Simple Sales Funnel Fundamentals
For any business owner with an online presence, a sales funnel is probably the most important marketing tool you have.
Kohl's cash is one. Discounts from your favorite stores for the exchange of your email - another. Paid memberships to SiriusXM, Pandora, or Spotify - yet a different example. Everywhere you look, if you exchange personal information for "insider opportunities", there is a sales funnel.
And yet many female entrepreneurs - both new and established - have no clear understanding of what, or how it works. As you can imagine, failing to fully understand this critical part of your business means fewer sales, lower profits, and ultimately, an unstable business.
A Simple Sales Funnel
At its most basic, a sales funnel consists of free content, which typically requires nothing of your readers. Many begin with blog posts, YouTube videos, Facebook content, and other information readers can access at no cost. This is the “top” of your conduit of content.
Next, you have an attractive offer which has a very small ask. This ask is payment of sorts - an email address. You’ve seen this type of offer all over the internet. I'd guess you've even signed up for a few. We (and our customers) are willing to make this "payment" to get the free ebook or guide, video series, checklist, workbook, or other valuable content. And we do so because the insider information is only available in exchange for “opting in” to a list.
Once on the mailing list, readers are presented with a series of low-cost offers. This can be a low-priced ebook, a tutorial video, or even a trial to a high-end membership.
Eventually, customers who purchase the low-priced product move further through your offers and are presented with higher priced products. As they continue to buy, they move closer and closer to your top-end offers, which make up 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 (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, customers are near the tip of the funnel. The most loyal of fans and customers purchase your highest priced offers.
Your job, as the business owner, is to ensure that your content conduit leads buyers naturally from the top, free offers all the way to the bottom. The more buyers you can keep inside the channel, the more money you will make.
Most new—and even established—business owners can easily envision the top of the process. However, if you truly want your business to grow, you must master the entire system. And that starts with understanding what a funnel really is and how it works.
Over the next few articles, I'll describe this in detail. So, bookmark the page and get ready to create a simple sales funnel that works for you.
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