What the Heck is a Sales Funnel, Anyway? – Part 1 of 5

Posted by jrgomez on June 5, 2017


[This is one of a five part series on what sales funnels are, and why every successful business must have one].

For an online business owner, a sales funnel is probably the most important marketing tool you have. And yet many entrepreneurs – both new and established – have no clear understanding of what a sales funnel is or how it works.

As you can imagine, failing to fully understand this critical part of your business means fewer sales, lower profits, and ultimately, an unstable business.

A Simple Sales Funnel

At its most basic, a sales funnel consists of free content (also called a “Lead Magnet”), which typically requires little effort from your readers. Many sales funnels begin with blog posts, YouTube videos, Facebook content, and other information your leads can access at no cost. This is the “top” of your funnel.

Next, you’ll have an attractive offer that requires a very small “payment” of sorts – typically an email address. You’ve seen this type of offer on websites all over the internet, and probably even signed up for some. This is the free ebook or guide, video series, checklist, workbook, or other valuable content that is available in exchange for “opting in” to an email list or an email follow up series (also called “Mail drip campaign“).

Once on your mailing list, you’ll then present your readers with a series related articles providing related information, in addition to low-cost offers. Perhaps you have a low-priced downloadable book (do not use e-book)  or a trial membership.

Customers who purchase your low-priced product move further down the funnel, and are presented with more, higher priced products. As they continue to buy, they move closer and closer to your top-end offers, which make up the bottom of your funnel.

How Your Sales Funnel Works

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 extreme low-cost item (available only for the cost of an email address) 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 of fans and customers will purchase your highest priced offers.

Your job, as the business owner, is to ensure that your funnel leads buyers naturally move from the top of the funnel, attracted by the lead magnet or free offers, all the way to the bottom of the funnel where the premium offers (also called “Upsell offers”) are being presented. The more buyers you can keep in your funnel, the more money you will make.

Most new—and even established—business owners can easily envision the top of the funnel, but if you truly want your business to grow, you must master the entire process, and that starts with understanding what a funnel really is and how it works.


Next week we will continue on the second part of this series. We will talk about Why Your Sales Funnels Leak—And What To Do About It


To learn more about The 3 Biggest Lead Generation Mistakes Small Businesses Make…And How To Overcome Them enroll for FREE to our weekly video lesson at www.TopBusiness.Coach

One Response to “What the Heck is a Sales Funnel, Anyway? – Part 1 of 5”

  1. Maggie kavanaugh said...