strategies I shared was on a topic that, surprisingly, still drives more than 50% of the traffic to ClickFunnels – Affiliate Marketing. Despite the buzz arou...nd Facebook, Google, Instagram, TikTok and YouTube ads, affiliate marketing remains a powerful and often overlooked strategy. I shared my insights and strategies on how to build a successful affiliate program, drawing from my personal experience and the journey of launching ClickFunnels. In the early days, traffic generation was primarily through joint ventures and affiliate partnerships. This episode highlights how a properly managed affiliate strategy can significantly reduce the risks and costs associated with paid advertising. Plus, instead of paying upfront for ads, affiliate marketing allows you to pay only when a sale is made, making it a stress-free and efficient way to grow your business. Key Highlights: Two-Tier Affiliate Programs: Understand the benefits of offering a two-tier affiliate program to incentivize and expand your affiliate network. Partner With Anthony Model: Get insights into Anthony Morrison’s successful affiliate model that leverages low-cost training programs to drive high affiliate conversions. Dream 100 Strategy: Discover the Dream 100 approach we used to launch ClickFunnels and generate massive awareness. Building an Affiliate Program: Learn how to structure your affiliate program to attract and retain top affiliates. Integration Marketing: How to get your best affiliates promoting you on autopilot so sales keep coming. If you're looking to scale your business and cut down on advertising costs, this episode is packed with actionable advice to help you harness the power of affiliate marketing. Listen and learn how to leverage affiliate partnerships to drive traffic and sales effectively! Don't forget to check out this awesome deal from Mint Mobile! https://mintmobile.com/funnels And if you want to enjoy the Marketing Secrets Show ad-free, check out http://marketingsecrets.com/adfree Learn more about your ad choices. Visit megaphone.fm/adchoices

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Starting point is 00:00:00 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, and supply. AirTransat. Travel moves us. What's up, everybody?
Starting point is 00:00:31 I want to talk today about one of... It's so funny. There's so many ways we drive traffic, so many things we talk about. Everyone's always freaking out about Facebook ads and Google and Instagram and YouTube. But to this day, more than 50% of the traffic to ClickFunnels still comes from this one traffic source that we never talk about. At a recent event, I kind of went off on this and I talked for, I don't know, 45 minutes or so talking about how to get traffic from affiliates, what we're doing and how it works. And it's funny to me because we used to have this conversation back when I first got started because there wasn't Facebook, there wasn't Instagram. The way we all got traffic when we first got started was through affiliates. All of our conversations, all the seminars, all the events were just talking about that one topic.
Starting point is 00:01:10 Nowadays, I go to an event and nobody's talking about it, yet it's still the way that we use to drive the majority of our traffic, despite the fact we're spending a million dollars plus a month on paid ads. I wanted to go deep with that and just get you guys the wheels in your heads re-spinning about how to use affiliates to start growing your company, to drive more traffic, to get sales. The best thing about affiliates is that like, you know, with Zuckerberg, you buy ads, you give them money up front, whether people buy or not. With affiliates, the risk is on them. Like you convince them to promote, they promote. And if they make a sale, then you pay them a percentage of the sales.
Starting point is 00:01:39 There's no risk. There's no stress. Like it's such a better way to run and build and grow a business. So that said, today we're going to dive deep into some strategies about building your own affiliate program and getting other people to promote your products and your services for you. In the last decade, I went from being a startup entrepreneur to selling over a billion dollars in my own products and services online. This show is going to show you how to start, grow and scale a business online. My name is Russell Brunson and welcome to the Marketing Secrets Podcast. Okay. How many guys right now have an affiliate program inside of
Starting point is 00:02:10 your businesses as active? Okay. Interesting. How many guys do not? So we have more of the do nots than the do. Okay. All right. A couple of things. Number one is back in the day when I got started 20 some odd years ago, we didn't have Facebook, Instagram, YouTube. Um, we have any of those things, right? And it's funny cause I think back, like how did we get traffic back then? Only thing we really had, we had email lists, their Google ads, and that was about it. And so usually what happened, people would buy Google ads to build an email list and then you promote each other's things.
Starting point is 00:02:39 Like 90% of the way we got traffic back 20 years ago was all, uh, us doing joint ventures. Like that's what everything was getting affili uh, us doing joint ventures. I guess what everything was getting affiliates, calling people on the phone, which me as a super introverted person who's number one fear on this planet is picking up the phone. Um, I had to like stretch to be able to do that, but it's the only way that we can grow our companies. And so, um, I built a lot of relationships with people and that's how I kind of how I kick things off. And it was doing the, um, doing a lot of joint ventures where I'd promote their product.
Starting point is 00:03:04 They promote ours, things like that. Um, fast forward then whatever, 10, 12 years later is when we launched click funnels and we launched click funnels. We did not do any advertising. We had no one on team new advertising. We didn't have, we weren't running Facebook ads, like none of that stuff. Um, the only thing we had, the only tool we had was joint ventures. And so, um, some of you guys had asked me, uh, kind of how we structure things initially
Starting point is 00:03:24 when we launched click funnels. So I'll talk about that first and I'm going to show you the evolution of what we're doing. That's really exciting. And this evolution, by the way, the whole goal of all the things I'm trying to do in my business right now, or how do I do things where I can cut Zuckerberg off? And so the whole idea came from that and now it's turned into something, um, really, really cool. I think you're gonna love. So, okay. So the first launch ClickFunnels, number one thing we did is yes, the dream 100. We did the dream 100. Just like I tell everyone over and over again, I did the dream 100 and I was like, how do
Starting point is 00:03:51 I get, um, the, the information that we're launching this thing in front of people's faces. And so back then I'd seen somebody online who'd done a video card. Now they're kind of famous. I've never done, but no one had done it before. I saw it in some weird industry where someone had these video cards. We have a message, you open it and the video starts playing and so when we're launching click funnels it's like we need to do these video cards and it was
Starting point is 00:04:10 really hard because there's only one person I think in Hong Kong who's actually making these things we found the company and so we made it so first thing is we did these video cards for our dream 100 that was how we kind of kicked off awareness that we're launching a company called click funnels that's how it started and then you guys have heard the story before. We launched it first where everyone was promoting free trial and it didn't really convert and, and no one knew what ClickFunnels was and it was confusing and just, it kind of, we launched with affiliates and the ones who promoted it just kind of died and didn't do a lot, right? Dang it. And then fast forward a few months later is when I had a chance to go to an event. I wrote the webinar pitch for click funnels, did the webinar. Um, it converted. And now I was like, we had, we had a model, right? Um,
Starting point is 00:04:49 anyway, I'm not gonna go deep in the whole model, but obviously, you know, webinar, linchpin, all that kind of stuff. Um, but we had a webinar. So what we do, um, is I go out there, I would do the webinar first into our own list, made a bunch of money. And I had the stats. It was like, Hey, I did the webinar. We got a thousand people register. We made X amount of dollars. Therefore I made everyone who registered, we made, you know, whatever the numbers were. And we had like a little database of just like, here's what we made from this webinar. So then I had that. I was able to take that. And I went to a joy venture partner, an affiliate. I'd say, Hey, I just did this webinar to my list. I was able to get a thousand people register. Here's the stats.
Starting point is 00:05:20 Here's the numbers. If you can get a thousand people, this is what you probably make. Right. And so I tell them, you know, based on these numbers, you might make $5 for everyone who registers for webinar, whatever the numbers were. Right. So I pitched to somebody else and they liked it. Like, Oh, that sounds great. Let's do the webinar. We set the webinar. They would promote it. I would do the webinar. They make a bunch of money. And then what happened, we take that and we add it to this document. There's like, here's, here's results for my webinar. Here's results from the webinar I did with this person. And then I would go to that person. And I told him, I say, uh, each of our partners would get 40% commission on the webinar, right? So that, Hey, he's got 40% commission. Um, did it convert well for you? Like, yeah,
Starting point is 00:05:53 it was amazing. People loved it. It converted great. I was like, awesome. Um, we have a two tier affiliate program. So if you have anybody, you know, who would like to do this webinar, I will pay you 10% of any of the sales that they make. And people are like, this is amazing. So then all of a sudden they would go and they would contact all their friends like, Hey, I just did Russell's webinar. I, you, we made $6 for every register, whatever the numbers were. They kind of brag about it and say, do you want to do a webinar with Russell? And they would connect to me with all these different people. So they might connect me with five different people. Those five people come to me and then I would do webinar to them. So I did a webinar, a person's list, that person, that person, right? And the person who
Starting point is 00:06:23 did the webinar got 40% commission and the person referred them got 10%. So everyone's happy. Then I took the data from all those five webinars. I'm put it on the sheet. So-and-so's webinar. We got, they got 300 registrants. We made $12 per lead, whatever. And so we get building out this document of just all the case studies of what happened. Right. Um, and then those five people, I asked the same question. Hey, we have a two chair affiliate program. Do you have any friends who you think would want to promote this webinar? And all of them do people who have what, who do webinars, no people do webinars. And they're like, yeah, definitely. Here's three of my friends. This is the webinar. So they introduced me, they introduced
Starting point is 00:06:52 me, they introduced me and they kept going and going and going. And that's how I did 70 whatever webinars in the first live webinars. The first couple of months of launch, launching click funnels was that that was the process and the path to chair affiliate program, 40% of first tier commission, 10% second tier. And then we process and the path. Two-tier affiliate program, 40% of first-tier commission, 10% second-tier, and then we do a webinar, have success, get their friends,
Starting point is 00:07:08 do a webinar, and just kept growing from there. Does that make sense? So that's how we launched ClickFunnels, how it started growing. We've paid out, I think, over $150 million in affiliate commissions since ClickFunnels first launched,
Starting point is 00:07:18 and that was kind of the initial process. So that hopefully gives you guys a couple ideas if you're running different affiliate programs. All right. Now there's like three or four things that make this last thing make sense. So they may seem disconnected as I tell you three stories, but very, and I promise it'll tie together. It's like a nice boat. Okay. Number two, um, the very, when I reopened inner circle the very first time, um, like three years ago, how many guys were in the room three years ago? We first did it. Okay.
Starting point is 00:07:46 Thank you very much for hanging out this long. Um, it was over in the knitting factory. And if you remember, um, Anthony Morrison spoke, how many of you remember that he streamed in cause it wasn't able to come. It's in the members area, by the way, if you haven't listened to this, but he shared this model and what he's doing. And Anthony's one of our, he was our number one affiliate for like five years inside of ClickFunnels.
Starting point is 00:08:04 Um, and it actually was interesting. The top five affiliates are all using a variation of this model, uh, perfectly. So I'd Anthony come and share that. He shared the model with everybody and I haven't yet to see anybody actually do what he did. Um, including me. And I've listened to that probably three times over the last couple of last couple of years. I'm like, I know there's something I just need to do it. I need to do it. So I'm going to walk you through what Anthony's model is. It's really powerful. So Anthony has a site called partner with Anthony P W a and Anthony basically has a site and he charges $7 a month to be cut, to join the site. You sign up for it and it's the training program.
Starting point is 00:08:38 It's going to teach you how to be successful as an affiliate marketer, right? And you go into the site and there's a whole like train program, like a Like day number one, you're going to do these things. Day number two, do these things. And he walks you through and it's got like a, I don't know, 40, 50, 60 day free training, not free training course, $7 a month for this training course. But he doesn't, but that's the only thing he sells is the $7 a month. That's the only product that Anthony actually has. Everything else is just, he's referring different things.
Starting point is 00:09:04 Okay. And so this is how he became a number one affiliate is on like day three or something. It's like, Hey, you need to funnel. Here's a share funnel link that you need to have. Go sign up for click funnels and go get your thing. And he pushes it through his affiliate link. Um, and from that he gets, yeah, tons of people. And, um, in this, in these days of training, you know, five, day four, five, six, whatever. He has other things he recommends. Like he recommends an email autoresponder system he recommends. So as an affiliate, he, he promotes different things that he's other companies. That's how he's making his money. Correct. And then what's cool is that affiliate programs like ours, like click funnels,
Starting point is 00:09:36 uh, we have a two chair affiliate program. So Anthony does is if you sign with parts and partner with Anthony, you can basically take his system. You can promote it as an affiliate, right? And then you get the $7 a month as an affiliate. And then when someone signs up for click funnels, um, you get the commissions and Anthony gets second tier commissions. Does that make sense? The way he's programmed the software. And so this for him has become, became very, very viral. And a member Anthony told, told us on the thing, he's like, I've got a hundred different products, but I only promote one on paid ads. And what they do in paid ads is this people buy this. And then this training is free training. People love me. They're going through
Starting point is 00:10:07 it. They love it. From there, I'm recommending ClickFunnels. I'm recommending they buy this product. All the revenue comes from him promoting other products. Sometimes, he'll recommend his own product in here, but he never physically buys ads from any of his other products. He doesn't drive emails for any of his other products. The only thing he promotes is partner with Anthony, and then the training does all the selling of everything else he's doing. And so what's interesting is like when someone's paying for a membership site through learning, um, like their guards down, they're not like, Oh, I mean, this is a sales pitch. I'm on a webinar.
Starting point is 00:10:35 He's going to pitch me something. I'm on a five day challenge. Someday they're going to be, he's going to pitch me something. It's like, no, this is a free training course. I'm not selling anything, but here's the tool you need for this. Here's the tool you need for this. Oh, if you want my templates for this and like the training just recommends resources. And, um, like I said, Anthony, Anthony's brilliant. He's probably one of the richest dudes I know in this market. Um,
Starting point is 00:10:52 cause he does really smart things like this, that he doesn't do this customer support or anything. He just drives traffic one thing and it does all the work. So, so he shared that. And again, if you go back, if you guys log in the inner circle members area, that presentation is in there. If you listen to the inner circle members only podcast, it's also in there. That's where I listen to it all the time. Cause I go back to the old inner circle, um, podcast. I listened to that and a couple other ones that are really, really good. He's getting this. Any questions about it all? You have a question? Do we have a microphone that I can throw at her? Oh, here.
Starting point is 00:11:26 Trust me, I'll hand it over. Boom. Don't hit your camera. Yeah. So affiliates is one thing I feel like I've never done. I understand the concept. But I always think of, like, I'm building out a startup in this program, and I want to make sure the product is solid before I launch
Starting point is 00:11:45 it to affiliates. I noticed it's like secrets of success. You launched affiliates like right out the gate. And so like challenged my thinking, but like, when's the time when you like start to create an affiliate program and you feel like it's the right time. So me personally, I think it's the first step. I've heard you say that. I'm asking this question. Because paid ads are the worst because paid ads is like, anyway, I'd rather get, cause I was thinking about this, like the best traffic in the world is your own hot market, right? Your own list who loves you. Second best are that people may not know you, but they, you have a partnership with somebody who does know you and
Starting point is 00:12:15 their audience doesn't, and they can recommend us a warm referral. Like, Hey, me, I created this really cool thing. You should go check it out. Like that's the second best. And then we go to the next phase, which is like, now we're going out to the masses. We don't know who we are and that's colder traffic. That's paid ads. And so a lot of you guys are going straight to paid ads, which paid ads are harder because you've got to get the copies. It's, it's harder to get copy to convert on ads and like all those kinds of things. Right. Versus like if I throw up, I can throw up a page tomorrow that's like, Hey, this is Russell. You guys want to buy this thing? And I click down below. And like, and if I sent it to all of you guys, most of you guys will buy it just because it's like,
Starting point is 00:12:47 we have an audience. Right. But if I ran the same thing to on facebook ads like john would stop running ads in 30 seconds like no one will buy this thing no one's converting you know i mean but we're always trying like everyone's trying to launch with the hardest thing possible where i'm like there's a huge pile of cash right here and what you guys are all doing is like there's a pile of cash i'm gonna step over here i'm gonna step over here i'm gonna come over here and like we're gonna get this thing to work first. And then we'll grab that. And you're trying to get the scale and everything. I'm like, wouldn't it have been easier just to like grab this pile of cash and like put it in the bank.
Starting point is 00:13:12 And then like there's over here, you get partners of cash and you grab all that. And you spend a year doing that. Then you take this money now and you come over and now you start running ads over here with some profit. Like that's such an, in my mind, just easier. We did two years of ClickFunnels of just grabbing all this before we had anyone before john if we're sitting in meeting like we should probably run ads someday who wants to learn john's like i'll learn and that was like two years in the business before we ever ran an ad but we'd already collected 10 15 20 million dollars in profit before we started giving it away which we need that profit you know growing a company when you're focused
Starting point is 00:13:41 100 on paid ads it's hard because the profit's all getting sucked out by zuckerberg or whoever versus this is like you're keeping so much more revenue up front before you anyway that's the product like for you like now you have an audience that knows likes and trusts you and it's all the same vertical you know click funnels zoom voomly or whatever all those are kind of the same market and so it's like they're going to trust you in those same verticals and so like if you have a product that maybe you haven't tested before, that's my living belief. Like an info product or software product? It's info, but I'm putting e-commerce tied to it.
Starting point is 00:14:13 Does it work? I mean, it's principles I've learned the last 20 years bottled up, so yeah. I've tested it in micro doses, right? So now I'm launching it. But still, I feel like there's things to test. Like the night, cause like affiliates, you have to build these relationships and you have to answer all these objections and things. And so do you just bottle that up before you launch it or? Affiliate, my experience is most affiliates.
Starting point is 00:14:40 Oh, sorry. I didn't tell the end of the story. This might answer part of the question, but I told you like I did the webinar, draw a list. I had the stats. This person's list has stats. So when I do an affiliate, they don't know who I am end of the story this might answer the part of the question but i told you like i did the webinar to our own list i had the stats this person's list has stats so when i do an affiliate they don't know who i am most time i'm like hey we've run this webinar 12 times here's everyone's stats you see boom boom boom boom boom and they're like oh cool i'm in like the most affiliates are doing it because they're trying to figure out how to make they want obviously good product and stuff like that but they're more like they want a webinar to converge like or they want
Starting point is 00:15:02 an offer that converts like That's more important typically. So are they doing their own webinars? I'm like, this is the new space that I want to get into. And so I'm going to jump through all my false beliefs. No, you're doing the webinar. They're just setting up the audience. So they're just sending them to your webinar? Yeah.
Starting point is 00:15:20 Well, I do one specifically for them. Okay. Let's say I was doing one. We set up a webinar. It's like the picture of me and your face on it. And you're like, Hey, my friend, Russell, that's really cool thing. We're going to do a webinar. We're gonna talk about it. And they all jump on. Then you introduce like, Hey, um, all right. So, uh, Russell showed me this really cool thing to do. It's awesome. And I asked him if you're coming today, show you guys behind the scenes, how it works, check this out. And then you kick it to me. And then I go and do my full perfect webinar
Starting point is 00:15:40 and I, and I sell it. Okay. Yeah. And then they get all the, and then they get the commission. Yeah. Yep. Okay. I'm willing to switch my thought. Yeah. But that's the way we've, we've done it. And again,
Starting point is 00:15:51 I think it's, I don't know, starting directly with paid ads. It's like, we've been doing secret success. Like we ran, we launched secret success. We put our list,
Starting point is 00:15:59 affiliates promote it. We collected a million dollars for like two days. And it's like second million dollars. We took that money to run the ads. And like we've been running ads and we spent way too much money. We still can get ads to work. And I'm like, man, if I were to start with ads, I'm like, this business is dead. I would have given up.
Starting point is 00:16:10 We've already collected $2 million from not ads. And now we've got, we've got some breathing room to figure out how to get paid ads to work versus if I started there, we'd still be sitting around with no members. You know, ads are way harder than just your own list and affiliates. Cause the affiliates because it feels like implied endorsement, right? They're coming from somebody else. Always converts higher.
Starting point is 00:16:28 Yeah. You can be worse and make more money, which is great. You know? Yeah. That'll. Yeah. Cool. Thanks.
Starting point is 00:16:36 All right. Back here. Now we're getting some questions coming in. Hey, funnel hackers. Let me paint you a picture. You're running a business. Your funnel's finally converting like crazy and suddenly it hits you. You need to hire someone like yesterday. Maybe it's a copywriter to help you crank out more sales pages, or a designer to refresh your landing pages,
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Starting point is 00:19:18 Our niche is, our audience is mostly Catholic moms. And so there's lots of influencers or people who have lots of wonderful content about faith and family, but we have limited success with them when they're trying to sell something to their audience who isn't used to being sold to. And they also are really inexperienced with marketing and, you know, any, any of this in our world, we shared a little bit with them and the stuff that we learned at FHL about the sort of sequence of stories and things we've had, had limited success with it, but I would love affiliate marketing to work. Cause I just love relationships over Zuckerberg, but we just cannot get it to scale. You're saying it doesn't work
Starting point is 00:20:01 when your customers are being affiliates or when your partners that have audiences are trying it. Yeah. When our partners, when our other like influencers. Okay. What are those influencers selling? Are they selling anything? Nope. They're just influencers who just influence for fun. Yep. That's so crazy, huh? How do they make their money? They don't, they don't. They just love hanging out on social media and building community and showing cute pictures of their kids and talking about, you know, what they're passionate about. So is the question or is the problem that they can't, um, that they can't promote correctly or their people don't buy? Both. Which one's the bigger problem?
Starting point is 00:20:38 Um, I mean, their people buy because their people, people are also our customers and don't have any problem buying. The hard thing is getting them to promote. Yeah. Okay. And then in the past, how have you compensated them? A percentage of sales. Okay. Free product.
Starting point is 00:20:55 Okay. So for most of, so my experience, and this is like, uh, Alison Prince would be able to speak this way better than me, but like with a lot of them is that type of influencer, a lot of them, especially if they don't know affiliate marketing, the percentages are confusing them and they don't understand it. So they don't, they don't, um, they don't know how to push out of like 30% doesn't make sense in their head. And so we've done a lot of times in the past as we shifted around, we're paying a CPL or CP, you know, CPL CP, you know, so Zuckerberg, you're gonna spend what, how much per lead would you spend on Facebook for, um, for opt-in for a webinar?
Starting point is 00:21:22 Let's say, um, well for our product or like average order value is about $50. And so we try to keep it around 2025. Are you selling through a webinar or through, or how do you, how do you sell straight VSL or what? Nope. Just to Shopify. Okay. Shopify. Do you have an, uh, an opt-in? Like if the affiliates promoted, you have an affiliate push to Shopify, you're having a pro anything yeah okay so i would do that try to figure out like how what's a way that you can make it really really like easier for the affiliate so for example i might do is like let's say you do an event with a co-branded event it could be just a fun like whatever have them promote that say i'm gonna pay you one dollar for every single lead that that registers for our thing because then now
Starting point is 00:22:00 it's not like 30 of us doesn't make any sense to me no one's gonna buy whatever it's just like i'll pay you a dollar per lead, which is, I guess if you were to pay Zuckerberg for saving, you're paying three to $5 for leads. Now you're a third of the cost or whatever. And they're freaking out. Cause like, wait, I got somebody to put their email out or so you can give me a dollar every single time. And now it's something they can tangibly do. Like if I send a thousand people or 10,000 people, like the numbers now make sense in their head really easily. Um, and then it's very simple. And then they, you do have something that you jump on and you can even just like you guys are in a Facebook live hangout, them introduce you, you talk about
Starting point is 00:22:27 a thing. Then you push to the Shopify store and you keep 100% of profits that way. They don't any risk or anything in there. I think any paid up front now it's just now in their head, it makes more sense. So whenever I've done affiliates who aren't traditional affiliates, you don't understand it. I usually come back to like, try to pay them CPL. If I pay you cost per lead or sometimes it's cost per click. Everyone you send every click you send, I'll pay you 50 cents. Like, well, this is amazing. And I'm like, I mean, Zuckerberg $3 per click. Like this is insane. You know, like they just don't, it's a whole different world. In fact, some of you guys may know Eric beers in the Atlas program, but he's a, he's a traffic broker. It's all he does. And so he goes these big places
Starting point is 00:22:59 and he finds people with huge lists, huge databases, stuff, and they don't understand our world at all. And so he'll pay like 5 cents cents a click and then he sells them to us for like 25 cents a click and he's making five x's money and then i'm like i'd normally pay a dollar for this and it's like just arbitrage the whole way through and so you're going to the level where you can get people for insanely cheap because they don't understand the value of their traffic and so just looking how to structure for that affiliate where it's just like a no-brainer for them you know yeah that's the funny about affiliate marketing it's, is you figure out, cause I found there's like different tiers of affiliates. Like some affiliates, all they care about is just money.
Starting point is 00:23:30 Like they're just money obsessed. I don't care what the product is. And those ones are the easiest to deal with. Cause it's like, they just want money as long as you offer converts, they'll promote it. The next one are people more like me who are like obsessed. Like I want an amazing customer experience that like, it's going to be as long as the customer experience is the best in the world. Like that's what they care about. They don't care how much money they make, whatever they just want to make sure it's going to serve their customers. Like that's number two. And then the third are just people that don't know what they're doing. And so it's like, you just work with them and like figure out like, what is it you're looking for? And you craft it and create it.
Starting point is 00:23:54 And then boom, they, you can do some really cool things. Yeah. Awesome. Thank you. Yeah. No worries. Um, you talking about, uh, affiliates and then the delay and click fraud and things like that. Do you have any, I'm bridging the gap between that and affiliates for services. So you're obviously familiar with what we do. I've never entertained affiliates or taken a shot at it because of that risk, because our service is delayed or it's higher ticket and things like that. Do you have any experience or recommendations for potential how I could roll out an affiliate on an agency side? Yeah, so one of the easy things
Starting point is 00:24:28 I've seen people do in the ear situation is there's different ways affiliates get paid, right? Like I'm paying out an hour's 100% front-end commission. Some people pay out recurring where it's like you're getting 40% of the recurring thing. The other one is you pay an upfront CPA. So for example, Shopify right now will pay an affiliate like $200, $250 when you
Starting point is 00:24:46 get someone signed up for a free trial. Now you get none of the money afterwards, but just the money up front for setting it up. So what you could do is create something where it's like a $300 onboarding something and you pay affiliates a hundred percent of that. And that's like, then there's the risk is that, but then afterwards you're onboarding a client, then you own the person moving forward for the rest of it. Does that make sense?
Starting point is 00:25:07 So like, uh, again, uh, Anthony, um, uh, Anthony Morrison, I was talking about his brother's Adrian Morrison. He's Shopify's number one affiliate right now. So I've actually paid him, I think $350 for every free trial he signs up, but he gets nothing afterwards. Just that. So he's able to spend 200, $300 to get a lead. And he's just, well, he's Shopify's number one affiliate right now. So the same thing is like,
Starting point is 00:25:28 how do you create something on the front end? That doesn't cost you a lot of money that you could pay. So they, they get the big upfront, even though they know like, Hey, they're going to sign a $10,000 a month contract for next year. If it wouldn't get any of that, because that's when it gets hard. Cause you have your hard costs and all the other things I would try to create something on the front end that brings somebody in that then 100% or 50% of that is you could pay out on the affiliate on that. And that's how I would shift it. Does that make sense?
Starting point is 00:25:50 Yep. Oh, sorry. The light's shining. I can barely see it. And then, okay, cool. Yeah. That's our dry structure. I'm like that.
Starting point is 00:25:59 Even if it's like, yeah, some kind of like front end, like we do, we do a keyword research and the consulting and figure out like that, like something like that, this upfront work, like paying out a lot more on that and nothing on the continuity side. Cool. Thanks. Yeah. I have another question. Is that, so we started an affiliate program and we do pay them per click per lead. and then if there's a conversion. But the problem we have is retention. They would send out a promotion and then stop. So how do we get them to continually promote our product? Yeah, affiliates by default, especially good affiliates, are lazy. So that's what we've noticed.
Starting point is 00:26:40 If someone agrees to promote something, that's step one. It doesn't mean they're actually doing anything. So for us, it's like we write the ads for them, we write the copy, we do the stuff, and then we have to like if someone agrees to promote something it's that's like step one that doesn't mean they're actually doing anything so for us it's like we write the ads for them we write the copy we do the stuff and then we have to give them reasons to promote that's why i've shown you guys yesterday when i was showing all the mini like for secret success all the little mini dramatic demonstrations during every single month it's because the affiliate is promoted once they don't want to promote the same thing again so i have to give them a reason to promote so i'm like hey this month we're doing this cool earl nightingale campaign do you want to promote that like oh they're like, oh, that's unique.
Starting point is 00:27:05 That's different. Yes. Even though it's selling the same product, but it's different campaigns and different things like that. And then honestly, you have to have an affiliate manager who's in contact. Like we've got multiple people who run our affiliate program on our team who are like they're talking to us all the time. What's working? What are you doing right now? Like what are you looking for?
Starting point is 00:27:19 And like do you have a promotional schedule? Like can you send an email out? Can we do a social media blast? Like can we put a link in the PS of your emails? But they're, they're in constant communication with our top affiliates trying to figure out how we can weave into what they're already doing because they're, yeah, affiliates are, and I'm a really good affiliate. Like we're all nightmares. Like we're the hardest people to work with just because we can make a lot of money. We know that. So it's coming back and understanding, like we got to help them and figure out how to different
Starting point is 00:27:41 ways to integrate. Um, that's why I think having a, uh, an affiliate manager who's full-time working with affiliates is like an essential role. If you really want to do this well, cause they got to be constantly communicating with them, show them the new offer. So this is where our affiliate manager will focus most of the effort on those who are in, in here. And then my job as the, as the funnel, but you know, as the person is, I got to keep coming up with new offers. So I'm gonna come out with a new secret success offer. And then all the affiliate managers will hit everyone. Hey, there's a new offer. Secret success. Everyone go run it. And then I'll do the next one.
Starting point is 00:28:07 It'll come out. And then the next one, we're putting out new offers to give them new things to promote and to go out there. If you're like an actual affiliate, like in an affiliate network, you sign up for an affiliate network, which basically is a whole bunch of, you know, tons of different offers. What typically happens, you'll be connected with affiliate manager and they're hitting you up a couple of times a day. Like, Hey, there's a new offer from this company.
Starting point is 00:28:24 Want to try it? Here's an offer from here. And like, they're hitting you up trying to figure out what offers you want to promote, but it's a constant communication with your top affiliates. So, so you're saying have different type of offer or just a spin on the same offer? Both. Yes. And yes. It's like all the.com secrets book funnel on the traffic secrets book funnel on this, but I also have like dramatic demonstration about, um, about this part of the thing. And so I'm just, we're giving different offers, different webinars. Like we're just putting out different front end things to get them engaged, you get them excited about, about whatever we're promoting. Thank you. Yeah. Hey, funnel hackers.
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Starting point is 00:31:09 Go to rocketmoney.com slash Russell today. That's rocketmoney.com slash R-U-S-S-E-L-L. That's rocketmoney.com slash Russell. So if you were to start over as an affiliate, what would you do to do Secrets of Success an affiliate of your own company? How would I be? How would I promote as an affiliate? Yeah. Um, we get a whole three day event on that. That'd be really fun. I know. I mean, the reality is I would try to build a list, a segment, a list based on the topic. So I would take my existing audience. I'd be like, Hey, I'm doing this cool thing over here. If you're interested, opt in. And I would segment everybody to like, here's people interested in this topic.
Starting point is 00:31:46 And then I would create bonuses to get people. So as an affiliate, and you don't have to see me promote things. Like when I promote something as an affiliate, my usual thing is like, hey, this is the offer that they're going to give you. But I'm going to throw in at least three bonuses for me. I create a better offer. And that's how I usually win most affiliate competitions is by just figuring out how can I make this offer even more sexy. Like what bonuses can I create? What training? What kind of things can i put together and um and i have a sub list i would just keep sending them stuff based on that so i remember that in 2015 you did
Starting point is 00:32:14 a contest with a ferrari that jeff walker won yeah um what do you think about those contests are you thinking doing pros and cons yeah so so um i think i'll show you i wish we could show you guys we should let you have an extra affiliate launch like let you guys see how we do it so there's two ways to look at me running an affiliate program number one is i like doing launches because launches first off you get a lot of cash coming in a lot of traffic and it's it's fun to get people behind something right so for example in example, in May, Justin, Ben, and I are working on the Think and Grow Rich Challenge. So this is a challenge that's coming up.
Starting point is 00:32:48 So we have a whole bunch of affiliates and we want to create a fun competition amongst affiliates because that gets everyone promoting harder, right? And so we set a date. This is what's happening. And so we have a whole launch calendar, everyone, and we start contacting affiliates. They come in and then there's a beginning of launch.
Starting point is 00:33:01 There's an end of a launch. We always give away prizes and things like that. Usually there's like the top 10 get prizes. The top three get better prizes. We make a whole bunch of prizes. That helps a lot doing a launch like that. It's also a lot of work though. And you're spending a lot of money on prizes and things like that.
Starting point is 00:33:17 But it works really well. So there's that side of it. And then there's also like a rolling launch where I have a really good offer. And like, for example, we launched ClickFun, um, I didn't just do one webinar for everyone. It was done. I did a webinar to your list and then to your list. And so I was like a rolling launch going for a year.
Starting point is 00:33:33 I was just rolling week after week, week after week to hit more and more people. So the question a lot of times, like which one's better. And for me, it's like, they're both amazing, right? Like I do the big launch cause the big payday, but then the launch is over and I was like, cool. Now we're moved to rolling launch and let's get a person and another person and like we're just rolling through as many people to keep traffic and sales coming in.
Starting point is 00:33:51 Cool. Does that make sense? But yeah, affiliate prizes are great. One really cool thing about affiliate prizes, like typically if you look at when we're in affiliate launch, the top 10, we almost always include some type of mastermind and there's a reason. Here's the strategic evil reason behind it. Because what happens is like we do the launch, they win the mat, they win the mastermind trip.
Starting point is 00:34:14 And then we time the mastermind trip a little bit before the next launch is going to happen. So it happens. They all come out, we hang out with them. We do a mastermind, we serve them food. We have a good time. Everything's amazing. And then at the affiliate mastermind launch, like, Hey, just so you guys know, the next launch is happy next month. Here's what it is. Now our top 10 affiliates all are there in one spot. We'll recommit them to the next launch and they'd roll out the next launch. And so that's a big, a big piece of the strategy. It's very secret to success. We did the affiliate launch. Um, we did the affiliate launch and then the prize was we took everyone to Chicago to the nightingale Conan offices and we did a full one day event there. And at the event we saw everyone, Hey,
Starting point is 00:34:41 the next launch is thinking garage challenges coming up in two months from now. We committed them, got them all scheduled out and so hopefully those people all promote again and then for them, the next prize is going to Wise Virginia, Napoleon Hill's house for the next prize. They want to win that. It helps push people from thing to thing to thing. Cool, back here.
Starting point is 00:35:01 It's so interesting to me real quick before you jumped in. 15 years ago, when you go to a marketing event, all we talked about was JVs. It's funny. Cause like here it's like, everyone talks about ads and it's like, this is for a lot of you guys, this is so foreign. It's funny to me. Cause it's like, man, back in the day, this is the only thing we talked about. No one talked about ads or pay-per-click. It was just fascinating. Kind of anyway. Sorry. No, you're good. Um, so I was curious, do you think that this works? If like your dream client is somebody who wouldn't have a list isn't on the entrepreneur side or anything. So like everybody that we go after is a W2 who just has their inner circle.
Starting point is 00:35:32 Is it worth trying to set up an affiliate program? If we don't really have anybody that would know what a list even it's like, if you pull out the entrepreneur side for sure. So a couple of things is, is your customers. So we look at this two ways like there's customers who love what you do and they're usually going to bring in one or two like they're not going to they're going to be big affiliates like that's what the training size but again they may only pick up one or two sales like it's not a huge deal but if we bring a lot of our customers in there they love our stuff they can refer other people like it the volume becomes big the bigger side of the affiliate program is going on actually attracting people who are affiliates like Like for sure, that's the bigger thing, right? So like the affiliate
Starting point is 00:36:07 evolution offer is interesting because it's twofold. It's number one, it's we're going to train beginners and give them a platform, help them train them up. But number two, it's like, we're going to use this to go out to all the big affiliates. Like, Hey, you've put our stuff in the past. You want a hundred percent commission. Cool. Join the site right now, upgrade your hundred percent commission. And then we get them to promote. So when I look at affiliate program, I'm less looking at like banking on my existing customers being the ones who are gonna drive a lot of volume because they're usually not instead i'm like who are the other people in my industry like looking back at dream 100 right who are the people who already have my dream customers on a
Starting point is 00:36:36 list like that's what i'm focusing my affiliate program on initially because again you get one or two of those to promote something that's worth 100 hundred customers who are doing onesie twosie sales. You know what I mean? So that you're looking at like where to focus the most effort. It's definitely on like who are the influencers in your space that you could focus on catering and building out a really good affiliate program for them. Awesome. Thank you.
Starting point is 00:36:56 Yep. No worries. Okay. Is that all it? All right. Oh, no, we got one more. Okay. When we finish with a customer,
Starting point is 00:37:07 we deliver, they're happy with our service product. If we were to bring them on to you, where do you think would be the best place where to introduce them to you to, to help them develop that, that entrepreneurial side of things? What do you think? Hey, you should be purchasing these books.
Starting point is 00:37:29 Where? What would be the most seamless? So for everyone, it's going to be different based on what your front-end business is, which is why I needed an affiliate manager. So what I'd do is I'd have Ben Harris talk to you and be like,
Starting point is 00:37:38 what's your business? How does it work? Where's someone at? And then from there, it's like, okay, based on this, for you, a book would be the best thing. So have you set up a campaign for the book but it might be like the book might not be right for your audience maybe it's the webinar it's like oh let's do a webinar
Starting point is 00:37:50 um or a lot of times for for our team it's like if someone's got a big enough list and it's like hey let's do a collab webinar russell actually bring russell on live we'll bring on one of our one of our webinar presenters on live we'll create a whole webinar for you where it's co-branded it's like and then you can come back hey i'm doing webinar with click funnels and this, you know, and like, it's a co-branded thing now. And so it just kind of depends. It's very much, that's why it's good to have an affiliate manager. Who's kind of trying to put together these deals with people because again, every affiliate is going to be a little bit different. And again, some affiliates just want cash. Some want a really good experience. Some are looking for stuff. It's just, it's, it's all a personal, it's a personal thing.
Starting point is 00:38:25 Yeah. I just want to share that this works. Like six years ago, we were giving $100,000 a month to Zuckerberg and Google combined. And fast forward now, 95% of our business comes from affiliate partners. And just exactly what he was saying, there's those that are just going to send two or three deals in. They'll just use your automated funnel. But when you have a big player that has a big list, that's where you do that custom webinar.
Starting point is 00:38:50 And you do it together with them. Maybe you record it and they put it in their email autoresponder for some of their new clients. And that way you're getting clients in continuously. But that custom webinar, we do that all the time with big partners. And that brings in monster business. Yeah, it's huge. Um, have you guys read the book integration marketing and Mark Joyner? Um, if you haven't, it's like an hour long read. It's really short, but it's, it's fascinating. So integration marketing is, it's like, how do you, cause like, again, if I get a feel, if I come to, uh, to Dave Lindenbaum, like, Hey man, we promote my thing.
Starting point is 00:39:20 He's like, yes, it's amazing. So we do a promotion. He promotes that we get a bunch of sales and then it's over and then it's done. Right? So integration marketing is really thing. He's like, yes, this is amazing. So we do a promotion. He promotes it. We get a bunch of sales and then it's over and then it's done. Right? So integration marketing is really interesting. It's like finding partners and yes, you want to do the one-time sale, but it's like, how do I integrate my business into his business? So that, um, so that even if like after the promotion is done, like it's not over. Right? So for example, if I was going back to Dave, I'd be like, Hey, let's do a webinar together. It's gonna be amazing. So we do a webinar together, right? Whatever happens, it converts well. And then we record the whole thing.
Starting point is 00:39:47 I say, okay, I'm going to build an evergreen funnel out of the webinar we did together. So I build an evergreen funnel for him. I'm like, hey, let's go back to your email sequence. I'm like, where can we plug this into your email sequence? He's like, well, I have a 12-day email sequence. I'm like, cool. Day 13 through 15, we do three emails. Let's put those in there all pushing this webinar.
Starting point is 00:40:01 And that way, the webinar we did once, you'll get paid forever. And then I'm like, what else could we do? He's like, well, um, you know, in social media, I've got this, or I've got, you know, whatever it is. And I'm like, how do we integrate in? How do I put it? So that on your thank you page, after somebody opts into your, your list, I can put a link on the thank you page that pushes now to the webinar we did together. So go back to his offers and plug it in there. And like now all your customers, when they buy a product, you take them to membership site. How do I put like this offer to the member? And so we
Starting point is 00:40:23 try to integrate into that person's sales process everywhere we can do. And so for me, when we launched click funnels, Mark Joyner is my first mentor. He had just written integration marketing. So I was like, how do we start doing this? And so for the last decade, I've been doing this process with our affiliates, like do your promotion. Then we'll come back and try to weave things into their sequences, their auto responders, things like that. Um, and we get, we get so much traffic. Again, I told you to say more than 50% of our traffic comes from affiliates and these are not people doing active affiliate promotions
Starting point is 00:40:48 most of the time. Usually it's like we set up all these deals five years ago and every time they get an opt-in in their funnel, email 13, they're hitting us click funnels and most times they forget it's even in the sequence and we just keep getting traffic as their companies grow. So that's the other powerful thing about affiliate marketing. We start looking at it through that lens.
Starting point is 00:41:03 It's just like every single person, if I can integrate into that person's business, as their business grows, my business grows, right? Anyway, so that's really the power. Again, our top five affiliates, none of these guys actually promote ClickFunnels, but all of them have some kind of training system and we're plugged into everyone. One of their training systems were day three or day 10, they're telling the people they need a funnel and then they give them a click funnel share funnel and we're the ones plugged in there. And so it's like these people, as their businesses grow, our business grows and it's just like the most beautiful thing in the world for how you can integrate into other people's
Starting point is 00:41:34 businesses. Does that help? Yes. Cause then we do that. We spend, spend a year doing that. Spend three years doing that. And then you can cut off Zuckerberg. I'm done.
Starting point is 00:41:42 Cut off paid ads. Just retire. And everyone else's businesses are growing. Your business grows on the backend because of it, which is awesome. Do you have a question? Yes. I'd love your opinion on the places that aggregate a whole bunch of affiliates like click bank.com. Yes. Great question. Um, so I'm a big, again, this is gonna be different for everyone's market. Um, but affiliate networks are nice because they've aggregated for it. So click bank.com, for example, if you go there, there's a whole marketplace with thousands of products and they have, they, um, uh, and affiliates come and they can promote things.
Starting point is 00:42:12 And so what I typically do and what we do all the time, but like, if I'm going to a new business, I'll go to click bank and I'll go find the top 20, 30 offers. I, and I signed up for all their affiliate programs. And when you do that, you get on all their lists. And what's typically happening is most of these affiliate programs are doing affiliate launches. And so let's send out links like, Hey, we did our affiliate launch. Here's the top 10 affiliates. And boom, they show you, here's the top 10 affiliates by name. And guess what you do? You look up their name on Facebook. You become friends with them. You send them a present email. Also like the top 10 affiliates, all like you can ask a lot of times, uh, people will come in. In fact, we had a guy's secret
Starting point is 00:42:42 success. He'd never promoted anything ever. He promoted, he was like the top two or three affiliate. And he's like, man, I did that one affiliate promotion. He's like, it's so crazy. I felt like 50 people reach out to me to promote their offer. I'm like, yeah, it's because you're on the top 10 list. And so if there's affiliates happening in your, in your business, like join everyone's affiliate program, sign up for them and just start watching what they're doing. Cause typically that's some version that's happening where they're talking about the top 10 affiliates and you start getting to know who the affiliates are. You get to know their affiliate managers.
Starting point is 00:43:08 It's all, again, it's just a relationship business. And so I try to get to know the affiliate managers in all the different programs because they have access to all of their dream affiliates, right? And a lot of times we've literally had it before where we'll ask the affiliate manager, like, man, you guys are awesome.
Starting point is 00:43:24 Like, we'll have a good conversation. I'm like, who are your guys top affiliates? And they'll literally like, here's a lot of top affiliates. And they just give us the info. I'm like, you just gave me your top affiliates. This is insane. Um, so there's a lot of things like that. Um, uh, in the, in the, like how to make money on the internet world.
Starting point is 00:43:39 Um, obviously it's ClickBank. There's other ones. There's, there's a whole, there's a whole bunch of aggregates that have those kinds of things. Um, I'm not sure about other industries if that's as applicable, but if you can find it, it's a big part of it. Great question.
Starting point is 00:43:53 Any other affiliate questions? Back here. Well, I agree. The question I have is, you were talking about the integration marketing. By that psychology, is there any special thinking that you do within a affiliate contest launch like like for example i'm thinking of like bridger and mason's
Starting point is 00:44:14 gamification for their events and stuff like that to sell tickets are you doing anything like that with how you promote your affiliate launches with like the the rewards inside of what comes in the contest does that make sense yeah yeah um if you look on the back end there's some people who are better than others like again i'm signed to everyone's affiliate launch i'm always watching it um the ones that can they can do the gamification is big deal where they're always doing prizes like there's a weekend prize there's a thursday who gets the most sales today where we get the most opt-ins today like you'll get dean dean does a great job this when all dean and tony launches where it's like all right this weekend we're doing a leads contest we get the most sales today? Whoever gets the most opt-ins today, like you'll get Dean, Dean does a great job of this when all Dean and Tony launches where it's like, all right, this weekend we're doing a leads contest. Whoever gets the most leads, we're sending you an iPad.
Starting point is 00:44:50 Who gets the most leads, you're going to get this. And so everyone's fighting for leads. And the next day it's like, there's another thing and like, and they're competing. And then every day it's like talking trash, being number two and number three and number one. And like, it's this whole like trash talking game and it's, it's competitive and it's fun. And like the best, the best launches have a lot of those kinds of things, a lot of gamification amongst the affiliates in there. Um, and again, that's why you should join everyone's, everyone's affiliate launches. Like if you guys, how many of you guys are affiliates of Dean and Tony's? Okay. How many of you guys are affiliates of Stu McLaren? Okay. Like both these programs are launching in the
Starting point is 00:45:22 next like 30 days. Like go and join it, get in their Facebook group and just watch and just like, just look at the games that are happening behind the scenes. Cause, um, they're both really, really good at what they're doing. If you're like, I don't know how to get to Stu's affiliate program. I don't know. Go to go type in Stu McLaren, uh, product launch or whatever his name of his course launch. And like, anytime you see the launch happening, people are promoting stuff, like search for the product name and like JV affiliate, go to the Facebook. You're using as a Facebook group for almost every affiliate launch where all the affiliates are in there together to talking and hanging out and like, just start looking for those things and start plugging yourself in because that's when you start.
Starting point is 00:45:52 Um, that's where you'll see this happening. You'll see the games and you can model for what you're doing. Plus again, you can start stealing their affiliates and building relationships with the top people and that kind of stuff. So I mean meeting their top affiliates yeah so good questions okay any more before that two more things and all right um I'll think about that I'll think about putting together something um it's actually funny Stu McLaren and I uh man almost probably close to 20 years ago now when we first met Stu was the affiliate manager for um Kennedy's business, uh, Armand Morins and Alex Mendoza. He was affiliate manager for all these guys. And I had my own affiliate program back then. I think I had 38,000 affiliates for my program way back 20 years ago. And so we came together and we did an event called
Starting point is 00:46:38 affiliate Inferno, which taught people how to run and launch their own affiliate program. Um, and it was like, we did a three or four day event. It was really, really cool. And, um, but we haven't, I haven't really talked about that kind of stuff for a long time. So I'll look at putting together something for you guys that could be, um, more like a, like a, a more complete thing to really help. Cause I think, um, again, my whole goal in life is how do I like all the things I can do right now to decrease my dependence on Mark Zuckerberg, um, the better. And so like everything, um, that's, that's my number one goal right now. It's everything.
Starting point is 00:47:09 Um, and so this is such a big focus for what we're doing. All these other things we're doing, um, just to focus more affiliates, um, advertising networks, everything that's not related to those guys. And so, um, I think for all of you guys just to protect yourselves for future, like understanding affiliate marketing and being able to build that part of your business such as is, I don't know. I think it's detrimental. If you read the Traffic Secrets book, the intro is like, if you read the intro, it's like, there's a storm coming. And I was talking
Starting point is 00:47:31 about this, like right now when I'm writing this, Facebook's the greatest thing in the world. We all love it, but the storm's coming. I promise you, like right now, I feel like we're in that. It's getting harder and harder and it's not going to get easier. And so now is the time to really start focusing on these other alternative methods that are powerful.

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