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- Issue 111: The Myth of the Funnel
Issue 111: The Myth of the Funnel
+ Why Businesses Fail
Okay, y’all better clap for this issue — and by that we mean ☝️ read to the bottom, ✌️ click on the sponsor links, 👌 reply and let us know how much you loved it — or else NO ONE graduates this year.
Graduation privileges will be summarily revoked. ❌
On with the show!
| TWEET OF THE WEEK
Breaks my heart to have to shatter people’s perception sometimes…😅
Funnels are a myth.
The psychological work has already been done long before customers ever see an ad.
I’ve been explaining it to clients like this…(seems to help clear up confusion):
— Sarah 🦕 (@SarahLevinger)
4:03 PM • May 4, 2024
Why businesses fail
We’ll start from first principles.
What is a turnaround?
A turnaround is the process of fixing a business that is on the path to failure. There is a real and present mortality risk.
There is finite cash, or maturing debt, with no obvious solution. And there is certainly no VC waiting to extend the runway.
A turnaround is the process of fixing a business that without intervention will fail. Soon.
So why do businesses fail?
Fundamentally, one reason: they run out of cash.
Unprofitable businesses can survive a long time with access to enough cash.
Likewise, profitable businesses can die in a heartbeat if they don't have the money in the bank to pay the rent when due.
When is a turnaround necessary?
If a business doesn't have the cash needed to pay its creditors when they expect the business eventually will be unable to continue. Because creditors will not allow it to continue.
At the extreme end:
the landlord will padlock the doors
suppliers will stop delivering
employees won’t turn up to work if they go unpaid
banks will call in loans
customers will stop ordering as they lose confidence
At this point (or maybe before), you are into technical bankruptcy processes (Chapter 11 and international equivalents). The law is complex here, but exists to protect directors and creditors. We touched on it in January’s board of director series. But getting the right legal advice is critical.
| YOUTUBE UNIVERSITY
Why All Brands Should Study Stanley Cup CEO Terence Reilly's Marketing Masterclass
| TOGETHER WITH GENIE
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Intuitive source of truth for inventory — automate your day-to-day analysis of key metrics at the product variant level.
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Powerful reports in a few clicks — Skip the hassle of manual data analysis and never stress about data entry
Purchase orders — Plan, create, and track purchase orders all in a single place.
Collaboration — Work with your team and your suppliers effectively and eliminate a lot of time sucking back-and-forth.
Want to learn more? Check this out: How Onewith Swim Maximized Their Working Capital So They Could Grow 2x
Ready for a test drive? The Genie Team is ready to answer all your question. Book a quick chat.
| QUICK SHOTS
@MattiSchroder: Scaling too fast has caused us more bad than good…
@danavirsarria: The 3 steps to highly profitable ad creative:
Gytis Čibiras: These ads have been winners for 6 months👇
Jordan West: We've been digging through the data on TikTok Shop and one thing we've found is... the rocketship brands are getting on TikTok Shop Mall + from there doing a tonne of revenue! So... How to get your brand on the Tiktok Shop Mall? 📲💼
@Ben__Kruger: Baffles me how so many will use the same hacks, ad templates, Shopify apps, SaaS tools, and agencies as everyone else… And expect good results
@SeanEcom: Statically, this is how you lower your return/refund rate…
| HERE FOR THE MEMES
| AND IN OTHER NEWS…
| GET LINKED
Popsmith’s ecommerce funnel is a freaking masterclass. Top, middle, bottom, and back again.
Especially the ease + power of its approach to discount codes.
At the top …
Its cold-traffic landing page opens one-for-one with the video used on Meta: “3 Reasons Why You Need This Stovetop Popcorn Maker.”
Creative continuity is accompanied by offer continuity.
No navigation bar, no hamburger menu, just reasons to buy.
Free shipping
5% off the list price
$229 vs strikethrough
Another $30 off at checkout
In the middle …
Warmer traffic is sent to a Bundle n’ Save PDP centered on the popper and popcorn kits, which stack savings as you select quantities.
Not only does the PDP contain a popup for $30 off, but Popsmith’s Facebook ads also insert the discount into the on-page experience.
Opting in for SMS ups the discount to $40, giving browsers a strong incentive to get texts, too.
| YOU’RE HIRED
Brand
🆕 Creative & Content Marketing Manager (Ash & Erie)
🆕 Email & Ecom Marketing Manager (Ash & Erie)
Senior Digital Marketing Manager (Glade Optics)
Front-End Engineer (Neurohacker Collective)
Direct-to-Consumer Demand Planner (Beekman 1802)
Brand Manager (ResBiotic)
SaaS
Content Marketing Manager (Talkable)
Agency
Strategic Director (Surefoot)
Got a job you want us to list? Let us know.
| THE OUTRO
Aight, we’re ready for our standing ovation.
Until next time! ✌️
Workspace6
