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:
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!