Are you struggling to earn more than you spend on advertising? In this article I will show you how to build a sales funnel that converts, step by step.
One term that we often meet in the area of online-marketing ist the Earning per Click (=EPC). The EPC is a term that refers to how much money (in average) you actually make out of every single click you get on your website. I think we all agree that the higher the better it is. So how do you actually raise youre EPC?
How high is most peoples EPC?
Let’s look at a quick imaginary case Study, backed on real data:
Say you have a business:
- Earning per sold product: 55$
- Average Conversion-Rate for people Visiting your Site: 1%
- 1000 Clicks
- → 10 sold Products
- → 550$ income
Sounds great doesn’t it? But actually in a competitive market the average cost per click (CPC) is at least 1$, thus getting 1000 clicks would actually make you loose 450$, your ROI would be negative.
In fact this conversion rate of 1% for selling a product is pretty optimistic. Most sites convert at 0.5% or even worse. So how do you actually quadruple your EPC or even more?
The answer is simple: Sales Funnels.
What is a sales funnel?
A sales funnel is the completely mapped out process from how your customers get into first contact with you to when they already bought X times from you.
In the following we will talk about how to build a sales funnel, step by step.
It’s important to write down what you planned and to take notes of every step that you’re going through!
How to build a Sales Funnel
Let’s start. Learn how to build a sales funnel to increase you ROI.
1. Know your Audience
First of all, it’s really important to know your audience. I undestand that most of you are annoyed by this and so am I. Nevertheless this step is crucial for all your marketing efforts so if you have not already defined your audience, or even if you’ve only not written it down yet, do it and keep it in a golden treasure chest!
I’m soon going to write an detailed guide on how to define your audience like a pro but for now the most important things to look at when defining your audience are:
- Demographics: Age, gender, family status, job, living situation ect.
- Psychographics: Why do they buy? What is their problem to solve? Why would they choose you? How do they think about companies like you? What are some of the values that are important for them and your companies?
Try being as detailed as possible! Think about every single aspect that comes into your mind. You can also segment your target audience in a couple of different cohorts.
Take action: Write down all the details concerning the two aspects mentioned above.
So after getting to know your customers you need to bring them to your website. This is a pretty complex topic even worth an own blog post so I will just give you a couple of starting points and further reading.
Getting traffic is propably the most important metric to scale up if you want to sell a lot of products, without traffic the best salesfunnel is worth nothing.
You can get Traffic via several sources:
- Pay-Per-Click (PPC): Paid advertising where you pay for every click you get.
- Search Engine Optimization (SEO): You optimize your website so it ranks higher on google results and people come to your website via google. This is often combined with a blog, so that people see a blog article on the google results and get an impression of your product and may download your leadmagnet.
- Social Media Marketing: Social Media is a great way to acquire visitors. Instagram is a thriving platform for marketing: The user’s interaction rate is 80 times higher than on facebook!
This is only a small portion of what you can do for your acquisition, there’s a great guide by Neil Patel about online marketing if you want to dig deeper:
Take action: Plan your acquisition, make plan about your marketing mix: On which ways will people come to your website?
A leadmagnet is something that you give to your visitor for free in exchange for their email-address. It’s something that takes the problem they have and solves a part of it. It’s not a huge 50 page PDF, nobody will read that. Rather it can be a short two-page pdf checklist or something like this. The offer has to be good, it’s really important to give value in exchange for the email addresses, something that really helps.
You can offer your leadmagnets on a single landingpage only made for that one leadmagnet but you could also offer your leadmagnet at a blogpost, a short pdf summary of the post really works, because people love to own stuff, to save the PDF on their computer.
Leadmagnets can for instance be:
- Top 10/20/X lists: Top 10 places to go to in India
- Checklists: Step by step guide for packing your bag for going on a long journey
- Small Summary: What’s most important about Indian culture
There’s a great article on growthhackers.com containing 101 Ideas for leadmagnets and about leadmagnets in general, check it out here.
Take action: Write down 5-10 possible Leadmagnets for your sales funnel!
Tripwires are a great thing! Never heard of them? That’s no problem they’re pretty simple. Tripwires are very cheap, low risk, high profit products. For instance if a world class marketing guru offers you 10 minutes of mentoring for 5$, would you refuse that offer? It’s an offer that noone can say no to, and exactly that’s the crucial point: This product converts your prospects to customers. That’s the hardest step in your whole relationship with the customer, once you had them buying from you, it’s not that hard make them buy from you again. After they bought your low risk offer and are happy with it, they are in some kind of buying rush with you: It’s much more likely that they buy your main product, now that they’re happy with the Tripwire product.
This is propably the most important step in the whole sales funnel. Once you did that it’s so easy to make them buy your core product if you just keep in contact with them, give them value and show them that your product is the best.
I already mentioned a possible tripwire product: a cheap short consulting.
You could also sell:
- Some kind of little, funny nick nacks that have to do something with your product (Birthday Cards, Keychains)
- A big ebook containing great value
- One Month Trial (for instance a gym membership) for 4$
It’s very important that they are so cheap, but giving so much value that nobody can refuse that offer!
Moreover you already make profit from Tripwires, they are not just a great marketing tool, they already bring money in to invest in new customer acquisition.
Take action: Tripwires are pretty hard to find, find at least two Tripwires that really fit to your core product!
5. Core product
Well, I think I dont have to say a lot about this: Your Core product is your flagship product, whether it’s that 500$ course you’re selling, the monthly 50$ gym subscription or the 1500$ journey you’re trying to sell. After they bought your tripwire they are ready to slowly get confronted with your core product. You already solved a little bit of the problem your leads have with your Tripwire and the Leadmagnet. After that you should go pretty much like this:
- Show them the whole complexity of the problem. Show them that the problem is bigger than just the aspects that your Leadmagnet solved.
- Give them more value for free! They are already buyers, so they are really warm leads. By giving them more value for free with a couple of emails they will get really hot leads! Just watch out to not give them to much, so that they can solve the whole problem without you!
- Now show them what possible solutions are there to solve the problem while you explain why your product is the best one to choose!
Take action: For every of the three steps above, take notes on what you’re going to give and write to your leads!
6. Profit Maximizers
No, it’s not over yet! Many people loose out on several thousand dollars each month by ending their relationship to the customer at this point. Don’t be one of these superficial marketers and get the most out of every lead your acquired, they are worth too much to just be thrown away. There are several ways to maximize your profit:
- Upsells: Upsells are offered right after they bought your product. For instance after selling a course, your could offer them an upsell to have one additional special module for just 30$. The best example is McDonalds: “Would you like to supersize your order?”
- Cross-sells: This is what Amazon does pretty badass: Their product recommendations perfectly fit the product you just bought. When buying a TV they offer you necessary cables. Also look at McDonalds, everbody knows the phrase “Would you like fries with that?”. That’s cross-selling.
- Reselling: Well, if you bring out new core products, developed new sales funnels and stuff like that, why not put the customers you already have back at the top of the list again? Some of them will convert again!
Take action: Write down at least two items you could offer as an upsell and two as a cross-sell.
7. Implement your Plans
The last step is pretty simple if you always took the notes I mentioned above:
You need to implement the notes into real automated email campaigns, webinars, pdfs, ect.
- Craft your Leadmagnets: create the PDF’s or prepare the Webinars.
- Set the automated email-sequence up leading people from your Leadmagnet to your Tripwires by giving them a little value.
- Create your Tripwires, prepare everything so that you are ready to sell them including nice landing pages, and emails.
- Set the automated email-sequence up to show the people that bought a tripwire that your product is the best solution to the big problem. Implement the 3 Steps I mentioned under “Core Product” in a bigger sequence of Mails.
- Prepare your upsells and cross-sells to be available and offered via email and on your core-product pages.
So now you should know how to build a sales funnel that really increases you conversion rate. If you have any questions Leave a comment.