Russell Brunson started his 1st business while in college. Now he owns 3 online businesses and probably will start several more. That’s what entrepreneurs do.
Russell told MaryEllen Tribby he calls his businesses “funnels,” as in sales funnels.
That makes sense. You make your offer and prospects either buy or they don’t.
If they buy, you’re in business. If they don’t, you try something else.
His goal in creating funnels is to break even. If he spends $1 and make $1 from the other end of the funnel, he’s won.
A funnel that breaks even on cold traffic – not his existing list – means he gained new customers at no cost. Anything else they buy from him is pure profit.
When we started publishing, it took us 11 months to break even. Most new companies take longer. After that, it was profit.
Russell’s mentor, Mike Litman, told him that “Amateurs focus on the front end.” That didn’t make sense until he grasped the concept of a “break even funnel.”
Rarely is Russell profitable on his initial front end funnels. In fact, a lot of them lose money on the front end. But as he attracts more customers and they buy more from him, the profits begin to arrive.
That’s why you need sound research and a strong business plan. Before you’re through, knock 10% off your projected sales and add 10% to your projected costs. You will come closer to becoming profitable.
We share such field-tested strategies in “Killer Secrets of Successful Entrepreneurs.” For details, email JerryBellune@yahoo.com
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