What Is A Sales Funnel?


Hello there friends. Today I am going to talk about sales funnels, what they are and how they work. A lot of people may feel this is pretty sales-funnelbasic stuff, and yeah it is, but that doesn’t mean it’s not important. There was a time in the not too distant past that I didn’t know what a sales funnel was and for anyone who is just starting out, they might not know either. Plus I see this question get asked quite a bit on the likes of Quora etc.

Sales funnels are  marketing processes and it’s important to be familiar with them and how they work, as they could ultimately be the the way by which you make most of your money. Sales funnels work for both on and off line business’ but  this post will focus on online as that is what I am doing.

So when I (they) say a sales funnel is a marketing process, what exactly does that mean? The best way to explain it is that it’s a system you, or your business or company provide, to  encourage your customers to go through. The start point is making people and potential customers aware that you exist, the end point is the customer buying one or more things that they want or need. If you’re more of a visual person, take a look at the diagram above;


This is a simplified version of how it works, but you get the idea. There are more elements to this process and they are usually referred to as stages. Now depending on where you look and who you speak to will depend on how many different stages there are and what they’re all called. I like to keep things easy and as simple as possible so I am breaking it down into the 4 basic stages (as I see them).

Stage one is Awareness. This is where you are putting yourself out there in front of potential customers and letting them know you are here and you exist. There are lots of different ways to do this, the most popular ways are blogging on a regular basis, sharing your blog posts on social media, having a Facebook page, Twitter account, Instagram etc and regularly posting to them. Getting involved in forums and question and answer websites. Those who follow me know I am a fan of Quora for free traffic. Also Facebook ads are great for guiding people to your website or Facebook page. Do some of these activities on a regular and consistent basis will get your business in front of potential customers. The good thing about Facebook ads is that you can choose your target audience, so you know they already have an interest in what your business is about.sales-funnel-graph

Stage 2 is Research. This is where your potential customers ‘need more information’. You might (should) offer some kind of free product such as a report or eBook. People wanting to find out more about you and your products and services will sign up to receive this. If they see your posts that you have published on social media and are intrigued they will click on the link you provide and take a look at what you’re promoting. If your Facebook ad comes up on their feed they will click on it and look further. At this point your potential customers change from people who have never heard of you to people who at the very minimum have an awareness you exist. If they like what they have seen or have been intrigued enough to want to know more, they will move onto the next stage.

Stage 3 is Interest. At this point your potential customers will not only have an awareness of you, they will also believe that you offer some kind of value and may have information that can help them. They will feel that you relate to them, or they will relate to you on some level and they will want to know more. After potential customers have signed up for your free offer, they will be added to your email list where you can then communicate with them on an on going basis. Depending on how your funnel is set up, your new prospects may also be directed to another offer, this time a paid one, which is relevant to the free one. Depending on how much research your prospects have done they may or may not buy this offer. However they are likely to be much more aware of you now and they may stay in the ‘Interest’ stage for a while. But eventually a percentage of these people move to the next stage.

Stage 4 is Sale. This is where people will buy one or more of your products. For people who are just starting out with sales funnels they usually consist of a free offer and then possibly 1 or 2 paid offered which would generally be pretty low cost, such as $7 or $9. However once you start building a bit more authority and trust with people and providing them with good quality information and valuable products, they will become repeat customers and they will also be prepared to pay more for your products. Some sales funnels offer a free product at the beginning, then a variety of products at a variety of prices from $27 through to $97 and $197 and then up to $2000 and $5000! If you have a good quality email list that you look after and a good trustworthy reputation, this is perfectly possible. This is essentially, in a nutshell how people make a living from internet marketing.

So thats how sales funnels work, I hope you have found this interesting and that it helps you get your head around how an online business can help you bring in some more money. This can work in any niche, so start by creating your lead magnet and building your list. Get in touch if you have any questions, or leave me a comment below.

Bye for now 🙂


2 thoughts on “What Is A Sales Funnel?

  1. Hi Vicky, a nice article outlining the anatomy of a sales funnel!

    What is often overlooked is actually planning and determining your Value Ladder first (lead magnet, products, upsells, downsells, all the way to your top ticket option), then building your sales funnel to align to your Value Ladder…

    Looking forward to reading more from you!

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