The Sales Funnel: What Is It & How Does It Work?!


Sales Funnels As A Means of Lead Generation

For an online business owner, the sales funnel is probably the most important marketing tool you have. And yet many entrepreneurs – both new and established – don’t feel like they have a clear understanding of what a funnel is 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, a not-as-sustainable business.

 

A Simple Sales Funnel

At its most basic, a sales funnel consists of free content, which typically requires nothing of your readers. Many sales funnels begin with blog posts, YouTube videos, Facebook content, and other information readers can access at no cost. This is the “top” of your funnel.

Next, you’ll have an attractive offer that requires a very small “payment” of sorts – typically an email address. You’ve seen this type of offer on websites all over the internet, and probably even signed up for some. This is the free ebook or guide, video series, checklist, workbook, or other valuable content that is available in exchange for “opting in” to an email list.

Once on your mailing list, you’ll then present your readers with a series of low-cost offers. Perhaps you have a low-priced e-book or a trial membership.

Customers who purchase your low-priced product move further down the funnel, and are presented with more, 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 (available only for 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, as you near the tip of the funnel, only the most loyal of fans and customers will purchase your highest priced offers.

Your job, as the business owner, is to ensure that your funnel leads buyers naturally from the top, free offers all the way to the bottom. The more buyers you can keep in your funnel, the more money you will make.

Most new—and even established—business owners can easily envision the top of the funnel, but if you truly want your business to grow, you must master the entire process, and that starts with understanding what a funnel really is and how it works.

 

3 Pages Every Sales Funnel Should Have

Confused about how exactly sales funnels work? You’re not alone. In fact, that’s the number one reason small business owners say they can’t get their funnels set up—they simply don’t know what to include where.

Here’s the easy answer: At the very least, your sales funnel needs three pages.

 

Sales Page

This one obviously comes first. You might call it a landing page, or in the case of a free opt-in, a squeeze page. It serves one purpose—to get the reader to take action. Whether that’s to buy a product or offer up their email address in exchange for a free gift, this is the gateway into your funnel. Everything that follows depends on this page, so you want to be sure you:

  • Include a clear call to action—“Buy Now” or “Click here to download this report for free”
  • Eliminate distractions—that means no links to other websites or even a navigation bar
  • Address the readers’ pain points and how your offer provides the solution

 

Confirmation Page

Here’s where we ask the reader to confirm their intent. For a sales funnel, this confirmation page might actually be your checkout page. It’s where they enter their payment details. For a free offer, it’s simply the page your email management system directs them to next. It’s a  holding page, if you will, while you wait for them to confirm their email address.

If you’re setting up a free funnel, this page has great power—and you don’t want to waste it!

Here is where you can offer an upsell, remind people to follow you on social media, and give them a peak at your other products and services.

Remember, though, that they will only see this page once, so don’t put anything here that they will need to refer back to. That’s what the thank you page is for.

 

Thank You Page

This is where they actually collect their downloadable item or get information about how your product will be delivered.

Like the confirmation page, this is prime real estate, so you want to be sure you use it wisely. In addition to the downloadable item your customer just purchased (or opted in for) you also want to showcase your other offers—especially those at a slightly higher price point. Here’s why: the person looking at this page is a hot prospect. He or she is in a buying mood. You want to be sure to take advantage of that by putting your most relevant offers on this page. To encourage buying, consider including:

  • A limited time offer—scarcity sells, so if you can legitimately limit sales to a few hours/days or number of units, then this is the place to do so.
  • A “no-brainer” coupon offer—an insider’s only deal can be a powerful motivator, especially if it’s a fantastic price.
  • Extra bonuses—give them access to additional products/services if they buy through your link on that page. These should be bonuses that aren’t advertised on the public sales page for that product. Again—insider’s deals are motivating!

 

Putting together a sales funnel isn’t complicated—or at least it doesn’t have to be. As your business grows and you have more products to offer, you can expand your funnel to include more upsells and down sells, but for now, this simple setup is really all you need.