19.09 20120

What is a marketing funnel, and why do you need one?

Marketing funnel is a term used by marketers to describe a system that provides many opportunities to sell different products to a prospective client. You can offer your prospective clients a free report as an incentive for them to opt-in to your list. Then, to your subscribers, lets say you sell a low-priced e-book, for $47. Then to the buyers of the e-book, you sell a $197 course with videos and access to a membership site with a forum. Then you further sell buyers of that course, a group coaching program for 3 months with weekly webinars and Q&A sessions for $1997. And to some of the buyers of group coaching, you sell one-on-one coaching for $10,000 limited to only 10 people.

So, the funnel metaphor is that, you can have 10,000 subscribers to your free list,  that is the wide mouth of the funnel. For all you know, all of them can be freebie seekers. If you only offer them a free report, and do not even try to sell them anything else, you’ll never know which one is a buyer, ans which one is not. Also, if you only offer low priced, introductory level products, you will never know which one of them are high ticket buyers. So the idea is, offer them different products and services at different price points, and sift them through your marketing funnel. When you do have extra levels of products and services, that way you know for sure who among your list is a $47 buyer, or a $197 buyer, or a $997 buyer, or a $10,000 buyer.

Also, if you do the math, numbers add up pretty fast. Each extra level of product or service you offer, you add a lot to your profits. You probably only pay for some kind of advertisement cost up front to build your free subscribers list, so you have a fixed cost of $X to acquire each lead, which is called cost per lead. If you can convert enough of that leads to buyers at your front end to cover your advertising costs, and maybe achieve some little profits, then you are basically building your list for free. And then all the additional sales add to your profits, because they are now pure profits! You make no extra advertising to get those sales.

You all heard that money is in the list, but let me expand on that a little: Real money is in the back end sales to your list. Most of the time, your front-end sales will barely cover your advertising or marketing costs. Your net profits will come mostly from your back end sales, which practically cost you nothing.

This is why most successful marketers do not just sell one $47 e-book. They also sell many other offers related to that original front-end product, at different price points, including recurring products, as up-sells, down-sells, and cross-sells.

You should model and learn from them. Do not just build your list to maybe break even with one cheap e-book sale. Earn much more by building a funnel selling many more related products at different price points. This will multiply your profits.

And the best part is, you do not need to create all the products you offer. You can create a funnel with selling other people’s products as an affiliate. And I developed a tool that makes creating funnels super easy. Visit for more information.

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