Brief Summary
This video provides a comprehensive guide to creating high-converting sales funnels, emphasizing practical tactics learned from building over 2,000 funnels and managing significant ad spend. It covers essential steps from understanding traffic as a commodity to crafting irresistible offers and dominating your market.
- Traffic is a commodity, the real problem is crafting a sales system.
- Cold traffic is where fortunes are made.
- Sell what people want, then give them what they need.
- Focus on increasing lifetime value (LTV) over reducing customer acquisition cost (CAC).
- Aggressively distribute your product or service like it is your religion.
What is a Funnel?
A funnel is a step-by-step process that transforms a complete stranger into a paying customer. The key is understanding each step to guide prospects from initial awareness to purchase. Success hinges on implementing effective tactics refined through real-world testing and substantial ad spend.
Traffic as a Commodity
Traffic is abundant and readily available through platforms like Google, Facebook, and TikTok. The real challenge lies in crafting a sales system or funnel that converts this traffic into profitable customers. The focus should be on creating a message that resonates with cold traffic, compelling them to become leads or customers, and ensuring the funnel's net profit exceeds the cost of acquiring traffic.
Cold Traffic Fundamentals
Cold traffic consists of individuals unfamiliar with your business. Mastering cold traffic conversion is crucial for significant growth. To craft an effective offer, solve a widespread problem for a broad market. Cold traffic seeks quick, easy solutions with substantial benefits, such as less work, more money, eternal youth, or guaranteed results. Tailor your offer to align with these desires while maintaining ethical standards.
Components of an Effective Offer
An effective offer must include a specific claim, such as losing a quantifiable amount of weight within a specific timeframe, with minimal effort required. Reverse the risk in the transaction by burdening the business with the majority of the risk. Provide undeniable proof of past successes to build trust and increase conversion rates. Present your solution as a push-button system that requires minimal effort from the prospect.
Knife to the Neck
Approach offer creation with a "knife to the neck" mentality, where the offer must convert or face dire consequences. Develop a compelling offer that prospects find irresistible, a "Godfather strategy" that they simply can't refuse. For example, guarantee a specific result within a timeframe or work for free until achieved. This approach demands accountability and drives the creation of high-converting offers.
Selling the Way the Market Wants to Buy
Align your selling approach with how the market is conditioned to buy. Avoid trying to change established buying behaviors. Instead, identify what the market wants and offer it in a more compelling and effective way. Focus on selling what people want, not just what is convenient or aligns with your expertise. Use the "Trojan horse technique" by selling people what they want and then delivering what they need.
Traffic: Demand Capture vs. Demand Generation
Traffic falls into two categories: demand capture and demand generation. Demand capture involves targeting existing demand, where people are actively searching for solutions. Demand generation involves creating demand for your product or service among cold traffic. Cracking cold traffic is a superpower, allowing you to generate demand and control your business's growth.
How Businesses Should Operate
Instead of creating a business and then trying to find traffic, start with the traffic channel first. Identify offers that are already working on platforms like Facebook and Google, and then build a business around those offers. This approach reduces traffic risk and ensures that your offer converts on cold traffic.
Market Selection
Market selection is paramount, outweighing copywriting and funnel design. Be a student of markets, understanding which markets to target. Focus on hot markets with a large customer base and significant need for solutions. The five biggest gold mine markets include diet, looking younger, get rich quick, business opportunities, and pain relief.
Bullseye Market Hit
Within every market, there is a bullseye. Be willing to pivot your business and offer until you find that bullseye, where people buy irrationally and emotionally. Use landing page metrics, return on ad spend (ROAS), cost per lead, and customer acquisition cost to identify and refine your offer.
Funnel Economics
Confidence is key to scaling offers that convert on cold traffic. Understand the economics of your business, including the goal, number of customers needed, and price point. Dial back every step of the funnel to identify constraints. Key metrics include lifetime value of a client (LTV) and customer acquisition cost (CAC). Be willing to spend up to 33% of LTV to acquire a customer. Focus on increasing LTV rather than obsessing over reducing CAC.
Payback Period
Payback period is the time it takes to repay the customer acquisition cost. Understand this metric to gain confidence in spending more to acquire customers. The goal is to break even as quickly as possible. Develop a backend to your business with multiple offers to increase LTV and profitability. Track LTV by traffic channel to optimize your marketing efforts.
Types of Funnels for Different Price Points
Different sales formats are suitable for different price points. These include:
- Text-Based Sales Letter: $97 and below.
- Ungated Naked Video Sales Letter (VSSL): $97 to $297.
- Gated VSSL: $297 to $997.
- Webinar Funnel: $1,000 to $25,000.
- Book a Call Funnel: $2,500 to $100,000+.
Nine Questions Every Sales Funnel Must Answer
Ensure your sales funnel answers these nine questions:
- Is this of personal interest to me?
- Why should I pay attention to this right now?
- Is this exactly the right solution for me?
- Why is this new, unique, exciting, predictable, and huge?
- What undeniable proof do you have to prove your claims?
- How does it actually work?
- What are other people saying about it?
- What guarantee do you have in place that this will work for me?
- What do you want me to do next?
Selling Against Alternatives
Acknowledge and address the skepticism of potential customers by selling against all other alternatives in the marketplace. Understand the problems your market faces, why they have these problems, and the solutions they have tried or are considering. Clearly articulate why your solution is superior.
4D Funnel Hacking
Engage in 4D funnel hacking by thoroughly researching your competitors. Go through their sales funnels, analyze their offers, claims, guarantees, and price points. Document your findings in a Google Sheet, including URLs and ad screenshots. Intimately understand your competitors to create a better product or service.
Creating a Godfather Offer
Craft a "Godfather offer" that is so compelling your prospects can't refuse. This offer should reverse as much risk as possible and be backed by a strong guarantee. Use conditional or unconditional guarantees to increase sales. Remember, you are already paying for a Godfather offer through inflated customer acquisition costs if your current offer is weak.
Offer is the Spark, Value is the Fire
While a compelling offer is essential, sustained success requires value. Provide value to your marketplace well in advance of making an offer to build trust and credibility. Use the "magic lantern technique" to provide steps toward the desired outcome before presenting your offer.
Aggressively Distribute Your Product
Once you have the best product, aggressively distribute it like it is your religion. Believe in your product's superiority and sell it with passion and showmanship. Aim to dominate the market by understanding its economics, fundamentals, and products.
Build a Business, Not Just an Offer
Focus on building a customer-centric business with multiple offers, rather than just selling a single product. Prioritize the prospect's needs and create a business that delivers the best possible results.
