Wanna learn how to build a sales funnel? It’s not as complicated as it sounds.
If you plan on making any real money marketing online, you better have one in place or risk missing out on potential sales.
Fortunately, It’s rather easy to set up. Once you put the pieces in place, it’s just a matter of staying on top of it.
In this post, I’m going to break down the 5 components that you need to build a sales funnel.
Here are the 5 components:
- Lead Magnet
- Trip Wire
- Core Offer
- Profit Maximizer
- Return Path
Before we dive in, I want to note that implementing a sales funnel is only one part of marketing your business.
If you want a more complete view, I strongly recommend checking out this post I wrote on how to market your business.
A lead magnet is an irresistible bribe in exchange for contact information. The key to an effective lead magnet is that it must be specific!
A lead magnet that tries to solve 10 things at once is much less effective than a lead magnet that solves one specific problem.
Lead Magnets come in all shapes and sizes. We’ll go over a few of them to give you some ideas on lead magnets you can create:
- Report – Reports are useful for any industry which relies on data, research, or statistics. You can either do the research yourself or you can aggregate the data from various sources and create one comprehensive report.
- Cheat Sheet/Handout – These are typically one page and give the reader a set of guidelines or a specific process that they can follow repeatedly to achieve a particular benefit.
- Toolkit/Resource List – These can be huge time savers as they pull the best stuff together, which saves time for your ideal target market.
- Video Training – Video is already a popular medium for consuming content. They also have a higher perceived value compared to text.
- Software Download/Trial – If your core product is a software (like Simpleology), then a free software trial might make sense for your business. You’ll be able to collect their email address just like a lead magnet should and they get to test your product risk-free before they commit to buying.
- Discount/Free Shipping – This is an especially potent lead magnet if you’re in ecommerce. Without having to worry about shipping costs, your target market might be incentivized to buy a little bit more.
- Quiz/Survey – Quizzes have been a staple among lead magnets for quite some time. Josh Haynam from TryInteract says that there are 3 reasons why quizzes work so well: they help you learn about yourself, they emulate a conversation, and they offer personalized benefits.
If you want even more lead magnet ideas, then check out this article by Optinmonster which outlines 69 Lead Magnets you can create.
Before you start promoting your lead magnet, you want to make sure that it has the highest probability of converting a visitor into a subscriber.
If you want to know whether or not your lead magnet has a high chance of converting, here are some questions you can ask yourself:
- Is my lead magnet specific? (Does it solve 1 problem?)
- Does it speak to a known desired end result?
- Does it provide immediate gratification?
- Does it have high perceived value? (Hint: videos tend to have high perceived value)
- Does it allow for rapid consumption?
A tripwire is an irresistible, low-priced offer designed to convert a prospect into a buyer.
When a prospect purchases your tripwire, they have to display a certain level of commitment to your business.
Speaking of commitments, they come in two different flavors: committing with their wallet or committing with their time.
A time commitment may include things like webinars, demos, appointments, etc.
Here are the 7 most common tripwires:
- Physical Premium (Want but don’t need) – These are items that are nice to have but aren’t a necessity.
- Small But Critical (Need But Not Sexy) – These are relatively small items that serve a useful purpose.
- Book/Report – This is a method where you give away a free book and ask the receiver to cover the shipping.
- Free/Paid Webinar – A free or low-priced online presentation on a particular subject.
- Free/Paid Trial – A deep discount or free access to your core product for a specified period of time.
- Software/Plugin – A useful piece of software.
- A la carte service – Offering one of your products or services at a deep discount to incentivize buyers.
Your core offer is your flagship product or service. This will make up a significant portion of the money you make on the backend.
It goes without saying that you need to have a good product. But that’s only half the battle.
If you can’t “offer” your product in a way that attracts buyers, then you’re not gonna make any money.
Here are a few questions you should ask yourself when determining the strength of your offer:
- Is my offer relevant? – Your offer must be relevant to your target market if you want them to buy. In order to accomplish that, you must clearly articulate where they are now and where they would like to be as a result of using your product.
- Is it credible? – A relevant offer without any credibility is just hype. If you already have an established brand, then your offer will have credibility by default. If you’re just starting out, your best bet is to be as specific as possible. For example, if you’re selling hand lotion, you can mention specific ingredients within your product and how it benefits the consumer.
- Is it timely? – You need to present your offer to your prospect at the right time. Presenting your offer at the wrong time is just as bad as not having a good offer to present.
- How obvious is the need for my product or service? – There are some products where the need is immediately obvious like clothes, food, and toiletries. If the need in your product isn’t apparent, then you’ll need to factor this in when it comes to promoting it and getting the word out.
- How common is a solution to the problem? – The more common the solution, the more you have to differentiate yourself from your competitors.
Simply put, a Profit Maximizer is an additional product that your customer purchases after their original purchase.
Most marketers know that it’s about 10 times easier to sell to someone who’s already bought from you, then someone who’s never bought anything from you.
Profit Maximizers can take a variety of different forms. Here are some of the more popular ones:
- Immediate Upsell – You sell them a product right after they buy something from you.
- Cross-Sell – You sell a product that’s not directly relevant to your core offer but appeals to your market.
- Slack Adjusters – You sell a product that’s about 10X -100X the price of your core offer. This product will only appeal to your top 2% of offers. It often takes the form of “done for you” services.
- Bundles & Kits – You take a group of separate but related products and sell them together as a group. Shaving kits are good examples of bundling similar items together.
- Recurring Billing – You sell a product that has a monthly autoship to maintain access.
As we mentioned previously in the sales cycle, it takes 8 to 12 contacts before your prospects buy from you.
This is why we collected their email address in the first place via a lead magnet. Even if they don’t purchase your core offer or tripwire, you still have a way to stay top-of-mind with them.
However, email is only one type of return path.
There are 4 main types:
- Constant Communication – This can be done through email or social media, provided you have a lot of engaged followers on the platform.
- Exit Offer – A last-ditch effort to offer something of value in exchange for contact information.
- Retargeting – A form of online advertising that helps you keep your brand in front of bounced traffic after they leave your website.
- Automated Follow-up – Pre-written email sequences delivered automatically based on the subscriber’s behavior (i.e., opting in, making a purchase, scheduling a call, etc.)
You should have at least one or more in place for your business.