The Startup Ideas Podcast
The Startup Ideas Podcast

How to build a $20m sales funnel from scratch

October 28, 2024

AI Summary

5 min read

How to build a $20m sales funnel from scratch

Jonathan Courtney, founder of AJ&Smart, walked through the funnel that has generated over $20 million in revenue for his business — and it looks terrible. "This funnel, which I can barely look at, has already passed 20 million revenue in its lifetime," he said. "It looks like shit."

The episode's central insight is that most entrepreneurs confuse websites with funnels, and that mistake costs them dramatically. A website converts roughly 1–3% of visitors into customers. A well-built funnel can convert at 10–25%. Courtney's point is blunt: if you can 10x your conversion rate, that is one of the most powerful levers you can pull in any business.

Websites vs. funnels

A website is a brochure. It exists to prove you are real, to let people browse, to give a feel for the company. A funnel is a step-by-step process that turns a complete stranger into a paying customer. Courtney's funnels are completely separate from his website — different URLs, different branding, different teams. You cannot reach the funnels from the website, and you cannot reach the website from the funnels.

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What you'll learn

  • 1 (03:23) **Funnel vs. Website: The Core Distinction** - Jonathan defines a funnel as a step-by-step process to turn a stranger into a paying customer, contrasting it with a website which is just a brochure.
  • 2 (11:07) **The 10x Conversion Rate Opportunity** - The host highlights that websites convert at 1-3%, while funnels can convert at 10-25%, making this one of the biggest levers for growth.
  • 3 (12:59) **The "Facade" Trap: Why Copying a Website Fails** - Jonathan shows how competitors mistakenly copy AJ&Smart's website, not realizing the real money is made through separate, hidden funnels.
  • 4 (15:55) **Live Funnel Walkthrough: The "Ugly" $20M Funnel** - Jonathan shares his screen to show a live, "ugly" funnel that has generated $20M in revenue.
  • 5 (23:24) **The "Obnoxiously Long Video" Strategy** - The host identifies the key insight: using a long, valuable training video as a qualification and engagement tool.
  • 6 (25:05) **Does This Work for Other Verticals?** - Jonathan confirms the funnel strategy works for software, agencies, and high-ticket services, but not for prestige brands like Michelin-star restaurants.
  • 7 (30:02) **The "Ugly" Funnel Principle** - Jonathan shows that the shittiest-looking funnels (packed with copy) are the seven-figure ones, while nice-looking funnels often fail.

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Show Notes

Join me as I chat with Jonathan Courtney, Co-Founder and CEO of AJ&Smart, as we dive deep into how to build million dollar sales funnels. Jonathan shares his strategies and frameworks for creating sales funnels that will 10x your conversion rate

Episode Timestamps: 
00:00 Intro
03:04  Sales Funnels explained (Websites vs Funnels) 
15:53 Ugly funnels convert better!
17:52 The magic formula and example 1
25:28 What businesses should use funnels
34:11 Example 1 continued 
44:58 Pixeling + retargeting = marketing gold
50:15 Example 2: Book Funnel
56:27 The MIFGY secret (Most Incredible Free Gift Yet)

1) Websites are not Funnels
Websites = brochures
Funchannels = $$$ machines
Most businesses confuse the two. Don't make that mistake!

2) The magic formula:
Facebook/YouTube ads → Landing page → Free valuable content → Call booking
This simple funnel structure has generated MILLIONS for AJ&Smart

3) Ugly funnels convert better! 
Jonathan's "ugliest" funnel:
• 4 years old
• Looks terrible
• Generated $20M+ revenue
Lesson: Done is better than perfect. Launch fast, iterate later.

4) The power of long-form content:
1-hour training video → Deeper engagement → More qualified leads
People who invest time watching = more likely to buy

5) Pixeling + retargeting = marketing gold
Track visitors, show them targeted ads across platforms.
Build an inescapable marketing web!

6) Email marketing isn't dead, it's EVOLVING
Capture emails → Drip feed value → Segment based on behavior → Targeted offers
Smart email funnels = predictable revenue

7) Physical products STILL WORK in digital age
Free book funnel = game changer
People love holding something tangible. Use it to your advantage!

8) The MIFGY secret (Most Incredible Free Gift Yet)
Stack one-time bonuses on your offer. Create FOMO.
Even high-end brands use this. It just WORKS.

9) Key takeaway: Funnels aren't sleazy, they're ESSENTIAL
Top brands like Eight Sleep, AG1, and Whoop all use these tactics.
It's not about tricking people. It's about guiding them to solutions they need.

10) Want to dive deeper?
Read "Expert Secrets" and "DotCom Secrets" by Russell Brunson
Study Facebook Ad Library to reverse-engineer competitor funnels

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