Trey Lewellen tripped over a field one morning attempting to get into his closet. Inside have been about 100 flashlights, leftover stock from a earlier enterprise he’d actually forgotten about.
He pulled one out and checked out it, remembering these items had solely value him $5 every on Amazon when he’d purchased them in bulk. He didn’t want them anymore, so he figured he’d strive promoting a number of simply to filter out the area.
He constructed a funnel and listed them at $12, and inside a number of days they offered. Then he raised the worth to $25 and so they nonetheless offered. Then $35, then $45, and finally $56.
At $56, individuals have been shopping for a flashlight they might get on Amazon for $5. And so they saved shopping for. He ended up promoting over 500,000 models in two and a half months. And as soon as he ran via that unique batch of 100, he didn’t cease. He simply began putting orders on Amazon each time a buyer purchased from his funnel, transport them out himself with out holding the stock.
What began as clearing out his closet turned the muse of a system that’s made Trey over $100 million in e-commerce gross sales over the previous decade. The strategy was easy: take a look at the product in a funnel first, and solely purchase stock after clients paid him. If it didn’t promote, he owned nothing.
Most individuals assume you want merchandise sitting in your storage earlier than you may promote on-line, however Trey proved the alternative. That’s why when Russell Brunson wants an e-commerce sounding board, Trey is his first name.
So in case you’re excited about entering into e-commerce or wish to enhance your conversions, right here’s how Trey constructed a enterprise promoting merchandise earlier than he owned them, the precise framework he used to validate each product, and why funnels convert higher than shops irrespective of the place you’re ranging from.
The Telephone Name That Doubled Gross sales
Trey had been promoting the flashlights for some time when he began doing one thing most e-commerce retailer homeowners by no means assume to do. He referred to as the individuals who didn’t purchase.
Not the purchasers. The leads. Those who clicked the advert, landed on the gross sales web page, and left with out buying.
He’d ask them one easy query: why didn’t you purchase?
One man instructed him he was a flashlight collector, which apparently is a factor. And he solely purchased tactical flashlights.
Trey was nonetheless on the cellphone when he opened ClickFunnels, clicked edit on the gross sales web page, and adjusted the headline. As a substitute of “G700 Flashlight,” it now learn “G700 Tactical Flashlight.”
He added one phrase, and conversions doubled nearly immediately.
Individuals typically assume the product is the issue, or the advertisements, or the viewers. However typically it’s simply the language. You’re utilizing phrases that make sense to you, however your buyer is looking for one thing barely completely different.
Ultimately, Trey began recording these calls so he might return and hear for patterns. He wasn’t targeted on taking notes in the course of the dialog, he was targeted on really speaking to the particular person. Then afterward, he’d pull out the precise phrases they used and drop them into the funnel.
He did the identical factor with microfiber towels. He purchased them in bulk on Amazon for 50 cents every and offered them as an order bump for $7. However he didn’t name them microfiber towels, as a result of that’s what you sort into Amazon once you’re evaluating costs. He referred to as them premium cleansing towels.
Individuals purchased multiples. The conversion fee on that order bump hit 20 to 30 %, which is remarkable for an add-on product. They might have gone to Amazon and grabbed the identical towels for 50 cents, however they didn’t. Why? As a result of Trey was promoting the suitable product with the suitable language on the proper time.
How He Offered Merchandise He Didn’t Personal But
As soon as Trey knew the flashlights have been working, he wanted extra stock. However as an alternative of putting a large order and hoping they’d hold promoting, he did one thing smarter.
He solely purchased stock after clients had already paid him.
Right here’s how the method labored.
Trey would discover a product on Amazon, let’s say these microfiber towels. He’d construct a funnel round it, drive some visitors, and see if individuals purchased. In the event that they did, he’d go purchase the product on Amazon, have it shipped to his handle, then ship it to the shopper.
If the funnel flopped and no person purchased, he owned zero stock.
Amazon turned his warehouse. He didn’t pay for storage, didn’t negotiate with suppliers, and didn’t entrance hundreds of {dollars} hoping the product would promote. He let his clients pay him first, then he went and purchased the stock.
This wasn’t drop transport within the conventional sense. He wasn’t plugging his retailer into some third-party success community and hoping they’d ship on time. He was utilizing Amazon as his provider, controlling the shopper expertise, and solely shopping for what he’d already offered.
It’s the identical technique he nonetheless makes use of at this time to check new merchandise. He received’t contact stock till he is aware of individuals will purchase it, and as soon as he is aware of it really works, then he scales up, negotiates with suppliers, and builds out the again finish. However the take a look at all the time comes first.
One shopper got here to Trey’s workshop a number of years in the past promoting stomach button rings. He had 50,000 SKUs. Fifty thousand completely different designs, all handmade by a crew of about 12 individuals cranking out new types continually.
Trey requested him which one offered essentially the most, and the man knew instantly. He might level to the precise design.
“What in case you simply offered that one?” Trey requested.
The man appeared confused. Only one? What about giving clients choices?
In order that they constructed a funnel on the workshop that offered solely the top-selling stomach button ring. Only one product with a transparent supply. If somebody purchased it and wished extra choices, nice. However the funnel itself was constructed across the single best-converting product.
Income jumped nearly instantly. The man didn’t must handle 50,000 SKUs anymore, didn’t have to coach his crew on new designs each week, and didn’t must guess which of them would promote. He had one blockbuster product doing a lot of the work.
That’s the distinction between a retailer mindset and a funnel mindset. Shops prepare you to inventory the cabinets, give individuals choices, and hope they discover what they need. Funnels prepare you to assume like a more in-depth. Present them one factor, make it unattainable to say no, then present them what’s subsequent.
Why Funnels Convert and Shops Confuse
The typical on-line retailer converts at 1.4 to 1.6 %, which implies 98 out of each 100 individuals who go to go away with out shopping for.
Trey’s funnels convert someplace between 5 and 15 %, relying on the product and the visitors supply.
The reason being fairly easy. When somebody clicks an advert for a black gown, they anticipate to see that black gown. Not a class web page with 30 attire or a homepage with a rotating banner and a e-newsletter popup. Simply the black gown they clicked on.
However most e-commerce shops don’t work that method. You click on the advert, land on a class web page, scroll via choices, perhaps add one thing to your cart, get distracted, after which go away to match costs on Amazon.
Trey’s spouse does this on a regular basis. She’ll see a gown on Instagram, click on it, land on some obscure class web page, and instantly bounce. She wished the gown from the advert, not a procuring journey.
Funnels repair that. The advert exhibits the product, the gross sales web page talks in regards to the product, the order kind sells the product. It’s the identical factor during, no distractions, choices, or probability to second-guess.
When somebody clicks your advert, they’ve intent to purchase. In the event that they don’t purchase, you unsold them someplace alongside the way in which.
Trey put it this fashion: it could be like Goal having 100 individuals stroll into the shop, and 98 of them skip the checkout line and return dwelling.
That’s what most on-line shops are doing. They’re spending cash to drive visitors to a web page that confuses individuals, after which questioning why conversions are so low.
The opposite situation is belief. While you land on an e-commerce retailer, you’re looking. You’re unsure if that is the suitable product, if the corporate is legit, or in case you ought to simply go test Amazon first. You’re in analysis mode, not shopping for mode.
Funnels construct belief quicker as a result of they’re designed to reply objections earlier than you even ask them. The gross sales web page explains why this product works, exhibits proof it’s actual, and makes the case for purchasing now as an alternative of later. By the point you hit the order kind, you’re not researching anymore. You’re prepared.
That’s why Trey might pay $110 to amass a buyer on a $56 flashlight. He knew the lifetime worth was method larger than the front-end sale. He wasn’t creating wealth on the flashlight. He was creating wealth on all the pieces that got here after.
What He’d Inform You If You’re Beginning From Scratch
Trey’s been instructing e-commerce for over a decade now, and the recommendation hasn’t modified a lot. The platforms are completely different, the merchandise are completely different, however the ideas are the identical.
Take a look at earlier than you make investments. Don’t marry a product till you recognize individuals will purchase it. You don’t want a warehouse, crew, or model to begin. Simply proof that somebody will hand you cash for what you’re promoting.
Name the individuals who don’t purchase. Most retailer homeowners obsess over clients who bought and ignore everybody else. However the non-buyers will inform you what’s damaged. They’ll hand you the precise phrases to make use of, the objections to reply, and the tweaks that’ll double conversions in a single day.
Deal with one product at a time. The man with 50,000 stomach button ring designs was drowning in complexity. The second he targeted on his finest vendor, income jumped. One blockbuster product beats a catalog of mediocre ones each time.
Trey constructed his enterprise on test-first ideas, however the deeper lesson is about adaptability. He didn’t have an ideal plan when he tripped over these flashlights. He had a product, a funnel, and a willingness to see if it labored.
It did, and when it didn’t, he moved on to the subsequent factor.
Begin Testing Right this moment
Trey’s revamped $100 million in e-commerce utilizing the identical frameworks Russell Brunson teaches in DotCom Secrets and techniques. Funnels, upsells, order bumps, and backend presents haven’t modified.
What has modified is how briskly you may take a look at an thought. You don’t have to spend months constructing a web-based retailer, sourcing merchandise, and hoping individuals present up. You’ll be able to construct a funnel in a day, drive some visitors, and know inside per week whether or not the product has legs.
Trey nonetheless operates this fashion. He runs perhaps three merchandise a yr now, all blockbusters, all examined earlier than he ever touches stock. This strategy is what retains his crew small, his programs lean, and his margins wholesome.
And he nonetheless calls individuals who don’t purchase, as a result of that’s the place the gold is.
So in case you’re sitting on an thought however ready for the “proper time” to begin, Trey would inform you the suitable time is when somebody fingers you cash for it. Every part else comes after.
And the quickest technique to get that proof? Construct a funnel and see if individuals convert.
Trey’s total system runs on ClickFunnels as a result of it’s constructed for testing. You’re not constructing a retailer and hoping visitors exhibits up. You’re constructing a targeted gross sales web page that does one job: show individuals will purchase. After getting proof, you scale.
Click on right here to begin your free ClickFunnels trial and run Trey’s test-first playbook. One product, one funnel, and also you’ll know in days whether or not you’ve a winner.
