Discover How You Must Incorporate A Sales Funnel Into Your Business!
The sales funnel is a very simple concept of business and marketing but it is often overlooked. Therefore many businesses are leaving a lot of money on the table.
The concept is to have a low price or free entry product which then inturn leads the prospect onto products with gradually increasing prices.
Why businesses and marketers use the metaphor of a sales funnel is that it is wide at the top and progressively gets narrower towards the bottom.
The top of the sales funnel represents prospects or leads you attract into your business. Now at this point your prospects are totally unqualified, meaning you don’t know if your products and services are what they are specifically looking for. You will also find that some people will just be browsing and they may not be seriously interested. The is a way of filtering out the serious from the not so serious people which is ultimately what you are looking for.
As we go down the sales funnel the commitment of you customer becomes more. The key word here is “customer”. They have gradusted from being a prospect or lead because they have been prepared to give you some of their hard earned money.
One factor of the sales funnel is that as we go down the funnel the percentage of people going from the first paid prodct to the second and so on decreases.
This could be because of differing factors such as the budget the customer has and also the need of the product. They may have stopped at a certain stage simply because you have fulfilled the solution to their problem.
One major factor of a sales funnel is congruency. Meaning that each product in the sales funnel must compliment each other. In other words there is no point offering a free report of dog training only then to offer them a home study course on wine making as the second product in the sales funnel.
Below I have created an image of a typical sales funnel which has five stages and I will explain how it works for you.
For the process of explaining this I will use the example of the starting a home business niche which is relevant to why you have landed on my website.
FREE OFFER – This is your lead magnet. What you need to do is offer an incentive to a person to sign up to your subscriber list. What you can do is offer them something like a free report, free video training series or a free consultantion. The person then gives you their email address in return for the free offer that you provide. One tip is to make sure that it is a quality gift with a high perceived value to the subscriber.
Product 1 – Your first paid product. This could be a home study course showing them how to start a home business. Ideally you don’t want to charge too high a price for this. You want people to take you up on the offer to get them into the paid part of your sales funnel. As we go through you will see that the money that you will be making comes more from your backend product line.
For this I would suggest a price of around $27.00. It is a good starting point. With in this product you give them a taste of what is too come. There has to be an incentive at the end of each stage for the person to carry on through the sales funnel.
Product 2 – This could be another home study course on how to generate traffic for their home business. This compliments the first product because an online business need traffic for it to survive. It is the life blood to its success.
For this I would suggest a price of around $97.00. It is not too high and you should have a good percentage of people take you up on that. Each step through the sales funnel you are filtering out the serious people which is where the money is to be made.
Product 3 – This is where it starts to get serious. At this point why not offer them a complete business system. Everything they need to become a professional marketer with prodcuts to sell and all the resources they need.
For this I would suggest a one off payment of $297.00 and a monthly service charge of $97.00. Not only are you getting some very good money from the initial sale you are also getting a monthly recurring income as well. A totally win/win situation.
Product 4 – A training and mentoring program. You could offer them advanced training with one on one coaching on a weekly basis as well as offering a one day live workshop.
For this you could charge in the region of $1000. It is a high value product and people will invest in their education to progress their business onto another level.
As I have said this example is for the starting a home business niche but can be adapted to many different niches very easily.
If this sound of interst to you and you would like more inforation about the sales funnel in general or the one that I personaaly use with in my business then please feel free to contact me at any time by clicking here.
I hope that you have enjoyed this post on the process and concept of a sales funnel and I thank you for your vailable time that you have taken in reading it.
As always I wish you well.
Pete Harris
Digital Marketer & Home Business Consultant
Six Figure Mentors Elite Member
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