How Would You Define A "Sales Funnel"?

by Matthew Keith 6 replies
I'm almost done with my first report for my new site, but I'm stuck on something simple and am seeking the help of my fellow Warriors.

How would you define a "sales funnel"?

I started out this chapter of my report saying...

"Ok, let me start out here by explaining what a "sales funnel" is.

Basically, it's a way of setting up your business where you have a bunch of "feeders"... free or low-cost products... that are used to bring new prospects or leads into your..."

And that's as far as I got. To be honest with you, it's probably the Miller Lite's preventing me from getting any further, but I'd like to get this chapter completed tonight if possible so a good explanation that you don't mind me using would be great.


Thanks Ahead Of Time!
#main internet marketing discussion forum #define #sales funnel
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  • Profile picture of the author Kevin Riley
    Originally Posted by Matthew Keith View Post

    I'm almost done with my first report for my new site, but I'm stuck on something simple and am seeking the help of my fellow Warriors.

    How would you define a "sales funnel"?

    I started out this chapter of my report saying...

    "Ok, let me start out here by explaining what a "sales funnel" is.

    Basically, it's a way of setting up your business where you have a bunch of "feeders"... free or low-cost products... that are used to bring new prospects or leads into your..."

    And that's as far as I got. To be honest with you, it's probably the Miller Lite's preventing me from getting any further, but I'd like to get this chapter completed tonight if possible so a good explanation that you don't mind me using would be great.


    Thanks Ahead Of Time!

    Matthew

    I know that feeling. That's when I step away from the computer. Go for a walk and it all comes to you. Better carry a notepad or a recorder.

    As for sales funnel, I explain it as this:

    Your sales system is set up so that free or low-priced reports bring new customers into your business -- or sales funnel -- where they are exposed to other products of yours (by links in your reports and e-mails). As they go further into the funnel, they start to buy some of your mid-priced products, and if you are still satisfying them, a few will go on to buy your high-priced courses, etc.

    The reason it's called a funnel is, like a funnel, it is wide at the top where many customers come in on your low priced entry-level products. It narrows down a bit as the price goes up and fewer customers go on to buy higher-priced products. At the very bottom it narrows right down to a few elite customers who buy your top-level products.

    Hope that unblocks you.
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    Kevin Riley, Kevin Riley Publishing, Osaka, Japan


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  • Profile picture of the author Andyhenry
    Matthew,

    Different people use different types of sales funnels in their business.

    For example, many people write physical books purely as lead generation exercises for their business of public speaking or consulting. They use books like most people use business cards.

    For IM the sales funnel can be anything from distributing articles, to giving away free reports, memberships, products, workshops, seminars and more.

    There seem to be 2 main types of funnel in popular use:

    1 - the deep funnel, where you basically create a range of different price point products within one small niche and see how far along the price-point you can take prospects, the idea being to get train them to buy and keep increasing the price of the products.

    2 - The wide funnel, this is where you don't put the funneling process in the way of a high ticket offer and you just give people in immediate wide range of products (or services) to choose from. Those that have the money and want the high ticket product can just buy it right away - no processing them through a funnel they didn't need to be in.


    Ultimately, there are as many methods of 'funneling' prospects into your business as you can dream up based on your business model and the resources you have at your disposal.

    The general concept of a funnel system is that it's easier to get people to say yes to something free, and once you have their details you can gently 'massage' them on to higher price products.

    Andy
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    nothing to see here.

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    • Profile picture of the author Matthew Keith
      Thanks guys, that definitely got me out of my fog. I think my problem was the "verbage", as my older friends would say.

      I need to explain what a "sales funnel" is, but the end of what I started writing was about to say "Basically, it's a way of setting up your business where you have a bunch of "feeders"... free or low-cost products... that are used to bring new prospects or leads into your... sales funnel.

      It's kinda hard to explain what something is when you use the same term you're trying to define in your definition )
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  • Profile picture of the author George Wright
    Hi,

    When I was in offline sales we called it the collector of every one on their way to becoming a customer. All people were given a title and it changed as they went closer to the narrow end where the "chosen few" became customers or clients.

    First they were suspects, (that's every warm body you come within 3 feet of or in IM you come in contact with)

    A percentage of the suspects were moved down the funnel to become prospects and finally dripped through the narrow end as customers.

    First time buyers become suspects all over again and are funneled to becoming repeat buyers.

    Suspects, prospects and customers all fell under the heading of leads in the funnel.

    That's how I first learned about the funnel.

    George Wright
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    "The first chapter sells the book; the last chapter sells the next book." Mickey Spillane
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    • Profile picture of the author Matthew Keith
      Thanks George,

      I never even thought of "first time buyers" becoming "suspects" that aren't repeat customers. That is some great insight, and if you think about it, couldn't be more true.

      Not that I didn't know before, but it's a great reminder why I love this forum over most.
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      • Profile picture of the author naruq
        Matthew. A Sales Funnel. You're trying to bring in a large number of would be buyers and get them into that huge opening at the top of your sales funnel. You use a low-cost or no cost offer to do this, but only to get them acquainted with you and what you have to offer. Your Back-end products is where you really make your money. The first sale at the top of the funnel is meant to get a prospect on your buyers list. The back end is the next sale and the next, and that's where you make your money.
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        Please do not use affiliate links in signatures

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