I recently had an email from an inquisitive young guy called Steve, who asked me if I would explain what a sales funnel is. I emailed him back and said to look out for my next blog where all will be revealed... so here it is Steve.
Okay, a sales funnel is a system or formula for getting a prospect to buy a low ticket price item and then upsell them. But it doesn't end there... during the sales process you will have gathered their email and so this will allow you to contact the prospect several times over the coming weeks and months with other, similar offers. It all works like this...
You have a product to sell, let's say 3 DVDs (or online training videos) about making money online. You also have a larger package to sell, consisting of 10 DVDs (or online training videos). So you build a website complete with sales letter and images of the products plus some nice photos of wealth related stuff. The selling price is just $17 or some other low price, and then you promote this sales page like crazy all over the Internet using paid advertising and affiliates.
You can get affiliates to sign up and promote your products via Clickbank or JVZoo or any of the other similar sites. Now, when prospects come to your page and buy the product, they are then directed to another sales page offering the higher priced item. The psychology behind sales funnels is that you are dealing directly with a customer, or "hot prospect" who has a credit card in their hand and so it should be quite easy to get them to spend more.
Many marketers have increased their online sales by as much as 40% using this method, so it definitely works. However, whether they buy the upsell offer or not, you ask for their email address to send a confirmation email with their download link. This email is then matched to the name of the buyer of the front-end offer and they are sent emails with discounts in order to tempt them back to the site to buy the upsell.
You can of course email them again later with related offers until they either unsubscribe or buy everything you offer. Some marketers will take this sales funnel method to the extreme, offering several other products or product options at each click of the mouse. I've experienced as many as 6 different offers generated from one simple front-end sale.
My feeling is that 2 or 3 offers is enough. I tend to get very irritated after 3 offers or more have been placed in front of me when all I wanted was the one cheap initial offering.
So there you have it Steve. A sales funnel setup.
You guys be sure to let me know if you need any advice about selling anything online.
All for now,