It’s a bit of a fancy marketing term, honestly. And while it may seem like a gimmick, it’s also a system of selling (both online and offline) that have made a lot of people an awful lot of money.
A sales funnel is a process that you direct your customers through to help them to spend increasing amounts of money on your products or services. The idea is pretty simple.
So how does a sales funnel work?
Start with a free or low cost item, and get it out to as many people as you possibly can. For the sake of this article, let’s say you manage to get 1000 people to download your free lead magnet.
From that 1000 people, a percentage of them (if properly nurtured) will go ahead to spend money with you. By offering a low-cost item, you make this easier for them. Say maybe 30% buy a product from you at $10.
That means you just had 300 sales and made $3000 without having to spend a cent to acquire those leads in the first place.
From there, let’s say you have $100 product that 20% of that group buy. That would equate to a further $6000 of sales.
Maybe you’ve also got a $500 product that 10% of the group who bought the $100 product also buy. There’s another $3000 in your pocket.
Sales funnels are built to “funnel” customer through a system of ever increasing value propositions.
The cool part is, once you acquire the lead through your lead magnet, you don’t pay a cent in “acquisition” which means that your customers literally become profit machines.
Sales funnels are a great way to turn one-time customers into repeat customer and raving fans. But you have to make sure that the product ecosystem is there to back you up.