Customer Lifetime Value In Marketing Funnel – Funnel Secrets

Today Funnel Secrets will be going to talk about the customer lifetime value in the marketing funnel. Many people sometimes ask how to find your first niche, how to find your audience and how to get your funnel.

But what we’re really been focusing on mainly has been just a very small slice of the story.

It’s really the starting point, getting your funnel going, getting your first kind of revenue generation and lead generation system together.

So that is really just the starting point, it’s important to always be thinking bigger, thinking kind of long-term and the kind of metric.

That we use to follow this is what the lifetime value of a customer is?

Now we going through that concept. Let’s get started.

online marketing funnel - customer lifetime value

How to pay more than your competitor with Customer lifetime value?

What is customer lifetime value?

In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or lifetime value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer. The prediction model can have varying levels of sophistication and accuracy, ranging from a crude heuristic to the use of complex predictive analytics techniques.

Sources: Wikipedia

Why we need customer lifetime value?

If you’ve got a simple funnel setup going, you’re selling a $17 eBook on the front end and maybe a forty-seven dollar OTO afterward.

You have the potential of making something around 65 bucks. Take out the transaction fees you’re down to maybe $60.

Subtract how much you paid in traffic to get that user, the cost of your email subscription and your funnel service.

And you’re not left with much at the end of the day.

Now I want to let you know that. It’s incredibly important and powerful. It’s a job well done when you get to the point that you have that front end of the funnel.

But that’s really just the beginning point. So I think Russell Brunson is one who I first heard it from. And it was in his book the dot-com secrets. I’ll give you for free if you would like. You just click here to get Dotcom secrets Book for free.

It’s a fantastic book and it talks all about this what we’re talking about. In this post goes a little deeper from a kind of a different angle. Essentially he says that amateurs focus on the front end of the funnel and pros focus on the back end of the funnel.

Because professionals get that all the money.

The long-term money is really in the back end of the funnel. It’s not what happens in that first few interactions, it’s not what happens in the first sale, it’s what happens weeks, months and years

So in my business what does this mean?

We have people to this every day, who are still purchasing our products when we launched them, who purchased products from us.

So what is the value of a customer, who continues to purchase $17 or $197 or $495 products from us? Into the future the lifetime value of that person is literally thousands of dollars.

Now, if you average it out across everyone our new customers who showed up today this morning or last night and people who should have earlier this year.

And those original customers, who are still with us our lifetime value of a customer is somewhere around $150.

So it doesn’t matter what they purchase up front someone, who becomes a customer is ultimately going to spend on average about $150.

As long as, I’m not spending near $150 right?

If I’m spending $30 per customer. Even if I’m only making seventeen on that first sale.

I know because of my customer lifetime value number knowing that number, I’m going to be profitable over time.

So it’s an investment in my traffic spend when I’m paying to get leads and customers. Because I know, I’m going to get that money back.

This is really similar to what Russell Brunson calls the value ladder in the dot-com secrets book. You can get the actual real book mailed out to you, he’ll give you the book for free.

You just pay shipping. Get Dotcom secrets book free now.

I highly highly highly recommended.

Customer lifetime value graphic – The value ladder

Look at what is the customer lifetime value.

So this is kind of a little chart. We’ve got time on the left and as time increases, the value increases.

customer lifetime value marketing funnel

So this little stair step that you see, this is a resemblance of your Funnel.

Like this first part down here, would be your initial funnel like what we’ve been talking about in the simple affiliate funnel or in the even the advanced self-liquidating funnel.

You’re talking the first two or three steps.

But you’ll notice there’s all these other steps that you need to get your customers to.

And they’re going to vary what they are depending on, what you do on your niche etc.

But it’s just what I’m really trying to get at and make sure is clear is that. Although we’ve been talking about this area up till now, and you have this working.

The real-life time money, the real lifestyle business comes from figuring these portions out here.

So you pay for traffic they’ve never met you before right?

The times at zero and you get a few people to spend $7 to $17. They pick up your tripwire and you get them with a one-time offer.

That’s great! They’re happy you let them consume that and you continue to follow up with them at this point.

At some point, you offer them a $47 or $97 course.

And then at some point, you offer them maybe a multi-week, or a multi-port course eventually higher and higher dollar tickets all the way up to the really high-end kind of one-on-one coaching, done-for-you funnel.

That I believe is like $97, the digital marketer has their $3000 per year war room mastermind.

So they getting these up here. Tony Robbins has I think a $6000 product.

Marketing funnel example

Let’s go ahead and fill in some of these pieces right. Here’s what it would look like filled out.

marketing funnel example - sales funnel template


Now again it’s important to remember. I’m using this as an example and you need to figure out what these different steps are for you, for your niche, for your business and most importantly for your customer avatar.

What do they want? Where do they want to go in life? Not just solving this one problem we helped them with on the front end of our funnel.

But stacking funnels together.

This is getting into the funnel stacking idea, stacking those funnels together in a way that you take them farther and farther away from their fears, and farther and farther closer to their desires, and their dreams.

The better you get at this the better off you are. This is what makes click funnels so powerful.

You’re able to go create funnel after funnel in a few clicks. And it makes the technology required to do all of these things that literally back in the day.

I mean, months to put together a free plus shipping book offer would take a week of developers, designers and literally I can go put this together in less than an hour.

So, I already built one funnel on the channel. I think I’ve built it and talked it out in 30 minutes.

So let’s go through this right.

They’ve never met you before they see an advertisement, they click on your ad to get your free book right?

It’s a free book offer, they bit just pay shipping, they go ahead and jump on it.

sales funnel template

Just like the offer you’re going to see the underground played book Russell Brunson Dotcom secrets.

And then there’s a bump on it and they’re offering the audiobook. I pretty much always.

Go for the audiobook upsells. How much time I spend traveling whether. It’s in a plane, a train, or a car.

I listen to audiobooks in those times because it helps me kind of grow my mindset while traveling.

So I feel like the Times put to good use.

This is the very front end of your funnel and you’re probably negative here buy a dollar or two and you might actually get to about $10 or $20 profit here.

That’s not enough to make a business out of is what I’m getting at. It’s not until you get into these higher level items notice the values go up…up…up.

This is where the actual money is made in your business.

Thousand Dollar Secrets Funnel – Sales funnel example

These first here are generally designed to generate enough cash flow to spend more money on marketing, to bring more people into your offer.

And what happens is it’s like a filtering system, it’s a funnel. So some percent like.

digital marketing funnel - value laffer


  • 100% people right here,
  • 20% – 30% of the people are going to buy Audiobook.
  • Of everyone who buys this maybe 50% of people buy Course.
  • Every of everyone who buys that maybe 10% of people are going to buy 6-week certification.
  • Maybe 5% of people are going to buy 3-day live event.
  • And maybe 1% of people buy Coaching

But when Coaching is 30000$ and 3 Day live Event is 6000$. You don’t need lots of people buying these products.

sales funnel stages funnel secrets

So it’s a filtration system that allows your best customers to present themselves.

And you’re always offering them the next logical step in what they feel like, or what they want in order to achieve their goals, or to get away from their fears right?

So the free flow shipping then the audiobook.

A week later and a follow up you offer them the home study course.

They went through in the audiobook and the free shipping in the book.

It takes this material to the next level it’s over your shoulder watching me click and show you exactly where to go.

They love it because they want more. They get the theory here and then they get the how to do it here and this costs $197, $297.

Then now they’ve learned this new skill, they want to go sell this skill to people in their local marketplace.

They want to go out and they want to be a certified funnel expert or a certified pay-per-click person, or a certified Facebook marketer.

So they could run Facebook marketing campaigns. But they want a piece, they want a certification for it. Boom!!! You’ve got a six-week certification course.

Now we’re talking a thousand dollars, right? You’re going to get a certification, you’re going to make your money based on that certification.

This is now a thousand dollar product.

Then of the people who go through this, there’s people who run with it, they get really excited and they’ve got their first five or six clients and they want to get to a hundred clients.

They want to build a real business with it. You invite them to your 3 days live events.

It $6000 and you get the best of the best-certified people.

You get keynote speakers in and they will teach you how to really take your business to the next level.

Obviously, it’s not for everyone who gets the certification. It’s for the people who are the most ambitious and the most excited to take it to the next level.

Then at the event, selling from the stage you offer the access to the ongoing personal coaching and or mastermind.

That costs literally $10000.

Now again I’m not saying you need to do this. I’m using this as an example and I think this is a very common funnel example.

Ultimately, I think this is kind of bits and pieces of what some of the best internet marketers do in the world, do instead of personal coaching, a mastermind.

It can be done for you products.

You don’t have to do live events. It’s just designed to help you see that as you build a long relationship, and more time.

You spend more time with your leads and your customers, you want to be offering them more and larger products over time.

Now if your customers aren’t buying this, if this is converting terribly you can try different offers in here.

And you’ll notice what you’ll be able to do is when you have this working.

So one funnel per step and that’s a separator funnel.

You could look at which funnels are performing the best, which are performing the worst. You let the best ones run and try to learn from them.

And you go work on the ones that are performing the worst to try to improve them and optimize them.

Ultimately, something resembling this that is logical for your niche and for your kind of target market or your customer avatar.

This is how you build a multiple six-figure to seven-figure and even eight figure a year business, this is what people want as far as the customers.

Ultimately it takes a lot of time to get here we all start here at the beginning and we add on larger higher value products over time.

And it allows our customers to ascend into a higher price point, and they all the while they love it.

I mean they are loving the one-on-one attention from the guru at this point.

They’re loving the experience of going to the live event and really really understanding the culture of what you do they’re loving the certification.

Because they have more confidence to go out and sell those services at this point. So this is really powerful, I hope it makes sense. It’s really really simple, but it’s an incredibly powerful concept that you need to understand.

Because if you never get beyond right here – the front end of your funnel you’re never going to build a true lifestyle business that can truly generate the 200, 300, 500 thousand dollars a year or million or 3+ million per year.

Literally, I know for a fact, this is the kind of funnel. It’s a little bit different.

But I mean Russell Brunson, I believe he does like three to four million dollars per month with similar funnels to this.

He has additional niches and he’s running these kinds of funnels in different niches. But that’s the power of learning how to create these funnels, how to create these offers.

Because once you do this in one niche, you can go do this in a similar niche.

So you can do this in the weight loss niche, and then you could teach personal fitness instructors, how to build their businesses with a similar funnel.

But angled at a different target market still in the same niche allowing you to leverage your expertise to the end consumer and to the coaches who are teaching something similar.

That’s really how businesses scale. So I just wanted to lay this out for you. Because I thought it was very important to understand the depth and the kind of length of relationship that you’re going to create with your customers.

And as long as you are thinking in this mat like in this manner to get going. It’s okay that you’re starting, get click funnels get started, and see how you can get these working.

Once these are working and generating positive cash flow you work on this piece once all three of those are working your work on this piece.

If it takes you years to build a multi-million dollar business.

That worth it to you?

The question is that worth it to you? It’s definitely worth it to me.

So thank you very much for your time really understand the lifetime value of your customers, know that number you can track that number inside of Clickfunnels.

You can track that number inside of the same cart and just really understand what that lifetime value is?

Because if you’re running cash flow negative down here. But you’re making the pure profit up.

That’s okay a lot of people go cash flow on their first offer and they kind of freaked out. But it’s all about these other products that really make your funnels and your funnel stacking come to life.

Read more:

How to get free traffic to website – Top 10 my favorite FREE traffic sources

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