Sales Funnel’s are the backbone of any modern business.
A sales funnel is essentially how your business works. It’s the exact process of how you generate cash flow. Did you know most businesses don’t even have a clear vision as to how they make their money? It’s because they don’t have an effective sales funnel. To have an effective sales funnel you need to look at it a little differently. Think of it as a pop up book for your business plan. Most of us learn better this way. You need to create a visual road map of how your business works, aka the “sales funnel”.
I have created an effective sales funnel that I use universally in every business I own. I have taken what I have learned from top thought leaders and entrepreneurs, put a slight spin to it, and created my own version. This is my own personal sales funnel diagram that I use when building a business. Depending on the type of business some sections may vary slightly but in generality it’s a pretty universal system. So let me break it down for you, then i’ll follow up with the actual diagram below.
How To Create An Effective Sales Funnel
The Lead Magnet
This is where it all begins. The lead magnet is the start to your sales funnel. It’s the systems that generate and capture your leads, sucking them in like a giant magnet. It’s magnetic because it consists of FREE high quality content. Yes, you heard right. I said free. If you want people to follow you, and eventually become customers. They need to trust you and your brand. You give people incentives. Things that add massive value to their lives that they don’t even have to pay for. This gains their trust, and their support.
In exchange for this high quality free content they provide you with their contact information so you can follow up with them and give them more free shit in the future, and eventually a sales pitch. By that time you should have hit them with so much value that they are practically begging to buy your products. There are a lot of systems that can come into play in this segment of the sales funnel. You need to know what tools to use to capture information, contact management, communications, etc.
At this point you have managed to suck in tons of leads through your lead magnet. At this point these people have a general feel for you, they consume your free content, and if they find it adds value to their lives they will continue following you. Now is the time to start hitting these people with casual sales pitches. You are now gaining their trust, so start hitting them with some intro products to get them more involved in what you do.
These products are basic level things such as books, basic training courses & merchandise, and even some general affiliate marketing products. Intro products are cheap, they are the $5-$15 products that basically just get the users feet wet to what you do.
These are the products that make up the very core of your business. They are what your business thrives on. They can be digital, or physical. These products are more than likely where the bulk of your revenue will be generated. You might even find some people bypass your intro products and go straight to your core products. This happens when your lead magnet does an incredible job of adding value to people to earn their trust.
These products would typically be in the $50-$200+ range.
Upsell & Cross Promotion Products
Most businesses stop at this point oddly enough. This is the point when you start gaining lifelong quality customers, fans, and followers. These are the people that are heavily supportive of what you offer the marketplace. These people have consumed everything you offer, they probably actively refer you new customers, and they have gotten massive value from what you provide. They are ready to take it to the next level.
This is when you start up selling them on recurring membership products, higher end advanced training products & affiliate marketing, etc. This is where you start getting bigger commitments from people. These people are special, and they should be treated as such. I like membership based products because it creates passive recurring income. These products can be whatever you want, but they are made for the special customers and die-hard followers you have amassed.
It’s a way to give them something to to feel proud of for supporting you, at the same time capitalizing on it. It makes them feel special to be apart of such a prestigious “thing”. This can even be a product that has an affiliate channel established so you can also provide them a way of their own to make money, and help you generate more at the same time. Another way of capitalizing on their support.
These are typically $250-$500+ products.
This is the end of your sales funnel. I give it the broad term of consulting because it can be a wide variety of things. These are your most expensive products and services. From 1 on 1 and group training, exclusive high end membership communities, DFY services (Done for you), etc. Done for you services are essentially you providing someone and end-all product or service.
For example…If your entire business is constructed around how to make music. Your DFY service might be a complete album for an artist that provides them with all the recording, album art, music videos, and promotion. Or if your business is a social media coaching business. It might be a complete social media package that manages a businesses complete social presence.
These products are time consuming, and not typically all that scalable. So for these products you charge a premium, $1,000-$5,000+. Only very committed clients are going to consider these solutions. By having a solid sales funnel that cultivates quality customers and steadily converts them into people that love your products and services, you should naturally see a demand for these products.
If you do things well enough, you may even get too much of this business. That’s when you start raising the price on your time because it obviously provides people with good value. If you find you can’t make it to this point in the sales funnel you might be lacking value somewhere else in the system.
By breaking down your business and building a sales funnel it allows you to analyze the data to figure out where your business can be improved. If you find you get massive amounts of leads, but not many people buying your intro and core products, you might evaluate the quality of your products. If you don’t get many leads you will want to dissect your lead magnet systems. Whatever portion of your business is lacking, you will be able to tell where the kink is.
If you feel like this post helped you please share it with your friends with the social buttons. It would mean the world to me. I try to create valuable content that adds great value to peoples lives. If you paid attention to this post you will realize that this post is essentially a product of my own personal “Lead Magnet”. It’s a FREE high-quality piece of content that you consumed and hopefully got something out of it. If you did, I would really appreciate your follow, and if you think I can help you in any way please reach out.