sales and marketing funnel
If you are planning to start an online business you need to think on a much larger scale than where your mind may be now and map out your long term business plan. Multi-million dollar businesses are not built on selling $47 ebooks alone. There are many more rungs to the profit ladder, and massive fortunes to be made if you structure your business the right way.
The $47 ebook has its place, but its not where your real profits lie.
If you were to play Napolean Hill and go out and interview the most successful online business owners you would find that all have the following in common.
They have built a powerful marketing sales funnel.
This is what that funnel looks like:
Phase 1, Free Stuff – Give away something of value in order to capture as many leads as possible into your sales funnel. Heck, it can even be the most valuable information you have to offer. Think about it, when your audience sees how valuable the stuff is that you’re giving away, in their minds they are thinking…”Wow, if the stuff he or she is giving away is this good, then the stuff he or she is selling must be phenomenal!”
This could be in the form of a special report, white paper, audio, video, free consultation, coupon, etc. It really doesn’t matter as long as the info addresses a pain that someone in your market want to alleviate.
This phase is the most vital because this is where you build a massive list that you can build a relationship with and sell to over and over again.
Phase 2, Low Price Product Offer – This is where you start to ask for money. It could be in the form of an ebook, or a recorded audio or video interview, or an inexpensive physical product, or whatever. This component of your funnel is ideally price in the $10 – $50 range.
Phase 3, Mid Range Product – This might be some type of starter level boxed training course. The price range here should be in the $100 – $500 range.
Phase 4, Continuity Program – This is where you sell something once and get paid every month. Think about the old Columbia House CD or DVD clubs. “Get 6 for 1 penny and then only $19.95/mo”. This might be a newsletter subscription, access to a membership site, or an auto-ship of a physical product like a weight loss supplement. Price range here could be anywhere from $19.95/mo to as high as $295/mo.
Phase 6, Level 1 Backend Product – This would be an in-depth, Big Box training product with multiple CDs, DVDs, manuals, workbooks, checklists, etc, or maybe a 1 day workshop. Ideal price range for this level 1 product would be $1,000 – $2,000.
Phase 7, Level 2 Backend Product – Here is where we definitely kick it up a notch. This could be a high level coaching/mentoring program or maybe a 2-3 day seminar. Price point here could be anywhere from $3,000 – $10,000.
Phase 8, Level 3 Backend Product – Ok, this is the ‘Mack Daddy’…the ultra exclusive, ultra high level coaching, training, or certification program. These high level offering demand prices of $15,000 – $25,000 or more.
Phase 9 and beyond – Once you’ve reached this level you can really write your own ticket. You’ve proven your worth and can now command thousands per hour in consulting fees or maybe even tens of thousands for a speaking engagement.
When done correctly, 1 speaking engagement can literally be worth a quarter million dollars or more to your business in 60-90 minutes!
Ok, that’s it. You have the secret.
Want to be a millionaire in the next 5 years? Then print this out, tape it to your wall and make it your guide!
One more thing before you freak out, one important thing to note is that you don’t have to create all this stuff yourself! You can license other people’s stuff if you want. The important thing is that you are building that sales funnel.
The key to all of this from the start?
Build a loyal following, provide tremendous ongoing value, and build as much rapport as humanly possible. Everything else will fall into place.
In the coming days we’ll be talking about exactly how you do that…
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Don,
Great stuff! You’ve really moved the “free line” waaaaaayyyy back!