Episode Overview

Title: Uh Oh, The Facebook Slap Has Officially Hit, Yet Funnel Hackers Rejoice
Host: Russell Brunson
Date: February 8, 2018
Theme:
Russell Brunson addresses the latest "Facebook slap” — a major algorithm change announced by Mark Zuckerberg — and explains how these shifts will dramatically impact entrepreneurs using Facebook for advertising. He provides historical context, outlines what’s happening, and shares why those who use sales funnels should actually celebrate this change, not fear it.

Key Discussion Points & Insights

1. The Nature of Platform "Slaps" (History Lesson)

• Russell recounts the cyclical history of marketing “slaps” from major platforms like Google, where sudden changes would disrupt direct response advertisers.
• Quote:

  “So the big question is, how are entrepreneurs like us, who didn't cheat and take on venture capital, who are spending money from our own pockets, how do we market in a way that lets us get our products and services and the things that we believe in out to the world and yet still remain profitable?” (01:05)

• Emphasizes that platforms prefer easy revenue from big brands over working with agile, results-oriented marketers.

2. What is the "Facebook Slap"?

• Announcement: Mark Zuckerberg announced algorithm changes to make Facebook more about real social interactions, reducing business content, pages, and ads in user feeds.
• Impact: Campaigned content from businesses and advertisers will be shown less, with preference for:
  • Posts from friends and family
  • Group content (which is considered “social interaction”)
• The result:
  • Users will spend less time scrolling
  • Fewer ad spots available → Ad costs go up dramatically
• Quote:

  “He’s making it so that what you will see now more so is more of your actual interactions with friends, right?... Business pages, fan pages, and ads... are going to be dropping dramatically.” (04:10)

3. Immediate Consequences for Marketers

• Facebook ad costs projected to rise 30-40% in Q1, and potentially up to 100% by year’s end (06:45).
• Many who became "ad experts overnight" will be priced out and forced out of the market.
• Survival will depend on the ability to diversify your traffic sources.

4. The Solution: Diversify and Double Down on Funnels

Russell’s Prescription:

• Don’t panic, but start diversifying now.

• Explore alternative traffic (YouTube, podcasts, email, ManyChat lists).

• Use current, still-affordable Facebook ads to build assets — email lists, podcasts, etc.

• Quote:

  “If you wait for a year to diversify, a lot of you guys will be in trouble. So just diversify now.” (08:15)

5. The Secret of Winning: Outspending Your Competition

• Recaps a core principle from DotCom Secrets: “Whoever can spend the most money to acquire a customer wins.”

• As acquisition costs rise, only those with robust sales systems (funnels, value ladders) will survive and thrive.

• Quote:

  “As ad costs go up, you have to spend more money to acquire a customer. That's actually a good thing. It means all of these people who are just dabbling are going to go away.” (10:05)

6. Funnel Stacking & The Value Ladder

• One funnel is no longer enough; marketers need to think about funnel stacking (a chain of funnels) to maximize value per customer.

• A value ladder isn’t about complicated 8-step flows; even three distinct offers can suffice (front-end, webinar, high ticket).

• Breakeven on the front end is fine if the value ladder is robust.

• Quote:

  “Everyone thinks that they need these complex value ladders... Clickfunnels right now has three steps. That’s it… It doesn't have to be complex, but there needs to be levels.” (13:35)

7. The Window of Opportunity (and a Call to Prepare)

• Unlike the Google slaps, this change isn’t instantaneous — entrepreneurs have about a year before costs get out of control (17:05).
• Now is the time to test, tweak, and prepare so you can remain profitable, even at much higher ad costs.

8. Back to Fundamentals: Timeless Principles Still Work

• The core strategies outlined in Russell’s books (DotCom Secrets, Expert Secrets) are more relevant than ever.

• “Old school” direct response rules have always required front-end losses and back-end profitability.

• Russell stresses internalizing these concepts to succeed through any platform change.

• Quote:

  “These are the core principles that have worked since day number one… The online world made this so easy. In traditional offline... nobody breaks even on TV, right? You lose money for five, six, seven months before you’re profitable.” (16:50)

Memorable Quotes & Moments

• “Don’t put all your eggs in Zuckerberg’s basket. Zuckerberg doesn’t care about you.” (02:45)

• “This is not like a shot where you just get shot and you die, like back in the Google days. We’ve got time, but it’s all about understanding that, preparing, and building out your value ladder.” (18:30)

• On the bright side:

  “The good news is the Facebook slap has come... but the funnel people — funnel hackers — don’t even worry. It’s all going to be good. If you’ve been following the principles we teach since day number one, you’re protected.” (20:10)

Key Timestamps

• 00:00-02:05 — Introduction and context (“The networks don’t like you or me… they like big brands…”)
• 04:10 — How the new Facebook algorithm will change what’s seen in the feed
• 06:45 — The economics of ad costs, projected increases
• 08:15 — Urgent call to diversify traffic now
• 10:05 — Whoever spends the most to acquire a customer wins
• 13:35 — Funnel stacking & value ladder simplicity
• 16:50 — Offline direct response mindset & foundations
• 18:30 — Google slap vs. Facebook slap: why this time you have time to prepare
• 20:10 — Funnel hackers win: reassurance and action steps

Summary & Takeaways

• The Facebook algorithm shake-up is a wake-up call for all digital marketers who rely on traffic from a single platform.
• Rising ad costs will weed out dabblers and reward those with well-designed sales funnels, value ladders, and diversified traffic.
• Now is the best time to review the basics — study sales funnels, value ladders, and the timeless rules of direct response.
• Biggest advice: Start building assets and diversifying your traffic sources immediately while leveraging remaining inexpensive Facebook ad reach.

Action Steps Suggested by Russell

• Re-read DotCom Secrets (and Expert Secrets) to re-anchor your strategy.
• Map out and simplify your value ladder.
• Begin testing other traffic sources (YouTube, podcasts, email).
• Use current Facebook advertising opportunities to grow your owned channels (lists, podcasts, etc.).
• Prepare your business for higher customer acquisition costs by strengthening funnels and stacking offers.

End Note: Russell wraps up with encouragement for loyal "funnel hackers," assuring that those who stick to fundamental principles will weather the change. The episode is both a warning and an actionable playbook for marketers facing platform-driven market shifts.