9 min read

Growth funnels: Part 1 - The Value Journey



There are TWO main objectives of the Sales Funnel or “value Ldder”

  1. As the person is introduced to you, your job is to create enough trust for them to logically want the more expensive thing you have.
  2. Naturally, as people have more trust in you they will want to spend more money with you

Lead magnet 

A lead magnet is something that entices the consumer to connect with you and is the first meaningful interaction they will have with the company.

What can you offer your market that will serve as a tool that is virtually no risk or commitment and will allow your company to gain trust in the market?

It is imperative that what is offered is of actual value and will create an incredible sense of excitement in the prospect. 


A TRIPWIRE or Welcome Offer is the fastest way to increase the number of clients in your company. Having a woffer dramatically increases your conversion rate from prospect to client. It is an offer that is so irresistible to the target market that it is a no brainer.

This is the point where your prospect officially becomes a client. I want you to truly memorize this statement: 

“It is the hardest time in history to make the first sale, but the easiest to make the 2nd, 3rd, 4th etc.:

The statistics in companies are overwhelming; an existing client is 10-20 times more likely to buy a product from you than a non-client. It is all about creating a client, and then your ability to sell to them again skyrockets. 

You can actually ethically hack this primal human tendency to create an influx of clients.

Here is the key; it actually doesn’t matter what quality of client it is, as long as they are technically a client. 

Even if a client is defined as someone who took a free trail, a $1 product or a 7-day subscription they are far more likely to buy what you offer them next. 

So a client that buys a $1 product from you is still up to 20 times more likely to buy your core products than someone who doesn’t.

Let’s say you have a $200 product. If you have someone that has purchased something from you at $1 they are 20 times more likely to buy that $200 product than someone who hasn’t.

Smart companies know it is not the size of the monetary commitment that is important. It is the psychology in the buyer’s mind that is important. Even if it is only $1, the relationship the client has with you has dramatically changed. 

Columbia records knew this and offered 13 records for $1…they were losing money on this but they knew once someone applies for this they are not very likely to go with any other music company in the future. They ended up taking over 15% of the whole music industry. 

Amazon at the start hemorged money with low ticket offers that lost them money; in one case they offerd trip wires in the baby care line and the projected loss was 100 million but they went with it because they knew once the prospect was a customer they would easily be able to re-coup that money because now they have gone a long way in becoming a customer for life.

Uber was more than happy to give away a $20 voucher for their services. As soon as someone experienced an Uber they are far more likely to come back to that same company even though they didn’t make a monetary commitment. 

Trust should never be underestimated, when you have built more trust than your competition you are not competing on price anymore. When you have a fabulous woffer it gives the consumer incredible trust. 

Just because it is a low ticket offer does not mean a company should sacrifice quality. Imagine if Columbia Records sent out broken records because the client only spent one penny; imagine if Uber drivers took their clients to the wrong place because it was free.

What is your irresistible low ticket offer that your market would have to be stupid not to take?

Core Offer

The core offer is the product or service you hope to give to your target market. 

This is the pivoting point for your specific market. Your core offer will be what your lead magnets, woffer, profit maximizers will all revolve around. We will not have to delve deeper into this because this is what has already been discussed throughout this book. 

It is imperative that the core offer is a product of a thorough analysis of clients, markets, company competency and competition. 

Profit Maximisers

This is one of the most important concepts you must learn.

If your company does not have multiple ways to create repeat clients, then they will not survive in this new economy. Once you attract a client you must keep them.


This is an incredibly popular method. It is leading the client to the most optimal and elevated state of their current desires. It is offering them similar products or services that further enhance their current state.

It has been made famous from the McDonalds billion-dollar line of “would you like fries with that”. Did you know that most of McDonald’s profits actually come from side orders and not their hamburgers? 

McDonalds spend $1.91 on client acquisition just to get someone in the door. For the average burger they sell at $2.09, that means they are only making 18 cents profit. However; with their immediate upsell to chips and fries their profits jump an extra $1.14 immediately. Now with the upsell, the average profit is $1.32 instead of 18 cents. 

This simple upsell provides them with 7.3 times more profit than if they had never offered an upsell. Remember my golf story; when a ‘buyer is a buyer is a buyer’. You must maximize the time a buyer is in heat and an upsell is perfect for that.

We can see this in the automotive industry as well. Car dealers make virtually no commission on cars anymore. All their commission comes from the extras, leather seats, stereo etc.

These kinds of scenarios can be seen in most industries which make upsells even more crucial. 

The most successful Upsells are speed and automation upsells. 

Here are some examples.

  • Physical product sellers can offer expedited delivery, assembly or advanced training on how to use the product
  • Information sellers can offer done-for-you services, software and even consulting.
  • Software sellers can offer installation or migration services, as well as a higher level of client support.
  • Consultants and service providers can offer a more “hands-on” experience or ‘done-for-you’ services and the opportunity to move your client to the front of the line.
  • Restaurants can have a chef table where you get to see exactly what the chef does. 
  • Disney land lets you cut in line if you pay extra to get the VIP treatment.
  • Weight loss companies offer supplements that aid with workouts and diet. 

The question you must ask here is “what can I offer my client that would give them even more value to their desires and scenario at hand?’.


For whatever reason, when a prospective client says no to your core offer It is wrong to assume that they are not interested.  A down-sell is a reversal of the up-sell where you suggest a cheaper alternative. 

For instance, if a client cannot afford a laptop, you might suggest an older model that costs less. If they cannot afford your 1-1 consulting services, you may offer a digital blueprint of your strategies instead. 

NOTE: Down-selling is not reducing the price for the same service. Do not demean your own product by reducing its price. If you do this then you, your company and product will lose integrity, authority and become another commodity.  


The cross-sell is famously seen on Amazon when they say "You're buying X, you may also like Y."

Slack adjusters

A slack adjuster is a product or service that may only appeal to a very low percentage of your consumer base. It requires a very high commitment; however, it can make an incredible impact to your bottom line. There is always some portion of your client base that is willing to pay a huge premium for whatever you have. 

These products or services have extremely high margins which make up for the lack of appeal. Remember; the cost of time and money is already incurred for generating a client.

  • Dairy queen sell a home installed dairy queen for $55,000 with a margin of $30,000. Every year someone buys at least one in every franchise and that goes directly to the CLV and bottom line.
  • Many Hospitals have started introducing slack adjusters as well. Patients have the option of spending 2 days with a doctor. They get a variety of tests done and come out with a health action plan for $25,000.
  • SaaS companies can offer a coder on demand for $5000 a month for a weekly one-hour consultation with them.
  • Financial services companies can offer full audits and a consultant for one hour weekly reviews for a large premium.
  • Apple releases limited gold plated watches, laptops, tablets etc that have an incredible margin attached to it. Even though the practicality of the product has not increased they know there are always a percentage of the market that will buy it.

For whatever reason there is always certain types of buyers that will always buy the most expensive offering regardless of its practicality. Typically, it is a way for the client to show their status and say “I am able to afford such services”; but whatever the reason is, your company should cater for it as it will have an incredible impact towards profitability. 

If they’ll buy this from us, what else will they buy from us BECAUSE it is from us?

The term “because it’s us” is really important as people in a relationship are automatically willing to expand the boundaries of the core goods or services that they get from that provider. Supermarkets now offer insurance, phone plans etc.

Customers are often ready and willing to accept this but most companies simply don’t. For example, Apple could go into smart cars because people trust them and buy simply because it is Apple

EXAMPLES of Value Ladders and sales Funnels

The ideal way to construct your value ladder is to start from the most expensive thing you can offer and work down; this ensures you can splinter offers from that and makes your whole sales funnel congruent.

RULE: Always sell what they “want” on the front end and sell what they “need” on the backend. EG the Cheesy broccoli…

Russel Brunson and how he created a 160 million HIGHLY profitable Saas Business

  1. Live event about funnels for 25k
  2. Recorded version of event about funnels for 3k
  3. Online course about funnels for $997
  4. 4 Stripped off strategies from above (traffic, funnels, webinars) selling for $497
  5. 1 hour quick Introduction to funnels course ($97)
  6. Case study on how Russel made 25k with one funnel

By focusing on his backend he could really dial in the perfect front ends that would not only provide massive value but create a logical ascension ladder for customer…everytime they go through one of his steps they think “wow its only logical that I buy the next thing to really ramp my skills up!”

THE UFC – Sold for $4.2 BILLION

  1. 12 free fights per week on TV
  2. $49 Pay-Per View for big fights like Connor Mcgregger defending titles
  3. $1500+ tickets to come to the event to watch live
  4. Backend sponsorship deals

Anti-Virus Software

Lead magnet – Ads warning about security risks and then Free Scan

Woffer – 7 day trial for $1

Core Offer – Purchase 1 year software license

Profit Maximizer – Purchase 3 year license, several line extensions to other software products 

Car industry examples

Lead magnet – Free test drives

Woffer – 2 day car loan

Core Offer – Car purchase

Profit Maximizer – Insurance, peripherals etc 

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