What is a sales funnel, I have so many questions regarding sales funnels that I thought I should get into this and do a complete deep dive into sales funnels and why they are important to your digital marketing.
Even though it is well known that I love chatbots, and in particular chatammo, I am not so biased that I can’t see there are many places to use funnel software. And when funnels and chatbots are combined, you are at the perfect sales oppotunity.
In this series, I would like to deep dive into funnels and give a complete masterclass on funnels and using sales funnels.
The easiest way to think about this series is a little like one funnel away challenge that The great Russell Brunson markets so well. However, within these posts, I will be using Groove. Still, any funnel system can be used, and you will be able to get similar results.
I will be using Groove because I switched over from both Clickfunnels and Kartra around a year ago. I can honestly say that this is the best funnel system that I have used. And the most complete, with everything you need for your marketing. In one suite of tools that don’t need to be coerced into working together.
From Beginner To Advanced
Although I will be going into many advanced techniques. I will also be making this guide easy to follow, even if you have never heard of a sales funnel before. By the time you have finished, you will know how to implement a funnel no matter which business model you would like to follow.
My plan in this masterclass is to help you maximize the full potential of your funnels and use them effectively.
Planning Your Funnel
So let’s begin to dive in. When faced with building a sales funnel, many people will simply start with their canvas and begin to build. But, unfortunately, this is not the best way to build a successful funnel.
There are many considerations when building your funnel, the first of which is to decide your campaign length.
Will your sales funnel be
- Limited Time Funnel
Suppose you are looking at an evergreen funnel. In that case, this will usually be a funnel that you are running ads to, such as Facebook ads, and may well include an affiliate program. Perhaps you would even be thinking about using butterfly marketing within your funnel. (which can only be built within Groove.
With evergreen funnels, it is worth thinking not only about the ads being run to it. But the automation you can be run from your funnel. To both cut down on your workload and increase your profits.
A limited-time funnel is better suited to product launches and the like. These aren’t going to be running for a long time. I use limited-time funnels for launch jacking and if I am launching a software, which is perfect for using the FOMO to sell a product or service.
What Is Your Sales Funnels Goal
There are many outcomes that your sales funnel, and it is important to know what your priority is from the beginning.
What is it that you want to achieve from your sales funnel?
- Email List
- Customer Attraction
- Make Money
- Recurring Income
- Launch A Product
- Get affiliates
The choices are almost endless, and each is better suited to a particular funnel type. This is something my team and I have often had discussions about.
Perhaps we are about to launch a new product and want to know about it, so maybe we are looking for affiliates to help us promote and get our product better known. If, for example, we enjoyed a lot of affiliates quickly and wanted our product out there fast, we could even offer something ridiculous such as 150% commissions. Many businesses do this in the CPA space, as they have worked out the lifetime value of their clients.
If your goal isn’t to make money straight away, this could prove to be a good option for you, as suddenly your product would be everywhere and increase awareness. This would be a brand launch funnel.
List Building Funnel
Alternatively, you may want to build your list, which is another desire that should be kept high, particularly when starting your digital marketing journey. For list building, it usually is best to offer something of great value as an ethical bribe. So you are doing an exchange.
You are saying that if you give me your email address, I will provide you with this great thing for free, called a lead magnet. This is completed by using a squeeze page which will firstly collect email addresses before sending the viewer to your offer.
We have found tremendous success using our chatbot to replace the standard email collection and still lead the person to the rest of the funnel. This, in my opinion, is a much better idea as it builds your email list and your messenger list. Where Facebook will actually give you the email address that the person used to join Facebook, and so cutting down and the false emails you may have been given before
But of course, funnels can also be built to bring you money in faster. With a funnel that is being built for this purpose, there is even more to consider. The price point is one of many.
What would you like to charge? What is your product or service worth?
Should you be building a price point at $27, $97, or even $1997?
You should consider whether you want to bundle all of your upsells together and make just a front-end offer. How would your market respond if you bundled everything together? Then would your refund rate also increase? Generally speaking, it is easier to get to the million-pound launch that we all aspire to when you push the price point up.
Perhaps you want recurring income, and if you have historical data, this will help you get a price point. That customers pay monthly and give you a constant wage.
However, if you are charging monthly, you will not get the same amount of sales as you would charging lifetime.
Monthly Or Lifetime Deal
Now, as a bit of a side note here. When trying to price your lifetime offer, it is essential to know the lifetime value of your customers. So if we were to take Groove, for example, if Groove is charging $1397 as they were before, they would look at how long their customers will stay with them. At $99 per month, they need their customers to stay with them for fourteen months to make the same money.
Now added to that, many people will see the lifetime and will be more willing to sign up to that as opposed to paying a month in and month out. If Groove had a customer who signed up monthly but then canceled after one month. They would now need another customer to sign up and stay with them for at least 23 months to recoup what they would have lost as a one-time payment.
Now, if we were to look at my software, Chatammo, if I have somebody who cancels after their $1 trial. It could take me having another user for one year to recoup what I would have made if I had used a one-time payment.
Another bonus on a one-time payment is, your affiliates will get a large payout from the one-time sale. Which will encourage affiliates further to really push your software.
If the software was priced at $1,000 lifetime, the affiliates would be receiving a $400 commission. Which is good, and on first thought, it could be seen as better when next to recurring. So we say $100 your affiliates would get $40 per month, but that would be every month as long as their referral stays on the software.
Using an exit pop-up needs to be considered very carefully. But, yes, they are a great idea for building your email list and sending people onto another offer, or maybe just a last bite of the apple.
But several marketing platforms do not like them. (most notable is Facebook) so if you are running a pop-up, please make sure that you also build an alternative page that will make the anti-pop-up platforms happy.
I would personally build separate funnels. One just for Facebook that would not have a pop-up on it, keeping us in line with the Facebook rules. Groove gives you unlimited funnels on its plan. It so saves you from having to pay considerable amounts to the likes of Clickfunnels in the future.
One great way to use a pop-up is to combine it with Groovevideo, so you could have a sales letter page where you would have placed a video with Groove.
You could then say something along the lines of hey, if you would like a free report, then click the button in this video. Of course, this wouldn’t collect as many emails for your list building. But it would give you a much more buyer intent set of emails gathered.
Your next list to consider is your buyer’s list. These people have already purchased your product and so should be well on their way to know, like, and trust you. And so makes it much easier to resell to these people. A buyers list is your highest value list and something that you would want to keep separate from your other lists.
Now there are many ways of building a buyers list, where somebody would land on your page, take the ethical bribe and then continue onto your offer. If they then go on buy the offer, this is where they should be changed from your lead gen list to your buyer’s list.
Some Examples Of How Buyers Lists Are Built
Several high-profile marketers concentrate on building their buyers list. Russell Brunson does a beautiful job with his self-liquidating offer. This consists of a free plus shipping model, where Russell will offer one of his many books, which are free plus shipping. This will have a tremendous conversion rate on the ads, and basically, the book sales will also pay for the ads. Thus, leaving Russell with a list of people who have already bought something. While the buyer is hot, they are moving them onto the upsells.
Another great example can be found within the affiliate marketing space and product launches.
There are many product launches every day and are listed on sites such as muncheye. Now at first look, these releases all look pretty similar. However, the truth is so much different. You will see the same affiliates winning almost every competition, and the reason is simple, they have a buyers list. So let’s just break that down a little.
We will take the example of Jono Armstrong. Now Jono builds many products and releases (most of which aren’t high quality) and then releases these out to affiliates. He will often have a competition and prizes for who has sold the most to encourage his affiliates to sell.
Each of the affiliates who sell will drive traffic to Jonos sales page, and once they have bought, they will be added to Jono’s buyer’s list.
As a side note, while they are in the buyer’s mood, they will also be shown up-sells and down-sells to capitalize on their spending. This means that the affiliates are building Jono’s list for him. So when Jono becomes an affiliate for another vendor’s products, he has a massive list to send out his offers.
Follow a few of these competitions on mucheye. You will quickly see that the winners of these competitions are all vendors who often release products.
So What Kind Of Funnel?
Hopefully, this brief overview of funnels has given you some idea of why it is important to think before building the funnel and think about what your goal is going to be.