What Is A Sales Funnel And Why Do You Need One
Do you want
Did you know that it costs McDonalds $1.91 in advertising to get you into the drive through...?
And when they sell you a burger for $2.09... they ONLY make $0.18.
But... when they upsell you fries and a coke for $1.77 more... they make (and more importantly
$1.32 profit). Yes, 8 times the profit of the initial sale! Pretty cool, don't you think?
What does that have to do with you?
Well, If you're like most people who sell stuff online, you setup a website, and you started selling your product.
But - just like McDonalds - even if people are buying it, after your advertising costs you're probably not left with enough to even cover your hosting bills.
And that's when you realize that if you want to make it online, you need to do what McDonalds did: setup a sales funnel.
What exactly is a sales funnel?
In essence, a sales funnel can be imagined like a funnel for customers.
You start out with a broad opening to capture as many leads as possible
and then you gradually narrow those leads down to only the most engaged
and interested customers so that you can sell to them.
So you might start with a simple advert, or a blog post, and then move on to an email list, then a ‘free report’, then a seminar, then a small product sale and then a big sale.
Each of these marketing stages is a rung on a ladder, it’s a little further down the funnel.
And each time a customer clicks on the next link, or follows you to the next step, they are becoming more and more likely to buy from you.
All the while, you’ll be building trust, building engagement and priming them ready to make a sale.
A sales funnel is the most systematic way to build trust, to build a relationship and to encourage people to want your brand before making a sale – and it is incredibly powerful when done well.
Why do you need one?
Imagine if someone came up to you in the street and asked you if you’d like to buy a $5,000 watch.
99.9999% of the time, you would say no to that offer.
Why? Well, apart from the fact that you might not want a watch (you are a ‘cold lead’ in that respect), there’s also the small issue of trust, recognition and authority. You don’t know who this person is, you’ve been given no reason to trust them and you’re probably not going to want to hand over any cash.
That’s why companies don’t do this. Instead, they give you fliers. Fliers are things you can choose to accept or throw away – but either way, they don’t cost you anything and you won’t feel that you’re being pressured into anything.
Other stores do something different: they give away freebies. Walk past Starbucks and you’ll often find them giving away free samples of their new drinks and cakes for you to try.
Again, you can easily walk away if you’re not interested and you won’t feel you’re being strong-armed. If you like the free sample though, then you can come in and try whatever else they’re offering.
If you try and sell to people right away on your website though, then you’re the equivalent of someone trying to sell thousand dollar watches in the street.
And if that’s the only thing you’re offering and the only way that your visitors can engage with you, then they’re just going to say ‘no thanks’ and leave, giving you no way to contact them again and no way to get them back. As you might have guessed, this is a poor strategy!
Try to imagine it from their perspective: they have typed ‘fitness tips’ into Google, found your page essentially by accident and now you’re trying to sell them your training program for $500.
People do not make decisions on that basis unless they’re loaded with cash.
They’ll see you’re trying to sell them, write you off as spam and then leave.
Your high converting sales funnel
Understanding the overall concept of sales funnels is pretty easy but turning the knowledge into practice is a different story.
So yes, I have a secret:
If you have a business or are planning to have one, read the book first. You'll be blown away with what's possible.
FIRST TIME HERE
© 2017 by Marisa Specogna