Internet Marketing – The Importance of the Sales Funnel
Now I will talk about the sales funnel. In theory, the sales funnel will be very wide at the entry end, just like a physical funnel, and it will get more narrow as time goes on.
So the wide end of my funnel is where I bring people into my list with the offering of a free ebook. This is the easiest way to have the largest entry point in the funnel.
Once they have 'purchased' the free item (for free, of course), then I will offer them, generally, a $ 10 item. This is an item that is small enough that they will feel comfortable taking out their credit card and paying me the $ 10. They figure that if they lose the $ 10, then it is not the end of the world. But of course, they get far more value than $ 10 worth in that $ 10 product. I believe my list building $ 10 product is literally worth $ 47 and my article marketing $ 10 product is worth at least $ 27 – probably a lot more if people would really use the information. So they are getting their money's worth. Of note here, nearly 10% of everyone on my list has bought at least one or both of my $ 10 products. So in that one part of the funnel, my subscribers are worth on average, $ 1 each, up front.
The next step in the funnel is either a $ 27 or a $ 47 product. I am actually experimenting right now with those 3 price points, and although I do not have comprehensive evidence, I think that the $ 47 price point actually converges at a higher level than the $ 27 price point. Assuming that is true, I am guessing that the reason is that people think that there is much more value in the $ 47 product than in the $ 27 product; remember that by this point, most buyers of that product have already bought at least one of my $ 10 products.
This sales funnel can continue ad infinitum. You can have a $ 97 product, a $ 497 product, a $ 5995 product – and on the up the line as you grow.