The Two Funnel Building Methods That Scaled Two 8-Figure eCommerce Brands
Everyone wants to be an 8-figure eCommerce brand. The question is which type you want to be.
All told, there are really two types of 8-figure eCommerce brands.
The first is one that builds their revenue through a main funnel - one that is gated, step-by-step.
The other is one that has lots of funnels. They operate on the "buy it quick" model and that, coupled with upsells, is how they generate income.
The truth is, there is no "one right answer" to this decision. It takes insight into not only your company but also your audience to determine which path is right for you.
#1 One Main Funnel
An example of the first type of brand - the one with one main funnel - comes by way of The Beard Club.
Using this model, they were able to generate more than $10 million in revenue during their first year and $60+ million to date. They were also able to garner more than 500 million video views as well.
The impressive thing is that they did this with no email marketing. They did not use affiliates. Their website at the time left a lot to be desired in terms of design. Yet still, this method paid off for them.
#2 Many Funnels
The other method - with many funnels - scaled the brand Truly Free.
They used a lot of funnels, sent out tons of emails, and had great retention rates.
As a six-year-old brand, they generated $3 million in 2019 alone. To make things even more impressive, they generated $11 million in 2021.
Which is right for you?
At Truly Free, approximately 40-45% of $1 million per month is MRR. They do weekly offers and they hit their lists aggressively in order to generate as much business as possible.
Is this method recommended for subscription companies and brands? No - but for cash-flowing businesses, it can be a great boost.
Another part of Truly Free's success has come by way of operating on a "free" promotional model versus a discount one. That doesn't mean they give their products away for free - far from it.
It's just that when it comes time to execute some kind of promotion, free is always better.
People love free things - they always have, they always will. But people have a hard time understanding percentages and discounts. If you simply give away a promotional item for free, you aren't reducing the perceived value as much as you would with a 10% off coupon or similar gesture.
Finally, the most important thing to understand is that the easiest thing to sell someone is whatever it is they just bought. If they're satisfied, it's likely they'll be willing to come back for more. This is true with related items that can help them get more from their purchase - which is why upsells are an opportunity worth taking advantage of.