Everyone is talking about sales funnels.
Do you need one? Do I need one? Should I build my own? Should I buy a ‘done for you’ one? What should it look like? Surely it’s too complex for me to build, don’t you need a lot of tech know how?
In this article I strip away the hype and show you what a sales funnel looks like.
Like a lot of stuff online, you’re lead to believe it’s something new – but it’s not.
Sales funnels go back to the days of direct response marketing. You may have seen the ads in the news paper. Free report shows you how to make money on the stock market. When the free report show up, its a cleverly disguised sales letter to upgrade to their premium product.
You see it today – Send off for your free sample diet pills …
Online, the process is much the same.
So here is a basic 3 Stage Sales Funnel.
So let’s now dissect this sales funnel
If you’re building an online business, In fact any business, leads are the fuel that drives it. Without a constant influx of leads you are not a business.
So how do I get leads online?
In the offline world you can stick your company name on the doors of your car or you can leave your business card where ever you go.
Online you can seek leads by paid and free methods. Actually organic is a better word than free, as it requires work.
Examples of paid methods to gather leads.
Examples of Organic methods to gather leads.
Content marketing (this article)
Social media Instagram, Twitter, Facebook, LinkedIn
So you can consider the top of the sales funnel like a honeypot, just waiting to attract the leads.
The top of the sales funnel for this website is the optin to the right. 😉
The top of a funnel can also be a squeeze page, also known as a sales capture page.
Next up is
If you have chosen to sign up to my list (a good move) or you have entered your name into a squeeze page then you are now a prospect.
After the prospect has signed up his or her journey begins down the funnel, where you will receive lots of good will and the first product for sale.
The first product you will be introduced to will often be low-cost, no more than $10. (Also known as a TRIPWIRE)
By purchasing this, you are now ‘tagged’ as a customer and will be moved from the list you signed up on to another list – a list of customers
So you have no progressed your way further into the funnel where you will slowly be introduced to more expensive products perhaps a $200 product.
Why does this work? Simply because it is a known fact that if you have already purchased and you love what the marketer sells, you’re much more likely to buy again, and again.
Often you will find that every product in the funnel is the same, it’s just the more expensive ones include more one on one interaction with the marketer.
To give you an example it’s like seeing Tony Robbins on TV. You think wow; I want to know more, so you buy his book (low cost)
Next you see he has a home study course, $200 wow that was great.
Wow Now I want to go to a live event – $2000.
You are infinitely more likely to spend $2000 on a live event if you had already purchased a Tony Robbins product than someone who hadn’t.
I hope you can see here the progression in the Sales Funnel.
Now, the super savvy marketer understands the life time value of the customer and can now calculate how much a customer is worth to them.
If you have spent anytime on the Warrior Forum (which is a hangout forum for internet marketers) The best marketers will offer affiliates 100% commission or even 150% commission as they know they will recoup their money, and more further down the sales funnel
Armed with this information they also know how much they can afford to spend to acquire a customer on paid advertising. And when they know this they can outbid other advertisers and grab all the prospects every time, crushing the competition.
As the legendary marketer Dan Sullivan says : “Ultimately the business that can spend the most to acquire a customer wins.”
So that’s – a basic sales funnel.
There are going to be more complex ones. The big online marketers use Infusion-soft to track their prospects so they can deliver even more personalized emails to them.
Imagine your television knowing that you loved coke but hated lemonade. Why would your TV then bother showing you lemonade advertisements that wasted the advertiser’s money? Custom emails are the future to marketing online.
I hope you now have a better understanding of sales funnels and know when you find yourself in one!
Note: To have a successful sales funnel, you will always need to provide ultra-high value products and to constantly be providing value through follow up emails.
Just starting out – Then use someone else’s sales funnel where you receive commissions when you send prospects to their funnel. My favourite is MTTB which has enormous depth and high commissions up to $5000. Click here for more information.