What is Five Dollar Funnel?

Building on the concept of minimizing entry risk, Five Dollar Funnel offers entrepreneurs a way to build wealth with just a $5 investment. Of course everything hinges upon whether you can sell fabulous amounts of product and secondly whether you can keep up the pace.

There's an affiliate fee disguised as your “Matrix Fee”, which can become subsidized by your monthly income… again, dependent on whether you can move that product.

So, Who Are Your Customers?

FiveDollarFunnel is a training system for budding online entrepreneurs. Your customers are your downlines, and your residual income depends on everyone getting involved in finding new budding entrepreneurs to join the system.

That means you're not only selling training system, you're also selling network marketing opp. Feels kinda circular!

So, who is your ideal customer? It's going to be someone who needs money, of course, but also someone who is “salesy”, social, savvy, and energetic. He or she should be interested in perhaps running several online businesses, for which the Five Dollar Funnel training would come in handy.

So, what's the Product, Exactly?

There are four main components of the Five Dollar Funnel training system product. They are:

1. Video Training. Not training via video necessarily, but how to use your own video casts to drive sales and build your brand.
2. Contact Manager. They call it a custom lead management system- it's an email program similar to MailChimp, which of course is extremely useful and necessary.
3. Hypnotic Ad Copy. Training on how to become a copy writer. (really?)
4. Social Entrepreneurs. This one is kind of vague on the Five Dollar Funnel website. “Learn how to become a true entrepreneur utilizing the power of the internet…” well duh! Isn't that what items 1-3 were about? Not sure what they mean, but perhaps this is where their ongoing training comes in?

So, the product is a suite of marketing tools for running an online business. Find people who are already hooked up with some affiliate program, point out a few things they're doing wrong with their business, and bam you've got a potential lead.

Will you be one of those annoying people contacting website owners via their comment forms telling them they're doing it all wrong? Perhaps, but hopefully Five Dollar Funner has some fresher, better ideas than that!

The Five Dollar Funnel Compensation Plan

Here's what you're really after… Show me the money. Basically, you can start on the bottom-level matrix, the Kickstarter Matrix, with an initial $5 investment. Bust your tail that first month and sell enough to cover the monthly fee for the next level, and you shouldn't have to invest any more after that.

So, judging by the Kickstarter Matrix, you'd have to sell at least 27 products in your first month in order to cover both your initial $5 investment, plus the $20 fee for the next level (the Builder Matrix). That's a lot of training programs sold and then you'll be making a net profit of $15.

But then you've elevated yourself to a higher level of earnings…plus you've got your new underlings working for you so everything at this point gets exponential. You'll need to sell at last 27 products again if you want to make it to the next level (the Leader Matrix). Then, you'll have made a net profit of $9.

But, you're now on a matrix which will net you a $33 profit if you choose to stay at that level plus you sell another 27 products. At this point it should be easier if all your downlines are doing their jobs.

But at this point you've worked 3 months busting your tail to sell about 100 products and you've made around $60.

Summary

Based on the above, I'm going to say that the only way to start making real money with this program is to up the ante and get in there to sell hundreds of products each month.

Look at the 243 products levels in each of the matrices below…now you're at roughly $1100 for the three months. Still not great but it's at least worth a little effort to see if you can move 243 products a month.

That's about 8 sales per day by the way, to net yourself $367 per month.

Better get rolling because you have a lot of work to do.

Here are the details of the comp plan:

Kickstarter Matrix: $5 monthly

• sell 3 products: $.75
• sell 9 products: $18.00
• sell 27 products: $40.50
• sell 243 products: 121.50
• 363 product sales: $221.00 monthly potential

Builder Matrix: $20 monthly

• sell 3 products: $3.00
• sell 9 products: $36.00
• sell 27 products: $108.00
• sell 81 products: $324.00
• sell 243 products: $972.00
• total 363 sales $1,4443.00 monthly potential

Leader Matrix: $99 monthly

• sell 3 products: $0.00
• sell 9 products: $89.10
• sell 27 products: $133.65
• sell 81 products: $400.95
• sell 243 products: $1,202.85
• sell 729 products: $3,608.55
• sell 2,187 products: $43,302.60
• total 3,279 sales $48.737.70 monthly potential

Mogul Matrix: $297 monthly

• sell 3 products: $0.00
• sell 9 products: $267.30
• sell 27 products: $400.95
• sell 81 products: $1,202.85
• sell 243 products: $3,608.55
• sell 729 products: $10,825.65
• sell 2,187 products: $129,907.80
• total 3,279 sales: $146,213.10 monthly potential