How To Create A Funnel That Generates Millions

Hey friend, Alex again.

I grew up in south Florida. Where it’s hot and muggy. And when you walk to the mailbox on a summer day, you feel like you need to take a shower.

But I live in Austin, Tx. For 7 years now. And I’m not one to complain about the weather. But goodness I’m afraid to go outside right now. It’s 108 degrees today.

And so, I wrote this newsletter while listening to ocean waves crash in my headphones and imagining myself back in south Florida with my feet in the water.

Needless to say, it’s hot.

I hope you enjoy this case study.

P.S. I keep adding more links to the resources and reads section. I’m consuming a lot of content lately and want to share it.

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How To Create A Funnel That Generates Millions

Reading time: 3 Minutes

As some of you may know, I was the CMO of the Kollective.

Imagine Equinox and WeWork had a baby - that’s Kollective.

And recently this video went viral about a guy moving from LA to ATX and was looking for a new gym to call home.

That’s when someone told him about the Kollective.

So, he checked it out, only to have to apply, wait to be approved, get approved 10 days later, pay a $500 initiation fee, then a $400/m membership, and have 7 days to do it before losing his spot to someone else.

Then he describes the funnel I built by saying, “That’s the most ridiculous thing I’ve ever heard…And I’m probably gunna do it.”

That same funnel generated 7-figures in ARR and I’m going to share why it works here.

But the thing is - it’s not about creating the perfect landing page and sign-up process - it’s about tapping into the psychology of marketing and knowing how to create the internal feeling where you “need to be there.”

That comes down to four things:

1. Create Exclusivity By Creating An Application Process

Exclusivity creates fomo. The more fomo you create, the more someone will do to be a part of what creates that fomo.

Exclusivity also creates the sense of belonging. Someone wants to be a part of something, that something has a lot of people like you, you’ll feel like you need to be there.

An application process is the bridge to that feeling.


By creating a filter that accepts only the right people who fit Kollective’s ideal customer profile.

Because by having those people there, they’d attract the same people.

Side note: Another way to create this FOMO is to highlight those same people in your social content. While I was there we created a lot of content around our members or pro athletes who came into town to train for the off-season.

2. Create Scarcity With A Waitlist

After the application process, you’re added to the waitlist.

The waitlist was created because Kollective capped its member base to keep the experience as high as possible.

So, what creates more scarcity than a filled membership base, a giant waitlist, and a one in, one out member process?

Not much.

And it also continues to create more fomo.

3. Create Urgency With A Purchase Window

You applied. You’re on the waitlist. You’ve been waiting for a week. Then you finally get that email.

“You’ve been approved.”

Here’s where the magic happens:

  • You’re approved

  • You have 7 days to accept the invitation

  • And 7 days to pay the initiation fee + first month of your membership

  • If you don’t, it gets handed to the next person in line

The 7 day period is what converts customers.

The fomo from the application and content creates excitement. The scarcity from the waitlist makes it feel limited. And the urgency to sign-up within the 7-day window pushes them over the edge.

4. Staying Top Of Mind With An Email Drip

Another factor that impacts the conversion rate during that 7-day window is staying top of mind.

So, we set up a 4-email drip during that 7-day window.

Here’s what it looked like:

  • Email #1: You’re approved + Here’s everything that you get with your membership + CTA

  • Email #2: We collected our top FAQs and curate the top questions in this email + CTA

  • Email #3: What it’s like to be a member with images + CTA

  • Email #4: Last day to sign up + CTA

The emphasis was to stay top of mind, educate the consumer about our membership, tackle all objections, help them visualize themself as a customer, and remind them to sign up.

How To Implement:

  • Create FOMO: Create a filter for customers to prove they are the right customers.

  • Use Content: Amplify FOMO by highlighting known customers in your niche

  • Create scarcity: Offer a limited amount of spots, create a waitlist, or sell your product/service by referral only (Examples: Clubhouse & Italic)

  • Create urgency

Final note: This specific strategy was effective for a luxury brand. But the same principle may be applied to your brand.

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This Week’s Rabbit Hole Reads & Resources

I appreciate you reading. And if you made it this far, then reply with you product or startup and I’ll send you a tip on how to grow it. I started blocking off 2 hours every Friday to reply to these emails and send actionable tips.

You’re great,


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