Wondering how to develop a powerful sales funnel?
That’s exactly what we are going to discuss today.
We will share tips that can help you get more leads, make more sales, and increase your revenue.
Ready to take your sales funnel to the next level?
#1 Use the Value Ladder Sales Funnel
We believe that the most effective way to sell online is the Value Ladder sales funnel.
It was developed by our co-founder Russell Brunson who used it to grow ClickFunnels from zero to $100M+ in annual revenue.
The Value Ladder sales funnel has four stages:
- Bait. You offer the potential customer your lead magnet in exchange for their email address. This stage is also known as the lead generation funnel.
- Frontend. You offer the potential customer your least expensive and least valuable product.
- Middle. You offer the customer a more expensive and more valuable product.
- Backend. You offer the customer your most expensive and most valuable product.
Ideally, there’s also a continuity program of some sort, meaning, a subscription product that generates recurring revenue.
The Value Ladder sales funnel works so well because it allows you to:
- Start the relationship with that person by providing free value.
- Nurture that relationship by continuing to provide free value.
- Build trust by providing progressively more paid value at each stage.
Here’s how Russell explains it:
Note that you only need a lead magnet + a frontend product to get started. You can build out the rest of the funnel over time.
#2 Develop a Product Line That Follows a Logical Progression
Talking about building out your sales funnel…
You want to make sure that:
- There’s a logical progression from one offer to another. You don’t want to sell several products that address the exact same problem (e.g. weight loss, weight loss, weight loss) but you also don’t want your product line to be all over the place (e.g. weight loss, travel hacking, online dating).
You need to pick a niche, then create a product line that serves as a “curriculum” for improving in that area (e.g. “weight loss, weight lifting for beginners, bodybuilding”).
- There are no jarring jumps in price. You don’t want to offer someone a free lead magnet, then hit them with a sales pitch for your $2,000 online course. It’s perfectly fine to have that as your backend product but you need to build trust before you make that offer.
We recommend you to price your frontend product at $7, your middle product at <$100, and your backend product <$500 when you are just starting out.
Once you build a solid reputation, then you can increase your prices.
Keep in mind that the smoother the transition from one offer to another, the easier it will be for you to convert leads into customers and customers into repeat customers.
#3 Create a Super Valuable Lead Magnet
A lead magnet is a freebie that you offer to the potential customer in exchange for their email address.
It can be anything that they can either download to their devices or access online:
- A report.
- An ebook.
- A webinar.
- An email course.
- A video course.
What matters is that your lead magnet:
- Offers an effective solution to a painful problem that the potential customer is struggling with.
- Addresses the same problem as your frontend product.
That way, your lead magnet serves not only as an incentive for the potential customer to subscribe to your email list but also as a free sample of the value that they can expect from the front-end product.
Matthew Hussey, a world-renowned dating coach, has a lead magnet called “9 Texts”which is a guide that includes nine text message scripts that women can copy-paste when messaging a guy they like.
And if a woman gets positive results with those nine text message scripts, she will likely be interested in checking out Matthew’s paid product called “The Momentum Texts” which provides 67 more scripts.
See how there’s a seamless transition from the lead magnet to the frontend product?
Also, as we always emphasize when we discuss lead magnets, your ideal customers won’t give you their email addresses unless you offer them something SUPER VALUABLE in return.
It doesn’t mean that your lead magnet has to be elaborate. “9 texts” offers just nine text message scripts, yet it gets women to sign up to Matthew’s email list. Why?
Because everyone who has tried online dating knows how challenging it can be to keep the momentum of a budding relationship via text.
In other words:
It’s a painful problem that Matthew’s guide offers an effective solution to.
#4 Create a Landing Page For Your Lead Magnet
A landing page is a type of web page that is designed with a single conversion goal in mind.
In the case of a lead generation landing page, that goal is to persuade the visitor to provide their email address.
The reason why your lead magnet should have its own landing page is that landing pages convert much better than regular websites.
So if you want to get the most out of paid traffic, you should direct it to your lead magnet landing page as opposed to your homepage. That way you’ll maximize the number of leads that you generate.
You can start with a squeeze page which is the most basic type of landing page.
Here are the three key elements that it needs to have:
- A headline that conveys how your lead magnet will make the potential customer’s life better.
- An opt-in form where the potential customer can type in their email address. It can be either displayed right from the get-go or shown after they click the call-to-action button.
- A call-to-action button that encourages the potential customer to get access to the lead magnet.
You can also add a subheadline, copy, social proof, etc.
Here’s an example of a simple yet effective squeeze page:
#5 Price Your Frontend Offer at $7
It’s important to understand that the purpose of your frontend offer isn’t to make you tons of money, it’s to convert leads into paying customers.
That’s why you want to make it a no-brainer – high value, low price. And by “low price”, we mean $7. Why?
Because it’s a sweet spot where the price:
- Isn’t so low as to make people question the value of the product.
- Isn’t high enough to make them stop and think twice before purchasing it.
Remember, the greatest challenge in any Value Ladder sales funnel is to convert leads into paying customers, which is why you want to remove all obstacles standing in the way of that.
And that starts by setting a price that ensures that anyone can afford to buy that product.
Remember the previously mentioned Matthew Hussey’s “The Momentum Texts” product that offers 67 copy-paste text message scripts?
Well, guess what?
It costs $7!
#6 Add Upsells and Downsells
Want to maximize the revenue of your sales funnel?
Then you need to add an upsell and a downsell to each offer.
What Is an Upsell?
An upsell is an offer that you make to the potential customer after they have accepted your initial offer. It should be an upgrade that is more expensive.
Arguably, the most famous upsell in history is McDonald’s “Would you like to supersize that?”
Here are some upsell ideas:
- Increase the quantity. This works well for physical products.
- Offer a subscription. This works well for physical products that need to be purchased on a regular basis (e.g. supplements, hygiene products, etc.)
- Provide more features. This works well for software.
Keep in mind that the upsell needs to be a no-brainer – make sure that it’s an amazing deal for the customer.
What Is a Downsell?
A downsell is an offer that you make to the potential customer after they have rejected your initial offer. It is a downgrade that is more affordable.
A classic example of a downsell is when a car salesman starts by pitching their most expensive car but then begins suggesting less expensive cars if the potential customer rejects the initial offer.
Here are three tips for creating an effective downsell:
- Do not discount the original offer. That only trains people to never pay the full price for your products.
- Create a separate downsell offer. Each core offer should have its own downsell offer that makes sense.
Say, if someone rejected your comprehensive online dating course ($257), they might still be interested in an ebook that explains how to optimize their dating profile ($7).
- Price it at $7. Again, this is a price point that’s high enough to make the product seem valuable but low enough to not make the customer stop and think twice about purchasing it.
#7 Add a Continuity Program to Your Sales Funnel
Want to add more stability to your business?
Then consider creating a continuity program. What subscription product can you offer to your customers?
Typically you need at least one of these elements to make it work:
- Exclusive access to you. Personal coaching is the obvious option here. Alternatively, you can also hold Q and A livestreams, which might make sense if offering one-on-one consultations is not viable due to time constraints.
- An exclusive community. Membership websites are the obvious option. However, paid Slack groups are becoming increasingly popular, so it might be something worth considering.
It’s important to take subscription fatigue into account – most of us already feel that we have way too many subscriptions.
SaaS apps, streaming services, Patreon, etc. all add up, so people are understandably hesitant to add yet another subscription to their monthly expenses.
That’s why while subscription products are more lucrative, they are also much harder to sell than single-payment products.
Moreover, you have to deliver enough value every month to persuade the customer to renew their subscription.
So if you decide to create a continuity program, make sure that you are prepared to put in the work required to make it sustainable.
#8 Continue Providing Free Value via Email
Just because the potential customer has rejected both your frontend offer and the downsell, it doesn’t mean that they will never buy anything from you.
It might be that they don’t trust you enough yet, or they can’t afford your products at the moment, or they just don’t need a solution to that particular problem right now.
However, if you continue to provide free value via email by sharing advice, resources, and links to interesting content, you will strengthen the relationship that you already have with that person.
And then, if one day they decide that they are ready to invest in a solution to that problem, who do you think will be the first person that comes to their minds?
#9 Test Your Sales Funnel With Paid Ads
It’s tempting to think that you “just know” that your sales funnel will work.
But the truth is that you can’t possibly know whether your sales funnel works until you test it.
That’s why we recommend you to test every new sales funnel with Facebook ads before you start pouring money into marketing.
Set a small daily budget, start driving traffic to your lead magnet landing page, then sit back and watch what happens.
Is your sales funnel profitable?
Then start scaling your ad campaign.
Otherwise, go back to the drawing board, make adjustments to your funnel or create a new one from scratch, and repeat the testing process.
And keep in mind that it’s completely normal to have to test several offers until you find one that resonates with your ideal customers.
#10 Keep Optimizing Your Sales Funnel!
There’s no such thing as a perfect sales funnel. That’s why you should always be looking for ways to make yours better.
Here’s an overview of the conversion rate optimization process:
- Analyze your sales funnel data. What is its weakest link?
- Take a closer look at that weakest link. What is the problem and how can you fix it? Come up with ideas for improving the conversion rate.
- Use A/B testing to see if implementing those ideas leads to an increase in the conversion rate.
Once you have fixed the weakest link, identify the next weakest link. And so on.
This conversion rate optimization processs can help you 2x, 5x, or even 10x your sales funnel profits.
Here’s how Russell explains it:
Want Russell To Teach You How To Build Your First Sales Funnel?
Let’s keep it real:
Building a sales funnel from scratch can seem like a daunting task.
That’s why we created our 5 Day Challenge where Russell walks you through it step-by-step.
You will learn how to:
- Generate unlimited leads.
- Create your first lead magnet.
- Build your first sales funnel.
- Create a simple 6-email follow-up sequence.
- And launch your funnel!
…in just five days.
So don’t hesitate.