What’s the Big Deal About Having A Sales Funnel?
It seems, these days, that in the world of online marketing, everyone’s talking about funnels and how you absolutely must have at least one funnel for your business.
I’ve even talked about how to create content in a funnel style that leads your audience from a blog post to an opt-in, then a low-cost product, and ultimately the main product you want them to get to.
So what’s the big deal? Why is this so important?
Let’s talk about it…
What Exactly Is a Sales Funnel?
Simply put, a sales funnel is a process of sales and follow-ups that is designed to maximize your income per customer.
There are two main types of funnels that marketers use to accomplish this.
The first is an opt-in funnel, which starts with a free offer where your visitor gives you their email address in exchange for the freebie. You can read more about the opt-in funnel here
The second type of funnel is the sales funnel. Here your starting point is a low priced product and you lead the customer through a series of upsells and downsells until you get them to your ultimate offer. This is often a high-priced course or coaching offer.
Sales Funnels are a Big Deal
Sales funnels really are a big deal, and if you want to grow your business exponentially, you need to have at least one funnel in place. The reason for this can be explained by the thinking that “the money is in the back end.”
It’s a well-known marketing fact that it’s easier to sell something to an existing customer than it is to acquire a new customer.
It’s also easier to improve your bottom line with higher priced products.
But, to get to those higher priced products, your customer has to get to know, like, and trust you before they’ll shell out the big bucks. And they way they do that is buy buying your lower priced products and being satisfied with them.
So, if you offer them one low-priced product such as a $7.00 e-book, and never sell them anything else, you are going to have to hustle every day to make enough of those $7.00 sales to meet your sales goals. And I’m not saying you can’t make a decent living doing that, but it’s awfully hard work.
Wouldn’t it be easier to have products at higher price points like $27, $47, $97, and up so you can build out a funnel that strategically offers the customer who purchased your $7 report new products over time.
Are you starting to see what the big deal is now?
The Most Important Element In Your Sales Funnel…
… is not what you might think. Yes, the products themselves are important because no one is going to buy your products if they don’t deliver on what was promised.
But, the most important piece of your sales funnel is your follow-up sequences. You MUST have a follow-up sequence that allows your new customers the opportunity to get to know you, like you, and trust you.
That doesn’t mean you can’t offer them upsells to the original product in order to make sales while your customer is in a buying mood. But, if they don’t buy at the first opportunity, it’s your follow-up sequence that is going to inform, educate, and entertain them so that you build the relationship that makes them want more of what you have to offer.
Summing Things Up
Creating sales funnels can give you the competitive advantage you need to succeed in today’s online marketplace. When you have solid funnels with a good mix of products in place you have not only different entry points for people who want to do business with you, but you also have a way to communicate with them and build a relationship.
Your sales funnels also make you more competitive because you have a higher return on your customer acquisition costs. This means more money for advertising and product development to ensure you are giving your customers exactly what they want. When you do that, you will often see people buying everything that is on offer in your funnel.
A third way that you gain a competitive advantage is in attracting affiliates who want to promote you. If you only have one front-end product, chances are people will not promote you very consistently. But, if you have a funnel of three or more products that means more opportunities for them to promote and earn commissions, and that gives you the leverage you need to recruit top-end affiliates to your programs.
When you have a well-planned and well-executed sales funnel with products and follow-up sequences in place, you have the opportunity to acquire more customers, keep them longer, and get the maximum possible value per customer. And that’s a really big deal.
To your success,
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