Strategic Marketing Through The Use of Sales Funnel
How to use sales funnel idea to ensure you keep your online business running round the year while you keep making big profit
There is no other better way to successfully market online without employing the sales funnel system. Before I understand the power of sale funnel, I always wonder how the guru are able to sustain cash flow for months and years just by promoting to their single list.
I always thought how it will be possible to keep selling different products they have by just promoting a single product per time to their list. But after I understood the sales funnel system, I realized that it is very much possible for you to sustain a promotion for years, set it on autopilot and keep making money from different products you have even for a lifetime.
The illustration above shows us graphically, the description of a sales funnel.
There are 5 Essential elements you need to understand with sales funnel system.
- Follow Up
- Back end products
You need to pay close attention to these elements. So, let me give you few explanations on each of the elements.
Traffic is important to your online business. It is like the blood stream of your business. Traffic is the flow of people to your website or squeeze page. People must know and see what you have for them. You must focus your attention on this.
The more the people that visit your site, the more the potential of you building your list and making more sales. You therefore want to ensure that people keep visiting your website as much as possible.
The next thing you should be doing is to pass your traffic through a funnel. You don’t just want to generate a lot of traffic and have nothing to show for it especially if you are paying for the traffic. You want to make sure you retain some of the people that visit your landing page as customers by passing them though your sales funnel.
The funnel will help you to:
- Qualify the right prospect
- build your list,
- generate quick sales and
- prepare your list for follow up.
You need to have about three web pages that will form your funnel. The pages will help you take in the visitors into your list, generate sales and help you to follow up the people. Here are the pages you need to create below:
- Squeeze page (it can also be called opt-in page or landing page)
- One-time offer page (often refer to as OTO)
- Down-sell page
The squeeze page is the email capture page, where you will need to put your autoresponder opt-in form’s code, so that visitors can sign in to your list.
The way it works is that you promise to give the visitors to your landing page something enticing. It is usually a free gift. You can offer them free report on a very hot topic within your niche. It may be a download report in pdf, video or audio. You may promise to give them details of how you achieve something if they subscribe to your list.
For example, you can say, “Let me show you how I generate 1000 subscribers in 10 Days, Enter your email below for the free report”. They are not going to get that information except they give you their contact details which must include their email addresses.
The free gift is bait and without it, you may not have much response from the visitors. Always thrive to have at least 40% conversion of your website visitors. That is, if you have 100 visitors about 40 of them should opt-in to your list. If it not up to that, you need to keep testing and tweaking your landing page, ad copy and other parameters to achieve that.
You may decide to capture only their email addresses. But I often capture First name, Email and phone number of the visitors especially when I am targeting Nigerian market. Nigerians used to respond faster to SMS but email seems to be working better these days as more people are now using smart phone while GSM network providers are making it difficult for SMS to get delivered. Though, some marketers believed that if you ask for email alone, you may have more people subscribing to your mailing list.
But I also strongly believe that anybody that is willing to enter all his or her details is qualified person for your offer. It shows that the person really needs what you are offering. The potential of such fellow buying from you is higher than someone that is not willing to give full information.
Squeeze page is the most important part of sales funnel and you need to have it. Other pages can be optional, but they are still highly recommended. If you don’t have the one-time offer and down-sell page, you will not be able to generate cash immediately; you will only be able to build list and follow up later.
When creating your squeeze page, make it as unique as possible. The more it stands out and different from other marketers’ pages, the better it will convert.
Immediately a visitor enters his details, an email will be sent to his email address for him to get the promised free gift, then he will be redirected to one-time offer page, where he will also see a short information (usually on top of the page) that he should expect an email in his inbox but before checking his email, he is encouraged to go through the one-time offer page first.
There may be attention grabbing image like “Wait”, “Don’t Miss This One Time Offer” etc. This is to ensure that the visitor stay on the page and read through before doing any other thing.
The one-time offer page is the first page your website visitors see after they enter their details in the opt-in form of the squeeze page. This page suppose to promote a product with a low price which can be around (N1,000 to N2,500). If you are considering selling it in dollar, it can be within $10 - $20.
The idea of having a low price product immediately after the squeeze page is to help you recoup some of the costs that you might incur when purchasing traffic.
The offer should be juicy enough and irresistible. You want the visitor to feel that he is losing if he refuses to get the product immediately. If he eventually buys, then you win. Your objective is achieved. If he does not, you need to stop him from closing off the page and going off by giving him another tempting offer.
You need to have exit pop up script at this point to stop your landing page visitor from just suddenly going off from the web page. The exit pop up script will give the visitor the option to stay on the page or finally leave the page. But then, you must provide another appealing offer that will make him to click on the “stay on the page” button.
You may decide to give him discount of the offer or give him a similar offer that is not as expensive as the first one. If the visitor decides to stay on the page, then you will redirect him to the down-sell offer page.
The down-sell offer page is similar to the one-time offer, but instead, it is a very low cost offer which visitors will see if they do not purchase the one-time offer. This is to encourage them to still buy by giving them discount or by bringing another product that is not as costly as that of the one-time offer.
You can make the price as low as N500.00 – N1,500.00. If it is in dollar, it can be around $5 - $10. You may feel as if you a selling too low but you need to understand the strategy. You are just testing the buying power of your visitors. If they buy at this point, it means they have credit card to be able to make purchase instantly online.
It also means that you now have someone in your list that has the cash, love your type of products and a potential buyer of your other products that are often refer to as backend products.
In fact, you may decide to give some more down-sell offers if the person is not willing to still pay the amount you are offering him. What of if you put the price at N100 or $1? What you are trying to do is to filter the real people that have money or buying power from just freebies lovers.
The next thing you want to do is to filter your list with the help of autoresponder. Autoresponder is a system that helps you to save the subscribers details from your squeeze page. It also has the ability to automatically follow up the subscribers.
You want to filter the subscribers that came in through the funnel by separating your one-time offer buyers from those that are only interested in the free gift. You may enter the one-time offer buyers and the down-sell offer buyer into different lists. At the end of the day, you can have about three different lists and follow them up with different messages.
Your message to none-buyers is to convince them to buy their first products from you while you are now targeting the buyers of one-time and down-sell offers with different backend products.
Can you see how the filter works now? Don’t forget that those that are not interested in what we are offering have been eliminated from the list. In the first place, they will not subscribe to the list. You are therefore sure of having highly targeted list, especially from those that purchased the one-time and down-sell offer.
There are several autoresponder services and you will need to pay monthly subscription to be able to use any of them. There are two main autoresponder services that are popular among internet marketers, Getresponse and Aweber.
Fortunately, we have the one that we developed at MeritChoice Limited which we called MagicResponder. This has the capacity to send both SMS and email which is more effective if you are targeting Nigerian market. I will recommend that you get started with this. You can access it at http://meritchoicesystem.com
It has been observed that most people don’t buy until they have seen the offer for about 5 to 7 times. In fact, some experts advised that you should follow up to about 14 times for you to get maximum results. That is why follow up is highly necessary.
The follow up is done by sending daily email to the subscribers. If you are using MagicResponder, then, you may want to send them automated SMS too. The combination of email and SMS will surely perform great persuasive wonder that will lead to higher percentage of responses from your subscribers.
For those that bought your one-time and down-sell offers, you will need to send them thank you message immediately. You may start introducing another offer to them as upsell. You may also promote a complimentary offer that will be helpful along with what you initially sold to them.
For example, if you provide your subscribers a tutorial on how to do something, you may want to promote to them software that will help them to achieve faster result with what you have taught in the tutorial. So, it is possible for the person that is interested in buying the tutorial to also buy the software. What you simply do is to upsell the software after you are sure that the person is willing to buy the tutorial. With that, you make more money than just selling the tutorial alone.
You can setup your autoresponder to run for days on autopilot. You must promote different offers to your lists on weekly basis. You can do it on 5 or 7 days interval. Pick up a new backend product and promote it for 5 to 7 days, after that, promote another product for another 5 to 7 days and get the process on like that.
The idea is that someone may not be interested in a product you are promoting now and he or she may be interested in the new one you decide to promote.
Backend products are products you sell to your list subscribers after they have bought the front-end product from you.
The one-time and down-sell offers are front-end products. They are usually low-cost products. You suppose to use that to build list, test the buying power of the subscribers and to assist in paying for the cost of generating traffic.
You must have a lot of backend products to sell to your list. If you don’t have your own products which you can constantly introduce to the list, you can promote other persons’ affiliate products to them.
Backend sales are where you make the real money. You must keep getting products to promote to your list. That is how you can constantly squeeze money from your list. You start by gently increasing the value of your products and services. You may start with $27 product, then, $37, $49, $97, $199 etc.
It is really not necessary that it should follow progressively the way I have stated it. One thing we do regularly in internet marketing is to keep testing our market. For example, you may want to test the buying power of your list by introducing a product of $97 to them. If they buy it, you will definitely know the financial strength of your list.
If you didn’t make good sales, you may drop the price and monitor their responses to the reduced cost offer. Don’t forget that price may not be the only determining factors to the responses of your list subscribers to your offer. You want to know if it is what they really want.
With MEMMA, you have several other products you can always promote to your list under the AFFILIATE. Click here to check them out.
How To Use Sale Funnel To Detect A Starving Crowd
If you really want to make good money whether online or offline the MOST IMPORTANT THING you need is STARVING CROWD. It means, we want to know those that are desperately in need of what we want and sale funnel can help you with that.
But before I explain how to make use of the funnel for that, let us quickly have an overview of the sale funnel idea again here.
What you do first is to create the funnel. The components of the funnel are squeeze page, one-time offer, down-sell offer and backend products. From the funnel diagram, you will notice that we have upsell offer on the funnel. Though, it is optional, but you can also explore that because it works too.
The next thing you do is to drive traffic to the funnel. As you can see, some of the traffic found their ways into the funnel, while some are out. That is what gives you the targeted leads you need because those that did not subscribe are not likely going to need your service.
The first thing you do after getting visitors into your funnel is to deliver what you promised, the free gift, that is what helps you to suck them in. After that, you introduce your first front-end product which is the one-time offer. If the visitor refuses to respond to the one-time offer, you quickly introduce the down-sell offer.
If the fellow buys, your filter goes to work, separating the buyers and putting him or her in a list already setup with follow up messages for backend products. Those that do not buy anything are also sent to another list. If you noticed, the filtering process takes place throughout the funnel system. You may even decide to filter those that purchase one type of backend product and create a new list for them for another set of special backend product.
As you can see from the funnel diagram, follow up process starts after visitors have been opted into the list.
When you understand this system and follow it, you will always make money.
To use this idea to determine starving audience is very simple.
Note that it is not all your products or services that people will be interested in and don’t forget that the principle of scaling up fast to making a million naira monthly will depend on your products and numbers of people buying it.
You may think you have a fantastic product, but people are not seeing it like that. You may have few sales but it may take you a lot of work to make good revenue from it.
For example, you need about 400 people to make a million naira with a product that goes for just ₦2,500.00. You need about 20 people to keep paying for that product daily. The number may look really much but it is not if you are selling what people actually want.
So, how do you detect if you have a product that your market will love?
Setup, the Sales Funnel for it, send traffic to the page and observe people response to the offer. If people are excited about it, you can check the record based on the number of clicks you are getting to the site and number of people subscribing to your list.
You can use Google Analytics to check the records. Check it out at http://www.google.com/analytics/.
If you are able to get 40 out of 100 visitors that visit your landing page to subscribe, then note that you have something of great interest. If 40 out of 100 people that subscribe pay, you can be sure you have a great product. It means 40% of those people visiting the site are interested and 40% of subscribers are buying.
Lets say, you have another products that is selling for the same amount but you noticed that only 5% of the people that visit the site opt-in while just 3% of the people buy your product.
Which one out of the two products do you think that people are desperately looking for or interested in?
It is very clear, the first products that is getting in 40% subscribers and 40% of buyers.
In that case, if I have 2 products selling at the same price but one is giving me more result, I will simply abandon the one with less result and concentrate on the one that is giving me higher result because it is already clear that people are more interested in that one.
You can do the same thing for all the products you are promoting. In fact, it helps you to save money on advertisement too. Instead of blindly advertising hoping that the product will pick up soon and the market will embrace it, just check your traffic record and responses of the visitors and buyers within a week or two and you will know if you should stop or continue promoting the same product.
Now that you have learnt about the sale funnel, can you compare it with other methods you have been using to promote your products whether online or offline?
How do you think you can apply the sales funnel idea to promote any other product whether on MEMMA or your own created product?