Why You Absolutely Need a Sales Funnel
It’s common for first-time internet marketers to get online selling only one product or service. For example, you might have an eBook solving an urgent problem that you want to sell. That’s fine for a hobby business. However, if you ever want to turn that hobby business into a serious business, you absolutely have to have a sales funnel.
What is a sales funnel and why do you need one?
==> What Is a Sales Funnel?
A sales funnel is a well thought-out pattern of follow-up and product sales that’s designed to maximize the amount of money you make from each visitor on your site.
The sales funnel generally starts when someone gives you their email address when they land on your website. It then leads them step by step through each product offering.
The sales funnel usually steps up to higher and higher price points over time. Your first product might only be $10. Your second might be $97, then $297 and eventually a $2,000 or even $10,000 bootcamp experience.
==> Why Is a Sales Funnel Important?
In marketing circles, a well-known idiom is that “The Money is in the Back End.”
That means that while up-front sales are important, the real profit is in making repeat sales. Statistics show that it’s about seven times as easy to sell an existing customer than it is to find a new buyer.
It’s also much easier to make significant money by selling higher ticket items. You’ll need to make over 50 sales at $47 to make up for one $2,500 workshop sale.
==> In Competitive Markets, it’s the Only Way to Compete
In competitive markets, if you don’t have a sales funnel you simply won’t be able to promote your product. You just don’t have the leverage.
Let’s say you’re selling an eBook at $40. You have a conversion rate of 1%, making each visitor worth $0.40.
Your competitor is selling an eBook at $40. But they also have a $20-a-month subscription program. Most people stay for 3 months, so his average customer value is $100. At the same conversion rate, his average visitor is worth $1.
When it comes to advertising and promoting, they’ll be able to out-spend you on every avenue. They can pay more than you in PPC, in banner ads, in direct mail, etc. They can out-spend you on SEO, outsource more content and build more links.
Your sales funnel doesn’t just make you more money, it also makes you competitive. If you have a better sales funnel than your competitor, you’ll be the one who can dominate every advertising channel and be the winner in that market.
To recap, having a strong sales funnel means you make the maximum amount of money per visitor possible. It means making high ticket sales as well as affordable sales. More importantly, it means you have the financial resources to compete in tough markets.