Launching your own business is one of the most exciting adventures you can have in life.
It’s not just about making money; it’s about creating a better life for yourself and your loved ones.
But the journey is not easy.
Studies suggest that 87.7% of entrepreneurs struggle with mental health issues due to the stress and pressure of running a business.
So what if there was a smoother path to success?
ClickFunnels co-founder Russell Brunson discovered exactly this after years of exhaustion as an entrepreneur. In his book DotCom Secrets, he talks about finally finding success and fulfillment by asking four key questions before launching any new product or service.
These questions form what he calls the ‘Secret Formula’.
Below, we’ll explore these questions and provide actionable tips to help you launch a successful business you’ll also love working on.
Get ready to unlock the secrets to building a business that transforms your life!
After Russell created the Secret Formula, he began using these four questions with his private coaching clients.
These were high-level clients who invested $25,000 a day to work with Russell.
Luckily for you, we’re diving into these questions today and it won’t cost you a cent!
The four questions that make up the Secret Formula are:
That’s it.
That’s the secret formula.
The answers to these questions will literally determine the success or failure of your business launch.
In the sections below, we’ll explore each question in detail, offering practical and actionable tips to help you answer them effectively and keep your business on the path to success.
Most people who start a business begin with an idea for a product or service.
Let me guess — that’s exactly how you started, right?
But here’s the thing: it’s the wrong way to begin.
Instead, you need to start by thinking about your dream customers and considering what they want.
Take a quick look at a few examples of businesses that initially launched a product or service and completely failed – until they shifted their focus to understanding their dream customers and how best to serve them.
Post-it Notes began as a complete failure.
It was originally developed as a weak adhesive that no one seemed to need. The product only found success when 3M realized that their dream customers were office workers who needed a simple way to organize and communicate.
By repositioning the product as a tool for note-taking and reminders, Post-it Notes became indispensable in offices worldwide, leading to annual sales exceeding $1 billion.
Slack started as a failed video game development project called Glitch.
The game found a small group of raving fans. But the majority of players didn’t like the game and the creator, Stewart Butterfield, and his team, struggled to grow revenue.
But while working on the game, Butterfield created an in-house communication tool that helped streamline their workflow. His team realized that their true dream customers were not gamers, but businesses that needed better internal communication tools.
After pivoting to focus on workplace messaging, Slack became a massive success, growing to over 12 million daily active users by 2020 and generating $902 million in revenue that same year.
Starbucks originally failed to gain traction as a coffee bean retailer, with customers uninterested in brewing high-quality coffee at home.
The company pivoted when it realized that its dream customers were actually looking for a social experience around coffee.
By transforming into a coffeehouse that offered a “third place” between home and work, Starbucks grew to over 30,000 stores worldwide and reported $32 billion in revenue in 2022.
Quick note.
I’m not saying that you should scrap your business idea.
What I’m saying is that defining your dream customer, figuring out the problems they want to solve, and matching your product to the solution will help you reach success faster.
When you get this right, magic literally happens right out the gate.
Here’s a couple exams of businesses who built their product or service idea around their dream customers first, and then experienced miracles when launching their business.
Airbnb began with a clear focus on their dream customers – homeowners looking to earn extra income.
The co-founder, Brian Chesky, understood the audience’s problems because he had rented out an air mattress in his shared flat to make some money. His guests loved the experience, and the business grew organically from there.
AirBnb struggled to get investors interested at first. They thought the idea posed safety issues — at first, the idea was to rent out a room while owners were still there.
But Airbnb quickly gained traction among its target audience.
This customer-first approach helped Airbnb grow rapidly, reaching over 6 million listings in more than 100,000 cities by 2020, with the company valued at over $100 billion by the time it went public.
Peloton identified their dream customers as fitness enthusiasts who craved the energy and community of live workouts but wanted the convenience of exercising at home.
By developing high-quality exercise equipment paired with live-streamed and on-demand classes, Peloton created a unique, tailored experience that resonated deeply with the target audience.
This focused approach led to rapid success, with Peloton reaching over 1.4 million subscribers and generating $1.8 billion in revenue by 2020, just eight years after launching.
Dropbox was founded after Drew Houston, the company’s founder, grew frustrated with not being able to access important files while commuting by bus.
He kept forgetting his USB stick.
This led him to create a cloud storage solution that would allow people like him to access their files from anywhere.
Dropbox was built with a clear understanding of its dream customers – everyday computer users frustrated with managing and sharing files across different devices.
Within just two years of launching, Dropbox reached 50 million users. By 2017, the company was generating over $1 billion in annual revenue and made its place as a leader in the cloud storage industry.
So…how can you get your business off to a successful launch like that?
The easiest way is with a customer avatar.
In the video below, one of ClickFunnels’ top affiliates John Lee Dumas talks about how defining his customer avatar helps him create products that sell.
It really helps you to map out your dream customer in a document you can come back to for reference.
Here’s an example of what a customer avatar document, based on John Lee Dumas’ insights, might look like.
This is just a random example.
But you can expand upon this basic customer avatar to tune in to your dream buyer.
Now let’s move on to step two, where we figure out where our dream customers hang out online.
Now that you’ve identified your dream customer and matched your product to their pains and dreams…
You need to actually find your dream customers online.
Too many businesses have failed because they launched a great product or service that solves the real problems of a group of people… but they just couldn’t get in front of them.
Take a look at these examples below.
Juicero was a high-tech juicing machine that failed to succeed.
It was probably a great product… but it never effectively reached its intended audience of health-conscious consumers who valued convenience and fresh produce.
Instead of targeting digital platforms where this audience congregates – like Instagram and health-focused blogs – Juicero focused on general media coverage and high-end retail placements.
This disconnect never reached the kinds of people who would see the value in spending $400 on a juicer, which would save them time in their own daily juicing routines.
As a result, Juicero shut down in 2017 after failing to generate sustainable sales.
Quibi was designed to provide high-quality, short-form video content for mobile users.
But it struggled to reach its target audience of millennials who are already engaged on platforms like TikTok, YouTube, and Instagram.
Quibi was instead advertised on traditional media channels like TV and billboards. Had it targeted its ideal audience where it actually was… it could have been a better success.
However, after spending nearly $2 billion on the project, Quibi shut down just six months after its launch in 2020 due to low subscriber numbers.
Google Glass was an amazing product that displayed information through a device resembling eyeglasses.
It had new features like augmented reality and voice control.
But instead of focusing on digital platforms where dream customers congregated – like tech forums, Reddit, and specialized tech blogs – Google Glass was marketed through mainstream media and high-profile public demonstrations.
This approach didn’t work. The mass-market consumer didn’t really see the value in the fancy features.
Google Glass was discontinued in 2015 after poor sales and privacy concerns.
Step two to launching a successful business is finding out where your dream customers are, so you can get in front of them.
You’ll not only get sales more easily…but you’ll avoid wasting money on failing ads.
This is important. In the examples above, it probably wasn’t the product that flopped – it was because the product wasn’t put in front of dream customers.
We wrote about finding where your customers are in this post about the Dream 100.
To help you target your dream customers, start by finding the digital spaces where they are right now. I recommend you list out these spaces one by one and find the following:
Here’s a cheat sheet you might want to use to help you get there.
I know it sounds like a lot.
But this is an exercise that will pay off in huge rewards when you come to actually launch your business.
Take a look at how the businesses below leveraged pre-existing communities online to launch a successful business.
Craftsy quickly found success by targeting its dream customers – craft enthusiasts – on platforms where they were already active.
To gain their first 1,000 customers, the company focused on Facebook groups dedicated to popular categories like quilting. They also partnered with sources running quilting newsletters, helping them monetize by introducing Craftsy to their audiences.
Craftsy rapidly expanded its reach, growing to over 8 million people segmented across various clubs, and turning into a $24 million business.
In 2020, while other meal kit companies like Blue Apron were struggling with the pandemic, HelloFresh added 1 million new customers in the first quarter alone.
How?
HelloFresh’s success was driven by a strategic focus on lifestyle, motherhood, and cooking influencers, as well as targeted podcast sponsorships.
The company offered special discounts and shared personal experiences of cooking with their kits on podcasts their dream customers listened to – busy individuals who valued healthy and convenient meals.
This strategy led to a 50% increase in new customers during the campaign, proving the power of targeted marketing to an engaged and loyal audience.
MVMT, the stylish watch and accessories brand, skyrocketed from $0 to a $100 million exit in just five years by strategically partnering with Instagram influencers.
By focusing on their dream customers – young, fashion-conscious individuals – MVMT used influencers to advertise their products.
This approach allowed them to grow their influencer channel 7X, resulting in over 100,000 discount codes and affiliate conversions. During the campaign, their partner influencers created more than 39,000 pieces of content.
This influencer-driven strategy helped move MVMT to rapid success, transforming the brand into a social media sensation and a leader in the direct-to-consumer market.
See how powerful this can be?
When you find out where your target audience congregates, then you don’t need to focus on building a platform yourself.
You just advertise on a platform someone else has built.
Now let’s move on to the third step, where you’ll learn how to attract customers on these platforms and launch your business successfully.
The next step is to consider the bait you’re going to use to bring your dream clients into your world and get them interested in your products or services.
You’ve probably heard of this type of bait referred to as a lead magnet.
But before we dive deeper, let’s take a step back.
You might be wondering: if you’ve already defined your dream customer and know where to find them, why not just get them to buy your product or service right away?
The truth is, it’s not always that straightforward.
Even some of the most established companies with well-known products still use some form of bait to attract potential customers, get them to explore their offerings, and ultimately make a purchase.
Let’s look at a couple of examples.
McDonald’s usually offers free or heavily discounted items, like free fries or a $1 coffee, when customers download and use their mobile app.
These offers encourage customers to try the app and place orders through it, where they are exposed to additional menu items and deals.
The convenience and savings often lead to repeat purchases, increasing customer loyalty.
Amazon offers a free 30-day trial of its Prime membership as its own lead magnet.
The 30-day trial includes benefits like free shipping, access to Prime Video, and exclusive deals.
The trial is designed to showcase the value of Prime membership, making it hard for users to give up these perks once the trial ends.
And this converts them into long-term paying members.
Dyson also offers a risk-free 30-day trial on their high-end home products, such as vacuum cleaners and air purifiers.
Customers can purchase a product, use it at home, and return it within 30 days for a full refund if they don’t like it.
This is a powerful lead magnet. There’s no risk for the consumer to spend money.
And while it’s a potential risk for Dyson…it allows consumers to check out the quality and performance of Dyson products firsthand.
This leads to increased sales and customer confidence in the brand.
Warby Parker allows customers to select up to five pairs of eyeglasses to try on at home for free for five days.
This is a creative lead magnet.
It makes it easy for customers to test different styles and fits without any obligation to purchase.
The convenience and personalized experience often lead to customers buying at least one pair after the trial period, increasing sales and customer satisfaction.
Pretty much all e-commerce websites offer you a discount just by signing up to the mailing list.
Levi’s does the same, offering new customers by offering 20% off their first purchase when they sign up for the brand’s email newsletter.
This lead magnet makes it easier to get a sale off first-time customers.
Additionally, by signing up, customers receive regular updates on new products, sales, and exclusive offers, keeping them engaged with the brand and encouraging future purchases.
See how the lead magnet works?
Using a lead magnet helps you increase the number of sales you get from the same number of people, and that’s important for a successful business launch.
So how can you get started building a lead magnet?
There are many different types of lead magnets, and the best one will depend on the product or service you’re looking to sell.
Here’s a breakdown of 15 different kinds of lead magnets to help you choose the right one for you.
1. Free Trial
Example: A SaaS company offers a 14-day free trial to let users explore premium features of their project management tool.
2. Discount Code
Example: An online clothing retailer provides a 15% off coupon for first-time buyers who sign up for their newsletter.
3. Free Shipping
Example: A home goods store offers free shipping on all orders for customers who join their loyalty program.
4. Ebook/Guide
Example: A digital marketing agency offers a free ebook on “10 Ways to Boost Your Website Traffic” in exchange for an email address.
5. Webinar/Workshop
Example: A financial consulting firm hosts a free online workshop on “How to Invest Wisely During Market Volatility.”
6. Free Sample
Example: A skincare brand offers a free sample of their best-selling moisturizer with sign-up for their email list.
7. Exclusive Content
Example: A news publication provides access to a special report on “Emerging Trends in AI” for users who subscribe to their email updates.
8. Template/Checklist
Example: A productivity app offers a downloadable daily planner template to help users organize their tasks effectively.
9. Quiz/Assessment
Example: A fitness brand provides a free “Find Your Ideal Workout Plan” quiz that recommends products based on the results.
10. Contest/Giveaway Entry
Example: A fashion brand offers entry into a giveaway for a $500 shopping spree in exchange for following them on social media.
11. Free Consultation
Example: A real estate agent offers a free 30-minute consultation to discuss home buying or selling strategies.
12. Access to Exclusive Sale
Example: A luxury fashion retailer offers early access to a seasonal sale for customers who join their VIP email list.
13. Early Access to Products
Example: A tech gadget company provides early access to new product releases for users who sign up for their email notifications.
14. Recipe Book or Meal Plan
Example: A health food brand offers a free downloadable recipe book featuring meals made with their products.
15. Video Tutorial Series
Example: A home improvement store offers a free series of video tutorials on DIY home renovation projects to email subscribers.
You can read more about creating a lead magnet here.
So how do you know what lead magnet is best to bait your dream customers?
Most of the time, if you’re not clear on your lead magnet, it’s because you’re not clear enough yet on your dream customer.
So go back to step 1.
In fact, in the book DotCom Secrets, Russell Brunson describes the power of the bait to attract only dream customers…and finds out that the more you define your dream customers, the easier it becomes to get them to purchase your products or services.
Here’s Russell:
As my company moved away from selling to beginners and toward attracting dream clients, our first step was to create new bait that would attract “Mike” or “Julie.” So we created a book called DotCom Secrets Labs: 108 Proven Split Test Winners. This bait worked great for us, because most beginners don’t know what a split test is. But we KNEW that Julie and Mike (our DREAM customers) would know what these terms mean and they would be hungry to get their hands on the book. Within days of launching this new offer, we had thousands of dream clients lining up to work with us. When you find out what your dream clients want, it becomes very easy to attract them.
If you want to check out DotCom Secrets in full, then you can currently get the book for free (just handle shipping).
Check the offer out below
Get DotCom Secrets Here For FREE!
One of the most powerful insights in DotCom Secrets is this sentence from Russell Brunson:
“A business is NOT about products and services. A business is about what result you can get for your clients.”
Ultimately, a successful business is not so much about the product or service itself.
It’s about the transformation the products or services create for customers.
Think about it.
Some of the greatest products and services place more emphasis on the ultimate transformation than on the product itself.
Take a look at these examples…and you’ll instantly understand this in a new way.
Nike’s slogan doesn’t mention shoes, apparel, or sports equipment.
Instead, it speaks to the transformative power of motivation, empowerment, and the ability to overcome challenges.
The message is about achieving personal greatness and pushing beyond limits, with Nike products being the tools to help you do that.
Apple’s iconic slogan doesn’t describe the features of their computers, phones, or other devices.
Instead, it promises a transformation in the way you think, create, and interact with the world.
Apple products are positioned as enablers of innovation and creativity, appealing to those who see themselves as trailblazers or visionaries.
L’Oréal’s slogan focuses on the customer’s self-esteem and confidence, rather than the cosmetics themselves.
It suggests that using their beauty products is a way to affirm one’s self-worth and embrace personal beauty, making the purchase feel like an investment in yourself.
Red Bull’s famous slogan doesn’t directly reference the energy drink itself.
Instead, it conveys a transformation, promising that the drink will energize you and give you the metaphorical “wings” to achieve more, be more alert, and take on challenges with greater vigor.
Coca-Cola’s message isn’t about the soda’s taste or ingredients.
It’s about the emotional experience it promises.
“Open Happiness” suggests that by drinking Coca-Cola, you’re unlocking moments of joy, connection, and satisfaction.
Defining the end result ultimately comes back to step 1: the customer avatar.
You should deeply understand the pains of your dream customer…and be able to see what their dream future looks like.
But how do you actually use this desired result to help launch your successful business?
Ultimately, this last step will help you most when writing copy that brings people into your lead magnets, funnels & higher priced products & services.
For example, you’ll make promises of the results in your:
Feel a little overwhelmed?
Don’t be!
ClickFunnels actually just released Marketing.AI, an AI-powered marketing platform. It helps ClickFunnels users use AI to write their sales copy and content in seconds.
All you have to do is click this link to start building an AI-powered sales funnel.
You then input some basic details about you, your products or services, your dream audience and the results they want to get.
Then, you can choose from different funnels you want to build, based on your lead magnet and end product.
Then, you can quickly build your funnel using the drag and drop interface.
On each page, you can use AI’s help to get the right message across.
You can also choose a specific writing voice to speak the kind of language that your dream audience understands.
And that’s it!
Within minutes, your funnel will be ready.
On the last page, you’ll be asked to sign into your ClickFunnels account.
If you don’t have one, you can create a new trial via our 14-day free trial.
Try Our AI Funnel Builder for Free!
A lot of the content you come across about launching a business online tends to focus solely on administrative tasks.
The structure is something like:
While these steps are necessary for launching a business, none of them can guarantee your success.
It’s like expecting a gym membership to get you in shape by itself.
Unfortunately, success is never guaranteed.
That’s why this blog post focused more on the psychology behind launching a business, because this is where the real determinant of your business success lies.
These four steps might seem time-consuming right now. But they will save you weeks, months, and even years of hardship by helping you get a head start.
Trust me, you’ll thank yourself later.
Good luck with launching your successful business!
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