Hihi! Today, let me introduce you the concept of sales funnel in internet marketing. There are many variation of sales funnel and it can get complicated as your sales funnel develops.
A basic sales funnel looks like this:
Traffic ==> Offer ==> Sale
Sales funnel is the process in which you bring in your traffic to the offer and trying to convert the traffic into sales. In other words, traffic are your prospects or leads or potential customers coming to your website or the place that you point them to go where they get to see the offer. If they like the offer and decide to purchase it, they become your customers!
So in the internet marketing industry, your traffic are basically website visitors.
People behind their desktops, iPad, smartphones. The website visitors can reach your website through various means. For example, from searching Google and chancing upon your website, or even from a recommendation of a friend or marketer who emailed him about it.
When this traffic lands on your offer or the sales letter, depending on how well the sales letter is written, after the prospect buys the service or product, then prospect becomes your customers.
A simple illustration
Potential customers are looking at how to lose weight using organic food began searching on Yahoo and Google for “How organic food helps to lose weight”.
While searching the sites, some of them click on your website “How Organic Food Helps Me To lose 5Kg within A Week!”
So, the visitors landed at your website.
One of the them is interested in the product that you are recommending and decided to give it a try and purchase it.
Congrats! You just earn a customer.
The above illustration shows how someone on the internet becomes your customer by going through your marketing process and make a purchase.
However, what most internet marketer would do, they would expand the sales funnel by capturing the leads first before showing them the offer.
They would then educate the prospects on the benefits of their products or services before promoting the offer to them.
This is to ensure that the prospect is already warmed up and have less resistant towards buying the offer.
Planning your sales funnel is essential for making a profitable online business.
Every marketer is concerned about the conversion rates, the click-thru rate, the opt in rate, etc. The sales funnel is then tested and tweaked to achieve optimal results.
As you see, internet marketing is all about testing and tweaking the system. The sales funnel is no different and sometime a change in the product title can generate 200 time sales.
Next, comparing it to a traditional business, the internet marketing sales funnel is more dynamic and allows upsells and downsells effectively.
Unlike in a brick-and-mortar business, you are unlikely to offer the prospects a discount immediately, should he decide to turn down your offer.
However, in our industry, it is almost built-in. The process is automatic. Even when the prospect decides to purchase your offer, you can upsell him another complimentary offer. This as well can be built into the sales funnel. That’s one beauty of the internet marketing.
With effective management of upsells and downsells, the business can become very profitable.
I hope you like my short explanation of the sales funnel. Feel free to leave any comment or email me if you have any questions.
Have a great week ahead!