For an online business owner, a sales funnel is probably the most important marketing tool you have. And yet many entrepreneurs – both new and established – have no clear understanding of what a funnel is or how it works.
As you can imagine, failing to fully understand this important part of your business means fewer sales and lower profits.
A Simple Sales Funnel
At its most basic, a sales funnel consists of free content. Many sales funnels begin with blog posts, YouTube videos, Facebook content, and other information readers have free access to. This is the “top” of your funnel.
Next, you’ll have an attractive free opt-in that requires that they give their first name and email address. If you’re freebie provides value, i.e. solves a problem, most people are glad to give it to you. You’ve seen this type of offer on websites all over the internet, and probably even signed up for some. This could be a free e-Book or guide, video series, checklist, workbook, or any other valuable content that is available in exchange for “opting in” to an email list.
Once on your mailing list, you’ll then nurture them with a few emails where they can learn more about you and your business. Once you’ve built up trust and rapport you can start to sell a low-ticket item to see who your buyers are and move them along in the funnel. Maybe you have a low-priced e-book, card deck or membership.
Customers who purchase your low-priced product move further down the funnel, and are presented with more, higher priced services or products. As they continue to purchase from you, they move closer and closer to your top-end offers, which make up the bottom of your funnel.
How Your Funnel Works
If you imagine your funnel as looking like, well, a funnel, it’s easy to see that your free content—at the top—is consumed by the largest number of readers. Below that, your free opt-in attracts a smaller subset of the true freebie seekers. Next, your low-priced services/products bring in yet a smaller group.
Finally, as you near the tip of the funnel, those clients that have journeyed with you are ready to purchase your highest priced offers.
Your job, as the business owner, is to ensure that your funnel leads the buyers naturally through each stage. The more people you can keep in your funnel, the more success you will have.
Most new—and even established—business owners can easily envision the top of the funnel, but if you truly want your business to grow, you have to master the entire process, and that starts with understanding what a funnel really is and how it works.
I’d love to invite you to join my next Master Your Coaching Biz 12-week Bootcamp where I will cover this and more so that YOU can have the Dream Business you’re working so hard at building!
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