How Sales Funnels Work

How a Sales Funnel Works and Why You Need One

If you are using the internet to attract ideal clients, having a sales funnel is one of the most important marketing tools you’ll need.

Most small businesses see the need for marketing, but miss how critical having a sales funnel is. Because they don’t really understand how it works, they don’t realize how much money they are actually leaving on the table.

No sales funnel (or a poorly structured sales funnel) means low sales and inconsistent profits, which lead to an unstable bank account.


The Basics

At the “top” of your funnel is free content and offers you use to create awareness and drive traffic. It’s your blog posts, YouTube videos, Facebook content, and other information potential subscribers can access at no cost. This is why content is so important.

The next level of your sales funnel is an outstanding opt-in offer that requires a very small “payment”: an email address. You’ve seen this type of offer all over the internet. You’ve probably even signed up for a few, and maybe you have one of your own. This is where you give away a free ebook or guide, video series, checklist, workbook, or some other valuable content in exchange for them “opting in” to your email list.

Once they join your mailing list, your goal is to continue building the relationship with your VIPs (very interested prospects) through content. Eventually you have the opportunity to turn subscribers into buyers through your entry-level offer. It could be an ebook, trial membership, or small course.

Those who purchase your entry-level product move down another level in your sales funnel, and are now offered products and services at a higher price point. As they continue to invest in your offerings, they move towards your top-tier offers at the bottom of your funnel.

What Your Sales Funnel Looks Like

What happens in your sales funnelLet’s paint a clear picture of your funnel. Your free content is at the top and attracts the largest number of readers. Underneath that, your opt-in offer (given in exchange for an email address) attracts a smaller subset of the freebie seekers. (The more blog traffic you have, the more potential sign ups you have.)

Next, your entry-level products bring in an even smaller group. From there your offers will lead then to the very tip of the funnel, where only the loyalest of customers will invest in your highest priced offers. Your job, as an entrepreneur, is to create a sales funnel that leads your true VIPs from the free offers all the way to the bottom.

The more buyers you can keep in your sales funnel, the more money you will make. Most service-based entrepreneurs only focus on the very top of their sales funnel missing out on thousands of dollars each month. If you want to accelerate your income, become a master at knowing how sales funnels work and how to create one for your business.

Click here to join the Leads Lab and get access to our class, Sales Funnels for Beginners.

Can you get by without having a sales funnel? For a while. Without having a repeatable system for generating leads and converting them into paying clients, you will find yourself flying by the seat of your pants every single month. Implementing a sales funnel, tracking the results, and tweaking your funnel to optimize your profits is how you will grow your business without burning out.

1 thought on “How a Sales Funnel Works and Why You Need One”

  1. Pingback: Q + A: How to Use Free Consultations as Part of Your Sales Process | Tai Goodwin

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