So… I need to set something straight.

When you create your FIRST funnel… the goal can NOT be (and should NOT be) to make money.That goal, is what keeps most entrepreneur’s from making money online.  They stress out SO much about if it’s going to make them money, they either make bad decisions, or they never launch the darn thing in the first place.   So much pressure on making it “right,” usually keeps it from ever going live.

My goal, when we create ANY funnel, is to get to break even.   If I can spend $1 in advertising, and then make $1 out the other side of the funnel…  then I’ve won!   When I have a funnel that can break even on COLD traffic (not to my existing list) – then I KNOW that I have the tool I need to grow that company.

THE REASON:  If I can get a funnel to break even, where I spend $1 and I make $1… that means I got a CUSTOMER for FREE!  (And THAT is the BIG secret.)

One of my early mentors (Mike Litman) told me that “Amateurs focus on the front end.”   At first, that didn’t make much sense to me, until I started to grasp the concept of a “break even funnel.”

Very rarely in companies that I’ve grown am I profitable on my front end funnel.   In fact, some (a lot of them) lose money on the front end funnel.

For example, a few months ago, Tim Schmidt from USCCA.com purchased my book “DotComSecrets.”  After reading the book he called us up, and paid $100k to hire me for 2 days, to come and work with his team on their funnels.

When I got there, I walked into his office, and I saw this picture on his wall:

Tim Schmidt's Break Even Funnel

I asked him why he printed out THAT picture, and why it was on his wall.   He told me, “because that’s the point… right?  If we can break even on our front end funnel, then everything else we sell those customers is PURE PROFIT.”

Yes… he gets it…

After working with his team, we saw that his current funnel was actually a big loss leader.  It took them a few weeks after the initial sale to get to break even – but it was worth it for them, because everything AFTER that day… was pure profit!   And Tim had used that funnel to build a company that is doing well over 30+ million dollars a year!

When we first launched our supplement company, our first funnel tool 45 days to break even…   (While that is good, because everything after day 45 was pure profit…  it stressed me out.. ha ha)

The 2nd funnel got us to break even about day 14.

Funnel version 3 got us closer…

Then the 4th version of the funnel we launched…   It didn’t just break even… it tripled over on the front end!   That means for every $1 we spent in ads, we made back $3.

Now, I want to stress, that THAT doesn’t happen that often…  When it does, you should ride that wave fast and pull out as much money as possible.  But…

If it doesn’t – and it ONLY breaks even – and you ONLY get unlimited customers FOR FREE…   That is something to celebrate!

So, my question for you is – do you have a break even funnel yet?

If so – you’ve got what you need to quickly scale a multi-million dollar company.

If not – then it’s probably time to get one… don’t you think?

I’m doing a 10 week program right now, where we are going to take a small group of entrepreneurs and help to create their “Break Even” funnel.

I’m also going to do something REALLY cool to sweeten the pot.

I’m gonna GIVE away $25k to the person who makes the coolest funnel!

Want to participate?  If so – then come apply to talk to one of my coaches, and we’ll get started ASAP on YOUR break even funnel!

Thanks,

Russell Brunson

 


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55 Responses - Join The Discussion


  1. Wonderful, well written and very wise. Love this concept.

  2. Jon Umstead says:

    Russell, I discovered this blog from Michael Hyatt’s Facebook post “Have you blogged this week?” Glad I did. So many leaders do NOT get it and are so narrowly focused on the short term gain that the long term BIGGER win becomes impossible.

    Thanks for sharing.

  3. Thiago says:

    Hello man, very NICE!!!! I love it!

    For the last 8 months I´ve been trying creat a funnel to breakeven! And I did!!!! Thanks to your book!

    But, here´s the question. In your book, is recommended make 5% on the frontend and 30% of converssion on back end, right?

    To me is happening the this: I´m getting 19% of buyers on the frontend and just 10% on my backend.

    So, I´ve to try some adjusts? Or my converssion is good?

    Thanks!

    • Matthew says:

      I’d like to know the “russell brunson” answer to this question, too…

      But when he says 30% on back end, [i believe] he means pretty much anything past a tripwire (initial) sale. To me, anyway, that’s upsells, core offers, continuity offers that are offered immediately after the initial sale AND pretty much anything you could offer in your back end email sequence.

      So if you are only seeing 10% in your backend… maybe tweak the email copy, and/or add more offers… I go through Karen, (aka: rogue copywriter), for my emails, and she’s pretty good.

      30% sales conversions are only going to come from buyers as well, so make sure you are calculating your “back-end” conversions based on your BUYERS list. Prospects will pretty much never convert that high off an email list.

      If you figure out how, you’ll be teaching us how to do this… 🙂

  4. Mickey says:

    This is EXACTLY what I needed. We did a $200k product launch and then turned it into an evergreen funnel. However it takes too long to get the money back (3 weeks minimum). So it’s hard to scale the campaign…

    A front end offer like this is the perfect solution. I’m getting to work on that now! I can see myself becoming one of your high end clients in the not too distant future. I love everything you put out mate.

  5. Greg Hickman says:

    Hey Russell great post. Random question…did you actually draw those icons and that funnel map or use some software to do it?

  6. Russell – You are changing my life right now. Everything you are teaching here makes so much sense, is laid out so well and is crystal clear. The timing for me is perfect, and I’m open to learning. I’m thankful to have you in my life right now. This is amazing stuff. I can’t wait to see where I can go from here. Thank you!

  7. Russell, I hope that you don’t think that I’m stupid…but, I’m really not interested in making millions of dollars. I just want a way to make 3 to 5 k a month as an affiliate.
    Everything and everyone wants to teach me how to build landing pages and email list. I just want to know how a 67 yr old man can make enough to pay off some credit cards and leave my wife with an insurance policy that is more than just enough to bury me. To the point…I just need to know how to send targeted traffic to affiliate and CPA offers. I’m not interested in building a business per se. Can you help me? If not please cancel my membership in DOTCOM Secrets.

    Thank yuou

  8. Ken says:

    Hi Russell,

    Assuming we build funnels, using Click Funnels, and then end up scaling significantly, what type of banks are out there that can handle high-volume dollar amounts? For example, if I make 2 million in my funnel within 3 days, I can guarantee that my usual bank will lock up that money for an extended period because they are used to smaller amounts from their customers. Are there online banks that can handle large volumes made in a short period? I know Click Funnels has the built-in payment platform for transactions, but I am looking past that to actually accessing the money.

    Thank you

  9. Sandy says:

    Hey Russell, in what platform do you respond to these answers??

  10. Sandy says:

    Sorry i mean questions?

  11. Dennis says:

    Hi Russell,

    I just want to ask mate if all your teaching about funnels are applicable even though you dont have your own product to sell, I am affiliate marketer. I am really convince and believe this funnel really could help to all entrepreneur or companies. I have ordered your book and the 108 split test. I just wanted to know if this can strategies can be applied in promoting other products. I hope you can give me your answer when your free. Thank you very much. God bless

  12. Hi Russell Brunson by now you know how i do not know how to find my way around ,i am trying but the funds is coming in very slow . I ordered the Book but my card was Declined i do not have money it is all gone . so i will borrow something for Tuesday ,please be patience with me . I am really really Trying .

  13. Tom Shavit says:

    Russell, great post!

    Wish you all the best

    Tom Shavit

  14. Aymane says:

    I missed the video on how to convert cold traffic, can I get the link to get it please?

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