A sales funnel (also referred to as a customer journey or sales process) is probably the most important marketing tool you have. Yet many entrepreneurs (new AND established) have no clear understanding of what a funnel is or how it works.
Sales Funnels in A Nutshell
At its most basic, a sales funnel consists a few components. The first component is free content. This can be things like blog posts, YouTube videos, Facebook content, and other information readers can access easily. Next, is free content that readers can access in exchange for their email address (often referred to as a “lead” magnet). This can be things like an ebook or guide, video series, checklist, workbook, or other valuable content that is available in exchange for “opting in” to an email list click here (click here to get a list of 25 lead magnet ideas).
The next step, is to offer a low-cost offer. Typically, this should be related to your lead magnet (e.g., if you offered a checklist on a topic, you could then offer an ebook at a low price, related to that topic).
Finally, is your higher priced offer. This could be anything from a masterclass or course to signature program or 1:1 coaching sessions.
How Funnels Work
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 lead magnet 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 customers will purchase your highest priced offers.
Most entrepreneurs can easily envision the top of the funnel, but if you truly want your business to grow, you must master the entire process. In other words, ensuring that your funnel leads buyers naturally from the free content to the paid content.
