What is an Online Sales Funnel?
You keep reading about how you need a digital sales funnel online to maximize your website’s profit potential, but what exactly does that involve?
First off, let’s discuss first what a sales funnel is!
A sales funnel is a systematic approach to selling. One of the most successful examples of this is McDonalds. When you come in to purchase a hamburger at Mcdonald’s, they’re really only making about .18 cents profit on that. Now when they upsell you on the fries and coke, their profit margin jumps to over a dollar.
So they draw you in to purchase one product; the hamburger, or sometimes it’s the McRib, and then they upsell you on complementary products or more of the same (Buy One Get Two).
Now instead of bringing customers through a drive-thru, we want to bring customers thru our digital sales funnel on our website. First to buy one product, then to upsell them or cross-sell them on complementary products to increase the amount of money they’re spending.
Experienced marketers & entrepreneurs have known for a long time that the ‘money is in the backend’, which means that the bulk of your profit potential is not on the first sale but on all subsequent sales made after a customer is added to your email list.
So your digital sales funnel should look something like this:
Front-end product (low priced ‘loss leader’)
This product’s sole purpose is to start the relationship with the prospect and build trust. It can be free to low-priced and must provide huge value!
2nd product (slightly more expensive/first ‘profit maximizer’)
A percentage of your customers will want more from you! This is when you offer another product. This is a complimentary product that is designed to maximize your profits.
3rd product (most expensive/‘profit maximizer’)
A percentage of your customers will still want even more from you! This is when you offer your 3rd product offer which is your most expensive offer, again this is a complimentary product that is designed to maximize your profits.
These offers can happen consecutively, one after the other, as ‘one-time offers’ or over the course of several days, weeks, months. What ends up being most profitable to you is simply a matter of testing.
The reason this method works so well is because it’s roughly 7 times more costly to acquire a new customer than it is to sell more to existing customers. So by optimizing your upsell, cross-sell and reselling opportunities it’s going to be a lot easier to maximize your return on investment.Tweet