What is a Sales Funnel?
For a coach and online business owner, a sales funnel is probably the most important marketing tool you have. And yet many entrepreneurs – both new and established – don’t have a clear understanding of what a funnel is or how it works.
If you don’t understand this critical part of your business, it can means fewer sales, lower profits, and an unstable business.
A Simple Sales Funnel
At its most basic level, a sales funnel consists of totally free content. A sales funnel may begin with blog posts, YouTube videos, Facebook content, and other information readers can access for free and without giving their email address. This is considered to be the “top” of your funnel.
Next, you’ll have what’s called an IFO (Irresistible Free Offer) or lead magnet that requires an email address as a sort of payment in exchange for your free gift. You’ve seen this type of offer on websites all over the internet, and probably even signed up for some. This is the free ebook or guide, video series, checklist, workbook, or other valuable content that is available in exchange for “opting in” to an email list.
Once on your mailing list, you’ll then present your readers with a series of low-cost offers. Perhaps you have a low-priced ebook, ecourse, or a trial membership.
Customers who purchase your low-priced product move further down the funnel, and are presented with higher priced products. As they continue to buy, they move closer and closer to your high-end offers at 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 extreme low-cost item (available only for the cost of an email address) attracts a smaller subset of the true freebie seekers. Next, your low-priced products bring in yet a smaller group.
Finally, as you near the tip of the funnel, only the loyalest of fans and customers will purchase your highest priced offers.
Your job, as a coach and business owner, is to ensure that your funnel leads buyers smoothly from the top (free offers) all the way to the bottom. The more buyers you can keep in your funnel, the more money you will make.
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 must master the entire process, and that starts with understanding what a funnel really is and how it works.
Ready for more? Check out my 4-week program to learn how to Rock Your Profits with Easy, Fabulous Sales Funnels!
