The “Marketing Funnel” Business Model Sucks

The “Marketing Funnel” Business Model Sucks

Posted on 23. Aug, 2009 by Elizabeth Potts Weinstein in Videos

I was taught the “marketing funnel” business as the main for information marketing, coaching, and consulting businesses. And maybe it works great for some people, but I kept trying to force myself into that (with little success, of course).

So in this video I’m sharing the business I’m using for Potts Weinstein Enterprises, LLC, both to show you an alternative that may work for your business, and to give you some ideas for creating the that better fits you, your business, and your passion.

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  • Hi Elizabeth,

    I'm coming very late to this post, enjoyed it very much. Question though. I get that we need to share information, but I'm really struggling with the level of sharing as we get ready to launch our blog.

    Example: recently I saw a company who makes lovely soaps who teaches classes and gives away recipes and how-to's on how to make soap. I get that the DIY folks are not necessarily the same folks who buy from her store/site (or maybe some are), but at what point is she training her competition to do what she does? And if several "copy cats" spring up making and selling soap, how does she catch the attention of new people searching the market who find the copy cats? (Because, I'm just thinking *I* would rather buy from the creative person who spent all the time developing this great info for us.)

    Appreciate your insights re this question, thanks!
    Laurie
  • kaitrece
    "LOVE!" button for sure!
  • Huh, never thought of it that way before. I had the idea, seems like you went and actually wrote down how it works on paper. Perfect :)
  • Yay for Elizabeth! I LOVE this video (especially the F-word, so glad we're all human!). I've been listening to all this business info (teleseminars etc) from the USA and hearing about the funnel and the info products and the bigger products and and and.....

    My struggle with this has been that a) South Africa (which is my preferred client base) is not as internet adept as the US and the UK, b) my product/service doesn't lend itself to the funnel model and the constant upselling and c) frankly I'm getting a little annoyed with the constant flood of internet marketing trying to get me to sign up for the free product and then buy the cheapie product. The novelty has worn off!

    So hallelujah, all hail Elizabeth for recognising this and being honest about it! I'm not sure my model fits the model you've illustrated, but it does start guiding me towards a viable alternative :-)
  • And that's really the secret Clare - find a model that's *right* for
    you, the solutions your provide, and your target market!
  • Shaktipaj
    Elizabeth - I come late to this post, but it was sooooo worth the wait! This makes so much sense, it is scary good advice! I've seen things that approached it, but they forgot the crucial part near the end of the vid - true transparency. That is the uncomfortable place we need to acknowledge and move past - it is also the thing that many more conventional coaches just don't want to embrace. Thanks for being you!
    Also, an F-bomb is not the end of the world as we know it - hey, I'm married to a sailor, what do you think it sounds like around my place?
  • Great stuff! Loved the outtakes. I don't know if you know him, but John Furst referred to your link in a comment he made on some other blog post. It's great how things get spread.

    You have a new follower.
  • Brilliant video, Elizabeth.

    Love how it's both simple, intuitive, yet goes against the typical internet marketing grain.

    Then again, your whole focus on authenticity and transparency (integrity) makes you so unique!

    Feel like you and I could be kindred spirits. Two of my key values in business are "integrity & heart". Also: you were an attorney and financial planner. I finished first year of law school (then switched to MBA) and was very briefly a financial coach, before doing what I'm doing now -- helping solopreneurs and small business owners with online marketing.

    Other synchronicities: on Facebook we currently have this many mutual friends: 66 (I know, weird number right?)
    And today I visited Allison Nazarian's blog (she's hosting me on a webinar on Sept. 22: http://georgekao.com/922a
    ...and saw your comment in her blog.

    My focus is "how to efficiently use LinkedIn, Facebook, Twitter in 15 minutes a day" and would love to explore a win-win-win partnership with you, when the time's right!
  • ypadgett
    Your style with the videos is perfect and very refreshing. I totally agree with your premise becuase it seems like someone came up with an internet business model - squeeze page, 1 free give away, adsense, selling advertising space, everything else behind pricy memberships or expensive "programs" and then others just ran with it. What I seem to be attracted to are the people who are offing as much as they possibly can for free, then choosing a couple of particular ways to make money without making EVERYTHING about money which to me is a turn off.

    Some people cannot send an email without asking you to join their latest high priced thing, or advertise with them or something costing money. I'm a low cost, no cost kind of girl until I know enough about someone to spend more money. That's why I LOVE your LiveYourTruthProject! I'm still listening to those calls and loving them all and was so thankful they are free. They are amazing.

    I'm working on launching my website now I definately plan to link to those and other free telecalls for people, plus give lots and lots of access to my website all for free because I think that is where the value is. I guess we all have to do what's right for ourselves and not just follow the herd. I've had people tell me that I'm not charging enough and giving too much for free, but that's what I love about having my own business, I can make those choices myself. At the same time I found your LiveYourTruthProject there was another website that I was drawn to, but she was offering the same kind of telesummit for $300 or $400 and that was just ridiculous to me. The people that your telecalls have connected me with have been amazing and I have you to thank. I might not have spent any money with you as of yet, but meanwhile I'll definately be an evangelist for your site and your videos!

    Keep up pulling back the veil because it gives people the okay to do what they think is right, not what others are telling them to do!
  • Great video, Elizabeth! A lot of head nodding :-)

    Last year, I started Best Life Design around the big idea of helping others to consciously design their best life with advice and tools from trusted resources and a supportive community available to help every step of the way. My key focus is on the community and growing relationships - and I've been told by some big (cattle herding LOL) marketers that there's no money in it.

    Yes, we'll use some traditional marketing tools (as a means to leverage our limited time) - but it's the mindset that distinguishes the model you present. As we say, our core community is free - and always will be - because no one "owns" the right to live their best life. We believe it's a right - and a responsibility - shared by all who walk this earth. Our community knows best what resources they need as they walk this journey...and we're listening.

    Another piece of this model I see popping up (it's core to my mission) is including a philanthropic cause within the core business model. Have you observed this?

    To your success!
    Mollie
  • It's so funny how many people say "there's no money in free" when so many companies are built this way (look at google!!) where everything is free in the beginning, and then the money is made down the road. But, it means a longer start up time (but more money in the end, I believe).

    I also have philanthropic causes in mind, some which I already support (via kiva.org, for example), and some independent not-yet-done projects. Yes, they totally go together. Mine are very much based upon the idea that some people cannot (yet) afford the implementation tools, so let's give them ways to implement to save themselves -- kind of like Habitat for Humanity, which requires a work component & paying for a mortgage, I believe.
  • Great video E. I particularly loved the one-handed drawings. Very talented. And I like the business model you've come up with a lot. The best part about it? It's perfectly you. It fits your creative genius perfectly and builds on what you love.

    I'm wondering though if you'll find the need to revert back to the traditional marketing funnel as you make your coaching services avail and you want to make yourself avail to people at varying levels of time/commitment on your part. KWIM?

    xo,
    Alexis
  • yes, a coaching/consulting business (in the implementation resources box) does have some of that characteristic (free, info products, group, 1:1 stuff) but it's a different vibe. getting off the "herding cattle" mentality of ahem, you-know-who. ;)
  • just testing to see if this works
  • rosemarybreen
    Thanks Elizabeth. A one page business plan seems like a great way to give a nod to the convention of writing it down, but without getting bogged down in the detail. That will come. Cheers Rosemary
  • This is really great! Thanks for sharing your particular brand of inspiration.
  • Totally refreshing approach from the alpha male funnel! And it's genuinely entrepreneurial, which I like, rather than just salesy without substance. And the outakes are hilarious!

    You are the female Seth Godin in the making ....
  • Hello Elizabeth - This is my first visit to your blog and I really enjoyed your video. I love what you said about building community - it is exactly what I do with everyone I work with and those who are engaged in my online business model. A big idea regardless of the model that is used to execute it is the key to everything, and I believe that as the internet continues to evolved people feel the need to connect with others in a more personal way, so that it is not just about the technology.

    Although catchy, I am not in agreement with the premise set by your post title. The reason is that it assumes that a conscious entrepreneur who forms a tribe and creates tremendous value for his or her associates cannot add value within the "marketing funnel." Whether you call it a matrix, blueprint, formula, or funnel, it is all the same process drawn out on paper a different way. What matters is the concepts, principles and intent of the creator of the model itself. To create results any business model must attract prospects, deliver value, build trust, identify a need, solve a problem, or provide an opportunity.

    I spent some time visiting your other sites and your work is awesome and I respect your message. I just wanted to offer my thoughts and share another perspective for consideration.

    Have a blessed day and thank you for this post!

    James
    http://Twitter.com/AskJamesHolmes
  • Thanks for your comments James! Of course, part of the "funnel sucks" idea is a title to draw interest (I have a whole series of these videos, and the "sucks" idea is always an oversimplification).

    In my coaching/consulting business, I do have principles of this model -- offering free opt-in's, lower priced items (info products, classes), and then high priced programs (classes, one-on-one). But the difference is a philosophical difference between many of the "funnel" teachings & what I'm advocating here.

    And, as one of the commenters on twitter said, the metaphor is not the best in the world ... a funnel seem to say that people fall out of the bottom! ;)
  • Hi Elizabeth, it's funny how we stumble upon information. I had a thought just today that I wanted to write a post about those websites that look so perfect, but then it doesn't feel like there is a human there. And then they have all those techniques to get you to put your email so you get the fantabulous secret information never seen before....and..and..and...
    And then I wonder who is the human behind it and wonder if they really are as successful as they say they are. Anyways...I guess I don't have to do my post since I vented here. I do like the model. It does take longer, but if you're really passionate and love what you do, then the model will work. It takes a lot of persistence especially if you are doing it alone. Well those are my thoughts. @blancastella on Twitter.
  • The most successful businesses online have humans involved (sometimes it's a bunch of humans, but still that human connection is the difference). But many businesses try to "look big" or "look corporate" by appearing to be faceless (my first website was like this), thinking that it's necessary to look perfect.

    But I'm finding the best way to develop a relationship with people is to be real, including the fact that I don't make millions of dollars (yet) and don't have all the answers. :)

    I'm not actually sure it really takes longer. Most of those people who seem successful actually aren't (I know some of them!) ... and the ones who are making millions usually have been doing this for 7-10 years.
  • Love what you are presenting here! I also hate the "marketing funnel" I see all over the web! It does indeed SUCK! And it always comes off as feeling like a scam to me.

    I like your idea of basing a community on a "big idea" that draws people in & then having services built in to the community that people can make use of or not at their leisure & as they see fit.

    I'd love to make a community like that based on the LOA people are always talking about but that is free. Not some fee-based community that only the elite who can afford it can join. None of that BS here!... Read More

    Also interested in selling my New Age skills (tarot, numerology, astrolgy, etc) & also interested in starting a film company (someday, somehow) & wonder if this model would work for these goals of mine...
  • Think about who are these people who are attracted to your particular version of the LOA idea (it needs to not just be LOA b/c there's so much of that out there, it needs to be particular to *you*), and what do they need. Obviously, new age skills resonates with that message. And other ideas, like a film company, *could* also resonate with that community too ... either people who want to create films or who want to watch films around that message.

    My suggestion is to start with a combination of the community & message. Start speaking your version of LOA on twitter and/or a blog, and start cultivating a community around that message ... then ask them what they want! :)
  • Elizabeth - you have no idea just how much good this video just did - You gave me a business model that makes sense for the project I am working on right now - thank you seems so insufficient... I love the videos, you have a real presence on screen <<humming "You ought ta be in pictures">> Please keep them coming!
    Warmest Regards,
    David
  • Love the bloopers at the end! Shows you are so real! :)

    And I love love love your new model. It's authentic and natural and feeds a win win relationship rather than the scorched earth model.
  • rosemarybreen
    Your video is timely Elizabeth. Im just getting into your site and Im also planning my next big venture. Do you have thoughts on when is a good time, or even the best time to write the first Business Plan?

    Cheers
  • Assuming your not getting major financing (bank loan, investors), then a business plan is not something you write at any particular time. It should be a growing, living document that you use & change regularly as your business grows & changes. I highly recommend the book series "The 1 Page Business Plan" which will help you create a *useful* business plan. Otherwise, most people (like me) create a big 40 page document that just sits in a drawer. :)
  • Hi I love what you have said. I too have found the traditional business model hard to take at times. However I would like some specifics, like what is your Idea, and what businesses does it feed etc.
    this would help me.
    I'm an aussi parenting expert in the area of bedtime and potty training for toddlers.
    My website is
    http://www.BedtimeAndToiletTrainingSolutions.co...
    and I have a 15 minute recording on
    how to get your child to beg to go to bed and fall asleep fast
    and its at
    http://www.BedtimeAndToiletTrainingSolutions.co...
  • Margaret - I may do a call or something to explain more fully & give more examples, that's probably a good 45 minutes of content there! But the big idea I'm talking about is (in part) The Live Your Truth Project, you can see the videos of how that works on this blog & learn more about that (free) program at http://theliveyoutruthproject.com
  • Elizabeth! Your video was just what I needed to watch as I'm recovering from bronchitis and strep throat. I absolutely got such a kick out of your presentation - I laughed, I agreed with the premise, and it just uplifted my spirits. If you ever get tired of being an entrepreneur, there is a place for you on TV as a comedian. I don't mean that facetiously - I mean it with the greatest respect. Too many entrepreneurs are way too serious and way too afraid of showing who they really are. What I respect most about you is your genuineness and truth-telling.

    Thanks for making my otherwise boring day, fun and easy!
  • Taru - sorry to hear you've been so sick! lol re a comedian ... but really, isn't being a good speaker etc. partially about being entertaining? so, that's what I do, make you laugh so I can sneak impt stuff into your brain.
  • Thanks for the info - I'm now a subscriber!
  • I didn't know you existed until a friend worwarded me your link for this video today.

    Glad to see that someone else got my idea! I guess we are all getting tired of the old model that maybe worked in the past.

    I'll be subscribing to your blog to check you out more often.
    Claudia
  • Hi Elizabeth

    I just love your business model... I am so glad to hear someone thinks the Marketing Funnel sucks as much as I do. Part of me was starting to think it was just me. I am such a community minded person also and love giving and not just taking. I also believe everything should be a two way street and a win win for all involved. You give so much and so much for free which is fantastic. There should be more people like you in the world who are genuine and not just trying to upsell all the time.

    I also believe what goes around comes around and your business model definitely fits into this belief.

    It is also nice to not always be pressured into buying more and being sold to every time you subscribe to something only to find out... now you will need to pay more for the next step and so on.

    Thank you... So much! And I look forward to more of your videos.
  • Chris - I agree, it's also just my personality to be win-win, and whenever we think "it's just me" or "there must be something wrong w/ me" I find that it's usually b/c we are not following what we really *know* somewhere inside.
  • I always advocate community building to my clients so I was extremely happy to see this video. As far as bringing people into your Big Idea and your community, a free product is usually still needed though, wouldn't you say so? I mean, your videos and blog posts are still something free with the hopeful action of people signing up for your email list (of which you offer a freebie for doing) to build your community, right?

    So I guess what I'm wondering is that yes, there's always going to be the need to provide these resources but it's not necessarily going to happen in the prescribed way we're so used to? For instance, if you give away an audio, it may not lead to an upsell. It's just your thank you for signing up for the community, right?

    In a way, it can be summed up as "Don't Go In For The Sale, Go In For The Relationship", correct? If so, I absolutely love it. All resource ideas should really come from interacting with your community - which of course presents another whole host of challenges. However, I appreciate what you've put into this and for making me really think about this in a different way.
  • I agree that you will give away *stuff* that sums up the big idea, and that you will give people multiple ways to "join the community" and some of them including opt-in. For example, I give away tons of content on my site, but to get the entrepreneur/expert interviews in The Live Your Truth Project, someone must opt-in.

    Yes, one of the big differences is in the mindset of relationship building but it's also in not charging $$ for the community (unlike continuity programs & many membership sites).

    You know if the resource ideas come from the community, it's much easier ... if they want to buy something and then you make what they want to buy, it's much more likely they will buy it. :)
  • I agree with you and your business model completely!

    Those ‘Marketing Systems/Funnels’ seem to treat people like a farmer handles a herd of cows (gather them up into a group and squeeze them through the barn door so you can milk them for all you can get and then prod them goodbye)… Just feels so wrong and impersonal way to do business…

    Thank you for sharing!
    -Tom
  • You know, Dan Kennedy actually uses herding cattle as his metaphor for this business model. LOL!!
  • I've been enjoying your videos.....as well as your interview series, Elizabeth!
    You're doing a great job....and the videos keep getting better!
    Thanks for sharing so authentically.
    Suzanne
  • brookethomas
    Great video! I'm a fellow hater of the funnel...

    I'm also a mompreneur with a toddler (he's 2 1/2) and considering home-schooling. It's great to see someone else pulling it off so well! Thanks for the inspiration.
  • Love the way @elizabethpw thinks. I tried to fit into the marketing funnel and it doesn't work for me either. Yay for big ideas!
  • I am super excited about this video. First, I think you are awesome. I just love your style. Second, I have a consulting business helping women entrepreneurs and small business owners develop an easier, faster, better way to do business by putting in place effective, efficient and adaptable processes. That is my passion and I the funnel system works fine for that.

    However, and this is where your model comes into play, my purpose in life is to cultivate the next generation for success. I have been working on this website http://youthreachalliance.com and had a very difficult time until I watched your video and realized why. Youth REACH Alliance is about Teachers, Parents, Businesses, and Organizations coming together as a community to support the Big Picture and one another. (which as you pointed out does not fit the funnel model)

    Your model makes perfect sense with my purpose and I thank you for your willingness to share.
    Please look for an email from me as well.
  • Linette - great, I'm so excited that the business model is helping you with your new Youth REACH Alliance project! Sounds like a great fit for what you're doing there.
  • lindaeaves
    Goodness this model makes so much sense. Great video. Thank you. - Linda
  • tomlehner
    Hi Elizabeth,
    I love the way you think. As a matter of fact A long time ago I felt the need to improve my way of approach certain fields of business and right now I am taking coaching classes to be able to be more open in discussion and how to talk to my people. I have to admit that alot of times I learn alot more from you than from my high priced trainers. Thow I do agree with you in most of what you say in some ways my personality stands in the way to follow you 100%. For example when it comes to charity, I do alot of that and keep it a secret and honestly I dont really know why - maybe becasue I dont know how to handle grace or thank you's. And thats where you are so darn right, people think badly of me and consider me cold or uncomationate but I am not. I love to help where I can but I dont pin all of that on my flagg. And there are so many other times where I keep jsut information to myself, in project management (one of the many things I do) I have my staff and everybody knows his part he needs to know and I am the control point. Thats only examples. So this is why i take classes right now to improve only sometimes it is very hard. So maybe, or better for sure I should listen alot more to your advice. Thank you again and as usual your message came right on spot when I needed (seems like we have a mental connection) and was as usual extreme inspiring to me.


    Thanks for all your great insight and God bless.
  • Tom - well there are defiantly two issues -- one is *what* to do and the other is to let go of the crap that's holding you back from doing that what. I agree, until you find what works for you (living in the moment, breaking through resistance, being okay with being uncomfortable, thinking big, meditation, manifesting, etc.) for your mindset junk, then knowing *what* to do isn't helpful!

    Are you working with a coach one-on-one? If you have lots of mind junk, you may need individual attention to help you.

    Keep us updated on your progress!
  • I really like the way you think Elizabeth, you're like a rebel of internet marketers in a sense lol. With the launch of The Curvy Coach, I'm actually using this business model and have taught that you actually get the community first then you create a product based on what they want/need. I'll see if it really works by the end of next month and let you know the results.

    Not only are folks following the marketing funnel, but too many folks were following the conventional "business PLAN" where they created product first and hoped the market would buy. In 9/10 cases, it's such a waste of time!

    Thanks for this video, great as usual.
  • kaitrece
    Hey Kimmoy & Elizabeth,

    I'm Gina-Come-Lately (Johnny's sister) to this discussion, but glad I found it. I agree completely with you guys. I think people struggle so much because the 'rules' don't fit everybody. The even bigger problem is they don't 'feel right', even if you create a fit. Its exhilarating to hear people speak your internal debate with yourself! Glad I'm not so crazy or overly idealistic afterall! :-)

    So how did your test go after 1 month Kimmoy? Did it go a) as expected, b) better than expected, c) not what you expected? Either way, I hope you're still inspired by your vision . I've accepted that its going to be an imperfect start. I need to just START and then tweek as I go and allow myself to be led the journey in practical matters. I'm thinking any results you get puts you closer to the target right!? The most important part is to be moving in the Right direction that feels True for you.

    The Live Your Truth series has been AWESOME for crystallizing that for me! Thanks Elizabeth! :-)
  • And isn't that interesting, so many people are doing this business model yet I've never really seen it expressly taught or illustrated graphically, at least not yet. :)
  • You know what, many of us aren't really taught business models, we're taught business plans though :-/ So yes, many of us may do the "community first, product second" model but just aren't aware of it.

    You have a great opportunity to be a pioneer in bringing this business model to market and enhancing our awareness because like you said, I've never seen it explained like this before, so go for it!
  • maybe your housekeeper could of waited until you finished before she started cleaning- that noise in the background.... Do you heard it? It's in the first four minutes. Out takes at end were funny. *sweet*
  • as I mentioned in my previous comment, the next door neighbor was randomly making noise! :) but art waits for no one.
  • I came up with this model when my coaching Marcia Hoeck gave me the assignment to draft my business mission/values (which I have not done for a while) ... and this business model is what came out. :)

    Oh, and sorry about the leaf blower. :)
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