How A Sales Funnel Works?

You’ll use various methods to send people to your website. These methods might be paid advertising, social media marketing, media buys, link swaps and so forth.


The visitor enters their email address in exchange for your free offer.


That new subscriber automatically receives the free offer, and this part is important: They are redirected to a special offer. This offer is usually something that is steeply discounted and extremely limited time-wise.


If the new subscriber purchases, they’re placed on the customer list. Otherwise they stay on the lead list. Either way, they continue to receive content and promotions from you every day or two, automatically via the autoresponder.




This could be one of the biggest reasons new marketers don’t create affiliate funnels – they don’t know how to fine tune those funnels to make the most money. But the money is in the tracking, because by tracking you know what’s working, what’s not and what needs improving.


You can track everything in your business, and by tracking, you turn your funnel from guesswork into a scientific process that tells you exactly what to do to maximize your profits.


Imagine you’ve got two different versions of your offer and you test both. Version A is making half the sales of version B, so what do you do? You eliminate Version A, send all your traffic to Version B and begin testing to improve Version B even further. Using this method your business is guaranteed to improve over time – It’s that simple.


If you don’t track and test, then every sale you get will be from sheer dumb luck. In addition, you will be leaving more money on the table than you can even guess. Not only do you lose all the profit you would have made from the increased conversions, but you also lose all the profit you could have made by reinvesting the extra profit into more traffic. Think about that.


What You Need To Know:


EPC – Earnings per Click. This is the money you make versus the number of people that clicked over to your page. So if you make $246 for every 100 people who visit your page, then you’re making $2.46 per click. 10 clicks = $24.60 and 100 clicks = $246.


Why knowing your EPC is important: If you know that statistically speaking, every time someone lands on your page you’re making $2.46, then you know exactly how much you can spend per click to drive prospects and stay profitable.


One note: Your EPC might only include the money you earn immediately from your sales funnel – generally from your one time offer. Or if you’re able to track for a period of time, you’ll know what your EPC is for the lifetime of your customers, also knows as the…


LCV – Lifetime Customer Value. The average dollar amount that every lead is worth. This number will be significantly higher than the initial EPC you earn from your list building one time offer.


When you know how much money you’re making, you know how much you can spend on advertising. So let’s say, factoring all the purchases they make, that your average customer is worth $50. This means you can spend anything up to this amount on advertising to acquire your new customers and you will still make money.


CPL – Cost Per Lead. How much it costs to get a lead into your funnel. If you spend 10 cents to send a lead to your opt-in page, and 1 in 5 of those leads opts into your list, then you are spending 50 cents for each lead.


IMPORTANT: LCV – CPL = Your Profit. If your lifetime customer value is $50, and you’re paying $5 per lead, then your profit is $45.


Break Even Point – This is the point in your sales funnel when you break even. You can calculate this by knowing what your CPL is and what the average conversion rate is on each offer you make in your sales funnel. Depending on the offers you’re making, your conversion rate and your CPL, you might break even the same day you get a new lead by immediately selling them on a one time offer. Or the break even point might be when you make the second offer a couple of days later, or the third offer after that. By knowing your break even point, you know when you will recoup your money and when you will be in profit on the average lead.


The faster you can reach your break even point, the faster you can grow your business, because the faster you can reinvest your money into getting more leads. Thus you want to tweak your funnel to reach the break even point as fast as possible without alienating your new leads with offers.


The best way to reach your break even point in the least amount of time is to make an incredibly great one time offer the moment they join your list. This offer should be such a great deal that it’s hard to resist, so you want to give far more value than the small amount of money you’re asking for. And placing a countdown timer on the offer will further increase conversions.


These numbers are crucial to your success. Knowing them and improving them are the absolute key to building a long term thriving business, because you know exactly what you can spend to get leads while still making a good profit. On the flip side, guessing what your numbers are or simply not knowing is the fastest way to failure in building a sales funnel.

Picking The Right Market


There are 3 types of markets you can target: Passion, Pain or a Combination of the two. A passion market is something that people passionately pursue and spend money on, like hobbies. The more expensive the passion, the better. A pain market is one that solves a problem, like weight loss. And a combination market is a mix of the two. For example, it could be the dating niche where people are desperate to meet someone, but once they do, they have a passion to make the relationship work.


When dealing with a pain market, the bigger the pain the greater the urgency to solve the pain, and the easier it will be to convert. People who want to solve a problem right now are ready to buy right now. But when it comes to passion markets, it’s best to create a greater sense of urgency by having sales that expire.


Pick a market that is big enough that you don’t run out of prospects or advertising options, and small enough that you can solve specific problems for them. Also, choose something evergreen. Obviously gardening or Christmas décor is very seasonal, while Internet marketing changes so fast your funnel will be outdated in six months. Instead, pick something people need year round that doesn’t change greatly from one year to the next, such as dating, weight loss, parenting and so forth.

Download for FREE my most recent ebook titled “5 Killing mistakes You Make With your Sales Funnels” and learn how to avoid them on yours.

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To yours success

Hector jayat

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