« Side Hustle School

#1227 - CLASSROOM: Pros and Cons of The Funnel Model


Sell someone something at a low entry price, then sell them something else at a higher price, then repeat. What could go wrong?

Side Hustle School features a new episode EVERY DAY, featuring detailed case studies of people who earn extra money without quitting their job. This year, the show includes free guided lessons and listener Q&A several days each week.


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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
What's up hello, welcome to side school? My name is critical about so glad you're. Here this is episode, twelve, twenty seven, beginning in all new weak classroom, episode, pros and cons of the funnel model. What is the final model? Will that's we're gonna talk about? You can sell someone thing at a low enterprise. Then seldom something else at a higher price than repeat what could go wrong Today we want to look at something you might hear about in case you follow the rules internet marketing or, if you at all familiar with it, and if you don't follow that Do you not familiar with it? That's totally! Ok, because you don't need to the way that I was taught to do marketing, at least as much as I was taught mostly trial and error, but try to pay attention to what other people were doing. It was that you take prospects through a series of low level commitments that get increasingly more expensive
so imagine that you're selling a ticket, forty five thousand dollar event or training you ve got this high and training that you do not just out of the blue. You might have a hard time convincing someone to sign up, even if they could really benefit from what you're offering. Because high price tag, they don't know who you are, even if you can convince them, you know who you are, that you're an authority, this training to be helpful. It still a pretty tough commitment, so instead you seldom an online course for three hundred dollars. Then when they buy that course and have a great experience, they'll think why You know if this is what I learned in the course imagine what I would learn with the impression training and all of a sudden that commitment isn't a scary. But how do you find the prospects for the three entered our course? While for that you might offer something for sale for fifteen or twenty dollars a basic report, something really simple that still provides value, so it still help all, but
low cost and to get those prospects. Maybe you offer free email series that anyone can sign up or for a free video when they sign up they receive the series or whatever it is the incentive and then their invited to purchase the fifteen to twenty dollar report. No one I just described, for you is the funnel model only I describe it in reverse order. So, let's blow let's say: you're out there and you want to sell high in consulting you know you have something able to offer. But your problem is who's going to buy from you has its hard to convince random strangers to give you that five thousand dollars, or whatever the dollar amount, is all of a sudden. So instead you started the bottom. You create that for email,
You create the fifteen dollar report. You create the three in or dollar online course, and then, after all, that is done. Then you offer the five thousand dollar in person training in doing this, allows you to build up trust with your customer and to submit the six factors of persuasion that we looked out recently. We go back a couple of classroom episode. You can catch up on those and by the way you can always access any those episodes at sawdust, school dot, com, slash classroom. Just to briefly recap: those factors are authority liking. It meant reciprocity, social proof and scarcity and wanted to share with you as a broad level overview of the funnel model or system and to be clear, as some people have this nail down.
Made millions of dollars with it. They are very good at it. So if you're out there and you like to think in systems, you can build systematically, you really like to have a narrow focus in just go deep into a great job with that one topic or whatever it. Is it very? Well, maybe the best path for you like. I said it can work for people and it does work for some, but that systematic process really is key I am reminded of a quote from James, Clear and James says you dont rise to the level of your goals. You fall in the level of your systems. That is something I heard him say a few months ago. It's really stuck with me. You dont rice, the level of your goals. You fall to the level of your systems, so they can work, as I said, but my role here is to ask: is it for everyone? What are the weaknesses of such a model because, as I said, if you follow the role of internet marketing, it's all about this? It's like this is what you need to do. You start with loathing than he moved the middlemen. He moved the high fair enough one of the weaknesses of such a model. Let's talk about that after the break.
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okay. So why is this model smart? As I said, a lot of people use it. It smart, because it's systematic, it's logical. It holds a customer's hand throughout the process that builds authority from that base, that free incentive for email series or that low cost report, or both a lot of good things about it. What is wrong with it is enough to start with. This might not be the best model for you. If you aren't sure what you want to create. If you're still learning or if you dont want to be hyper, focused on a single topic and just outlined was a bit more. If you aren't share what you want to create, if you're stone a phase of trying different ideas, exploring figuring out what skills you have could be offered in demonetized away trying to decide if you want to have a product or service trying to understand how your specific personality, as well as your situation, as well as your goals, how all those things connect to your ultimate side, also slash business, slash whatever is going to become so, if you're not sure, we want to create.
Might not be the best approach, because it's going to take a lot of work. I also, if you're still learning- and by that I don't mean like if you're still hurting at all, because I am still learning everyday. We are on a journey, but you're really just starting with this. It might be helpful to get some basic experience first and then. Lastly, if you don't want to be hyper, focused on a single topic, because that's you quiet for this and for me personally, like I've, tried a few times like in previous years like I could never build a proper funnel like this because of my personality because of mice or lack of skills or whatever it is it's just a skill set, because that implies strengthen weakness and for me, I am not willing to sacrifice some of the things I enjoy doing in order to build the perfect multi million dollar funnel, because then I really would just be doing one thing and ultimately I think I just wouldn't be good at it. So this also one more point here. This also requires some amount of scale, because people who do this well almost always work with contractors and eventually employs they are creating these systematic processes.
Other people can follow so if that's what you want, obviously that's great, but I nor audience, and so I want to mention this, because I know that for every person who had dinner fights with that goal, there's at least one other person- probably more. Who would say I don't actually want that- I'm just trying to do something for myself. I want to sell my art on Etsy. I want to build some passive income through an app that I want to create or a blog. I want to write or something totally different, but the point is there not necessarily trying to create this super elaborate system? That's eventually going to require employees and so on, and you know that's why I try to present you with a range of different ideas and examples so that you can figure out, of course, wife's best for you. Each class in future will include an assignment. I do think this model is helpful to think about, and so, even if you're, not planning to jump out till to Morrow start building your five thousand dollar training. If you were to build out a funnel system
What would be your low cost product will be your low cost product or your free incentive? What would be your middle cost product and you're high, and one just think about that? A bit and here's a tip your high end product is usually the ultimate solution for the problem your customer is trying to solve. So if you're, an interior designer, for example, the free email series or low cost rapport, it could be, you know five tips to improve your kitchen or five ways to make your studio apartment feel bigger. Good low cost product of thirty five ways to make your studio apartment feel bigger and more spacious, your middle cost product to be, you know, a consultation, I'm into a virtual consultation where we, you know zoom or facetime, you going to show me your apartment and take measurements and send them to me. I'm going to go through and make a lot of different recommendations. Send you some links to products that you might want to consider in all kinds of stuff: that's your middle class product, for example, or it could be at the detailed online course something like that
your high and product or your high in deliverable for an inter designer. The ultimate solution is I'm to come to your house. I mean it. Do everything for you, I'm going to go to home Depot and Lowe's, and whatever furniture stores and look at my suppliers overseas and and not just make recommendations. But you know what your permission to make decisions for you and I'm actually going to order stuff, To your budget, according to your preferences, you'll have along interview at first but then one day, you're going to walk into your apartment and everything is all set up or your kitchen is completely redone. I'm going to work with a contractor to do. If you don't have to deal with any of that stuff, and product is usually that ultimate solution so start with that and work backwards to get to the free email series or whatever the incentive is or that low cost report. As mentioned, you can access Oliver classroom episodes at sight of souls. Godaddy com, slash classroom. This has been episode, twelve, twenty seven. So to see the specific notes for this one just go to satisfy Skoda, Comp, slash, twelve twenty seven, one, two to seven
Thank you so much for listening. My name is critical about this. Is that vessels rob. From the onward projects.
Transcript generated on 2020-08-05.