Click Funnels Review: Internet sales funnel + 2 levels of recruitment
Click Funnels operate in the internet marketing MLM niche and are based out of Idaho in the US.
The Click Funnels website identifies Russell Brunson as CEO of the company.
On his Facebook bio, Brunson (right) refers to himself as a “top super affiliate”.
For over 12 years now Russell has been starting and growing companies online.
He owns a software company, a supplement company, a coaching company, and is one of the top super affiliates in the world.
Brunson is heavily involved in internet marketing, primarily developing and promoting marketing tools which he then sells.
There is some crossover with these tools with respect to being able to market MLM opportunities. The only MLM opportunities I was able to tie Brunson to as an affiliate though are Pure Leverage (gifting scheme attached to blog platform) and Rippln (disastrous attempt at an MLM app company).
Read on for a full review of the Click Funnels MLM opportunity.
Click Funnels Products
Click Funnels has no retailable products or services, with affiliates only able to market Click Funnels affiliate membership itself.
Bundled with $97 a month Click Funnels affiliate membership is access to a sales funnel creator.
An upsell membership for $297 a month provides additional access to
- Backpack – “run smart affiliate programs inside your funnels!” and
- Actionetics – “create smart action funnels (email, text message and MORE)!”
The Click Funnels Compensation Plan
The Click Funnels compensation plan sees affiliates pay $97 or $297 a month in fees. Commissions are paid when they recruit others who do the same.
Click Funnels use a unilevel compensation structure to pay commissions.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Commissions are paid when fee-paying affiliates are placed within a unilevel team via direct and indirect recruitment:
- level 1 (personally recruited affiliates) – 40%
- levels 2 – 5%
Joining Click Funnels
Click Funnels affiliate membership is either $97 or $297 a month.
The difference between the two options are bundled marketing tools.
I’m always a bit suspicious when I see an MLM company built around a sales funnel or some other marketing shtick. Reason being we typically only see these systems resold after whatever it is they were initially attached to starts to fail (Pure Leverage?).
That said if an MLM affiliate wishes to charge their downline for access to whatever system they’re using – more power to them.
Doing so with a pyramid recruitment business model however is not on.
As it stands, there’s no differentiation between affiliates and retail customers in Click Funnels. What that means is effectively there are no retail customers, everyone is an affiliate.
Commissions paid out are therefore attached to recruitment, with affiliate fees constituting 100% of revenue generated by the company. This same revenue is used to pay commissions, rewarding those with the largest recruited downlines.
Click Funnels does barely qualify as an MLM opportunity as it only pays out over two levels, but compliance is still compliance.
If affiliate recruitment dies down, so too will commissions. This will likely prompt a large number of affiliates at the bottom of the company-wide unilevel unable to justify $97 or $297 a month.
They stop paying their fees, the people above them stop getting paid, they stop paying their fees and before you know it the entire system has collapsed.
At that point any affiliates who haven’t recouped monthly fees via recruitment, lose out.