[Bankable Basics] How a Sales Funnel Works and Why You Need One
If you are a service-based entrepreneur trying to use the internet to attract your ideal client, your sales funnel is one of the most important marketing tools you have.
As I’ve been talking with prospective clients about creating information products, I find that they are missing this critical component. Whether they are just starting or have been in business for a while, they know they need a sales funnel but don’t really understand how it works. This also means they don’t realize how much money they are leaving on the table by not having one.
No sales funnel (or a poorly structured sales funnel) means low sales and inconsistent profits, which lead to an unstable bank account.
Sales Funnel Basics
At the “top” of your funnel is free content, which typically requires nothing of your readers. It’s your blog posts, YouTube videos, Facebook content, and other information potential subscribers can access at no cost. This is why content is so important.
The next level of your sales funnel is an outstanding opt-in offer that requires a very small “payment”: an email address. You’ve seen this type of offer all over the internet. You’ve probably even signed up for a few, and maybe you have one of your own. This is where you give away a free ebook or guide, video series, checklist, workbook, or some other valuable content in exchange for them “opting in” to your email list.
Once they join your mailing list, your goal is to continue building the relationship with your VIPs (very interested prospects) through content. Eventually you have the opportunity to turn subscribers into buyers through your entry-level offer. It could be an ebook, trial membership, or small course.
Those who purchase your entry-level product move down another level in your sales funnel, and are now offered products and services at a higher price point. As they continue to invest in your offerings, they move towards your top-tier offers at the bottom of your funnel.
What Your Sales Funnel Looks Like
Let’s paint a clear picture of your funnel. Your free content is at the top and attracts the largest number of readers. Underneath that, your opt-in offer (given in exchange for an email address) attracts a smaller subset of the freebie seekers. (The more blog traffic you have, the more potential sign ups you have.)
Next, your entry-level products bring in an even smaller group. From there your offers will lead then to the very tip of the funnel, where only the loyalest of customers will invest in your highest priced offers. Your job, as an entrepreneur, is to create a sales funnel that leads your true VIPs from the free offers all the way to the bottom.
The more buyers you can keep in your sales funnel, the more money you will make. Most service-based entrepreneurs only focus on the very top of their sales funnel missing out on thousands of dollars each month. If you want to accelerate your income become a master at knowing how sales funnels works and how to create one for your business.
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