Is Click Funnels a Pyramid Scheme
Online Marketing Software

Is Click Funnels a Pyramid Scheme? – What You Should Know

Click Funnels is a sales funnel software that allows users to easily create conversion focused funnels for any type of business. But is it more than just this? Is Click Funnels a pyramid scheme in one way or another? This is a question I have seen service on the Internet and is something that I want to address, which I will be doing here in this review.

In this review I will be giving an overview of what exactly Click Funnels is, who it is for, how it works, the cost, why people are calling it a pyramid scheme, the compensation plan (how people get paid to promote it), and more. If you are concerned about the legitimacy of this entire operation then you are definitely going to want to read this. I haven’t been able to find very good information from others out there on this particular topic.

Overview: What Is ClickFunnels?

In short, such as I explained above, Click Funnels is a service that allows for easy creation of funnels let convert. The company was founded and is still owned by Russel Brunson, it was well known in the online marketing world and has been very successful with other business ventures besides just this on. Besides Click Funnels he also is in author, as his own supplement company, and is involved in many other things.

But anyways… Back to Click Funnels.

What is nice about Click Funnels is that it is designed so that anyone can use it, regardless of experience. The software is extremely user-friendly and besides having premade templates for funnels that you can choose from depending on what type of conversions you’re looking for, you also can use the drag-and-drop software to customize it in to make it your own.

Whether you are trying to sell a book, capture leads for email marketing, or lure people in with a low price product and then upsell them on a higher price product… Click Funnels allows you to do all of this.

You do not have to watch it, but below is a short video, several minutes long, that gives a nice basic overview of everything.

There are other similar funnel creation software is out there, such as Lead Pages, but Click Funnels seems to be pretty much the best.

Who Is Click Funnels For?

So who is Click Funnels best for? Well there are many different people out there who can benefit from this funnel creation software.

Network marketers, e-commerce business owners, affiliate marketers, referral marketers, even brick-and-mortar business owners can benefit from a service like this.

Ecommerce business owners of course can create enticing and beautifully laid out funnels for promotional products, affiliate marketers can funnel people and send them off to buy the product at another site so that they can earn commissions, and it brick and mortar business owners could use a final creation service like this to capture leads for email marketing purposes.

Some of the Top Features

  • Drag & Drop
  • Pre-made templates to go off of
  • A/B split testing
  • Order pages
  • Autoresponder integration

How Does Funnel Page Hosting Work?

If you join Click Funnels you will be provided with hosting for your funnel pages. You will not be able to use this software to create funnels on your existing website, if you have one.

This may seem like a downside to some people, but there is an upside to this as well. Since CF hosts all your funnel pages everything is more streamlined, meaning that you do not have to worry about updating things on your website or having to deal with technical problems. You get constant updates automatically and there is nothing to install.

They host your funnel pages, you are not able to host these pages on your own site if you have one – this might not be desirable for some but at least you don’t have to worry about manual updates the software having problems.

The Cost

And now on to the price… Which unfortunately is going to seem rather high for many people out there.

The cost for Click Funnels itself is $97/mo but there are also more expensive options that include training, more pre-made feature, additional tools, and so on.

But the $97 per month membership is going to be plenty for the majority of people out there. With this price you get the drag & drop funnel creator, lots of pre-made templates, the A/B split testing feature, and everything I went over so far + more.

Why People Are Calling It a Pyramid Scheme

Ok, so nothing I have said so far really points to this being a pyramid scheme anyway. So why are people calling it a pyramid scheme?

Well the reason is because many people out there are using it to recruit others to join and they earn commissions by doing so. And many of these people that are promoting CF are only using the software to promote it, rather than using it for their own unique business venture. On top of this there is somewhat of a pyramid-like commission structure where people can recruit in others, get paid, and also get paid from when those recruits go out and recruit in new members.

Russel Brunson was also involved in MLM (multilevel marketing) Companies, such as Pure Leverage back in the day which might be another reason why people are suspicious that this is a pyramid scheme.

A Look at The Compensation Plan (How People Get Paid to Promote It)

If you become a member of CF you automatically become a member of the affiliate program as well. Now of course you do not have to promote CF to other people but if you want to the option is there.

You can also become an affiliate without actually being a paying member. So if you wanted to promote CF without using the software you could do so.

But anyway… Let me explain the compensation plan which is pretty simple and straightforward..

The compensation plan works like this: when you refer someone to join as a member you will earn 40% recurring commissions when they pay their monthly subscription fee. Additionally you will earn 5% commissions from the sales that those people make.

This is called a 2-tier commission structure (MOBE also uses this) because you not only get paid from your personal recruits but also from the recruits of those people. 

Pyramid Scheme or Not?

CF is not a pyramid scheme at all in my opinion. I can see why people are calling it one because of how you are able to earn commissions from the work of your recruits, but it ends there. There are only 2 tiers… its not some massive multi-level commission structure that pays down 10 levels or anything like that.

A simple 2-tiered structure like this does encourage people to recruit and then push those people to recruit, but if legitimate mlm companies are allowed to have many levels of commissions being funneled up to those at the top (for example Visalus uses an 8-tier structure), then Click Funnels should be allowed to operate with a 2-tiered structure with plenty of legal room.

In pyramid schemes there will be a large pyramid-like structure, which is why they call them pyramid schemes, that is narrow at the top and branches out the further you go down. The sort of schemes are focused on recruitment, in which commissions are made. These commissions trickle up the pyramid structure from the bottom to the top, taking away from those of the bottom and benefiting those at the top.

In addition to their pyramid -like structure, pyramid schemes also put the majority of their focus on recruitment rather than product sales to the general public, which CF really doesn’t seem to do all that much. They give you the option to recruit in members and earn money doing so, and you can use their funnel creation software to do this, but this just does not make them a pyramid scheme.. Plain and simple.

Yes, people do get paid when they promote Click Funnels, and many people promoting are probably using the software just to promote it, and not for their own business venture, but this is just the way it is. It does not make a pyramid scheme though.

Final Thoughts – Is It Worth The Price?

Whether or not Click Funnels is worth paying for really depends on your situation. There are many people out there that could benefit greatly from easy to use funnel creation software like this, but for others it might be too expensive.

If you’re dead set on purchasing some sort of funnel creation software, then CF is probably what I would recommend above others. Like I said there are other very similar funnel creation services out there, such as Lead Pages, but CF ranks at the top in my book. You can do more research if you want to comparing this to others, but from what I have seen most other people seem to like Click Funnels the best too.

A nicely laid out conversion focused funnel can have a massive positive impact on businesses if they aren’t already using a funnel, and Click Funnels makes it super easy to create these beautiful funnels… It’s as simple as that. And it’s also worth noting that they do provide good support, have a good reputation, and even provide some free training to help you get your first funnel up and running.

You Can Get a 14 Day Free Trial of Click Funnels Here

Please leave any comments, questions, or concerns below and I will get back to you as soon as I can 🙂

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