From: gregisenberg
Converting website visitors into paying customers is a critical aspect of business growth. While traditional websites serve as brochures, specialized marketing funnels offer a step-by-step process designed to significantly increase conversion rates [03:15:24].
What is a Funnel?
A funnel is a step-by-step process that transforms a complete stranger or non-customer into a paying customer [03:15:24]. Unlike a website, which functions as a general brochure displaying all company offerings, a funnel is a focused sequence guiding visitors through specific actions [03:32:00]. Funnels and websites are typically separate entities, often with different URLs and distinct project teams [04:58:00].
Funnels vs. Websites
Websites are described as “shadow funnels” that primarily serve to prove a company’s legitimacy and provide a home for information [04:35:00]. They are not primarily designed to drive leads or create customers [05:40:00], and often do not generate significant revenue [06:49:00]. In contrast, funnels are built specifically for generating leads, booking calls, and making sales [09:47:00].
Why Funnels Outperform Websites in Conversion
Websites typically convert 1% to 3% of visitors into customers or leads [11:06:00], meaning about 98% of visitors don’t take the desired action [11:17:00]. Funnels, however, can achieve significantly higher conversion rates, often reaching 10%, 15%, 20%, or even 25% [11:37:00].
The Impact of 10x Conversion Rates
“10x in your conversion rate is quite literally probably one of the biggest things you can do to actually grow your company.” [12:06:00]
The difference stems from their focused nature: funnels have one clear goal and guide the user towards it, whereas websites offer multiple options, potentially overwhelming or distracting visitors [09:44:00].
Characteristics of Effective Funnels
Successful funnels prioritize conversion rate optimization over aesthetic design [10:27:00]. They often appear “ugly” or “shitty” by conventional design standards [15:43:00], but are packed with compelling copywriting and information that resonates with the target audience [30:54:00]. Ironically, the more effort put into making a funnel “nice,” the worse it tends to perform [30:35:00].
Ugly Funnels Make Money
“The like shittiest looking funnels we have tend to be the seven figure funnels and the nicest looking stuff we have tend to not make any money at all.” [30:38:00]
Funnels are also distinct from a company’s main brand. The copy used in a funnel might not align with the brand’s typical messaging if that style of copy is proven to convert better [15:51:00].
Anatomy of a Successful Funnel (Example: AJ & Smart)
Jonathan Courtney shared the structure of his company’s $20 million revenue-generating funnel [00:05:00] [32:30:00]:
- Traffic Generation: The funnel typically begins with paid advertising, primarily Facebook/Meta Ads or YouTube Ads [17:53:00]. Ads are highly targeted (e.g., to people reading specific industry books) [18:57:00].
- Focused Landing Page: Clicking an ad leads to a super-focused landing page with one clear call to action [19:30:00]. This page often promotes a free training session [20:12:00].
- Video Sales Letter (VSL) Funnel: The free training is usually a long-form video (e.g., 1 hour and 10 minutes) designed to demonstrate expertise and build trust [21:14:00]. The video provides substantial value, leading certain viewers to desire direct assistance [22:42:00].
- Call to Action (Book a Call): Throughout and at the end of the VSL, a button appears, prompting viewers to book a call with the sales team [22:13:00].
- Adding Friction (Optional Survey): To qualify leads and avoid unproductive calls, a survey (e.g., using Typeform) is sometimes added before allowing call bookings [34:33:00]. This survey asks about commitment, needs, and investment capacity [35:26:00].
- Call Booking: Calendly is used for booking calls, with a strict policy of only allowing bookings within three days to ensure high attendance and engagement [36:47:00].
- Email Nurturing: If a visitor provides an email address but doesn’t immediately book a call, they are entered into an email drip campaign that replays the VSL’s message and continues to prompt for a call booking [24:24:00].
This funnel structure, known as a Video Sales Letter (VSL) funnel, works by showcasing knowledge, offering solutions, and then providing a direct path to a “headache-free” paid solution [37:21:00]. This specific funnel, despite its outdated appearance, has generated over $20 million in revenue in its lifetime [32:30:00].
Applicability Across Verticals
While the example focuses on training, funnels are effective for many types of businesses, including software, e-commerce, and agencies [25:21:00]. They are particularly well-suited for bootstrapped businesses seeking a direct ROI from ads [26:56:00]. However, they may be less suitable for brands where extreme prestige is paramount (e.g., Michelin star restaurants) or for large corporations with substantial funding and sales teams who might prefer brute-force branding [26:20:00].
Key Strategies for Funnel Success
- Run Ads: Effective funnels heavily rely on paid advertising (e.g., Facebook, YouTube) to drive traffic [28:52:00].
- Existing List/Marketing Experience: While not impossible, building a sales funnel using Facebook Ads from scratch without any list or marketing experience can be challenging [28:57:00].
- Strong Copywriting: The written content in a funnel is crucial for convincing and converting visitors [30:54:00].
- A/B Testing: Continuous testing and optimization of funnel elements (e.g., copy, buttons) are vital for improving performance [31:18:00].
- Unified Goal for Content Teams: All content (YouTube videos, podcasts, blogs) should have a single, clear call to action, directing visitors to a specific funnel designed to achieve a measurable outcome (e.g., call bookings) [42:40:00].
Other Types of Funnels and Concepts
- Lead Generation Funnels: These funnels aim to capture email addresses by offering free resources (e.g., templates, guides) in exchange for contact information [44:30:00]. They use Facebook Pixels for retargeting, even if an email is not captured [46:04:00]. The collected emails can then be nurtured with drip campaigns or segmented for future campaigns (e.g., Black Friday deals) [46:44:00].
- Book Funnels: A highly effective method involves offering a physical book, often for free or at a low cost, with the primary goal of collecting email addresses [50:09:00]. The perceived value of a physical book is incredibly high [51:06:00]. After the book purchase, the funnel can offer immediate digital access (e.g., a summary video) and upsell related products (e.g., a €2,000 course) [52:50:00]. This allows for liquidating ad costs through small upsells [53:40:00].
- The Miffy Concept (Most Incredible Free Gift Ever): This strategy involves adding high-value, one-time free gifts to a core offer, which dramatically increases conversion rates [56:30:00]. These gifts are presented clearly as limited-time offers and create a sense of urgency. Even high-ticket B2B sales can utilize this concept by offering additional licenses or printed materials as free gifts [57:40:00]. Prominent brands like Eight Sleep, AG1, and Magic Mind employ this direct response marketing technique [55:43:00].
Getting Started with Funnels
To learn more about funnels and conversion rate optimization and funnel building, “Expert Secrets” and “Traffic Secrets” by Russell Brunson are recommended reads [55:17:00].
A practical way to begin is to analyze competitors’ funnels by visiting the Facebook Ad Library, searching for their names, and clicking on their ads to observe their funnel process [01:01:20]. The most important step is to “build some funnels” and “have some fun” [01:01:14].