Why Funnels Are Failing (and How AI Flywheels Build Predictable Revenue)
If you’ve been paying attention to the marketing world lately, you’ve probably heard the same complaint in mastermind groups, Facebook groups, Slack communities, and coaching calls:
“My website traffic is tanking, and the stuff that used to work just doesn’t anymore.”
And it’s true. Nearly 60% of searches today don’t even end in a click. People type a question into Google, ChatGPT, or Perplexity and instead of clicking through to your website, they get the answer directly in the AI result.
That means your once-reliable blog posts, SEO strategy, or organic traffic engine might suddenly feel like it’s on life support.
But here’s the twist: the same AI that’s taking away clicks is also your biggest opportunity to leapfrog competitors and build a more resilient business.
Recently, HubSpot rolled out a new approach called Loop Marketing that reframes how small businesses can grow in this AI-driven era. And if you know my work in the Creator’s MBA, you’ll see how closely this aligns with the Growth Flywheel framework I teach to help digital product creators build consistent, repeatable revenue.
Let’s break this down together so you can see not just what’s happening but also how to adapt, thrive, and build a business that compounds momentum over time.
The Old Playbook Is Broken
Let’s be honest: for years, digital product growth hinged on a few predictable levers:
Write blog posts → rank on Google → get free traffic → sell low-cost offers.
Post consistently on Instagram or TikTok → hope for a viral hit → funnel traffic to a lead magnet.
Run launches a few times a year → spike revenue → collapse into recovery mode until the next one.
That model worked when attention was cheap and the platforms rewarded early adopters. But now?
SEO is collapsing into AEO (AI Engine Optimization). You’re no longer optimizing for Google’s 10 blue links. You’re optimizing for whether AI cites, recommends, or summarizes you in its answers.
Organic reach on social is throttled. Platforms reward paid spend and fast-turning trends, not sustainable growth that matters.
Launch cycles create burnout. Each one feels like starting from zero again. You’re hustling hard for revenue spikes, but nothing compounds.
If you feel like you’re working harder for diminishing results, you’re not the only one
You know you need a system that works. One that doesn’t collapse the second Google, Meta, or TikTok tweaks their algorithm.
That’s where Loop Marketing and the Growth Flywheel converge.
Introducing Loop Marketing: A Human + AI Growth Blueprint
HubSpot calls this the Loop Marketing Playbook. It’s a four-step process designed for today’s AI-driven reality:
Express – Tell your brand story authentically, then use AI to scale and test it.
Tailor – Personalize your message so every customer feels like your only customer.
Amplify – Show up where customers actually are, from AI search engines to influencers and events.
Evolve – Use AI-driven insights to iterate in real time and make each campaign stronger than the last.
Sounds powerful, right? But here’s what you may not know: the Loop is essentially a tactical engine that slots directly into a Growth Flywheel.
Why the Growth Flywheel Still Wins
If you’re new here, the Growth Flywheel is the framework I teach inside the Creator’s MBA to help digital product entrepreneurs build predictable, consistent revenue.
Unlike funnels (which are linear and end when the sale happens), the flywheel spins continuously. Every customer touchpoint fuels momentum, so:
More visibility leads to more subscribers.
More subscribers lead to more sales.
More sales create more testimonials, referrals, and repeat buyers.
Each cycle makes the flywheel spin faster and easier.
Where funnels drain energy, flywheels compound it.
And this is exactly why HubSpot’s Loop Marketing and the Growth Flywheel belong together:
Loop = the tactics for surviving the AI shift.
Flywheel = the system that compounds those tactics into long-term, predictable revenue.
Let’s connect the dots.
Step 1: Express → Define Your Flywheel Foundation
HubSpot’s research showed that nearly 60% of companies don’t have their value proposition documented. And worse, three-quarters of teams without a clear value prop consistently miss their goals.
That’s not just a marketing issue — it’s a flywheel issue.
If you don’t know your story, your unique differentiator, and the problem you solve best, your flywheel has no energy source.
Here’s how to apply it:
Document your brand story. In the Creator’s MBA, I push members to define their Transformation Statement: the before-and-after result your product delivers. That clarity is what feeds your content, your offers, and your customer journey.
Use AI to stress-test it. Don’t rely on vague intuition. Load your customer avatars and messaging into a tool like ChatGPT or Claude and simulate feedback: “How would this message land with a busy mom trying to start her first side hustle?” It’s like running focus groups in minutes, not months.
Create your brand style guide. Capture your tone, voice, and personality. This ensures consistency when you use AI to help scale content.
Step 2: Tailor → Accelerate the Flywheel with Personalization
Once you’ve defined your story, it’s time to make it resonate — not with “everyone,” but with each individual.
Historically, personalization meant dropping in a first name token: “Hi, Destini!” Cute, but surface-level.
Now? AI lets you create messaging so precise it feels handcrafted. HubSpot reports 82% higher conversions with AI-driven personalization.
For example:
If you run a course, AI can tailor nurture emails based on whether the lead is a beginner or advanced.
If you sell templates, AI can rewrite product descriptions to highlight the exact benefit for coaches vs. e-commerce owners.
If you run a membership, AI can customize reminders or progress nudges so they feel like 1:1 coaching.
Inside a Growth Flywheel, this matters because personalization increases engagement → engagement increases retention → retention increases customer lifetime value.
The more your customers feel “seen,” the more momentum your flywheel builds.
Step 3: Amplify → Fuel the Flywheel with Distribution
Here’s the big one: your audience is no longer finding you through Google.
Search traffic is down. AI tools are answering questions directly. And yet, when a customer does land on your site or sales page, they’re often more qualified than ever — because they’ve already done their research.
That’s why HubSpot is pushing AEO (AI Engine Optimization) as the new SEO. Instead of fighting for ranking in the top five Google links, you want to be cited as part of AI’s answers.
For digital product creators, this is huge:
Be the “cited expert.” Publish thought leadership content that AI engines can surface as references. That could be research posts, case studies, or guides in your niche.
Leverage partnerships + influencers. Just like your flywheel emphasizes collaboration, working with aligned influencers or summit partners is a way to show up in trusted channels. HubSpot notes that influencer ROI is outpacing Google/Facebook ads.
Invest in community + events. Whether that’s virtual summits, workshops, or local meetups, humans are craving interaction. The brands that facilitate this connection will cut through the AI noise.
Step 4: Evolve → Compounding Momentum in Real Time
Here’s where Loop and Flywheel thinking become nearly identical.
In the old world, you’d run a campaign for weeks, then sit through a post-mortem meeting that mostly confirmed what you already suspected.
Now, with AI, you can get real-time feedback:
Which email subject line resonated most?
Which CTA converted best by audience segment?
Which piece of content got the most AI citations?
Instead of waiting until it’s too late, you adjust mid-flight.
That’s the Evolve stage — and it’s also the compounding principle of a Growth Flywheel.
Each iteration:
Improves your messaging.
Strengthens your retention.
Lowers acquisition costs.
Speeds up your revenue cycles.
This is why, once your flywheel starts spinning, it feels like growth gets easier. Every loop makes the next loop more efficient.
Putting It All Together
Here’s the simple truth:
Funnels are fragile. They break when a platform changes, or when you stop feeding them ads.
Flywheels are resilient. They keep spinning because every customer interaction feeds the next.
Loop Marketing is the tactical playbook that plugs into your flywheel, giving you the AI-powered fuel you need to thrive in 2025 and beyond.
When you combine the two, you’re no longer worried about traffic dips or algorithm updates. You’ve built a system where:
Your brand story is crystal clear (Express).
Your messaging resonates on a personal level (Tailor).
Your distribution is diversified across AI engines, influencers, and communities (Amplify).
Your results compound with every campaign (Evolve).
That’s not just survival in an AI-driven world. That’s sustainable, consistent growth.
Final Thoughts
The shift we’re in right now is bigger than when Google first launched. Bigger than when Facebook opened up its ad platform. And like those moments, the entrepreneurs who act decisively will capture the upside.
Yes, traffic is tanking. Yes, the old playbook doesn’t work anymore. But if you’re willing to lean into AI, apply frameworks like Loop Marketing, and build on the foundation of a Growth Flywheel, you’ll create a digital product business that compounds momentum, no matter how the platforms change.
I do believe the opportunity for us as creators is massive.
