Mike Filsaime and Russell Brunson 12 Month to Millionaire Bonus Call Thursday, October 25, 2007

Transcription

1 Mike Filsaime and Russell Brunson 12 Month to Millionaire Bonus Call Thursday, October 25, 2007 It is Recommended That You Print This Document for more enjoyable reading and learning experience. It is 88 pages in total. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 1

2 Copyright Notice All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical. Any unauthorized use, sharing, reproduction, or distribution is strictly prohibited. Legal Notice While attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibilities for errors, omissions, or contradictory information contained in this book. This book is not intended as legal, investment, or accounting advice. The purchaser or reader of this book assumes all responsibility for the use of these materials and information. Mike Filsaime, MikeFilsaime.com, Inc., Russell Brunson, and SublimeNet, Inc. assumes no responsibility or liability whatsoever on behalf of any purchaser or reader of these materials. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 2

3 Mike Filsaime and Russell Brunson 12 Month to Millionaire Bonus Call Thursday, October 25, 2007 Welcome everyone. My name is Mike Filsaime. Today we ll be joined by Russell Brunson. This is the Russell Brunson/Mike Filsaime bonus call that s taking place on Thursday, October 25, We have 1,360 people that qualified to be on this call or get the replay for this call. We re going to go exactly three hours today. The format of this call will be as follows: The first hour we ll be talking about Russell Brunson s business and I m going to be asking the questions. It s going to be just a very conversational call with me interviewing Russell, no holds barred. We promised that there will be no questions off limits, unless of course there s some legal issues, but there will be no questions that will be asked from me to Russell or Russell to me that can t be answered. So we re going to get pretty intense on this call. It s going to be very very good. The second hour we re going to turn the tables and Russell is going to interview me, then from there we re going to open the phone lines for those of you that dialed in on the premium line, the first line that we gave you in the forum. That was called the AccuConference line. What you do is when we open up the lines we ll tell you to press *1. At that time you go into a queue and you can ask a question and you can direct it to either myself or to Russell. We ll take about 3-5 minutes to answer that question for you, and then from there we ll take the next question. So when we tell you to press *1 you ll be able to go into the queue and ask your questions. I m very excited to get started! Russell, are you all set and ready to get started? I m ready to go. It s going to be fun. Yes, it absolutely sure is. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 3

4 The purpose of this call was to get an update on where Russell Brunson is with the tactics that he learned from Vincent James. As you all know listening to this call, Vincent James was someone that Russell Brunson paid thousand of dollars to get some personal coaching from, and then he took those recordings and he offered that as The 12-Month Internet Millionaire, which I think is selling right now, Russell, for $97, right? Yes it is. Ok. The 12-Month Internet Millionaire was an opportunity for you to hear from Russell and Vincent James, of Russell getting some strategies that he could apply to his business almost two years ago. I thought it would be really great to fast forward to current times and see, Ok, great. It s been two years. We heard all the strategies on that call from Vincent James. Let s see what s going on in your business right now. So that s where we re going to start. What I m going to do is I m just going to go back a little bit with Russell. My first question is tell us what was SublimeNet? What was Russell Brunson s business the day before you heard about Vincent James? How many employees did you have? Where were you working from? What type of income were you making every single month and what was the direction and the vision of your company the day before you met Vincent James? That s a great question. Actually I hadn t thought about that, but rewinding back I remember when I found out about him. I d read in a forum about The 12-Month Millionaire and at the time I completely blew it off. I saw someone talking about it and I didn t really pay much attention, and then came back like a week or two later and people were still talking about it in the same thread. So I thought, I ve got to figure out what this is, and I went and bought it. About that time my business was just me and I actually had she still works with me, her name s Lindsay she was my first intern. She was actually dating one of my buddies on the wrestling team and we were both graduating the same year. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 4

5 She said, Hey, I need an internship. Do you want to have an intern? and I was like, Well, yeah, that d be good. So she came and started doing an internship for me and that was my first actual employee. Now by the end of the year we ended up making I think about $700,000 that year, which by myself out of little basement apartment that we turned into an office, I was pretty ecstatic and pretty excited. Russell, what year is this now? 2005? Yes, It was two years ago. I think it was the same year that you and I had done the call. We did the call on January 1, talking about how we were going to try to make $1 million in a year and we did the big huge $2, per day teleseminar. I don t know if you remember that or not. Yeah, so in 2005 our goal was to make $1 million a year, and we came close. You were right around $800,000 and I was right around $800,000, so we set the goal and certainly put it in motion and walked right through that goal within months right after the point that we wanted it. What s interesting too is when Mike set that goal initially I was like, Yeah, that s a huge goal. I don t think we ll ever actually hit that. Then both of us, because I think we had that in our mind, we got dang close so that says a lot for setting goals and shooting high. I remember the first time I met Gary Ambrose on the phone. This was a year prior to that. He said, So you re going to make six figures this year? and I was like, Yeah right. There s no way I can make six figures. Then I said, Wait a minute. I went back and started going through PayPal and I d already made over six figures that year by the time he told me that, because six figures was such a number that was impossible in my mind, and I d already achieved it and didn t even realize it. So that next year I said, Ok, seven figures is my new goal, and we got close. But during that year it was interesting because I was doing online marketing and kept doing it. Somewhere around the middle of the year I kind of got interested in some offline stuff. What happened is I think it was Memorial Day or Labor Day, one of the holidays, and my wife and I had just got home from being out to dinner A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 5

6 and we said, Hey, we re going to go take the whole weekend off and go travel and do something fun. As soon as we came home I walked out of our car and our whole front yard was completely soaked. It was a huge swamp. I was like, What in the world? So we went and found out later that one of the pipes had broken in our lawn and flooded our whole lawn, so the city came out and turned it off. It ended up we cancelled our trip and I spent the next three days digging a 10-foot hole to dig down to try to figure out how to fix this pipe by myself. I was digging this hole, and like two or three days prior to that someone from Jay Abraham s office had sent me a course and said, Hey, you want to help us promote this course? Here s a copy of it. So I got out there and started digging and I put out the CD player, put this CD in, and started digging. I spent the next three days digging and listening to Jay Abraham s entire course. At that point I didn t understand offline marketing. I didn t understand how it could benefit especially internet marketers. I was like there s no way. I want to be doing search engines and joint ventures and that was it. But when they started teaching about some of the offline elements, it got me so excited. I bought Jay Abraham s stuff. I started buying Dan Kennedy s stuff. I started getting obsessed with all these offline marketing ideas and concepts. So that was leading up and that s right about the time that I found out about Vincent s book and I bought that. When I read it I was just I m similar to you, Mike, I m sure when I read that I was just like, Oh my gosh! It opened a whole new world of possibilities that I didn t even understand. We always talk about how cool it is to have a list of 50,000 or 60,000 or 100,000 people and how great that is. You look at what Vince was doing at the peak of his business he was adding 40,000 buyers to his list every single month and they were staying on for an average of four months and they would fall of his continuity program. But 40,000 buyers! I was like Man, if I had a list of 40,000 period I would have been happy, let alone 40,000 new people every single month, and it really got the wheels in my head turning and thinking, Man, I m missing the boat. There s so much more money and so many more people and so much more that I can do. There s so many more people that I can A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 6

7 affect out there besides the small group of people that are on my list, or on the lists of other internet marketers. So we started thinking, What are ways now we can branch out? So that s where I kind of stumbled onto Vince and how it got me so excited about the possibilities of using offline elements to really ramp up an online business. Did you have a chance to read The IM Myth? Yeah, I read that completely inside out. Jason in my office had a chance to read it before me and he had this look of like being upset after he read it. I was like, What s up? and he s like, Oh man! Just when I think I m doing well I read something like this and it makes me realize how insignificant I am. I said, No, it s not that you re insignificant. It s that there s so much room for growth. He s like, No, no, don t get me wrong. It was very inspiring. Now I realize this is really taking marketing to the next level. The next question I have for you, Russell, along those lines is now you read The 12-Month Millionaire and you decide that you re going to start implementing offline marketing into your marketing. I know you have a print newsletter that goes out every month. Was that the original goal for a continuity program to start going offline? Was that the first thing that you said That s what we re going to do, or did you try other things like, Let me just do a direct mail to my list for an offer and you stumbled onto the newsletter later? I m just curious how the newsletter came about. Yeah, the newsletter came a little bit later. Actually the very first offline thing I ever tried was actually for your Butterfly Marketing promotion. What I did is I just exported everyone who had ever bought something from me in the past. I think I had like 3,000 people or something like that. I thought, You know, I m going to do something unique. So we created a mailing list with an invisible envelope and all this stuff. We had a couple problems with the promotion. The first thing is we ordered all these invisible envelopes on ebay and exported the customer list and printed out labels. I told my secretary, Can you mail these out tonight? and she s like, Alright, sure. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 7

8 I came back the next day and she d been there all night long and she stuffed like 13 envelopes. She said, This is a lot harder to actually stuff these. So I called all my friends and my family members, everyone around there, and they all came over and we spent about a week straight stuffing these envelopes. One thing bad that happened is because of that when people got the envelopes they missed the launch of your actual product by about a day or two, but even with that we tracked back the orders that came from those envelopes and we still averaged about $22 for every envelope we stuck in the mail to our own customer list. I was just blown away. I said, Man, it sucked stuffing all these envelopes, but every one of those things we put a stamp on gave me $22. And roughly it cost you about $1 to produce and mail out probably. Yeah, pretty close to $1. I said, Man, I ll stuff envelopes all day if I get $22 for every one I stuff. So that was the very first time. We tried a couple other little things to our customer list, but actually what happened is and I m going to credit two or three different people, because the idea didn t come just from one person. It came from a couple people. Let me just do some quick math there for some people, in case they didn t see what the net profit was. You had 3,000 people. It cost you $1 to put a stamp on it and the materials and to get it out there, taking labor aside from employees and help and everything, but your fixed costs there were $3,000. You said you averaged $22 per envelope that went out, right? So that brought in $66,000 in sales and it cost you $3,000. You made $63,000 on a promotion that you pretty much botched up [laughing]. So even when you looked at it that way you must have been like, Wow! Uncharted territory right there. Even though sending an is free, I don t know that we can just send out an and make $63,000 sending an to a list of 3,000 people that easily, so that had to be super light bulb time at that point. Oh, it s huge. I hope you guys listening right now are getting the light bulb too. I mean how many customers do you have shipping information for? A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 8

9 Tonight export that list and send them anything! Send a postcard, send a letter I mean you ve got customers sitting there and they re getting bombarded with every single day. They might have 1,000 s every time they open up their box. So think about it. For 30 or 40 cents you can get the mailman to hand deliver your to your customer and there s only like 3 every day in his box. Usually he s so excited I know I am when I get mail I m so excited to rip it open and find out what it is. For cents you can have someone hand deliver your . I mean how powerful is that? So I recommend really doing that. Like I said, the light bulb went off in my head and I was like, Man, there s more to this. I need to keep digging. We started studying all sorts of direct response courses and there are a couple guys that really had an impact on me. One of the first ones was John Alanis. I know you know who John is. He runs a site called JohnAlanis.com, but what he does is he sells products to guys who want to have women approach them, to have women approach you. That s kind of his business about that. You and I did a product with him. We were featured in his $30K in 30 Days. He was on that product with us. I had met him at I think it was Yanik s Underground Event in Yeah, exactly. I heard him on a teleseminar or something. I don t even remember what it was, but I heard him talking about something. He was talking about direct mail for internet marketers, so I got all excited and started listening to him. He said that a lot of times internet marketers, especially guys who are getting started like we were, they re really scared to invest money in direct mail, and rightfully so because a lot of times we don t know how to write copy well, we don t know how to do a bunch of stuff. He said, I m going to show you guys a trick how anyone can make money with direct mail without any cost whatsoever to you. He said, What I do and he told us the story about what he does. He said, I write a Secret Report that s so secretive and so special that I don t want anyone in the world to know about, so secret I can t put it on the internet, so controversial the internet can t handle it. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 9

10 So he puts this out there and he says, If you guys want this report, I ll send it to you but I do not want it digital. I don t want anyone online to get access to this unless you re willing to pay shipping and handling. I ll print this thing out and I ll actually ship it to you. He said that and when he said that I was like, Holy cow! So what happens is someone will pay you $3-4 shipping and handling. That covers the cost to print it, to ship it, and to mail it out. When he said that, a huge light bulb went off in my head and I said, Man, I need to create some little things like that I can give away and have people cover shipping/handling. Then I can test out direct mail for free. He started telling stories about how you would do that. He would set up a free report or free CD and say, Hey, this is a free CD. It s really controversial. It s good. Give me your name and address and pay for shipping and handling, and I ll ship it out to you. He started getting lists of buyer leads, people who would be willing to pay money for this information. About the same time I went to Gary Halbert s site and he had this thing posted up that said, If you want to know the #1 secret about internet marketing, why internet marketing is horrible, put your shipping address in here and I ll ship you the secret in the mail. Pay me a dollar or two, or something like that. So I paid Gary Halbert a dollar or two and he shipped me out the secret, and the secret came in the mail. What it said is basically the secret to internet marketing is you need to get their physical address. He said, I just got your physical address and you paid me $2 to ship you this letter. He said that was the secret. I was like, Oh my gosh, that s beautiful! So people are funding it. Gary Halbert did it, John Alanis did it these guys are funding their marketing campaign to people. You know the secret report can be a sales letter, or a CD or DVD and then have a sales letter included with it whatever it is but I got that. I said, I can do that! That s such an easy way to start doing direct mail. We started testing a couple things like that. We did it once or twice and had really good success with it. We d get a list of maybe people who had paid for our free report or our free CD. We did it once where we charged like $10 and said We re going to FedEx this because we don t want anyone so they paid for FedEx to A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 10

11 ship it out to them, and imagine the response rate. People are going to open, know what I mean, if FedEx comes and brings it. They actually funded the cost of that, then you put your sales letter and whatever else in there and you can start testing your copy that way, testing your offer, to a list of people who are paying you for it, so there s no risk involved at all. So what were you selling? What was your offer? How were you monetizing it? You found a way to get the person s postal address and they would pay you $6 or $4 or whatever to find out a secret. So right now you re pretty much breaking even. You re making them cover your cost and you ve got their postal address. But when you sent them the secret information, was there an offer, and if so what exactly was it in the beginning that you were using to monetize this campaign? Yeah, the CD was related. I did that three or four times. One time Stu McLaren and I did it. We actually recorded a whole CD talking about affiliate management. A little while later we actually sold an affiliate management course, so in the upsell we had a coupon in the package and then we had part of the sales letter. We had a bunch of testimonials and stuff that went in the package with it, so that s one way we sold his. We did another way where we sold a teleseminar series, and I ve also done it to sell an actual seminar, and all three of them have been very successful. Ok great. It s usually a free report or a CD or whatever it is that relates back to the content of the seminar or the webinar or teleseminar series or whatever it is, so that way they re getting a free report about how to get traffic and then they listen to this report or this CD about traffic, and then by the way we re doing this traffic workshop which could really benefit you. We re going to be discussing the exact same things that are on the report but in a lot more detail. I mean think about that person s curiosity at that point. They go to the website. They re so excited that they re willing to pay $10 just to find out about it. Then they wait three or four days, then the FedEx guy or UPS man knocks on the door and hand delivers your envelope. They rip it open, they listen to the CD, and it s like Christmas. They get all excited about the content because they re part of this whole process and A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 11

12 they ve seen the process. They get so excited about it and then at that point you say, Hey, there s more. How would you like more information? How would you like more value than what we ve just given you? Well you can. You can actually come out and meet me and meet this person, or be on a teleseminar with us, or whatever it might be. It just continues the process. So those buyers, the conversion rate on things like that it s not like a 1-2% conversion rate like you look at a sales letter. You re getting 15-30% conversion rate because these guys are. You re getting 15-30% conversion rate? I m not trying to say this, Russell, because we re not selling anything on this call. There s no product at the end and I m not trying to get people excited so that later they say, Wow, I ve got to have it. You guys already have the product and here s the bonus information that we re giving. Russell s saying that he s sending out information to targeted people and he s getting 15-30% response rate. That is just unheard of. You just do not get that with regular marketing or with regular online marketing. I ve never heard of anything like that. That s just incredible, and you were monetizing that with teleseminars. And did they pay to get on these teleseminars or there was a product offer at the end of the teleseminar? It was usually a teleseminar series they were paying for. They paid for like 10 teleseminars about traffic generation or about whatever it might be. If you guys start testing stuff and start playing with it, you re going to find out that the power of the internet is you can generate leads very easily. But you generate those leads online and you take them offline where no one else is talking to them, no one else is communicating with them and selling to them in that situation and that environment that they re not used to, it s so much easier to sell them. How many s do you get a day? How many people actually call you up on the phone? Our sales force does very very well because they call people on the phone. How many people get called by an internet marketer offering to sell them something? Not very many people. So we re taking them from the state that their barriers are up. People are used to seeing s and sales letters and fighting that type of Oh, here comes advertising. I want to block it out. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 12

13 But when it comes by the postman or UPS or it comes by the phone, people s barriers aren t as high and they re more willing to listen. If you have a good offer, it s a great way to get that offer to the person. Yeah. I m going to hold off on some of my comments on that stuff for the second hour. It was to a point where I had to wait to get slapped in the face until I started doing this stuff. I think everybody has to go through that. I don t think anybody just jumps in and does everything right right out of the gate. So from there, Russell, you developed a bigger plan, an ongoing continuity program. So you got an idea to do an offline newsletter. How many people right now, before we actually get into the strategy of your offline newsletter, let s talk about some of the metrics of your offline newsletter. How many people are on your offline newsletter? I ll ask questions for this next part, if you could rattle off the answer, then I ll hit you with another question, rattle off the answer, and then we ll get back into like the strategy of how you re really growing it out. So how many people are on there right now? We currently have 4,100 active subscribers right now to our newsletter. 4,100? And what do they pay you every single month? They pay $39.97 every single month. And I ll do the math here for everybody. $37.97 x 4,000 people, so that s bringing in $159,000 in residual profit every single month, assuming that number doesn t go up and down, and we ll talk about what are those numbers trending. That s correct, right? Yes it is. It s a very good thing to have happening every single month. Yeah, it really is! Now what are your hard costs for mailing those products out and roughly to acquire the leads and mail the products out, just on that? I m sure you have back ends and I m sure that makes you money and you can even have other ways to monetize things in that report, but as far as capturing the leads and if you can tell us basically what you pay monthly to advertise and get the leads, and then how much does it cost to fulfill the order every month? A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 13

14 Let s see, our actual hard costs of the magazine, DVD, and printing and shipping is a little under $4. Our magazine is a little under $2, our DVD is like $ , and then the printing and shipping so with everything about $4 to ship the thing out the door. As far as our costs to acquire these customers, I would say probably 85-90% is through joint ventures, which is free. We also have some pay per click and other media campaigns that are going that the cost isn t even that significant, maybe $3,000-4,000 a month. Ok, so I m figuring somewhere around $16,000 to produce it. We re not going to talk about your office and your lights and electricity, but let s just say your campaigns and maybe all that type of nonsense, but as you said it s joint ventures and maybe it s costing you let s say $25,000 to do that. So you re bringing in somewhere in the neighborhood of around $130, ,000 per month with this campaign. Now lifetime value what s the life of a customer? How long do they normally stay on with you, for how many months? The number of paid months is usually between paid months is the average. Some people have been on since Day 1. Some people have cancelled immediately, so the last we polled it it was a little less than 4. It s like 3.25 paid months. Ok. So how many people are coming on every single month and approximately how many people are coming off? Like was it three months ago you were at 3,000 and then three months later you re at 4,000, and in another three months you ll go to 5,000? Or has the number been steady or is it trending slightly down? I m just curious how those numbers go. We ve done three specific big pushes throughout the year and then a lot of steady stuff, so what happens during our steady months we re losing about 400 a month and adding about 800 on a steady month. So you re growing at the rate of about 400 per month? Yeah. We ve had the three big pushes, which each time has added about 1,500-2,000 during each of those pushes. Ok, so that s somewhere around 3,500-4,000 people per year on the steady, and then maybe a little bit more with some big pushes. Certainly you have a great opportunity now with The 12-Month Internet Millionaire getting I think the numbers were close to 9,000 10,000 new customers A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 14

15 that I m sure all go into a marketing funnel and things like that. So those are some pretty good metrics right there. Russell, you mentioned something about joint ventures. When you say that, what do you mean by a joint venture? I mean obviously nobody says to you, Hey Russell, let me mail to a page so I can give away a free CD for you. So how does a joint venture partner get introduced to working with you where you get information to send people a lead for this free CD? Maybe we can even talk about that, where this free CD comes, or is it that they re selling other products for you and then you do this free CD on the back end and the joint venture partners don t really have anything to do with the free CD offer. Initially it was more like the second thing you said. They d promote other offers and we would go and re-promote the CD. What I found though, and I know we ve had private conversations about this before, but you know our continuity program is the lifeblood of our company. That s the most important thing, so our biggest thing now with joint venture partners is that what we re always trying to get them to promote is our free CD because it gets people into our funnels. The joint venture partner makes residual income off it, plus they make commissions on any of the other products that person buys in the future. It s such a low barrier of entry and it s so difficult to have someone sell a $1,000 course. It s easy to have someone give away a free CD or a free DVD offer. What we ve found, and every industry is different. We re doing stuff now in the fitness industry and the affiliates there are looking for a completely different thing than this industry. In this industry what people are looking for a lot more is cross promotions and favors back and forth. It s real easy to say, Hey, if you ll help push our CD, in the future we ll help you with whatever it is that you have going on, and they don t care as much about commissions and things like that, so we don t pay a super high commission on our offer either. Now in the fitness industry it s completely different. People there care a lot more about the actual commissions and percentages and stuff like that, so we have to pay a higher percent commission, but usually we don t pay anything on the back end to those type of affiliates, so it just depends on the market niche that you re in. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 15

16 For us, like I said, most of the guys that we re working with are people who are looking for cross promotions. For all of our affiliates we do training and we give out prizes. With your first DVD you get a certain prize and every month in our affiliate program we give out different prizes and promotions for people who gave away more DVDs than last month and things like that, because that s the focus of our business. Everything else stems off of that, but that s our focus. If you read The IM Myth, the goal is 1) to acquire someone s name and address, and 2) to find out if they re a buyer. That s it, and the easiest way to do that is with a free + shipping/handling offer. That shakes them out right there. That just shakes them out right there. They needed a credit card or some type of payment to pay for the shipping and handling, and you just sift it right through there to find that they re a qualified buyer. So your conversion rates are going to be so much higher because they ve already shown the ability to. And willingness. Yeah, and the willingness to reach and grab their wallet or their pocketbook and get started, so that s pretty important. Reading The IM Myth even for myself, that was just like wow. So Russell, a real quick question, a lot of people may be wondering How do I track this all the way through? What type of tracking software is Russell using? When people get this free CD, how does he know to pay somebody when they join the newsletter or they buy one of your home study courses or a software product later? That s a great question. You know the frustration as well as I do. There are a lot of systems out there that do parts of it or pieces of it. It depends a lot on what you re looking for. A company called InfusionSoft is one that does probably the closest job. The problem with InfusionSoft is you have to have a Ph.D. in something to be able to figure out how to use it. It s very confusing software, but it tracks everything you need to. 1ShoppingCart is another one. It s a lot easier to use, but it s not 100% reliable. We actually built our own internal system called ClickFusion that we ve been using internally for almost a year now. We re A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 16

17 commercializing it right now and we re hoping probably in February or March of next year to be able to roll it out for people to use. If someone comes in as a customer it tracks it back to the original person, so if somebody does sign up for your continuity program, then in the future they buy another program or another product, they d be commissioned back to that affiliate. I m not sure which ones you use, and we can talk about it more on your part if you want, or right now, but we ve been doing that. We used 1ShoppingCart for about 2-1/2 years and got frustrated with some of the reliability. We tried to use InfusionSoft. I spent about three to four months trying to figure it out and couldn t. I decided it was going to be cheaper and easier for me to hire someone to start from scratch than to try to figure out InfusionSoft. Yeah, we ll talk about it with me as well, but that s essentially where we went as well. You know, your business gets to that point where you start doing $150,000 a month just there. I mean you have your own products, you have affiliates promoting your products, you have different niches that you re involved in and everything like that. You start doing $300, ,000 per month, you save yourself I don t have to be a slave to these problems anymore. I can hire a programmer to build me exactly what I want, and then you have employees to manage those projects and then life becomes a lot easier. You start out with 1ShoppingCart and I think that s what you would probably recommend, Russell, is they start out with 1ShoppingCart before they try to venture into custom programming something, where they don t even have their campaign. Work on making the product first, get the funnel in place, use 1ShoppingCart. It ll do probably 95% of everything that you need, right? Yup. And they do a really good job. Like I said we used them for 2-1/2 years and we had continuity programs and other things in there, and they re good. If you re getting started and want to implement some of this stuff right away, 1ShoppingCart is probably the easiest and best solution right now. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 17

18 Ok great. Now let me ask you what is your marketing funnel? Let s talk first about your internet marketing funnel, and then maybe you can do a quick recap in your health industry funnel. I know that you have DotComSecrets.com. Has that now become like if you were to do a joint venture, just an open joint venture, you meet a power player at a seminar, you decide to work together is that where he s going to drive traffic for you? Is that the start of the Russell Brunson marketing funnel at this point? Yeah, that is. The DVD is the first way we introduce people to it, the DotComSecrets DVD. When we meet someone and they say, What do you have to promote? and I say Well, the best thing we have is this DVD, and this goes back to the whole philosophy of my business. It s not to make more and more money. The philosophy is to provide more and more value, and that s kind of key. So if someone s new, if someone s coming from another list to mine, the first thing I want to introduce them to is my business model. If you ve ever seen the DVD, it s a 2-hour presentation I did at your first seminar. The night before I don t know if you remember this, Mike I was there and it was my first time ever speaking, and the night before I said, I m going to do this little workshop. I did the workshop and went over my whole business model. I tried to make the DVD better two or three times and for whatever reason I did really good that time and it was completely off the top of my head. But anyway, if somebody s just coming off a cold list and getting introduced to me for the first time, I want them to watch that DVD because it helps them understand the business and helps them understand how to create a product, how to set up a website, how to drive traffic kind of the whole A-Z format. So that s the first thing I want them to do, is to get value. So that s the front of my funnel is that value, which is going to give them a good overview and help them to have a strong foundation to get started with. So that s the front of our funnel. Now immediately afterwards, as soon as somebody s gotten the DVD, what we ve found is if someone gets some kind of website up within the first week or two of them hearing about us, their success rate triples or quadruples for whatever reason. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 18

19 So in my value funnel the first thing I m going to do, as soon as they get the free DVD, immediately afterwards I take them to a page where they can get a website set up. Is that the DotcomWebsites or something like that? Yeah, we changed the URL. It s I think everyone that s on this call, not necessarily listening on the replay, but everyone that s on this call right now would have seen that when they went through The 12 Month Internet Millionaire process, or especially the IM Myth process, that I know, that when you went through that process you had an opportunity to get involved in getting the FreeAgentPathWebsite. I looked at that, Russell, and the first thing I did is I said, Oh, Russell is working with you know, there s other sites like that, and then I realized, No, I think Russell did the right thing and got away from the private label and created his own website backend system. Is that true? Yeah, we did, we created our own. A couple reasons why. It basically gives everyone a really simple affiliate website which has our products. They become an affiliate for us right off the bat. The second thing though that our software does that s unique is it gives them a squeeze page generator where they can create a million different squeeze pages that split tests headlines, puts them in a nice template, so that way they can start building a list with that, and it also builds in a blog so they can start blogging. When we teach our system those are the three things you need: a squeeze page, a blog, and some kind of site that s advertising affiliate products. We also give them a huge hosting account. They can have like thousands of domains on there if they want and that kind of stuff, but it gets them to have something live online. As I said, we ve found that if they have a website up online they re way way more likely to succeed. We still have people coming to our seminars that tell me they ve been doing this for 3-4 years and they don t have a website yet. I m like, Drop everything and get a website up. I don t care if it looks ugly. I don t care if it doesn t work. You ve just got to get a website up. Your chances of succeeding are going to be way more if you get a website up. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 19

20 That was probably a big objection when people were not buying, or if you were doing follow-up sales, was you were trying to move them somewhere and the first point to you was, Well, that all sounds good but I don t even have a website yet. You were reaching a stumbling block right there so you realized, Let me get that in their hands very early, and you noticed that the success rate just went through the roof, if you can get them to have a website up and running right away. Now you have something to teach them how to market, and everything else makes sense. Exactly. So the next step of the value funnel is then they get a phone call from one of the guys in our company and they offer them one-on-one coaching. Ok, you ve got a website so you know some information about the business. How would you like to have someone walk with you hand-inhand, one-on-one through the process of how to set up your website, how to get your product in there, how to create your squeeze page, how to drive traffic, so they can get a one-on-one coach for 8-10 sessions, depending on how much they sign up for, but that s kind of our next step, and that s what our call center does. Ok, let me ask a question right there about this call center. They get a DVD. They re told about how they can get a website. How does the customer connect with the call center? Is there Step 1 do this, Step 2 do this, Step 3 call and make an appointment for your free 10- minute consultation, or is it that your call center has the lead, goes through a lead sheet and says, I m going to call this guy. He bought a product from us two days ago, and they say, Surprise, Mr. Jones. I m following up on your DVD that you got the other day, and then they go into a presentation. Which way does it work? The way we do it is when they order the DVD they get a free 30-minute phone consultation. That s one of the bonus offers of the DVD, and we stole that from Matt Bacak. I m not going to take credit for that. It was a great idea. We tried a call center ahead of time where we just call up people and say, Hey, can we sell you something? and it didn t work, so we stole that model from Matt with the consultation. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 20

21 The way we do it is there s different levels of buyers again. We talked earlier about qualifying buyers, but we just qualified a free plus shipping and handling buyer, but if someone buys a website they get a website for free but they have to pay for hosting, which the hosting account is around $200. Now that person who s paid $200 is more qualified than the person who paid $7, so our call center guys get the website leads first and we say These are our most qualified buyers. They call them up and they say, You just got your website set up. We want to walk you through and do a coaching process on your website. Ok, so they qualify for a 30-minute consultation, but the call center is calling them and saying, This is your 30-minute consultation call. So you re not waiting for the calls to ring into the call center. Oh no, you ll never get people to call if you wait for them. We take them by the hand, and like I say our A leads are people who are spending more money obviously, and our B leads are people who spend less. So we give them to the call center and say, Ok, our best leads are the website guys. Let s call them first. Our second-best leads are the DVD leads. When we run out of website leads we ll call the DVD leads. And you put your strongest guys on the website people and you put your trainees and your weaker guys on the DVD leads I would assume, right? Yup. So that s basically from start to end of our funnel that s the basic process. There are other pieces in there too. So the next thing obviously is when people order the DVD, one thing we do is we offer a free 30-day trial to our print newsletter, which we talked about. Just kind of the back-end on what the actual print newsletter is, as far as our company, this is what I m most proud of. I mean if you guys don t buy any of our products, at least be on our continuity. This is something that you d be stupid not to be on it. Not to offend anyone, but you really would. What happens is every single month I pay my employees I think right now I m paying about $50,000 per month in employee costs. I ve hired the best of the best. Some of the guys we re bringing in now I can t really mention names until it s been solifidied and closed but we re bringing in some of the top guys in the industry, people who have been working for $100 million per A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 21

22 year information companies, and we re paying a lot of money to get these guys in here. Our copywriters, our project managers, all these people in our company I m spending a lot of money getting them in here. So every single month what they do is they write an article about what they re doing for our company that s working right now what s working, what s not working. So what happens is every single month you get access to my copywriter, you get access to my developers, to my marketers, to my SEO guys, my pay per click guys to everyone in my company who s generating money for me, you guys get access to them once a month about what we re doing right now that s working. We compile it every month into a really nice newsletter and we put a DVD with it, and that s what our continuity is. So it s continual training month in and month out. Every single month you get this and you learn new strategies, new ways to drive traffics, new ways to provide more value, new ways to increase your headline copy. That s great value, Russell. That really is great value, and that s easy for you because you re a pioneer and your business has always grown. You don t stay static, so it s very easy for everyone in your office to create that content because you re always learning, like I m learning from you today and I hope you ll be learning from me on the next hour as well. So what better type of newsletter are you having rather than, Oh man, what are we going to write around? We spoke about Adwords last week. Should we talk about ebay this week? I mean you just talk about what s working in every department in your business and it becomes easy content and it s the best value that you could provide people. Well, it cracks me up too. I listen to some of the people who call for refunds or returns and it cracks me up when they call and they say, I paid $40 for this newsletter and it s only 44 pages, blah blah blah and they re upset. I say, Well, did you read it? Well, no. I can tell these are just little dorky articles that don t really work and I get this stuff for free on the forums and blah blah blah, and I m like, Alright, we ll process your refund, and I laugh because they don t realize what they re missing out on. I ve got guys who I pay $100,000 per year to manage the marketing in our company. Those guys are writing the best stuff in their article and giving it A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 22

23 to you. You can t find that stuff in the forum. You cannot find that stuff anywhere else, so it makes me laugh. People dismiss it as nothing. If you dig into that kind of stuff and you read it with an eye, you re going to pull away at least one idea that s going to make you money, I guarantee you, every issue. You re going to get at least one idea that s going to make at least your $44 back and usually a lot more. That s why I m so passionate about it and that s why you know, I heard Matt Bacak speak one time and I m a huge believer in this. He said that as marketers we have a moral obligation to market aggressively to our customers. If we really believe that our products and services work, if we really believe that they can change people s lives, then we have a moral obligation to market as aggressively as possible to those people. I strongly believe that. I believe if you get our newsletter in your hand, if you get my DVD in your hand and you really read those things and study them and focus on them, that it s going to improve your life, you re going to be a better person, a happier person, helping your family out so that s why we market so hard. I have people call and they re upset and say, Well, I didn t realize that I was signing up for a newsletter and things like that, and we understand that. We refund them and cancel them right away, but I m not going to apologize for marketing aggressively because I know that my product will change people s lives. I want to get it in the hands of as many people as possible. If I m not aggressively marketing, then I m withholding value from other people and they re not going to succeed as much because of that. I m talking really loud because I have a lot of passion about that, but it s important for you guys as marketers, for all of us, if you really believe in your product that you market aggressively enough to get it into the hands of people who are trying to learn from you, because you can change people s lives. This isn t something that I want just for myself, but you can actually change people s lives. I agree with you and Matt Bacak wholeheartedly there. I want to touch base on that and find out exactly how aggressive it is, and then I want to ask a quick follow-up question as to what happens when somebody actually does submit their postal details to get this CD. A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 23

24 When somebody s at your site, Russell, and they go to DotComSecrets.com, and anybody can do that right now, my question to you is the promise right up front is obviously give me your name and address and I m going to give you this free DVD. How obvious is it that they re signing up for a continuity program? Are they ticking a box? Have you decided not to use a ticker box? Does it say anywhere at DotComSecrets.com or does it say later at the shopping cart that they re signing up for a continuity program that they pay $6.95 or whatever it is now, and then we re going to charge them $39/month the following month? Where do you make that obvious to the customer, because I heard you say some people say I didn t realize I was signing up for a newsletter and you refund them. I go way out of my way. In fact we had some guys who were big huge continuity people who want to push our products, and they won t push ours because make it so blatantly apparent that we re charging people. I know a lot of other marketers who have it in the fine print and things like that. If you look at my page, I m there right now, I have 3 paragraphs in the headline that says, This is how we re going to bill you. You have a 30-day trial. You can cancel any time. Here s our phone number to cancel. Then on the order page it then says it again, how much you re going to be billed, when you can order, and then after you order there s a video of me standing there holding the magazine. I say, Hey, you just ordered your free DVD. I want to remind you that with your DVD is coming this magazine, and I show the actual magazine in my hand. This magazine is coming with it. You have a free 30-day trial. If you don t want it after 30 days, please call our office and we ll cancel it for you. Let me tell you a little about the magazine. I tell them about the magazine and then I actually introduce them to the guy that runs our call center. I say, This is Garrett here. Expect a call from someone in his call center. Garrett, tell them what you re going to talk about when you call them. He explains then, When we call you, this is the process that s going to happen. Then afterwards I say, Now click on the button below and you re going to be taken to a website where you get a free website. We ve A Production of The 12 Month Internet Millionaire and The Butterfly Marketing Manuscript 24