What Is A Sales Funnel & How To Create One That Actually Makes Money?
So what is a sales funnel?… Well, If you’re even remotely interested in marketing your business online, then you’ve undoubtedly heard the term sales funnel.
The question, however, is do you fully understand what a sales funnel is? Can you utilize it’s full potential to generate sales and grow your business?
Remember how, back in high school or even college, you used to read a definition of a term? Then, after reading it, you got even more confused as to what the term actually means.
I see this happen in the digital world quite often. There are so many terms and phrases being thrown around, it’s easy for a newbie to get lost, confused, and overwhelmed.
Various definitions of a sales funnel are circulating the web. It’s almost as if every other marketer has their own interpretation.
If you’re relatively new to the marketing world, these definitions will likely only add to the confusion.
So, my goal with this article is to give you a simply, down-to-earth, easy to understand explanation of a sales funnel.
But, we won’t just be talking about what a sales funnel is… I’m also going to talk about how to create one that will actually generate a decent income.
So, let’s jump right in!
What Is A Sales Funnel?
To fully utilize a sales funnel, you have to understand the fundamental marketing concepts behind it.
It’s not enough to simply jumble together a bunch of web pages and emails, and hope for the best.
Funnels today are kind of like websites were some 15 years ago.
Back then people were asking “What do you think, do I need one?”
Now, you’d probably laugh at these kinds of questions. There’s no business today that doesn’t have a website.
It’s the same thing with funnels.
Like Russel Brunson explains in the video below: “Funnels are the future. They are the evolution of websites.”
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So, if you’re wondering whether you need a funnel, the answer is pretty straight forward: Absolutely!
That said, there’s one key concept you need to understand to fully comprehend the role funnels play in today’s online marketplace:
“Whoever can spend the most amount of money to acquire a customer wins.” – Dan Kennedy
This is one of the crucial things to understand in business and marketing.
To be profitable, you need to earn more money than you’re spending.
That’s just common sense, right?
The thing is, this is what crushes so many entrepreneurial dreams.
Let me explain using Russel’s potato gun example…
He was selling a video on how to create a potato gun for $37 dollars.
The bulk of his traffic came from running ads on Google.
At first, the ad spend was $10, so he made a comfortable $27 profit with each sale.
The trouble began when the competition grew and Google updated it’s algorithms.
Practically overnight, the same ads he was running no longer cost $10. Instead, he now had to spend $50 on advertising.
Which mean, with 1 sale per day, he was actually losing $13.
I’m sure you understand that’s not a sustainable business model…
So, what did Russel end up doing to get out of this situation?
He Added Upsells
Instead of giving up on his business, Russel found an ingenuous way to keep the ads running while still making money.
And it was through upsells. Basically, what he did was create a kit that contained all the stuff needed to create the potato gun.
He sold it for $197. So, whenever someone purchased the DVD, they would be redirected to a page where they could complement their order with the potato gun kit.
Of course, not everyone bought the kit. But, one in three people did.
And he averaged 1 DVD sale per day. So, when you do the math, it’s $37 for the DVD + $197/3 for the upsell – the $50 for running the ads.
In other words, he was making $52 in profit every single day. That’s more than when the ads cost him just 10 bucks.
Although he didn’t know it at the time, this was his very first funnel.
That’s essentially what a funnel is. A series of strategically placed web pages, that promote all your different offers to customers.
And despite what you might think, the concept of funnels isn’t anything new. It’s not something you’re not used to; something you’re seeing for the first time.
In fact, brick & mortar businesses are leveraging the same principle. Take McDonald’s for example:
If they were just selling burgers, they’d actually be losing money. The money they spend to get you to the joint and order a burger is more than the price of the burger itself.
But I’m sure you’re familiar with the sentence: “Do you want fries and coke with that?”
And that’swhere they actually make money. That’s how their funnel works.
Websites Vs Funnels
That’s the big secret, and the main difference between websites and funnels.
With funnels, you can add all these different upsells, cross-sells, and downsells.
These are simply complementary or similar products that your audience is highly likely to buy alongside their initial purchase.
This way, you can exponentially increase the lifetime value of each and every customer.
And, you can afford to spend more money than your competition to acquire customers.
Why? Simply because, in the end, you’re making more money than them.
That’s the big realization Russel had after creating his first funnel:
“Websites made me broke. Funnels made me money.”
The best part about funnels is that there are so many different ways to create them.
And, you can add funnels to virtually any type of business.
Why You Should Build A Funnel For Your Business
If you’re running a business with an online presence, you absolutely need a sales funnel.
Funnels are the secret.
They are that powerful tool that will get you from breaking even to becoming profitable.
Funnels are the best and the fastest way to grow. They are what will allow you to scale your business.
You’ll make more money for every single purchase that comes into your funnel.
Obviously, there are different types of funnels, but that’s a different topic altogether.
Some funnels focus on generating leads, other’s sell products or generate applications so you can call the prospects on the phone…
The bottom line is, there are different funnels for different situations.
Regardless of what niche you’re in, and what your business revolves around, you can and should create a funnel.
It will help your business grow, and allow you to generate more leads and customers – which ultimately leads to higher profits.
People think that funnels are something mysterious and difficult to comprehend.
Yet, funnels are all around us. They’ve become the key concept in marketing, where people who utilize them realize this fact or not.
Offline businesses have funnels as well. They might be great or really bad, but they exist.
For example, a dentist would run ads on billboards or in magazines.
When people come into their office, they’d usually be greeted by someone at the reception desk.
This person will then talk about all the available options, and try to get them to schedule an appointment.
After that happens, they take them to the next step, then the next step, and so on.
Every business has this. The funnel is essentially a process that you’re using to convert someone from a visitor/prospect into a customer.
It takes them on a journey step-by-step, where they get introduced to the different products and/or services you’re offering.
Online funnels are the same thing. The only real difference is that the interaction is happening in an online environment.
That’s what a sales funnel is.
Need Help Creating A Powerful & Profitable Sales Funnel?
I’m sure that, by now, you understand why you need a sales funnel.
But, you probably lack the technical skills and experience to create one…
That’s where I can step in and offer you an opportunity you can’t refuse!
I’m willing to share with you my step-by-step formula for creating powerful sales funnels that get results.
It’s the same system I’m using to attract premium clients, generate high-ticket sales, and scale my business.
The best part about it is that requires no technical skills whatsoever.
You can simply copy & paste my proven system to start getting results.
If you’d like to learn more about my 7-step passive income system, then I invite you to join my exclusive FREE training where I explain everything in detail.
This is a limited-time offer, so make sure to reserve your spot while you still can.
Best of luck in all your future business endeavors!
Shaqir Hussyin 😉
About The Author
Your Millionaire Mentor
Shaqir Hussyin is the founder and CEO of WealthAcademy.com & Funnels.com. Nicknamed the “Backpack Millionaire”, he’s invested $350,000 into his own education and training. Whilst traveling to 100+ countries, Shaqir has built over 10+ million dollar brands and attracted over 500,000+ subscribers.
His signature program is now available: Max Income System; 14 Simple Steps To Making Your First Income Online.
Shaqir is also a highly sought-after speaker and direct response “Sales Funnels” global leader. Shaqir’s work has impacted over 100,000 businesses in 65 different countries. Connect with Shaqir on Instagram, YouTube, LinkedIn & FB Group...