The Startup Ideas Podcast – Episode Summary

Episode Title: Why 2,500 Subscribers Is All You Need For $1M

Host: Greg Isenberg
Guest: Jonathan (“Jay Ice Cream”)
Date: January 22, 2025

Episode Overview

This episode dives deep into one of the most underrated tools for building a successful, scalable business: sales funnels. Greg Isenberg hosts Jonathan (“Jay Ice Cream”), a funnel expert and serial founder, for a candid, practical, and often humorous look into how even a small email list (think 2,500 engaged subscribers) can translate into a million-dollar business. Together, they unpack the mechanics of effective funnels, share stories from their own businesses, and discuss why most founders make funnel-building overly complicated or overlook it entirely.

Key Discussion Points & Insights

1. Why Funnels Matter (00:00 - 03:00)

• Greg introduces the topic, emphasizing that building a sales funnel is foundational yet underappreciated in the startup world.
• Jonathan explains the “dirty word” reputation of funnels and how, when demystified, they are the key to predictable growth.

2. Personal Reflections, Transitions, and Setting Goals (03:10 - 13:30)

• Light-hearted banter about New Year's reflections and personal growth goals—including Greg’s humorous take on self-improvement.
• Jonathan shares his own transition story: stepping down as CEO of facilitator.com to become an advisor, splitting his company into three parts, and regaining headspace.
• Key moment: Jonathan describes the challenge of letting go and the risks of stepping away as a founder.
  • Quote: “It’s easier for me to assume the worst...but facilitator.com now is a well-oiled entity with all the funnels and everything.” (13:34)

3. Founder Identity, Letting Go, and Advisor Role (13:25 - 19:30)

• Both discuss the difficulty for founders in transitioning to an advisory role.
• The challenge isn’t just giving up control—it’s staying valuable without being overbearing.
• They swap stories of stepping in and out of leadership, drawing parallels in their respective journeys.
• Quote: Greg: “When a company is doing well, they don’t want me involved. They want strategic advice...but not me in the weeds.” (17:33)

4. Funnel Fundamentals: The Million Dollar Recipe (19:34 – 25:41)

• Jonathan shares that the basics of funnels are still the most effective.
  • Quote: “Most of the real basics work so goddamn well. Today, we can launch a product using basically just the same webinar...that’s still the multimillion-dollar recipe we’re reusing over and over.” (20:10)
• The simplest version: Build a list, drive them to a webinar, pitch the product, send follow-ups.
• The process is repeatable for coaching, info products, and even SaaS.

5. Step-by-Step: The 2,500 Subscriber Funnel (25:41 – 30:14)

• Jonathan walks through a specific funnel for his own 2,500-person “Unscheduled CEO” email list:
  • Invite list to a free live training (webinar) tailored to their interests.
  • At the end, pitch an in-person paid event or coaching.
  • Outcomes: Emailing a cold list yields very few sales; a webinar boosts conversion substantially.
• Quote: “If I do a live training...maybe 200 people turn up. I’ll get like 20 people buying tickets right there.” (26:39)
• He breaks down a typical webinar structure:
  • 20 mins: Personal story showcasing relatable struggles.
  • 10-15 mins: “Discovering the vehicle” — introducing the key solution.
  • Another 20 mins: Explaining how the solution changed the game.
  • Wrap-up: Offer two next steps—DIY (learn on your own) or fast-track (buy the product/event).

6. From Content to Cash: The Deeper Funnel (32:50 – 35:41)

• They diagram the funnel:
  • Email List → Free Live Training → Paid Live Event → High-ticket Coaching/Advisory/Equity Deals.
• Note: This structure isn’t just for info products; it can serve as a pipeline for high-value equity/partnership opportunities.

7. Applying Funnels to SaaS and Software (37:08 – 44:07)

• They discuss adapting these mechanics to SaaS startups:
  • Example: Using a “Challenge Funnel” (e.g., a 30-day ‘build your second brain’ challenge for Notion, in partnership with an influencer).
    • Free access starts the habit, group coaching enables engagement, a percentage become paying users.
• Quote: “A challenge can be a fun and useful way to get people actually into some routine...” (43:26)
• Even non-cheesy, high-profile brands use “stealth funnels” under the hood and benefit hugely.

8. The Importance of a ‘Warming Up’ Step (45:04–46:19)

• Jonathan’s advice: Don’t just email your list a sales link. Always include a warming-up step—webinar, info session, or challenge—to prime your audience.
• Real-world examples: Stanford’s info sessions, corporate challenge funnels, and more.
• Quote: “Most of the time, you need to have this middle step to get people warmed up and excited enough to actually spend their money.” (45:56)

Memorable Quotes & Moments

• On Losing to a 94-Year-Old at Tennis:
  • Greg: “I lost the game to a 94 year old man. He absolutely destroys me.” (05:57)
• On Funnel Simplicity:
  • Jonathan: “The real basics work so goddamn well. Just email your list, send them to a webinar, follow up, and you can make millions.” (20:10)
• On Letting Go as Founder:
  • Greg: “When a company is doing well, they don’t want me involved...They want the strategic advice, but not me in the weeds.” (17:33)
• On Funnel Warmups:
  • Jonathan: “If you just email everybody or just post...It’s unlikely that it will work without this middle warming up step.” (45:13)

Key Timestamps

• 00:00–03:00: Why funnels are overlooked, and why they shouldn’t be.
• 03:10–06:23: Humorous New Year’s goals and personal stories.
• 11:16–14:41: Jonathan’s transition out of day-to-day CEO, risk of “hands-off” gone too far.
• 19:34–21:38: How simple webinar-based funnels drive revenue.
• 25:41–30:14: 2,500-subscriber funnel, webinar structure, precise conversion numbers.
• 37:08–44:07: Challenge Funnel explained; adapting the approach for SaaS (e.g., Notion).
• 45:04–46:19: The absolute necessity of a warming-up/priming step.
• 47:25–50:25: Favorite products (“Fellow” kettle appreciation), lighthearted outro.

Final Thoughts & Actionable Advice

• Start Simple, Stay Consistent: Even a small, well-nurtured list can outperform huge, unengaged audiences if you use the right funnel strategy.
• Always Warm Up Your Audience: Webinars, live trainings, and challenges are essential “middle steps” between content and purchase.
• Funnel Types Are Universal: The same toolkit works for info products, SaaS, in-person events, and even high-ticket advisory/partnership gigs.
• Don’t Neglect Your Story: Craft and refine personal or product stories as the backbone of your offers.

Explore more startup ideas and funnel inspiration:
https://gregisenberg.com/30startupideas

“Don’t let anyone tell you how to drink your coffee. Especially not the funnel guy.”
— Greg Isenberg (50:45)