Hey! This is an excerpt from the first module of the Advanced Bionic Business Lab materials! Download the materials at the bottom of this post, for free!
“Sales funnel” seems like one of those horrible marketing buzzwords that no one really understands. It evokes imagery of pouring people into the top of one of these:
And then apparently expecting only a few of them to get out the bottom (while, I suppose, the rest wither away and die?).
The basic format of a typical marketing funnel goes like this:
- Awareness and free materials
- Engagement (following, commenting, participating in free webinars and giveaways)
- Low-cost offerings ($0 – $500) to turn engaged readers into buyers
- High-cost offerings ($500+)
Of course, this funnel will look different depending on your business model and general pricing of your offerings.
Sales funnels can also be set up in a way most of us would consider to be rather scammy. You’ve likely heard of free seminars that end with a pitch for a “low-cost” offering of $500. Then you discover the $500 offering doesn’t really provide any answers, so you need to purchase a $1000 program. And it continues from there.
This relies partially on the sunk cost fallacy, which is when your brain says “well, I’ve already invested $500 on this, it’d be a waste to not continue and buy the $1000 program.”
As both a business owner and a client of others, you should be aware of how you’re making your clients feel if you treat them like cattle, always directing them to the next sale, and never quite solving their problems with your lower-cost offerings. (tweet this!)
An alternative to the sales funnel is the sales spiral, which functions similarly but allows clients to come and go more easily, getting solutions to their problems each time.
For both the sales funnel and the sales spiral, you will expect to have more participants in the free and low-cost offerings than in your higher end, VIP offerings.
Create your own sales spiral by grabbing the download below! It’s an excerpt from the Bionic Business Lab’s advanced path materials, presented here for free!